EUROTECH: APPROVAL OF CONSOLIDATED QUARTERLY REPORT AT
30.09.11
Slight growth in revenues over nine months and marked improvement
in third-quarter EBITDA.
Amaro (Italy), November 14th, 2011 - Consolidated revenues: from
65.76 million to 66.20 million (+0.7%) - Consolidated gross profit:
from 33.75 million to 34.16 million - Consolidated EBITDA: from
1.71 million to 1.84 million - Consolidated EBIT: from -4.25
million to -3.75 million - Consolidated pre-tax result: from -6.30
million to -5.27 million - Net financial debt: 15.4 million - Group
shareholders' equity: 131.2 million
Today the Board of Directors of Eurotech SpA reviewed and approved
the results for the first nine months of 2011 and for the third
quarter of 2011.
FIRST NINE MONTHS OF 2011 In the first nine months of the year,
Group revenues registered a slight growth, increasing by 0.7% to
66.20 million, compared with 65.76 million in the same period of
2010. However, the sales performance in the first nine months of
the year was influenced by the global economic climate, that has
been effecting the regions in which the Group operates albeit to
differing extents in the various market segments. Management
continues to closely monitor trends in local economies, profiting
as much as possible from the Group's international presence and
exploiting opportunities wherever these present themselves. The
gross profit margin came in at 51.6% for the first nine months of
2011, in line with previous quarters and just over the figure
recorded for the same period of 2010. The margin's stability in
percentage terms, aside from some small variations due to the mix
of products sold according to the application sectors and the end
markets, confirms the Group's ability to maintain its set margins
and its continuing focus on curbing costs of purchased items.
During the nine months just ended, the Group continued to focus on
optimum use of synergies between associated companies, reducing
operating costs, which decreased from 35.67 million in 2010 to
34.08 million in 2011, an improvement of 4.5%. Operating costs as a
percentage of revenues also improved markedly, decreasing from
54.2% in the first nine months of 2010 to 51.5% in the same period
this year. This reduction is expected to continue over 12
EUROTECH spa Via F. Solari, 3/A 33020 Amaro (UD) - ITALY Tel. +39
0433 485411 Fax. +39 0433 485499 ir@eurotech.com
www.eurotech.com
months, given that Group revenues are usually concentrated in the
fourth quarter. The efforts to find synergies launched in recent
years have not, however, restricted continual investment in
business activities that will generate financial returns in the
coming reporting periods. EBITDA rose from 1.71 million in the
first nine months of 2010 to 1.84 million in the same period of
2011. This improvement reflects lower operating costs achieved
despite a higher headcount, confirming management's aim of building
an efficient overall structure. The improvement in EBITDA was
partly limited by a decrease in other revenues, which totalled 1.6
million in the first nine months of 2011, compared with 2.3 million
in the same period of 2010. EBITDA as a percentage of revenues was
largely stable in the two reporting periods, coming in at 2.8%.
EBIT totalled -3.75 million, at -5.7% of revenues, representing an
improvement on the first nine months of 2010 (4.25 million and
-6.5% of revenues). The ratio of EBIT to revenues continues to be
affected by sales, which remain lower than the structure's real
potential, as well as depreciation and amortisation charged to the
income statement in the first nine months of 2011, which arose both
from operating assets that became subject to depreciation during
this period and from the non-monetary effects of PPA (purchase
price allocation), which in the first nine months of 2011 amounted
to 2.44 million (versus 2.51 million in the same period of 2010).
The pre-tax result for the nine months under review was -5.27
million (versus 6.30 million in the first nine months of 2010).
This performance was affected by the factors mentioned above and by
the results of financial operations, which in turn were affected by
the net financial position, as well as exchange rate differences
caused by foreign currency trends. The Group net loss decreased
from 7.23 million in the first nine months of 2010 to 6.44 million
in the same period this year. Total PPA effects had a 1.43 million
impact on the Group net loss in 9M11 (vs. 2.65 million in 9M10). At
30 September 2011, the Group had net financial debt of 15.38
million, compared with 8.64 million at 31 December 2010. Cash and
cash equivalents totalled 12.90 million at the end of September
2011. Net working capital at the same date totalled 31.41 million,
up on the 30.21 million registered at 31 December 2010 and up in
absolute terms on the figure of 28.02 million recorded at 30
September 2010, mainly due to growth in inventory to meet delivery
requests for the end of the year.
