Total consolidated revenues up 50% from 23.65 million to 35.45 million
Consolidated EBITDA down from € 1.676 million to Euro 82 thousand
Consolidated EBIT down from Euro1.087 million to -186 thousand
Consolidated profit before income taxes down from Euro 699 thousand to 573 thousand
Consolidated net financial position: positive at € 59.83 million
Amaro (UD), 26 September 2007.
Today, the Board of Directors approved the Consolidated Half-Year Interim Report as at 30 June 2007.
Increased sales for the Eurotech Group, a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).
Revenues increased from 23.65 million in the first half of 2006 to ?35.45 million in the first half of 2007, posting growth of 50.0%, i.e. 12.2 million.
During the half year in question, management pursued the plan for growth in size and internationalisation through the acquisition of Applied Data System Inc. which was executed on 8 January 2007.
Half-year figures show gross profit in absolute terms increasing by 6.13 million, rising from 11.84 million in the first half of 2006 to 17.97 million in the first half of 2007. This meant that profit accounted for 50.1% of revenues in the first half of 2006 and 50.7% in the first half of 2007. This percentage is slightly higher than the expectations of management for 2007, showing the absence of any particular retail price pressure.
EBITDA amounted to 882 thousand, net of 200 thousand due to price allocation for the business combination recognised in the accounts using the method laid down by IFRS 3 involving purchase of the Arcom Group and Applied Data Systems Inc.. Fixed operating costs, due to the seasonality of the business, were a significant portion of revenue, since this tends to be lower in the first half of the year with respect to the second half of the year. The increase in sales expected in the coming quarters will make it possible to better absorb these fixed costs.
EBIT, net of purchase price allocation, featured a decrease between the first half of 2006 and the first half of 2007, falling from 1.087 million in 2006 to -186 thousand in 2007. This trend was strictly related to the trend in EBITDA and to higher depreciation & amortisation posted in 2007.
Financial management posted a positive change in absolute values of 1.147 million between the first half of 2006 and the first half of 2007, due largely to the proceeds from the cash availabilities pursuant to the increase in capital at July 2006 and the positive effect of exchange rate differences.
Profit before tax fell from 699 thousand in first half 2006 to 573 thousand in first half 2007, net of price allocation.
Group net income improved from Euro-77 thousand in the first half of 2006 to -53 thousand in the first half of 2007, net of price allocation. In addition to reflecting the trend in pre-tax performance, this result was mainly due to the tax burden of the Group's various companies and, to a lesser extent, minority interest.
After the acquisition in early 2007, the Group still showed a positive financial position of approximately 60 million to use mainly toward external growth.
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Eurotech: 2007 first half revenues surge 50% over 2006 to Euro35.45 million