- High level of capacity utilisation secured for fourth quarter
of current financial year - EBT for 2003/4 homed in on €20m mark
- Thus, on target for EBT surge of 55%
- Far-reaching optimisation measures in direct marketing pave
way for enhanced profitability of Group in 2004/5
As a result, schlott gruppe will exceed its original forecast, which had predicted earnings before tax (EBT) of “approximately €20 million” for the 2003/4 financial year. The company is certain to reach the €20m mark, thus propelling EBT upwards by 55% compared with the previous financial year (€12.9m). Earnings per share are likely to more than double year on year (FY 2002/3: €0.76).
Furthermore, as part of its preparations for year-end reporting, schlott gruppe conducted an impairment test regarding goodwill attributable to its subsidiaries. Based on the results of this impairment test, the carrying amounts are deemed to have been calculated conservatively. Thus, systematic amortisation of goodwill (€5 million p.a.) will be discontinued effective from the Q3 report for FY 2003/4. As a result, earnings per share for the current financial year are estimated to increase by an additional €0.80.
The direct marketing division has failed to emulate the current achievements of high-performance printing. Operating against this backdrop, schlott gruppe has stepped up its efforts to streamline its activities within the area of direct marketing. The costs associated with these measures are within the parameters set for process optimisation, which is performed in specific areas of the Group on a continual basis. Accordingly, schlott gruppe maintains an ongoing budget for such activities.
Senior management as well as the sales team responsible for direct marketing were strengthened considerably. In addition, the division has been divided into three separate units. This incisive approach will unlock further potential when it comes to raising efficiency levels through futurecentralised process management - which the Group does very successfully today within the area of production planning of gravure printing.
Centralised planning structures are also conducive to lower staffing levels. Downsizing within this area will be achieved by taking advantage of normal staff fluctuation, non-renewal of temporary employment contracts and the introduction of a new employment model. So-called “Jahresarbeitszeitkonten” (flexible form of managing annual working hours) will be introduced with a scope of up to 150 hours. As a result schlott gruppe has been able to limit the number of redundancies to a figure that is well below 100. From the next financial year onwards, staff costs associated with schlott gruppe’s direct marketing division will be substantially lower than in the past.
