Interim report first half year 2017/18
February 16 2018 - 7:00AM
Interim report first half year 2017/18
Company Announcement no 274
Interim report first half year 2017/18
Michael Hove, Chairman of the Board of Directors
in Rovsing A/S says:
The first half year of 2017/2018 has been a
challenging time for Rovsing. A realized Revenue of DKK 11.6
million and an EBITDA of DKK -2.9 million is a disappointing
result. The main reason for the underperformance is a decrease in
ESA-driven activities, delays in the finalization of major
projects, which affected our milestone payments, lack of new orders
and a cost base, which is too high compared to the current
revenue.
Rovsing is at the beginning of a transformation
period with a new board, new management and a new strategy and the
board is fully committed to implement and execute the turnaround
plan to secure significant improvements in the future profitability
of Rovsing.
As with every turnaround plan, the effects of
initiatives which was launched together with the strategy plan in
December 2017, cannot be seen in the results short term, but we
expect to improve our performance going forward quarter by
quarter.
Regarding our announcement no. 273 where CEO
Cristian Bank announced his leave due to a new job opportunity, I
am pleased to announce that we have successfully identified our new
CEO, Mr. Hjalti Pall Thorvardarson, who will resume his new
position on March 1st, 2018.
Mr. Thorvardarson has a long track record within
the Space Industry and has been with Rovsing for the last 8 years
in different positions. Mr. Thorvardarson will be head of our new
management team together with our CFO Mr. Sigurd Hundrup, who
joined the company in September 2017.
Cristian Bank will secure a successful handover
in February and I will support the new management team for the next
6 months as working Chairman to secure that all routines around the
new board/management setup becomes fully implemented.
To accelerate the transformation towards
profitability, the board recently launched a sourcing programme to
review all suppliers and contracts to reduce the current cost base.
The work is ongoing, and we have already been able to save
significant amounts on our rented facilities and with other major
suppliers. These savings will have an immediate effect on our
results, and the sourcing process will continue to secure
savings.
Regarding our guidance for the full financial
year 2017/2018, we have been revising the current order books and
pipeline and we have to adjust our guidance to a revenue in the
level of DKK 26-28 million and an EBITDA in the range from DKK -2
to -4 million.
Rovsing is currently in a process of negotiating
two large contracts, which can affect our second half year results
in a positive direction if the related order intake is achieved. If
there will be a positive outcome short term, we will inform about
that in a separate announcement including comments about our
guidance if it will have any effect in that regard.
Finally, in the first half of 2017/18, Rovsing
has successfully executed two capital increases and obtained a bond
loan to strengthen the company´s capital structure and repay all
loans to insiders. With this consolidation of our capital
structure, Rovsing‘s loan structure is only based on professional
counterparts.
Highlights of the half
year:
- In the first half year of 2017/18, the revenue amounted to DKK
11.6 million, a decrease of 41% from DKK 19.7 million in first half
year of 2016/17.
- The decrease in revenue in the first six month of the financial
year was mainly due to a significant delay in the MetOp-SG
instrument software development impacting Rovsing’s activities
within Independent Software Validation & Verification (ISVV),
and to a delay of several procurement decisions of Rovsing’s
customers, leading to a lower than forecasted activity level from
new orders and a general lower activity in ESA-driven
projects.
- EBITDA amounted to DKK - 2.9 million, corresponding to a change
of DKK -3.4 million compared to the first half year of 2016/17. The
lower EBITDA was primarily due to the lower revenue.
- Rovsing carried out two directed share issues amounting to a
total of DKK 9.8 million and refinanced various loans, including
loans from related parties, with a new loan of DKK 4.0 million
under more favorable conditions.
- At the General Assembly in October 2017, a new Board was
elected. In September 2017 Sigurd Hundrup was appointed as new
CFO.
- Rovsing adopted a new 4-year strategy for growth and
profitability in December 2017, aiming at doubling the revenue and
achieving an EBITDA margin of 10% until 2021.
- Net cash flows from operating activities amounted to DKK -4.1
million (2016/17: DKK-8.8 million), net cash flow from investing
activities amounted to DKK -0.8 million (2016/17: DKK -0.4 million)
and cash flow from financing activities amounted to DKK 4.1 million
(2016/17: DKK 10.9 million) and net cash flow for the period
amounted to DKK -0.8 million (2016/17: DKK 1.7 million).
- The outlook for 2017/18 is adjusted to a revenue expectation
for the full business year 2017/18 of DKK 26-28 million and an
EBITDA level of DKK -2 to -4 million.
Additional information:Michael
Hove, Chairman of Board of Directors; phone +45 28 12 66 09
http://prlibrary-eu.nasdaq.com/Resource/Download/db92ba2b-15ab-4ad1-9d77-e3fd205daf9e
Rovsing A/s (LSE:0Q51)
Historical Stock Chart
From Apr 2024 to May 2024
Rovsing A/s (LSE:0Q51)
Historical Stock Chart
From May 2023 to May 2024