- Forecast confirmed by preliminary results for FY 2005/6
- Group value-added sales for 2005/6 reaches €301.5 million, Group EBT stands at €22.0 million
- Forecast for FY 2006/7 remains unchanged at €310 million in value-added sales and more than €25 million in EBT
Freudenstadt, November 8, 2006. schlott gruppe has announced its preliminary results for the 2005/6 financial year (October - September), confirming the forecast communicated in mid-2006. At Group level, value-added sales (VAS) amounted to €301.5 million, compared with €319.4 million a year ago. Reported revenue, which includes purchased paper, stood at €517.3 million after €525.5 million in 2004/5. Group earnings before taxes totalled €22.0 million, as opposed to €25.9 million a year ago. All figures relating to the preceding year have been adjusted to create a basis for year-on-year comparability, i.e. amounts attributable to the subsidiary company heckel, which was deconsolidated at the beginning of FY 2005/6, have been eliminated.
As outlined in the interim report for the third quarter of 2005/6, second-half – and in particular third quarter - revenue and earnings recorded in the print segment were less buoyant than originally anticipated at the beginning of the financial year, while the direct marketing segment was adversely affected by activities in Scandinavia. As announced on October 17, 2006, the latter were subsequently subject to significant restructuring.The print segment generated VAS of €239.6 million in the financial year just ended (prev. year, adjusted for heckel: €253.1 million) and EBT of €30.8 million, compared with €33.2 million a year ago. The direct marketing segment recorded VAS of €59.6 million (prev. year: €63.8 million) and a loss before taxes of €4.0 million, after a loss before taxes of €3.1 million in FY 2004/5. Excluding non-recurring charges associated with the operating loss incurred in Scandinavia as well as the costs of restructuring of local activities in this region, direct marketing would have posted a break-even result. The corporate services segment, which mainly provides internal services, recorded a loss before taxes of €3.8 million, after previous year's loss of €2.9 million.
As detailed in a press release of July 24, 2006, schlott gruppe has maintained its growth forecast for EBT, targeting a figure of more than €25 million for the 2006/7 financial year. The elimination of expense items attributable to its Scandinavian operations is expected to contribute to that visible growth. VAS is forecast to reach €310 million. As already communicated, the Management Board of schlott gruppe AG plans to recommend to the Supervisory Board a dividend payment of €1.00 per share for the 2005/6 financial year, unchanged year on year.
Notes to financial data:
Alongside "revenue/sales", schlott gruppe uses so-called "value-added sales" (VAS) as a financial indicator – both in its external communications and as part of its internal controlling mechanisms. Revenue is subject to fluctuations that are attributable to the volume of paper supplied by customers as raw material for certain projects. In contrast to paper purchased directly by the company, paper supplied by customers is not included in the accounts of schlott gruppe. In the 2005/6 financial year, the so-called paper provision ratio stood at 79.9 per cent. As a financial indicator, "value-added sales" eliminates fluctuations relating to paper supplied by customers, thus reflecting the actual sales performance.
The Group has categorised its activities into three business units: print, direct marketing and corporate services. Revenues and earnings generated by corporate services are derived solely from internal charging for services rendered as well as internal cost allocation. The reported results for the Group as a whole outlined above are derived from the print and direct marketing business units as well as the corporate services unit and consolidation effects.