THIRD QUARTER 2011 Group revenues in the third quarter 2011 rose by
4.6% on the same period of 2010, from 23.93 million to 25.04
million. This performance reflects more orders at the start of the
year in the various sectors and markets in which the Group
operates. As in the first nine months of the year, in the third
quarter the different sales mix led to a slight increase in the
gross profit margin, which came in at 51.8% of revenues in 2011
compared with 51.2% in the third quarter of 2010. EBITDA came in at
2.43 million (9.7% of sales) in the third quarter of 2011, compared
with 1.21 million in the same period a year previously (5.0% of
sales). The EBITDA performance was positively influenced by trends
in both turnover and operating costs, as previously mentioned.
EBIT improved in the third quarter of 2011, rising to 579 thousand
(2.3% of revenues), from -860 thousand (-3.6% of revenues) in the
same period of 2010. PPA had a negative effect on EBIT of 814
thousand in the third quarter of 2011 and 877 thousand in the same
period a year previously. The pre-tax result was 0.1 million,
compared with -1.54 million in the third quarter of 2010, owing to
the EBIT performance mentioned above combined with the trend of the
currencies and the resulting exchange rate differences accounted
for. The Group net loss came to 1.03 million in the third quarter,
compared with 2.26 million in the same period a year
previously.
We advise the public that, as required by the CONSOB (Italian
securities & exchange commission), the Consolidated Quarterly
Report at 30.09.11 is available to anyone on request at the
company's registered headquarters as well as at the headquarters of
Borsa Italiana SpA. The Report is also available on Eurotech's
website, at www.eurotech.com. Pursuant to Article 154-bis,
Paragraph 2, of the Italian Consolidated Finance Act (Legislative
Decree 58/1998), the Financial Reporting Manager of Eurotech SpA,
Sandro Barazza, herewith declares that the financial disclosure
contained in this press release corresponds to documentary
evidence, corporate books, and accounting records.
THE EUROTECH GROUP Eurotech (ETH.MI) is a global company that
integrates hardware, software and expertise in applications to
provide embedded computing platforms and sub-systems to OEMs,
system integrators and leading corporate customers, to enable them
to effectively and efficiently deploy their products and services.
Drawing on the concept of minimalist computing, Eurotech lowers
power draw, minimises physical size and reduces coding complexity
to bring embedded platforms, sub-systems, ready-to-use devices and
high-performance computers to market, specialising in the defence,
transport, logistics, industrial and medical segments. By combining
specific expertise in wireless connectivity as well as
communications protocols, Eurotech architects integrated solutions
that simplify data capture, processing and transfer over global
communications networks. Our customers rely on us to simplify their
access to cutting-edge digital technologies so they can focus on
their core competencies. For more information on Eurotech, visit
the website at www.eurotech.com.
Company contacts: Investor Relations Andrea Barbaro Tel. +39 0433
485411 e-mail: andrea.barbaro@eurotech.com
Corporate Communication Cristiana della Zonca Tel. +39 0433 485411
e-mail: cristiana.dellazonca@eurotech.com
ANNEXES FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT ( '000) Sales revenue Cos t of
material Gr os s profit Ser v ic es costs Leas e & hire costs
Pay r oll costs Other provisions and costs Other revenues
3r d Qtr 2011 25,035 ( 12,068) ( 4,160) ( 601) ( 6,248) ( 166)
641
%
3r d Qtr 2010 23,932 ( 11,672) 12,260 ( 4,374) ( 605) ( 6,618) (
407) 950
%
9 months 2011 (a)
%
9 months 2010 (b) 65,755 ( 32,009) 33,746 ( 12,980) ( 1,779) (
19,910) ( 997) 3,629
ch an g e (b-a) % am o u n t 444 ( 32) 412 847 ( 7) 815 ( 69) (
1,872) %
0.7%
1 0.0% 0
1 0.0% 0
66,199 100.0% ( 32,041) -48.4% 34,158 5 1. 6 % ( 12,133) ( 1,786) (
1,066) 1,757
-1 .3% 8 -2.7%
1 0.0% 0
-48.2%
-48.8% 5 1. 2 % -1 .3% 8 -2.5% -27.7% -17% . 4.0%
-48.7% 5 1. 3 % -1 .7% 9 -2.7% -30.3% -15% . 5.5%
0.1 % 1. 2 % -6.5% 0.4% -4.1 % 6.9% 516% .
