Gamma Holding continues positive trend
(Thomson Reuters ONE) -
* Turnover: ? 371 million (first half of 2009: ? 322 million)
* EBITDA1 excluding restructuring expenses surges to ? 48.5 million (first
half of 2009: ? 25.6 million)
* EBITA2 excluding restructuring expenses and impairment shows a sharp
increase to ? 33.7 million (first half of 2009: ? 11.0 million)
* Restructuring expenses: ? 6.6 million (first half of 2009: ? 9.3 million)
* Net group result: ? 1.4 million (first half of 2009: ? -53.3 million)
?The positive trends that tentatively emerged at the end of last year have
clearly been prolonged in the first half of 2010. Our lower cost basis and the
recovery of the majority of the markets in which we operate have led to a
further improvement in income. Barring unforeseen circumstances, we expect the
positive trend to continue in the second half of 2010.'
Jan Albers, CEO
Half-year report of the Executive Board
Turnover rose in the first six months of 2010 by 15% to ? 371 million (first
half of 2009: ? 322 million). This includes a positive effect of ? 5.7 million
arising from currency movements.
EBITDA1 of the group excluding restructuring expenses increased by 89% from ?
25.6 million in the first half of 2009 to ? 48.5 million in the first six months
of 2010. Currency movements had a positive effect of ? 0.9 million.
EBITA2 excluding restructuring expenses and impairment tripled to ? 33.7 million
(first half of 2009:
? 11.0 million).
The restructuring expenses, which related mainly to Clear Edge Filtration,
totalled ? 6.6 million (first half of 2009: ? 9.3 million). There was no
impairment of property, plant and equipment and intangible assets in the
reporting period (first half of 2009: ? 22.1 million).
Financial income and expense came to ? -17.8 million (first half of 2009: ?
-17.3 million). Income tax totalled ? -6.9 million (first half of 2009: ? -1.8
million). The effective tax rate in the first six months of the year was 83%
(first half of 2009: -5% on a loss before income tax). This high effective tax
rate is mainly due to tax losses that cannot be offset, principally in Europe,
in combination with a relatively low result before taxation.
The net group result improved in the first six months to ? 1.4 million (first
half of 2009: ? -53.3 million).
Developments per business unit
The turnover of Ammeraal Beltech (including PTFE) increased by 14% to ? 135.0
million (first half of 2009: ? 118.7 million). EBITDA1 excluding restructuring
expenses came to ? 13.6 million (first half of 2009: ? 5.2 million). The
business unit benefited from a recovery in the United States and Asia, while the
European market also picked up slightly. There was a consequent increase in
sales of, in particular, modular belts, timing belts and lightweight rubber
belts. Ammeraal Beltech developed, specifically for the food industry, Soliflex
PRO, a new series of durable, hygienic, homogeneous, solid belts which, thanks
to a unique combination of materials and drive lugs on the underside of the
belting, is extremely easy to clean and is hence cost-saving. In addition, the
AmWrap, belting that is especially suitable for coil wrapping of hot aluminium
sheeting, was brought onto the market.
At Clear Edge Filtration turnover increased by 19% to ? 54.4 million (first half
of 2009: ? 45.5 million). EBITDA1 excluding restructuring expenses totalled ?
6.8 million (first half of 2009: ? 0.3 million). Demand for filtration products
rose in Asia Pacific and America. The extra focus on Original Equipment
Manufacturers (OEMs) and targeted end users, as well as the benefit of lower
operating expenses, contributed to the positive result. In order to become
stronger, more cost-competitive and more market-focused than the competition, it
was decided to close the Swedish facility and to transfer the manufacturing
activities to the central weaving plant in Germany. In that context, the
activities of the R&D centre in the UK have also been transferred to the German
site. The closure of the Swedish facility will lead to the loss of approximately
80 jobs. This consolidation process is expected to be completed by early 2011.
The turnover of Dimension-Polyant increased by 24% to ? 21.6 million (first half
of 2009: ? 17.4 million). EBITDA1 excluding restructuring expenses rose to ?
