Sharp improvement in Gamma Holding earnings
(Thomson Reuters ONE) -
* Turnover: ? 582 million (2009: ? 490 million)
* EBITDA[1] excluding restructuring expenses: ? 68.6 million (2009: ? 35.0
million)
* Operating result: ? 32.9 million (2009: ? -31.5 million)
* Sale of Vlisco Group with a book profit of ? 65 million
* Net group result: ? 73.8 million (2009: ? -69.0 million)
Following two difficult years, in 2010 Gamma Holding was able to further turn
the corner towards recovery. Contributing factors included the improvement in
the economic climate, with particularly favourable developments in Asia and
America. We also stabilised our cost level, which had been substantially reduced
by robust measures taken in preceding years. Partly as a result of this, all
business units reported growth of turnover and profits. This positive trend is
expected to continue in 2011.
Jan Albers, CEO
The tentative recovery of the economy and the spread of activities in many
different markets have helped Gamma Holding to weather the crisis. In addition,
in 2010 there was no slackening of efforts to further optimise business
processes and strengthen market positions, with the aim of creating a more
flexible cost structure and generating additional turnover. This was
successfully accomplished by each individual business unit, in the conviction
that the strength of the business lies not in the group but in its four
individual operating units. In that context, the business units are consistently
promoted with their own brand names and have been organised in such a way that
they will be better able to absorb the effects of an economic downturn in the
future.
Improved financial position
Partly with a view to increasing the company's financial strength, in September
Gamma Holding sold Vlisco Group to Actis, a British private equity investor in
emerging markets, for a sum of ? 116 million. With its strong local presence in
Africa, Actis is in a good position to successfully pursue Vlisco Group's growth
strategy. The transaction yielded a book profit of ? 65 million and the proceeds
could immediately be used to repay part of the debt.
The divestment of Vlisco Group strengthened the balance sheet. The solvency
ratio more than doubled from 13.8% as of 31 December 2009 to 31.1% at the end of
2010. The sale of the business unit also strengthened Gamma Holding's position
for further negotiations on renewal of the agreement on financing that ran until
mid-July 2011. In November, agreement was reached with three banks on improved
facilities until March 2014. In addition, the option was also given to extend
the financing, with the consent of the banks, by up to two periods of a year to
March 2015 and March 2016 respectively.
Public offer
In June, Gamma Holding was strengthened by the arrival of Gilde Buy Out Partners
('Gilde') as a new major shareholder. The private equity company bought the
shares from ASR, Delta Lloyd and Allianz and further expanded its stake in the
course of 2010. In December, Gilde and Parcom Capital Management ('Parcom')
announced that they wanted to combine their shareholdings in Gamma Holding, and
were accordingly obliged to make a public offer for all of the outstanding
shares. The offer was then made in January 2011 by Go Acquisition, a special-
purpose vehicle established by Gilde. The offer price was ? 29.00 per ordinary
share and ? 3.50 per ordinary participating preference share. The Supervisory
Board and Executive Board have unconditionally supported the offer and
unanimously recommended it. A fairness opinion issued by ABN AMRO Bank N.V. for
the Supervisory Board also supports that recommendation from a financial
perspective. Meanwhile, Go Acquisition has acquired 96.8% of the ordinary shares
and 86.4% of the ordinary participating preference shares. After payment and
delivery Go Acquisition will hold 96.6% of the shares in Gamma Holding (and
98.2% excluding the shares held by Gamma Holding itself). Go Acquisition and
Gamma Holding will consult NYSE Euronext Amsterdam regarding the termination of
the listing of the shares in Gamma Holding.
Future composition of the Executive Board and Supervisory Board
The Executive Board will remain unchanged. Go Acquisition will have appropriate
representation in the Supervisory Board. Mr (René) Van der Bruggen will stand
down during the General Meeting of Shareholders on 28 April 2011 and Mr
(Boudewijn) Molenaar (Gilde) and Mr (Erik) Westerink (Parcom) will be nominated
for appointment as new members of the Supervisory Board. Accordingly, the
Supervisory Board will have five members, three of whom will be independent.