12,967 5 1. 8 %
-1 .6% 6 -2.4% -25.0% -0.7% 2.6%
( 19,095) -28.8%
-16% . 2.7%
EBITDA Depr ec iation & Amortization A s s et impairment EBIT
Shar e of associates' profit at equity Financ e expense Financ e
income Pr of it before tax Inc ome tax Ne t profit before m inor it
y interest M inor it y interest Gr oup net profit (loss) Bas e
earnings per share Dilut e d earnings per share
2,433 ( 1,836) ( 18) 579 0 ( 2,266) 1,790 103 ( 1,134) ( 1,031) 0 (
1,031)
9 .7 % -7.3% -0.1 % 2 .3 % 0.0% -9.1 % 7.1 % 0 .4 % -4.5% - 4 . 1%
0 .0 % - 4 . 1%
1,206 ( 2,066) 0 ( 860) 0 ( 1,516) 841 ( 1,535) ( 681) ( 2,216) 47
( 2,263)
5 .0 % -8.6% 0.0% - 3 .6 % 0.0% -6.3% 3.5% - 6 .4 % -2.8% - 9 .3 %
0 .2 % - 9 .5 %
1,835 ( 5,570) ( 18)
2 .8 % -8.4% 0.0%
1,709 ( 5,943) ( 12) ( 4,246) ( 898) ( 4,275) 3,120 ( 6,299) ( 944)
( 7,243) ( 17) ( 7,226) ( 0.206) ( 0.206)
2 .6 % -9.0% 0.0% - 6 .5 % -14% . -6.5% 4.7% - 9 .6 % -14% . - 11.
0 % 0 .0 % - 11. 0 %
126 373 ( 6) 493 759 ( 1,589) 1,370 1,033 ( 230) 803 17 786
7 .4 % 6.3% 50.0% 11. 6 % -84.5% 37.2% 43.9% - 16 . 4 % 24.4% 11.
1% 10 0 . 0 % 10 . 9 %
( 3,753) - 5 . 7 % ( 139) ( 5,864) 4,490
-0.2% -8.9% 6.8%
( 5,266) - 8 . 0 % ( 1,174) -18% . ( 6,440) - 9 . 7 % 0
0 .0 %
( 6,440) - 9 . 7 % ( 0.183) ( 0.183)
CONSOLIDATED BALANCE SHEET & STATEMENT OF FINANCIAL
POSITION
('000) at September 30, 2011 at December 31, 2010
ASSETS Intangible assets Pr operty , Plant and equipment Inv es
tments in affiliate companies Inv es tments in other companies Def
er r ed tax assets Other non current financial assets Medium/long
term borrow ing allow ed to affiliates companies and other Group
companies Other non-current assets To t al non-current assets Inv
entor ies Contr ac ts in progress Tr ade receivables Inc ome tax
receivables Other current assets Cas h & cash equivalents To t
al current assets To t al assets 122,759 5,861 319 262 1,419 226
1,259 1,041 133,146 26,758 3,321 20,110 1,463 2,734 12,903 67,289
200,435 120,328 6,582 308 230 1,658 236 636 1,018 130,996 21,587
257 28,971 1,879 3,305 23,751 79,750 210,746
LIABILIT IES AND EQUITY Shar e capital Shar e premium reserve Other
reserves Gr o up shareholders' equity Eq u it y attributable to m
in or it y interest To t al shareholders' equity Medium- /long- ter
m borrow ing Employ ee benefit obligations Def er r ed tax
liabilities Other non-current liabilities To t al non-current
liabilities Tr ade payables Shor t- ter m borrow ing Der iv ativ e
instruments Inc ome tax liabilities Other current liabilities Bus
ines s combination liabilities To t al current liabilities To t al
liabilities To t al liabilities and equity 8,879 136,400 ( 14,087)
131,192 0 131,192 19,007 1,641 12,383 2,479 35,510 15,315 10,147
406 509 7,147 209 33,733 69,243 200,435 8,879 136,400 ( 13,761)
131,518 3,966 135,484 22,873 1,681 12,307 2,225 39,086 18,824 8,985
339 1,214 5,748 1,066 36,176 75,262 210,746
