Roblon downgrades profit guidance for 2020/21
Interim report – H1 2020/21 (the period 1 November 2020 – 30 April 2021)
The Board of Directors of Roblon A/S has today considered and approved the Group’s interim report for H1 2020/21.
Highlights of the interim report of the Roblon Group:
As expected, revenue and earnings for the first half were adversely impacted by the COVID-19 pandemic.
Revenue developed in line with expectations, albeit at the lower end of the range, while the loss before tax was bigger than expected due to an unfavourable product mix, a negative impact of global raw materials shortages and increased staff costs as a consequence of COVID-19.
The order intake amounted to DKKm 150.4 (DKKm 155.3). Order intake grew in the FOC product group but declined in the Composite product group, primarily due to the adverse effects of the global pandemic.
The order book at 30 April 2021 stood at DKKm 73.1 (DKKm 48.8). The increase related to the FOC product group – cable materials and cable machinery for the fibre optic cable industry.
Revenue amounted to DKKm 103.0 (DKKm 142.0), against a guided level of DKKm 105.0. The FOC product group recorded revenue growth, whereas the Composite product group – composite materials for onshore and offshore industries – recorded a decline compared with the year-earlier period.
The realised product mix and increased costs due to the global raw materials situation resulted in a reduced gross margin of 44.8% (56.1%).
The Group recognised an operating loss before amortisation, depreciation and impairment (EBITDA) of DKKm 18.6 (a profit of DKKm 59.7, and DKK 14.7 ex. Senvion), against a guided loss of DKKm 14.0.
The Group recognised an operating loss (EBIT) of DKKm 28.2 (an operating profit of DKKm 51.2, and DKKm 6.2 ex. Senvion).
The loss before tax was DKKm 27.0 (a profit of DKKm 50.8, and DKKm 6.1 ex. Senvion), against a guided loss of DKKm 23.0.
The loss for the period after tax amounted to DKKm 20.9 (a profit of DKKm 36.6).
At 30 April 2021, Roblon’s equity stood at DKKm 216.4 (DKKm 252.6).
Cash flow from operations for the period was an outflow of DKKm 22.0 (an inflow of DKKm 9.3).
Guidance for full year 2020/21
Management assesses that the second half of 2020/21 will continue to be adversely affected by the COVID-19 situation. The current situation of global raw materials shortages and logistical challenges caused by the pandemic also poses increased risk. Either of these issues may have an adverse effect on revenue and earnings in the second half of 2020/21.
This primarily concerns the Composite product group, which has been hit by a prolonged and persistent reduced project order intake and a resulting drop in revenue and earnings. As most of these projects have been postponed, the Company expects them to materialise at a future date.
In the second half, Management expects to see increases in order intake and revenue for both Composite and FOC, although there is an increased risk of time lags in order intake due to COVID-19 and the global raw materials shortages and logistical challenges.
The FOC product group is expected to see continued growth and rising profit margins as a result of the investment and efficiency enhancement programme that has been ongoing since 2020.
On the basis of the financial performance for H1 2020/21 and the above-mentioned uncertainties, Management now expects revenue in the range of DKKm 240-260 (DKKm 254.6) against the earlier guidance of DKKm 260-280, an operating profit before depreciation, amortisation and impairment (EBITDA) in the range of DKKm 1-6 (DKKm 9.2 ex. Senvion) against the earlier guidance of DKKm 5-13 and a loss before tax in the range of DKKm 26-21 (a loss of DKKm 8.4 ex. Senvion) against the earlier guidance of a loss in the range of DKKm 19-11.
Head office building put up for sale
In 2018/19, Roblon decided to initiate a prospective sale of the Group’s head office in Frederikshavn. After the sale, the Group’s Danish activities will all be located at Roblon’s facilities in Gærum, which currently house production and various administrative functions. As well as generating positive synergies in the day-to-day operations, this initiative is also expected to have a positive impact on Roblon’s results and equity going forward. There are still relevant prospective buyers showing an interest in the property.
Frederikshavn, 24 June 2021
Jørgen Kjær Jacobsen Lars Østergaard
Chairman of the Board Managing Director and CEO
Enquiries regarding this announcement should be addressed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300