Interim report - Q1 2019/20
Roblon reports improved performance after the first quarter of 2019/20
Interim report – Q1 2019/20 (the period 1 November 2019 – 31 January 2020)
The Board of Directors of Roblon A/S has today considered and approved the interim report for Q1 2019/20
Highlights of the Q1 interim report of the Roblon Group:
- Order intake of DKKm 92.3 (DKKm 51.2). The FOC and Composite product groups saw growth.
- Order book at 31 January 2020 of DKKm 54.4 (DKKm 50.6).
- Revenue grew to DKKm 73.7 (DKKm 55.0).
- The gross margin increased to 54.7% (34.4%), mainly as a result of an improved product mix and due to the fact that the year-earlier period was adversely affected by the loss of productivity on Senvion-related activities.
- Operating profit (EBIT) amounted to DKKm 4.1 (a loss of DKKm 10.7), positively affected by growing revenue and gross margin.
- Profit before tax was DKKm 4.9 (a loss of DKKm 10.5).
- Profit for the period after tax was DKKm 3.9 (a loss of DKKm 8.2).
The accounting policies have been changed due to the Company’s implementation of IFRS 16. IFRS 16 was implemented using the modified retrospective method without restatement of comparative figures. The recognition of right-of-use assets at the beginning of the 2019/20 financial year increased total assets by DKKm 14.9.
Full-year guidance for 2019/20
In Q1 2019/20, Roblon’s revenue and results outperformed expectations. Revenue for the quarter was positively affected by project sales which were projected to be realised later in the financial year. After Q1, Management maintains its guidance for 2019/20 as set out
in the annual report for 2018/19. For the financial year 2019/20, Management guides revenue in the DKKm 260-280 range and a profit
before tax in the DKKm 20-25 range.
In relation to COVID-19, Roblon is complying with the Danish government’s request that Danish companies take every possible precaution to limit infection. At this time, Management assesses that Roblon will be able to execute the business activities that form the basis of the full-year guidance.
However, the COVID-19 situation could affect the revenue and performance in unforeseen ways.
As mentioned in Roblon’s annual report for 2018/19, Roblon signed a conditional settlement agreement with wind turbine manufacturer Senvion and its subsidiary Ria Blades on 20 December 2019. In January 2020, Siemens Gamesa Renewable Energy (SGRE) closed the acquisition of selected European assets from Senvion. SGRE’s conditional acquisition of Ria Blades is expected to be finalised in Q1 2020, after which Roblon will receive a settlement of USDm 6.6 (approx. DKKm 43). Due to the natural uncertainty attached to the closing of the conditional agreement between the two parties, Roblon finds that there are insufficient grounds to include the settlement amount in the guidance for 2019/20.
Sale of head office
Roblon has initiated the prospective sale of the Group’s head office in Frederikshavn. The Company has signed an agreement 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. As well as generating positive synergies in the day-to-day operations, this initiative is also expected to have a positive impact on Roblon’s results, liquidity and equity going forward. The potential sale of the head office 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.
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