EUROTECH: CONSOLIDATED INTERIM MANAGEMENT STATEMENT AT 30
SEPTEMBER 2013
Amaro (UD), 13 November 2013 - Consolidated revenues from
continuing operations: from 55.23 million to 43.29 million -
Consolidated gross profit from continuing operations: from 27.70
million to 22.90 million - Consolidated EBITDA from continuing
operations: from 0.60 million to -1.50 million - Consolidated EBIT
from continuing operations: from -5.02 million to -6.21 million -
Consolidated pre-tax income from continuing operations: from -6.12
million to -5.36 million - Net financial debt: 10.6 million - Group
shareholders' equity: 102.7 million
The Board of Directors of Eurotech SpA today reviewed and approved
the results for the first nine months and third quarter of 2013.
Following the application of IFRS 5 Non-current Assets Held for
sale and. Discontinued Operations during the preparation of the
consolidated interim management statement at 30 September 2013, the
entire results of the subsidiary Parvus Corp., sold on 1 October
2013, were reclassified as "assets held for sale". Prior periods
under comparison were similarly restated. The consideration for the
Parvus transaction has been set by the parties at USD 38 million
(equal to approx. 28.1 million) and this amount will be subject to
positive adjustments based on the working capital and the cash and
cash equivalents as at September 30th, 2013 to be defined within
150 days. The first payment of USD 35 million was collected at the
beginning of October and in the fourth quarter we will then account
for the gain on sale. As a consequence of the sales of Parvus
Corp., "Continuing operations" means all operations included within
the new scope of consolidation of the Eurotech Group as of 1
October 2013.
FIRST NINE MONTHS OF 2013 In the first nine months of 2013, Group
revenues totalled EUR 43.29 million vs. EUR 55.23 million in the
first nine months of 2012. At current exchange rates, revenues in
the first nine months of 2012 would have been equal to Euro 49.8
million with a reduction of 13.1% in 2013.
EUROTECH SpA Via F. Solari, 3/A 33020 Amaro (UD) - ITALY Tel. +39
0433 485411 Fax. +39 0433 485455 ir@eurotech.com
www.eurotech.com
Revenues for the nine months to September were impacted, on the one
hand, by lower sales compared to past trend due to customers in
America and Japan asking to schedule deliveries towards year-end,
and on the other, by the persistence of the adverse economic
climate in the European market. The weakening of the yen and to
some extent of the dollar and the sterling (currencies in which the
Group operates) also widened the sales gap compared with 2012. We
foresee for this year an even more imbalanced distribution of
revenues towards the fourth quarter. Order intake remains positive
however: at constant exchange rates, the current order book is
higher than last year.
The gross profit margin for the period was 52.9%, higher than the
figure recorded for the first nine months of 2012 and slightly
above the 52.3% reported at year-end 2012. During the third
quarter, the Group boosted profitability both compared with the
first half of 2013 and with the same period of 2012. This was due
to a sales mix which was more profitable on average than in the
past. The focus on operating costs, especially fixed costs,
continues to deliver the expected benefits and secures the
resources necessary for the Group's investments in innovation to
support the Group's competitiveness. In the nine months in
question, before adjustments, operating costs were down by EUR 2.94
million, from EUR 28.73 million in the first nine months of 2012 to
EUR 25.80 million in the first nine months of 2013. As with
revenues, the reduction in operating costs partly derives from a
change in the exchange rate used to translate the financial
statements of foreign subsidiaries. That said, the cost reduction,
as in previous quarters, is also due to action taken by management
to streamline the structure of the Group and to lower the threshold
at which operating leverage takes effect. Owing to the historical
distribution of sales throughout the year, expected to be
particularly imbalanced in the fourth quarter of 2013, the impact
of fixed costs on sales is expected to fall sharply on an
annualised basis. The cost reduction had a positive influence on
Group EBITDA, although it did not entirely close the revenue gap.
In the first nine months, EBITDA amounted to EUR -1,500 thousand
(-3.5% of revenues) compared to EUR 600 thousand for 2012 (1.1% of
revenues). EBIT stood at EUR -6.21 million, or -14.3% of revenues,
compared with EUR -5.02 million, or 9.1% of revenues, in the first
nine months of 2012. EBIT as a percentage of revenue in the nine
months was affected by the fall in sales during the period, which
was only partially offset by an increase in gross profit margin, a
reduction in operating costs and lower depreciation and
amortisation. EBIT was affected also by the depreciation and
amortisation charged to the income statement in the first nine
months of 2013, linked both to operating assets that began to be
amortised in the first nine months of the year, and the
non-monetary effects of the "price allocation", which
totalled EUR 2.40 million in the first nine months of 2013
(compared with EUR 2.86 million in the first nine months of 2012).
