paragon comfortably outperforms own forecasts

Short financial year from June 1 to December 31, 2010: sales up 16.5 percent, adjusted EBITDA up 56.0 percent / Full 2010 financial year: sales up 14.7 percent, adjusted EBITDA up 41.0 percent

(PresseBox) ( Delbrück, )
paragon AG has comfortably outperformed its Managing Board's forecasts for the full 2010 financial year, which comprised two short fiscal years. The Company increased its sales by 14.7 percent and boosted its adjusted EBITDA by an impressive 41.0 percent compared with 2009. In the second short financial year - from June 1 to December 31, 2010 - paragon, a publicly traded direct supplier to the automotive industry, raised its sales by 16.5 percent to €35.2 million.

During the short financial year from January 1 to May 31, 2010, the Company had already managed to generate double-digit sales growth compared with the corresponding period of 2009. This strong growth continued over the following half of the year. paragon performed as expected in terms of sales in December 2010, when it posted the usual year-end closing entries for the short financial year from June 1 to December 31, 2010. Consequently, the Company will return to the calendar year as its financial year with effect from January 1, 2011 in accordance with a resolution adopted by the Annual General Meeting on September 30, 2010.

During the period from June 1 to December 31, 2010, paragon continued along the successful path that had started at the beginning of the year, generating sales of €35.2 million compared with €30.2 million in the corresponding period of 2009. The growth rates reported for its earnings figures - adjusted for the effects of restructuring - during this seven-month period were significantly higher. Adjusted EBIT surged by 204.4 percent to €3.2 million (corresponding period of 2009: €1.1 million), while adjusted EBITDA jumped by 56.0 percent to €6.2 million (corresponding period of 2009: €4.0 million).

The sales generated during the full year advanced by 14.7 percent year on year from €52.6 million (2009) to €60.4 million despite the fact that staff costs remained virtually unchanged at €12.5 million. EBITDA - adjusted for the effects of restructuring - grew by 41.0 percent from €7.2 million to €10.2 million, while adjusted EBIT rose from €1.9 million to €5.2 million. paragon again reported equity of €4.5 million in accordance with International Financial Reporting Standards (IFRS) as at December 31, 2010.

These figures meant that paragon comfortably outperformed its own forecasts. In May 2010 the Managing Board had predicted sales of €58.0 million and adjusted EBITDA of €7.5 million; in December of last year the Company raised its forecast for adjusted EBITDA to at least €9.0 million. It outperformed the predictions it had made in May 2010 by 4.1 percent (sales) and 36.0 percent (adjusted EBITDA).

"We would have achieved a healthy operating profit even if the automotive industry hadn't recovered.We therefore regard our restructuring as having been successfully completed", stressed Frers.

paragon will present its report for the short fiscal year from June 1 to December 31, 2010 as planned on the occasion of the financial statements press conference to be held on March 29, 2011.
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