3.0 million (first half of 2009: ? 2.0 million). The facility in Sri Lanka,
which was opened last year, performed well. Demand for high-quality sailcloth
showed an increase, while the OEM market, the cruising and the wind surfing
segment also picked up. In the first half year of 2010 the business unit
launched successful innovations. Dimension-Polyant developed, for example, a
ground-breaking sailcloth which consists of 80% recycled fabric.
The business unit also launched a lighter and lower stretch type of high quality
surfing sailcloth.
The turnover at Bekaert Textiles increased by 25% to ? 75.9 million (first half
of 2009: ? 60.7 million). EBITDA1 excluding restructuring expenses improved from
? 6.0 million in the first six months of 2009 to ? 13.8 million in the first
half of 2010. The business unit has clearly benefited from the radical
cost-saving measures that have been taken in recent years. Upward trends, mainly
in North and South America, and successful new products helped drive the
recovery. The business unit increased production capacity in the United States
and launched, among other products, 'Second Life', a new collection of mattress
tickings made of yarns of recycled polyester. 'Becool' was also brought onto the
market, a new moisture-absorbent, fast-drying and temperature-regulating
mattress ticking.
The turnover of Vlisco Group rose by 6% from ? 79.9 million in the first six
months of 2009 to ? 84.4 million in the first half of 2010, partly thanks to
higher volumes at Vlisco and Uniwax. EBITDA1 excluding restructuring expenses
totalled ? 12.9 million (first half of 2009: ? 12.6 million). The business unit
successfully opened a flagship store for its top brand Vlisco in the Congolese
capital Kinshasa and brought onto the market both a complete line of handbags
and two new collections of fabrics. Vlisco also made a contribution to the world
exhibition in Shanghai, which is still running until 31 October. Additional
promotional activities were also carried out for Uniwax, including a special
campaign to mark the fiftieth anniversary of Cote d'Ivoire. GTP introduced a new
three-colour fabric called Nustyle, thus taking a first step in its
repositioning to four sub-brands based on consumer use. As part of its strategy
of becoming a pan-Africa fashion retailer, Woodin opened its tenth store in
Ghana at the Golden Tulip hotel in Accra.
Financial information
The balance of interest-bearing liabilities at the end of the first half of
2010 was ? 282.1 million (year-end 2009: ? 259.5 million). This higher figure is
principally due to a negative currency effect and increased working capital. The
net interest-bearing liabilities/EBITDA1 ratio improved from 4.2 at year-end
2009 to 3.3 and thus remained well below the bank covenant of 4.7.
Purchase of property, plant and equipment in the first half of the year totalled
? 16.0 million (first half of 2009: ? 8.5 million) and were mainly within
Bekaert Textiles. On the other hand, divestments totalled ? 8.6 million (first
half of 2009: ? 0.5 million) and related mainly to the sale of real estate. In
Belgium the sale of a large part of the former industrial site in Waregem was
completed. This property was encumbered with a mortgage to cover a tax claim
from the past. This mortgage has been replaced with a bank guarantee of ? 7.6
million, for which cash equivalents serve as security. The net purchase of
property, plant and equipment came to ? 7.4 million (first half of 2009: ? 8.0
million).
Trade working capital rose in the first six months from ? 180.0 million at
year-end 2009 to ? 208.3 million in 2010. Trade working capital as a percentage
of turnover came to 28.0% (first half of 2009: 30.7%). Currency movements caused
trade working capital to increase by ? 15.5 million in the first half of the
year. The organic increase in trade working capital was ? 12.8 million.
Total equity stood at ? 81.4 million (year-end 2009: ? 73.9 million). On the
reporting date, total equity as a percentage of the balance sheet total was
13.5% (year-end 2009: 13.8%).
Strengthening of the financial position
Gamma Holding has been approached in the recent period by various parties who
have shown interest in acquiring the activities of Vlisco Group. In order to
strengthen the Company's financial position, the possibilities of such a
transaction are at present being investigated with one party.