Turnover and results
In 2010 there was an increase in both turnover and income of Gamma Holding.
Group turnover came to ? 582 million (2009: ? 490 million), which includes a
positive effect of ? 27 million arising from currency movements.
EBITDA[1] of the group excluding restructuring expenses rose by 96% to ? 68.6
million (2009: ? 35.0 million). Currency movements had a positive effect of ?
3.8 million. The increase in EBITDA1 was the result of a modest increase in the
operating expenses in relation to the higher turnover.
EBITA[2] excluding restructuring expenses and impairment came to ? 43.3 million
(2009: ? 7.5 million).
Restructuring expenses in 2010 totalled ? 5.1 million (2009: ? 18.3 million).
Testing of calculations of value in use resulted in net impairment charges in
2010 for intangible assets and property, plant and equipment of ? -0.7 million
(2009: ? 22.4 million). In 2010 the impairment charges at Dimension-Polyant
totalled ? 2.7 million and their reversal at Ammeraal Beltech totalled ? 3.4
million (2009: ? 15.5 million at Clear Edge Filtration, ? 8.7 million at
Ammeraal Beltech and a reversal of the charges at Bekaert Textiles of ? 1.8
million).
The operating result was ? 32.9 million (2009: ? -31.5 million).
The balance of financial income and expense fell to ? -29.8 million (2009: ?
-36.0 million), mainly due to lower (re)financing expenses of ? -6.0 million.
The effective tax rate was 30.3% (2009: 2.6%), whereby a negative effect of
unrecognised losses was on balance compensated by a positive effect arising from
being able to avail of tax facilities (including so-called 'tax holidays') in
various countries and the reversal of impairments on which no tax charge was
applied. In 2009 the group result was negative and only a small tax benefit
could be recognised on it.
The net group result excluding restructuring expenses and impairment came to ?
79.2 million (2009:
? -20.2 million).
The net group result was ? 73.8 million (2009: ? -69.0 million).
Earnings per share came to ? 9.90 (2009: ? -9.43). In view of the company's
financial position, together with the obligations under the amended financing
agreement, no dividend will be paid in respect of the financial year 2010.
Developments by business unit
The turnover of Ammeraal Beltech (including PTFE) came to ? 278.9 million (2009:
? 239.7 million). EBITDA[1] excluding restructuring expenses totalled ? 27.4
million (2009: ? 14.8 million). In 2010 Ammeraal Beltech bounced back from the
recession year of 2009. The business unit profited from the recovery in America
and Asia, as well as from the slightly improving European market from the second
quarter onwards. With the exception of the print and packaging industry and
agriculture and horticulture, there was growth again in the most important
market segments, including the textile, leather, food, automotive and metal
industries. This had a positive effect on sales of all types of belts.
Particularly in the Middle East and Asia, impressive orders were secured for
airport baggage handling systems. There was also strong growth in sales of
modular belts, demonstrating the success of Ammeraal Beltech in selling this
relatively new product group through its extensive network.
The turnover of Clear Edge Filtration was ? 111.3 million (2009: ? 91.1
million). EBITDA1 excluding restructuring expenses came to ? 11.8 million (2009:
? 2.7 million). Compared to the weak year of 2009, Clear Edge Filtration
recovered well in 2010. The special focus on original equipment manufacturers
(OEMs) and targeted end users, as well as the benefit of lower operating
expenses, contributed to the positive result. The business unit also benefited
from the improvement in the economic climate, which prompted increased demand
for filtration products in every region, but particularly in Asia, Oceania and
America. OEMs and end-users in mining, waste water purification and the chemical
and food industries accounted for most of the increase in sales. Sales of filter
cloth and products for filter belts, core products within the Clear Edge
Filtration range, grew particularly strongly.
The turnover of Dimension-Polyant came to ? 36.7 million (2009: ? 31.0 million).