The pre-tax loss from continuing operations (and therefore of Group
companies excluding Parvus Corp.) in the nine-month period was EUR
5.36 million (compared with a loss of EUR 6.12 million in the first
nine months of 2012). This trend was influenced by the factors
mentioned above and by financial management, which was materially
affected by foreign exchange gains (which in the first nine months
of 2013 consisted of a gain of EUR 1.27 million, compared with a
net loss of EUR 0.17 million in the first nine months of 2012) due
to foreign currency movements and a change in net financial
position. Net income from continuing operations rose from EUR -6.45
million in the first nine months of 2012 to EUR -6.07 million in
the first nine months of 2013. The overall impact of the price
allocation on net income from continuing operations for the first
nine months of 2013 amounted to EUR 1.46 million (compared with EUR
1.68 million for the first nine months of 2012). Net income from
discontinued operations consists of the net income for the period
of the US subsidiary Parvus Corp., which was presented solely under
one item in accordance with IFRS 5. Group net income has increased
from EUR -5.44 million in the first nine months of 2012 to EUR 4.77
million in the first nine months of 2013. This result takes into
consideration both net income from continuing operations and net
income from discontinued operations. At 30 September 2013, the
Group had net financial debt of EUR 10.56 million, compared with
EUR 11.45 million at 31 December 2012. Cash and cash equivalents
stood at EUR 10.25 million at the end of September 2013. Note that
operating cash flow in the first nine months of 2013 totalled EUR
7.31 million, a significant improvement on the EUR 0.19 million in
cash flow recorded in the first nine months of 2012. Working
capital amounted to EUR 12.56 million at 30 September 2013, a
significant drop compared with the EUR 23.73 million recorded at 31
December 2012 and the EUR 28.40 million recorded at 30 September
2012. This was due not only to lower sales, but to a reduction in
trade receivables due to positive trend on payments received.
THIRD QUARTER 2013 The Group recorded third-quarter sales of EUR
15.00 million (corresponding to 34.6% of sales for the nine
months), while in the same period of 2012 it reported sales of EUR
18.48 million, representing 33.5% of sales in the first nine
months. Sales distribution is similar to that recorded in the
previous year, although the fourth quarter could deviate from the
trend in view of the existing order book.
During the quarter, a change in sales mix resulted in a net
increase in gross profit margin, generating a value of 57.2%,
compared with 55.8% in the third quarter of 2012. This trend
justifies the current policy, which forecasts higher margins for
some products including software and services. The interim results
are influenced not only by the gross profit margin, but also by the
operating costs and depreciation and amortisation booked this
quarter. EBITDA in the third quarter of 2013 amounted to EUR 0.87
million, equivalent to 5.8% of revenues for the quarter, while in
the same period of 2012 it came to EUR 1.64 million, or 8.9% of
revenues. In the third quarter of 2013, EBIT was mainly influenced
by the fall in sales, standing at EUR -680 thousand (-4.5% as a
percentage of revenues), from EUR -328 thousand (-1.8% of revenues)
in the same period of 2012. The price allocation had a negative
effect on EBIT of EUR 782 thousand in the third quarter of 2013 and
EUR 984 thousand in the same period of the previous year. Net
income from discontinued operations contributed EUR 1.20 million in
the third quarter of 2013, compared with 0.69 million in the third
quarter of 2012. These third-quarter trends have boosted the
overall interim results for the first nine months, as commented on
above.
We advise the public that, as required by CONSOB (Italian
Securities & Exchange Commission), the Consolidated Interim
Management Statement at 30 September 2013 is available on request
at the registered office and on-line on the Eurotech website at
www.eurotech.com Pursuant to article 154-bis, paragraph 2, of the
Italian Consolidated Finance Act, the Financial Reporting Manager
of Eurotech SpA, Sandro Barazza, hereby declares that the financial
disclosure contained in this press release corresponds to the
Company's documentary evidence, corporate books and accounting
records.
THE EUROTECH GROUP Eurotech (ETH.MI) is a global company that
integrates hardware, software and applications expertise 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, subsystems, 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
embedded technologies so they can focus on their core competencies.
For more information on Eurotech, visit the website
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 STATEMENT OF FINANCIAL POSITION
('000) at September 30, 2013 at Decem b er 31, 2012 R estated ^
ASSETS Intangible assets Pr oper ty , Plant and equipment Inv es
tments in affiliate companies Inv es tments in other companies Def
er r ed tax assets Other non-current assets Tot al non-current
assets Inv entor ies Contr ac ts in progress Tr ade receivables Inc
ome tax receivables Other current assets Rec eiv ables from
affiliates companies Other current financial assets Cas h &
cash equivalents Tot al current assets Non- cur r e nt assets
classified as held for sales Tot al assets 95,883 3,687 616 252
1,013 580 102,031 17,480 0 12,031 213 1,912 3 101 10,252 41,992
11,286 155,309 112,853 4,756 275 257 1,083 672 119,896 18,282 850
26,641 362 2,170 0 144 12,116 60,565 0 180,461
LIABILITIES AND EQUITY Shar e capital Shar e premium reserve Other
reserves Gr oup shareholders' equity Equit y attributable to m inor
it y interest Tot al shareholders' equity Medium- /long- ter m
borrow ing Employ ee benefit obligations Def er r ed tax
liabilities Other non-current liabilities Tot al non-current
liabilities Tr ade payables Tr ade payables from affiliates
companies Shor t- ter m borrow ing Der iv ativ e instruments Inc
ome tax liabilities Other current liabilities Tot al current
liabilities Liabilit ie s directly associated w it h non-current
assets classified as held for sale Tot al liabilities Tot al
liabilities and equity 8,879 136,400 ( 42,619) 102,660 0 102,660
7,133 1,810 6,851 814 16,608 12,216 273 13,542 237 703 5,884 32,855
3,186 52,649 155,309 8,879 136,400 ( 25,327) 119,952 0 119,952
10,327 1,896 9,486 846 22,555 15,084 0 13,036 344 2,103 7,387
37,954 0 60,509 180,461
STATEMENT OF CHANGES IN EQUITY
NET FINANCIAL POSITION
WORKING CAPITAL
Eurotech (BIT:ETH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eurotech (BIT:ETH)
Historical Stock Chart
From Jul 2023 to Jul 2024
