DETECTION TECHNOLOGY PLC INTERIM REPORT JANUARY-MARCH 2015
Detection Technology Plc Company Announcement 27 April 2015 at 9.00 a.m. local time
DETECTION TECHNOLOGY: STRONG START TO THE YEAR – NET SALES GREW 29%
This release is a summary of Detection Technology’s Interim Report January-March 2015. The complete report is attached to this release as a pdf-file and can also be found on the company website www.deetee.com
FIRST QUARTER 1.1.-31.3.2015 HIGHLIGHTS
Net sales grew 29% to EUR 8.97 million (6.93)
Operating profit (EBIT) amounted to EUR 0.74 million (0.37)
Operating margin (EBIT%) totaled 8.3% of net sales (5.3%)
DT was listed on the Nasdaq First North Finland market place on March 16th
The result for the period was affected by non-recurring financial expenses of EUR 1.38 million related to the IPO
Earnings per share were -0.03 euros (0.04)
DETECTION TECHNOLOGY’S PROSPECTS FOR 2015
Detection Technology’s sales outlook for 2015 is in accordance with its medium term target to increase sales by at least 15% per annum. DT’s profitability is developing according to plan. DT’s net sales and profitability can vary considerably between the quarters due to the timing of projects and customer deliveries.
The total capital expenditure related to the new factory in Beijing, China and other investments are estimated to amount to EUR 4.5-5.0 million in 2015.
PRESIDENT AND CEO, HANNU MARTOLA:
“We had a good start to the year and both our net sales and profitability improved. Our net sales grew 29% to EUR 8.97 million. I am also pleased with how our profitability improved and that our operating profit, amounting to EUR 0.74 million, doubled compared to last year. This shows that we are on the right track and gives us confidence to continue the strategic growth path that we have chosen.
During the first quarter we became a listed company and the trading of our shares started on the Nasdaq First North Finland market place on March 16th. We received EUR 17.9 million in the IPO before taking into account offering related charges and costs. Through the proceeds received in the IPO we have a strong balance sheet and more financial flexibility. We will be able to strengthen our technology base, continue to pursue our international expansion and invest in production capacity.
We have already started setting up the new factory in Beijing and production will be ramped-up during the autumn of 2015. The new facility supports our growth targets as well as our efficiency, quality and cost targets.”
|(EUR 1 000)||1-3/2015||1-3/2014||Change%||1-12/2014|
|Net sales||8 973||6 931||29||33 112|
|Net sales growth %||29.0||4.6||9.2|
|Operating profit (EBIT) excl. NRI||741||370||100||4 127|
|Operating margin (EBIT%) excl. NRI||8.3||5.3||12.5|
|Operating profit||741*||370||100||3 079**|
|Operating margin %||8.3||5.3||9.3|
|Cash flow from operating activities||570||-612||3 085|
|Net interest bearing debt at end of period||-9 256||11 450||-181||8 678|
|Capital expenditure||547||147||272||1 280|
|Earnings per share, EUR||-0.03||0.04||-178.7||1.45|
|Earnings per share diluted***, EUR||-0.03||0.01||0.21|
|Number of shares at the end of the period||12 950 975||1 900 195||1 900 195|
* In 2015 DT has made a change to its accounting policies relating to the treatment of potential future warranty costs and makes a provision of 1.5% of net sales. The warranty provision affects the January-March 2015 operating profit by EUR 0.1 million.
**In 2014, DT recognized EUR 1.0 million of non-recurring quality and NPI costs
***The earnings per share information for 2014 figures was computed as if the shares issued in conjunction with the IPO had been outstanding for the entire comparison period.
DETECTION TECHNOLOGY PLC.
Board of Directors
For further information:
|Hannu Martola, President and CEO||Petri Hiljanen, CFO|
|+358 500 449475||+358 40 591 7435|
Nordea is the company’s Certified Advisor under First North rules.
Detection Technology in brief
Detection Technology develops, produces, markets and sells components and systems for X-ray imaging solutions for medical, security and industrial applications. The Company operates from Espoo, Oulu, Beijing, Hong Kong and Boston. In 2014, Detection Technology’s net sales totalled EUR 33 million and the comparable operating profit margin was 12% (the reported operating profit margin being 9%). The company’s shares are listed on the Nasdaq First North Finland market place.
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