Dantherm
Interim report for H1 2014

DGAP-News: Dantherm

29.08.2014 / 15:44

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Skive, Denmark, 2014-08-29 15:44 CEST (GLOBE NEWSWIRE) -- 

Dantherm's continuing operations realised revenue of DKK 138m in H1 2014
against DKK 158m in H1 2013. Due to the lower revenue, an operating loss (EBIT)
of DKK 7.4m was posted against a profit of DKK 1.1m in H1 2013. Activity levels
are expected to increase in H2 2014, where activity levels are traditionally
higher, and the outlook for the year is maintained. Closing related to the
divestment of the Telecom business segment is still expected to be completed in
near future. 


Torben Duer, President & CEO:

'H1 2014 was weaker than expected, primarily due to lower revenue within
dehumidification and Telecom spare parts sales, while ventilation posted growth
in sales. Completion of the divestment of the Telecom business segment is
expected in near future and the focus is thus on the strategic development of
the remaining business areas with a view to increasing revenue and
profitability.' 



Divestment of Telecom business segment

  -- As mentioned in company announcement no. 9 of 5 August 2014, the closing
     related to the divestment of the Telecom business was expected to be
     completed in near future. This is still the expectation.
  -- On a debt-free basis, the selling price is expected to be approx. DKK 136m,
     which is expected to lead to an accounting loss in 2014 of approx. DKK 15m
     (DKK -14.4m of which was recognised in H1 2014), including costs for the
     sales process and the impact on results in 2014 of the divested activities
     until closing.

Development in Q2 2014

  -- Revenue from continuing operations totalled DKK 69m relative to DKK 80m in
     Q2 2013.
  -- An operating loss (EBIT) of DKK 2.8m was posted for the continuing
     operations against an operating profit of DKK 2.1m in Q2 2013.
  -- Cash flows from operating activities were negative at DKK 2m against
     positive cash flows of DKK 7m in Q2 2013.

Development in H1 2014

  -- Revenue from continuing operations came to DKK 138m against DKK 158m in H1
     2013.
  -- An operating loss (EBIT) of DKK 7.4m was posted for the continuing
     operations against an operating profit of DKK 1.1m in H1 2013.
  -- Cash flows from operating activities were negative at DKK 4m against
     positive cash flows of DKK 1m in H1 2013.

Financial structure

  -- In February 2014 Dantherm concluded its agreement with the primary credit
     institutions on extension of the existing committed facilities until 31
     March 2015. The agreement comprises the usual covenants. The covenants on
     June 30 2014 were calculated under the assumption that closing related to
     the divestment of the Telecom business segment was completed before this
     date. Due to delay in the closing process Dantherm was not able to meet
     these covenants and has received a waiver. Dantherm is in a good dialogue
     with its credit institutions on the credit facilities and closing is still
     expected to be completed in near future.
  -- After closing of the divestment of the Telecom business segment, Dantherm
     will settle the facilities related to operations under the committed
     facilities agreed with the credit institutions, and net interest-bearing
     debt will be reduced to approx. DKK 90m (year-end 2013: DKK 203m), which is
     primarily associated with property financing in Denmark and Norway.

Outlook for 2014

Dantherm is maintaining the outlook for the year of revenue of DKK 300-325m
from the continuing operations and an operating profit (EBIT) of DKK 5-10m. 

H1 2014 has been weaker than expected. The activity level in H2 2014 is
traditionally higher.  Realising the outlook for 2014 requires a little higher
revenue in the remaining part of 2014 compared to H2 2013 and a better
operating profit (EBIT) as a result of cost reductions carried out. 

Any enquiries concerning this announcement can be directed to President & CEO
Torben Duer on tel. +45 99 14 90 14.
News Source: NASDAQ OMX



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29.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English       
Company:     Dantherm      
 
 
             Denmark       
ISIN:        DK0010223692  
 
 
End of News    DGAP News-Service  
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284785 29.08.2014