Risk management
Gamma Holding attaches great importance to risk control. To increase risk
awareness within the group, to gain a better understanding of the existing risks
and to control identified risks more effectively, the Company has a structured
system for risk management. This system, as well as the risk profile and the
main risks, have been described in the 2009 annual report. The nature and
possible scale of these risks are also applicable to the second half of 2010.
The following should be noted in this connection:
* A downturn in the economy may lead to lower volumes.
* An upturn in the economy may lead to rising prices for energy and raw
materials and hence to increasing pressure on margins.
* The Company's improved foundations should have a positive effect on new
financing conditions.
Gamma Holding continually monitors the identified risks and will continually
follow developments where new risks can arise and identified risks can change in
the second half of 2010.
Other developments
Reappointment as member of the Supervisory Board
On 29 April 2010, the General Meeting of Shareholders of Gamma Holding N.V.
re-appointed Mr J. Zuidam (61) as a member of the Supervisory Board. Mr Zuidam
has already been a member of the Supervisory Board of Gamma Holding for eight
years. The re-appointment is for a period of four years, extended to the first
General Meeting of Shareholders after that period.
Acquisition of shares by Gilde
On 17 June 2010 Gilde Buy Out Partners ('Gilde') acquired 1,456,859 shares of
Gamma Holding, which corresponds to an interest of approximately 19%, at a price
of ? 18.65 per share. The investment company purchased these shares from three
large investors: ASR, Delta Lloyd and Allianz. The Executive Board of Gamma
Holding was not involved in this transaction. On 18 June 2010 Gilde announced
that it had increased its interest to 23.57%.
Outlook
Gamma Holding will continue to closely monitor market conditions and make
changes to the organisation as necessary. In that respect, restructuring
expenses of approximately ? 4 million are expected to be incurred in the
remainder of 2010. Barring unforeseen circumstances, the positive trend is
expected to continue in the second half of 2010. However, increased pressure on
margins due to rising energy and raw material prices should be taken into
account.
Gamma Holding will publish its trading update on the third quarter before the
opening of the stock exchange on Friday 29 October 2010.
Statement by the Executive Board
The Executive Board hereby declares that, to the best of its knowledge:
* the consolidated interim financial statements, which have been prepared
in accordance with IAS 34, Interim Financial Reporting, give a true and fair
view of Gamma Holding's assets and liabilities, its financial position and
the results for Gamma Holding and the consolidated companies; and
* the half-year report of the Executive Board includes a fair review of the
information required pursuant to section 5:25d, subsections 8 and 9 of the
Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
Helmond, 30 July 2010
Executive Board of Gamma Holding N.V.
Jan Albers, CEO
Leendert van Reeuwijk, CFO
Appendix
Consolidated interim financial statements for first half-year 2010
Profile
Gamma Holding is active in 42 countries with some 6,500 employees and consists
of five business units: Ammeraal Beltech, Clear Edge Filtration,
Dimension-Polyant, Bekaert Textiles and Vlisco Group. The units develop,
manufacture and sell innovative, high-quality products throughout the world,
varying from process and conveyor belts and filtration products to sailcloth,
mattress ticking and African fashion fabrics. With these activities, the
business units of Gamma Holding hold prominent market positions worldwide. The
Company's headquarters are located in Helmond (Netherlands) and its shares are
listed on Euronext Amsterdam.
For more information, click on www.gammaholding.com.
Attachment
Consolidated interim financial statements for first half-year 2010
* Consolidated balance sheet
* Consolidated income statement
* Consolidated statement of comprehensive income
* Consolidated statement of changes in equity
* Consolidated statement of cash flows
* Notes to the consolidated interim financial statements for first
half-year 2010
1 Group result before income tax, interest, depreciation/amortisation and
impairment of property, plant and equipment and intangible assets.
2 Group result before income tax, interest and amortisation/impairment of
goodwill and acquired intangible assets.
[HUG#1434882]
click here for pdf-file: http://hugin.info/130740/R/1434882/380441.pdf
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Source: Gamma Holding NV via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 30.07.2010 - 08:01 Uhr
Sprache: Deutsch
News-ID 34852
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