- Dividend per share to be raised to €0.90 (FY 2002/3: €0.80).
- EBT target of €20 million (FY 2002/3: €12.9 million) met.
- Indebtedness reduced in line with planning
- Imminent market restructuring prompts conservative EBT forecast for FY 2004/5 at a level comparable to FY 2003/4.
Freudenstadt, 28 October 2004. Based on preliminary figures, schlott gruppe achieved earnings before taxes (EBT) of €20.3 million in the 2003/4 financial year ended September 30. Owing to the conservative measurement of carrying amounts, as announced, the company discontinued systematic amortisation of goodwill. Thus, it will be reporting earnings before taxes of around €25 million (FY 2002/3, adjusted for non-recognition of amortisation: €18.7 million). The reduction in net debt to €200 million was also implemented as planned.
Prompted by the company’s successful performance, the Management Board proposes an increase in dividend payments to €0.90 per share
(FY 2002/3: €0.80). That proposal to the General Meeting of Shareholders is to be agreed upon at the Supervisory Board meeting in January 2005, convened for the purpose of adopting the financial statements. The proposed dividend reflects the company’s firm commitment towards the overriding principles of profit-oriented and sustainable pay-outs.
The ability to adjust rapidly to ever-changing market requirements is considered to be one of the pivotal elements of the company’s management approach. Given the current realignment of leading mailorder companies in terms of advertising strategy, schlott gruppe’s operational versatility will prove to be a key determinant of its success within the marketplace. Calculated on the basis of an annual average, printing volumes in the mail-order segment are expected to remain unchanged. However, a forecast regarding the exact distribution of capacity levels over the three quarters subsequent to Q1 is not yet possible. Thus, capacity planning will represent a challenge in the months to come.
Operating against this backdrop, the Management Board has therefore agreed on a conservative 2004/5 EBT estimate that is comparable to the result achieved in FY 2003/4. The first quarter (Oct to Dec) will remain buoyant in terms of capacity utilisation, thus mirroring the trend of previous first quarters. Overall, the Group has already geared its facilities towards the shorter life cycles now associated with printed media. The Management Board is confident that the company will translate these new opportunities into bottom-line success. Within this context, quantifiable data is expected to become available over the course of the new financial year.
Supported by ongoing measures to raise internal efficiency levels, the company remains firmly committed to bolstering its annual results. Over the course of the 2004/5 financial year, the company will be focusing, in particular, on streamlining its central cost structures. In parallel, debt is to be reigned back further.