STATEMENT OF CHANGES IN EQUITY
Sh ar e capital ('000) B al an ce as at December 31, 2010 8,879
L eg al reserve
Sh ar e premium reserve
C o n ver si o n reserve
Oth er reserves
C ash flow hedge reserve
Exch an g e rate differences reserve ( 777) ( 1,340) ( 6,079) Tr
easu r y shares Pr o fi t (loss) for period
Gr o u p shareholders' equity
M i n o r i ty interest capital & reserves 3,900
Pr o fi t third parties 66
Eq u i ty to Minority interest 3,966
(loss) of attributable
To tal shareholders' equity
39
136,400
25,938
( 31,203)
( 339)
131,518
135,484
2010 Result allocation Profit (loss) as at September 30, 2011
-
-
-
-
( 6,079)
-
-
-
6,079
-
66
( 66)
-
-
-
-
-
-
-
-
-
-
( 6,440)
( 6,440)
-
-
-
( 6,440)
Comprehens i ve other profit (loss) - Hedge transactions - Foreign
balance sheets conversion diff erenc e - Exchange diff erenc es on
equity method - Exchange diff erenc es on equity investments in f
oreign companies Comprehens iv e result 4,836 4,836 ( 43) ( 43) (
67) ( 67) ( 209) ( 209) ( 6,440) ( 67) 4,836 ( 43) ( 209) ( 1,923)
( 67) 4,836 ( 43) ( 209) ( 1,923)
Minority purchase
-
-
-
-
1,597
-
-
-
-
1,597 ( 3,966)
-
( 3,966)
( 2,369)
B al an ce as at September 30, 2011
8,879
39
136,400
30,774
( 35,728)
( 406)
( 986)
( 1,340)
( 6,440)
131,192
-
-
-
131,192
NET FINANCIAL POSITION
at Septem b er 30, at Decem b er 31, at September 30, ('000) Cas h
& cash equivalents Cas h equivalent Other current financial
assets Der iv ativ e instruments Shor t- ter m borrow ing Bus ines
s aggregation liabilities Shor t - t e r m financial position Shor
t - t e r m net financial position Medium/long term borrow ing
allow ed to affiliates companies Bus ines s aggregation liabilities
Other non current financial assets Medium/long term borrow ing M e
dium - /long- t e r m net financial position ( NET FINANCIAL
POSITION) NET DEBT A B=A C D E F G=C+D+E+F H=B+G I J K L M =I+J+K+L
N=H+M 2011 ( 12,903) ( 12,903) 0 406 10,147 209 10,762 ( 2,141) (
1,259) 0 ( 226) 19,007 17,522 15,381 2010 ( 23,751) ( 23,751) 0 339
8,985 1,066 10,390 ( 13,361) ( 636) 0 ( 236) 22,873 22,001 8,640
2010 ( 17,189) ( 17,189) 0 523 8,976 1,778 11,277 ( 5,912) ( 972) 0
( 236) 18,022 16,814 10,902
WORKING CAPITAL
at Septem b er at December 31, at September ('000) 30, 2011 (b )
2010 (a) 30, 2010 C h an g es (b -a)
Inventories Contr ac ts in progress Tr ade receivables Inc ome tax
receivables Other current assets Cur r ent assets Tr ade payables
Inc ome tax liabilities Other current liabilities Cur r ent
liabilities Ne t w or k ing capital
26,758 3,321 20,110 1,463 2,734 54,386 ( 15,315) ( 509) ( 7,147) (
22,971) 31,415
21,587 257 28,971 1,879 3,305 55,999 ( 18,824) ( 1,214) ( 5,748) (
25,786) 30,213
22,933 319 22,526 2,026 4,115 51,919 ( 16,866) ( 900) ( 6,128) (
23,894) 28,025
5,171 3,064 ( 8,861) ( 416) ( 571) ( 1,613) 3,509 705 ( 1,399)
2,815 1,202
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