Globally positioned Adval Tech reports striking improvement in results
2007 annual financial statements/outlook/increase in share capital
The bridging loan raised for the acquisition of the Omni Group is to be replaced by an increase in share capital. A motion to this effect will be proposed to the regular Annual General Meeting to be held on April 24.
Consolidated total income of CHF 348.6 million in 2007 was 26% higher than the previous year s figure. 75% of this increase was attributable to organic growth, 20% to acquisitions and 5% to currency translation effects. Compared with 2006, operating earnings (EBIT) improved by CHF 8.2 million to CHF 15.5 million, resulting in an increase in the corresponding margin from 2.6% to 4.4%.
Net profit of CHF 8.3 million was CHF 4.3 million higher than in the previous year.
Stamping and Forming Division
The Stamping and Forming Division (Styner+Bienz, QSCH) benefited from strong demand in the automotive component supply industry and reported total income of CHF 182.5 million, exceeding the previous year s figure by 33%. The focus on the automotive market and efforts to increase market and customer penetration bore fruit. QSCH Kft., acquired at the end of April 2007, contributed CHF 14.3 million to total income. EBITDA increased by CHF 0.8 million to CHF 17.4 million (+5%) and EBIT by CHF 0.9 million to CHF 7.5 million (+14%). The EBIT margin thus declined by 0.7 percentage points to 4.1%. Lower margins were due to costs incurred in connection with the integration of our new Hungarian subsidiary, the concentration of the Swiss production activities at three locations and restructuring charges in Brazil.
Injection Molding Division
The Injection Molding Division (AWM, Foboha, Teuscher) reported a significant improvement in results in the year under review. Total income of CHF 166.1 million was 20% higher than the previous year s figure. The division reported higher sales revenues both in moldmaking and in the components business. EBITDA increased by CHF 7.8 million (+67%) to CHF 19.5 million and EBIT by CHF 6.4 million to CHF 6.9 million. The division will continue its efforts to improve margins, which are still inadequate. The strategic expansion of the medical technology sector is progressing well. The initial stage in the expansion of component production in Grenchen is complete, and the establishment of a competence center dedicated to this field in Muri is also making good progress.
Increase in share capital
The planned increase in share capital is intended to replace the interim financing facility of CHF 94.8 million in connection with the acquisition of Omni. This amount includes the purchase price for 85.7% of the share capital and the funds necessary to refinance the Omni Group s existing bank borrowings. Share capital is to be increased by up to CHF 7.3 million to a total of CHF 14.6 million.
Up to 365 000 new registered shares with a par value of CHF 20 will therefore be issued in addition to the existing 365 000 registered shares of CHF 20 p.v. The actual number of new shares and the issue price will be announced on the date of the Annual General Meeting. The new shares will already be entitled to dividend for the 2008 fiscal year. Existing shareholders subscription rights will be respected in material terms. Formally, however, they will be allotted to one or several banks, which will undertake to offer the newly issued shares to existing shareholders for purchase under the terms of their subscription rights.
The focus of attention for the Adval Tech Group in the current fiscal year will be on the successful integration of its new acquisitions - Omni and QSCH. Potential synergies in terms of markets and manufacturing will be resolutely exploited throughout the group in order to meet customers increasingly crucial need for a global presence as effectively as possible. Adval Tech also intends to grow organically and continue to improve its operating results.
The Board of Directors will propose to the Annual General Meeting that the dividend be increased from CHF 6.00 to CHF 7.00 per share, equivalent to a payout of 31% of net profit for the year.
Adval Tech Gruppe
The Adval Tech Group is a leading global supplier of tools, special machinery, subassemblies, systems and volume components in the technology sectors of stamping and forming (metals) and injection molding (plastics). It is a supplier and value-adding partner for companies in selected industries where metal, plastic or composite components are manufactured and used in large volumes. Adval Tech covers the entire value chain: from product design and the development of volume components through design and production of the necessary molds and dies to complete manufacturing systems and the resulting production of components. The Adval Tech Group focuses on selected markets in the automotive, medical technology and consumer goods sectors.
Adval Tech trades on the markets under the names of Styner+Bienz, QSCH, AWM, Foboha, Teuscher and Omni.