Solar A/S
No. 10 2014 Quarterly report Q1 2014

DGAP-News: Solar A/S /

15.05.2014 / 07:44

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As at 24 April 2013, Solar A/S sold the subsidiary Aurora Group Danmark A/S.
Hence, the stated figures for 2013 and 2014 in this announcement relate to the
continuing activities. 

The Solar Group's Q1 2014 revenue and EBITA matched our expectations. We
maintain our expectations for revenue and EBITA for 2014. 


CEO Anders Wilhjelm says:
'Most of our enterprises generated positive organic growth in the first quarter
except the enterprises in Denmark and the Netherlands, and we maintain our
financial expectations for the year. We continue to focus on improving
operations and increasing customer focus.' 


Select financial highlights          EUR million           ~ DKK million    
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                                  Q1     Q1     Year     Q1     Q1    Year
                                2014   2013     2013   2014   2013    2013
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Revenue                        378.4  375.5  1,531.5  2,824  2,801  11,422
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EBITA                            2.9   -3.9     21.7     22    -29     162
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Earnings before tax             -1.0   -7.8      5.5     -7    -58      41
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Cash flow from operating act.  -21.5  -31.6     35.1   -160   -236     262
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Select key figures                       %                     %          
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Organic growth                   3.9  -10.5     -5.9    3.9  -10.5    -5.9
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EBITA margin                     0.8   -1.0      1.4    0.8   -1.0     1.4
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Net working capital/revenue*    13.0   14.1     13.5   13.0   14.1    13.5
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* Calculated as an average of the last four quarters' inventories, debtors and
creditors. 


Revenue in Q1 2014:

  -- Group revenue matched our expectations.
  -- Adjusted for the number of working days, organic growth in 
Q1 2014 
was 2.3%
.


EBITA in Q1 2014:

  -- Group EBITA matched our expectations.
  -- In Q1 2014, a EUR -0.4m adjustment was made to the variable part of the
     selling price of Aurora Group. This amount was recognised under other
     operating income and costs.
  -- In addition, EBITA was as expected negatively affected by Solar 8000 costs
     of
     EUR 0.7m against EUR 0.9m in Q1 2013.
  -- In Q1 2014, no restructuring costs were recognised, whereas Q1 2013 EBITA
     was affected by restructuring costs of EUR 4.2m.


Net working capital:

  -- Net working capital was reduced to 12.7% of revenue, down from 13.7% in Q1
     2013. When stated as an average of four quarters, net working capital was
     reduced to 13.0% of revenue from 14.1% in Q1 2013.
  -- Efforts to reduce net working capital will continue. Stated as an average
     of four quarters, our target for 2014 is to get net working capital to 13%
     of revenue. Moreover, we expect net working capital of 11% of revenue at
     year-end 2014.


Expectations for 2014:

  -- For 2014, we still expect revenue of EUR 1,465-1,510m and EBITA of EUR 25-32m.
  -- Expectations for 2014 EBITA include restructuring costs and Solar 8000
     implementation costs totalling approximately EUR 3m. Adjusted for these,
     normalised EBITA is expected at EUR 28-35m.
  -- The lower expectation levels equal negative growth of approximately 2.5%,
     while the upper levels equal positive growth of approximately 0.5%.
  -- We will continuously implement improvement measures in several group
     enterprises to adjust cost levels to the current market situation as a
     result of our expectations for continued low market growth.
  -- We still expect to roll out SAP in Solar Sverige in Q2 2014.


Q1 presentation - audio webcast and teleconference today
The presentation of Quarterly Report Q1 2014 will be transmitted online in
English from NASDAQ OMX Copenhagen today at 11.00 CET and will be accessible
via www.solar.eu. It will be possible to participate via teleconference - see
phone numbers below: 


Participants from Denmark: tel. +45 32 72 80 18
Participants from Great Britain: tel. +44 145 255 5131
Participants from the USA: tel. +1 866 682 8490
International participants: tel. +44 (0) 145 255 5131


Yours faithfully
Solar A/S

Anders Wilhjelm


Attachment: Quarterly report Q1 2014 page 1-22



Facts about Solar
Solar A/S was established in 1919 and listed on the Copenhagen Stock Exchange
in 1953. Solar is one of Northern Europe's leading sourcing and services
companies within electrical, heating, plumbing and ventilation products. The
group, based in Kolding, Denmark, has subsidiaries in Denmark incl. the Faroes,
Sweden, Norway, the Netherlands, Belgium, Germany, Poland and Austria. In 2013,
Solar Group revenue totalled EUR 1,531.5m, equating DKK 11.4bn. The group
currently has some 3,300 employees. 

For more information, please visit: www.solar.eu.


Disclaimer
This announcement was published in Danish and English today via NASDAQ OMX
Copenhagen. In case of any discrepancy between the two languages, the Danish
version shall prevail.
News Source: NASDAQ OMX


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Language:    English       
Company:     Solar A/S     
 
 
             Denmark       
ISIN:        DK0010274844  
 
 
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268612 15.05.2014