EBITDA1 excluding restructuring expenses totalled ? 4.0 million (2009: ? 2.1
million). For Dimension-Polyant, 2010 was a year of tentative progress. The
business unit initially continued to suffer from the aftermath of the recession
year of 2009, but as the year progressed it managed to benefit from a modest
recovery of the market, as well as the positive effects arising from efficiency
improvements that had been implemented and intensified sales efforts. The demand
for top-quality sailcloth increased and the OEM market and the cruising and
windsurfing segments picked up. Sales of D4-Multi Panel membranes, designed for
racing, also increased. The replacement market remained stable.
The turnover of Bekaert Textiles amounted to ? 155.1 million (2009: ? 128.4
million). EBITDA1 excluding restructuring expenses improved strongly and came to
? 27.4 million (2009: ? 16.1 million). Bekaert Textiles performed well in 2010
and profited from improved economic conditions in North and South America and
Australia in particular. The business unit was even able to increase its market
share, particularly in Europe and America, despite tougher competition from a
growing number of small suppliers of woven mattress materials.
The business unit clearly benefited from the rigorous cost-cutting measures
taken in the preceding years. Successful new products also contributed to the
positive results.
Cash flow and investments
The balance of interest-bearing liabilities was reduced from ? 259.5 million to
? 173.8 million in the year under review. This includes a negative currency
effect of ? 10.4 million. The net interest-bearing debt in relation to EBITDA
came to 2.59 and therefore remains below the level of 3.50 agreed with the
syndicate of banks. The other bank covenants have also been complied with.
Purchases of property, plant and equipment totalled ? 27.0 million (2009: ?
16.9 million) and were made mainly in Bekaert Textiles, Ammeraal Beltech and
Clear Edge Filtration. On the other hand, there were divestments of ? 9.8
million (2009: ? 2.8 million), mainly involving the sale of real estate. Net
purchases came to ? 17.2 million (2009: ? 14.1 million) and remained below the
level of depreciation of ? 23.5 million (2009: ? 25.7 million).
Net working capital declined from ? 180.0 million in 2009 to ? 175.0 million in
2010. With the sale of Vlisco Group, net working capital declined by ? 26.8
million. Currency movements caused net working capital to rise by ? 10.3
million. The organic increase in net working capital came to ? 11.5 million. As
a percentage of turnover, net working capital declined to 30.1% (2009: 31.5%).
Total equity amounted to ? 159.6 million (2009: ? 73.9 million). At the end of
2010, total equity as a percentage of the balance sheet total was 31.1% (2009:
13.8%).
Employees
Due to increased volumes, there was a net increase of 5% in the total number of
employees, from 4,349 at the end of 2009 to 4,569 at the end of 2010. All
business units contributed to the increase.
Of the total workforce, 94% are employed outside the Netherlands and 47% are
employed outside Europe. The number of temporary employees rose by 70, from 80
in 2009 to 150 in 2010.
Outlook
Barring unforeseen circumstances, Gamma Holding expects the positive trend to
continue in 2011, though ongoing uncertainty surrounding the economic climate
and rising energy and raw material prices should be taken into account.
Helmond, 25 February 2011
Executive Board of Gamma Holding N.V.
Jan Albers, CEO
Leendert van Reeuwijk, CFO
This press release is based on the financial statements prepared by the
Executive Board. The financial statements will be submitted to the General
Meeting of Shareholders of 28 April 2011 for adoption.
Appendices (see pdf file hereunder)
Consolidated balance sheet
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Segment information
Profile
Gamma Holding is active in 34 countries with some 4,500 employees and consists
of four business units: Ammeraal Beltech, Clear Edge Filtration, Dimension-
Polyant and Bekaert Textiles. The units develop, manufacture and sell
innovative, high-quality products throughout the world, varying from process and
conveyor belts and filtration products to sailcloth and mattress ticking. 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.
Group result before income tax, interest, depreciation/amortisation and
impairment of property, plant and equipment and intangible assets
[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
click here for pdf file:
http://hugin.info/130740/R/1492213/427938.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Gamma Holding NV via Thomson Reuters ONE
[HUG#1492213]
Unternehmensinformation / Kurzprofil:
Datum: 25.02.2011 - 08:01 Uhr
Sprache: Deutsch
News-ID 51900
Anzahl Zeichen: 16052
contact information:
Town:
Helmond
Kategorie:
Business News
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