Interim report - Q2 2019/20 - Half year

Roblon downgrades guidance for 2019/20

Interim report – H1 2019/20 (the period 1 November 2019 – 30 April 2020)

The Board of Directors of Roblon A/S has today considered and approved the interim report for H1 2019/20.

Highlights of the interim report of the Roblon Group:

• Order intake of DKKm 155.3 (DKKm 131.9). Both product groups, FOC and Composite, reported growth.
• Order book at 30 April 2020 of DKKm 48.8 (DKKm 70.8).
• As expected, revenue grew to DKKm 142.0 (DKKm 112.2).
• The gross margin increased to 56.1% (36.8%), mainly as a result of an improved product mix and due to the fact that the year-earlier period was adversely affected by loss of productivity and inventory write-downs on Senvion-related activities.
• In H1 2019/20, Roblon recognised a settlement amount from Senvion of DKKm 45.3 under other operating income.
• Operating profit (EBIT) was DKKm 51.2 (an operating loss of DKKm 37.0) and DKKm 6.2 excluding Senvion (an operating loss of DKKm 11.6), which was below Management's guidance for the first half. The operating profit was adversely impacted by the earnings performance of the FOC product group, which was not satisfactory.
• Profit before tax was DKKm 50.8 (a loss of DKKm 35.0) and DKKm 6.1 excluding Senvion (a loss of DKKm 9.4). 
• A loss before tax from discontinued operations of DKKm 3.0 related to a provision for loss on seller financing made in 2017 in connection with the sale of discontinued operations.
• Profit after tax for the period, including the Senvion settlement, amounted to DKKm 36.6 (a loss of DKKm 27.3).
• Roblon’s equity stood at DKKm 252.6 (DKKm 203.5) at 30 April 2020.

Guidance for full year 2019/20

Management assesses that the second half of 2019/20 will be adversely impacted by the current COVID-19 developments in North and South America, two important markets for Roblon. Whether expected orders from Composite customers in these markets will be realised remains uncertain, and they are therefore no longer included in the basis of Management's full-year guidance for 2019/20. Furthermore, deliveries of essential machine parts for productivity improvements and capacity enhancements at Roblon’s US factory have been delayed.  

Based on revenue and profit performance for H1 2019/20 and the mentioned issues related to COVID-19, Management now expects revenue in the DKKm 250-270 range (DKKm 267.2; DKKm 241.8 ex. Senvion), against the earlier guidance of DKKm 260-280, and a profit before tax of around DKKm 0-5; DKKm 45-50 including Senvion (a loss of DKKm 19.7; a profit of DKKm 4.4 ex. Senvion), against the earlier guidance of DKKm 20-25; DKKm 65-70 including Senvion.

US COVID-19 loan

At the beginning of May 2020, Roblon obtained a loan from one of the COVID-19 aid packages launched by the US government. The loan, which is equivalent to approx. DKKm 5, will be classified as a forgivable loan, subject to certain criteria being met. One of these criteria is that the number of employees must be maintained. Whether the loan is eligible for forgiveness is expected to be determined before the end of the financial year.

Sale of head office

Roblon has initiated the prospective sale of the Group’s head office in Frederikshavn. An agreement has been entered into with an external commercial real estate agent to explore the possibilities of selling the head office, which is listed at a cash price of DKKm 32.5. 

After the sale, the Group’s Danish activities will all be located at Roblon’s facilities in Gærum, which currently house production and various administrative functions. Investments will have to be made in the Gærum facilities. However, as well as generating positive synergies in the day-to-day operations, this initiative is expected to have a positive impact on Roblon’s future results, liquidity and equity. The potential sale of Roblon's existing head office in Frederikshavn has not been factored into the profit guidance for 2019/20.

Roblon A/S

Jørgen Kjær Jacobsen                       Lars Østergaard

Chairman of the Board                      Managing Director and CEO

Enquiries regarding this announcement should be addressed to:

Managing Director and CEO Lars Østergaard, tel.