Roblon strengthens business through acquisition and establishment in Czech Republic and presents 2021/22 earnings guidance and financial targets
09 Diciembre 2021 - 1:57AM
Roblon strengthens business through acquisition and establishment
in Czech Republic and presents 2021/22 earnings guidance and
financial targets
Company Announcement no 7 - 2021
9 December 2021
Highlights
- Roblon has today signed an agreement to acquire Vamafil spol.
s.r.o., which is centrally located in the Czech Republic between
Prague and Brno – more specifically in Žďár nad Sázavou. The
acquisition date is 3 January 2022 and the completion of the
transaction is subject to confirmatory due diligence on a couple of
matters, retention of management and other customary closing
conditions.
- The acquisition is a step in Roblon’s growth strategy within
its core business, the fibre optic cable industry, and is expected
to lift the Group’s revenue and earnings.
- Roblon’s Management announces its earnings guidance for the
financial year ending 31 October 2022 and maintains the previously
announced financial targets.
Company acquisition
Vamafil spol.
s.r.o.Vamafil is an established company
specialising in supplying high-performance fibre converting
services (treatment and processing of fibres) to European
customers, including fibre manufacturers and companies that use
high-performance fibres in their production. A recognised leading
industry player, Vamafil is known for its quality and flexibility
in its business segment. The company has annual revenue of between
EURm 4.5 and EURm 5 and satisfactory earnings.
Roblon intends to continue the development of Vamafil’s existing
business area. In addition, the acquisition of Vamafil will
facilitate Roblon’s growth in its core business within the fibre
optic cable industry and strengthen competitiveness and
profitability by relocating selected parts of its production
facilities from Denmark to the Czech Republic.
With the relocation, Roblon will moreover move geographically
closer to the majority of the manufacturers in the European fibre
optic cable industry. This means that Roblon’s position will be
comparable to that achieved in the USA with the Company’s location
in North Carolina. In view of the current COVID-19 resurgence, the
planned relocation will be initiated once the spread of the virus
has stabilised and the risk of travel restrictions in the Czech
Republic and Denmark has been reduced. The relocation is expected
to proceed in mid-spring 2022 and be completed by the end of
2022.
Vamafil has a modern, approximately 15,000 sqm. factory
centrally located in the Czech Republic between Prague and Brno and
around 100 employees. The local management team and staff will
remain in place after Roblon’s acquisition.The agreed acquisition
price for the shares is EURm 8 (approx. DKKm 59.6), payable in cash
on the acquisition date, 3 January 2022. The agreed acquisition
price includes land and buildings. Adjustment will be made for net
debt and normalisation of working capital at the acquisition
date.
Completion of the transaction is subject to confirmatory due
diligence on a couple of matters, retention of management and other
customary closing conditions
Roblon has secured DKKm 75 in long-term credit facilities to
support the acquisition of Vamafil and the Group’s growth strategy
in general.
Guidance for 2021/22
Management expects growth in the Group’s revenue and earnings in
the 2021/22 financial year. This is based, among other things, on
the following significant factors:
- Revenue is expected to increase in
the FOC product group in the US, where Roblon is well positioned.
Demand for the Group’s products continues to rise in this growth
market. Over the past 18 months, Roblon has ramped up its
production capacity through a major investment programme, and the
Company is planning further investments and productivity
enhancements in the future.
- In the Composite product group,
Management expects revenue to be on a par with the financial year
2020/21.
- Roblon’s acquisition of Vamafil on
9 December 2021 effective at 3 January 2022.
- Vamafil is expected to contribute
revenue of around DKKm 30-35 and an operating profit (EBIT) in the
2021/22 financial year.
Short-term expectations are subject to a high degree of
uncertainty in light of the continuing impact of COVID-19 on all
markets as well as continued supply problems regarding certain raw
materials and logistical challenges. The 2021/22 financial year
will also extraordinarily be affected by the integration of the
acquired Czech business and relocation and installation of selected
parts of the production facilities from Denmark and the Czech
Republic.
Revenue and earnings guidance for 2021/22:
- Revenue in the range of DKKm
330-270 (guidance for 2020/21: around DKKm 250)
- Operating profit before
amortisation, depreciation and impairment and exceptional items
(EBITDA) in the range of DKKm 8-27 (guidance for 2020/21: a loss of
around DKKm 13)
- Operating profit/loss before
exceptional items (EBIT) in the range of a loss of DKKm 19 to DKKm
0 (guidance for 2020/21: a loss of around DKKm 33)
- Exceptional items relating to
restructuring costs of around DKKm 8 (DKKm 0)
Financial targets
Assuming normal economic conditions, Roblon’s financial targets
remain as follows:
- Average annual revenue growth of at
least 15 %
- An average annual EBIT margin of at
least 10 %
- Average annual EPS growth of at
least 15 %
- A return on invested capital (ROIC) before tax of at least 20
%
Sale of head officeIn early 2020, the Group
decided to put its head office in Frederikshavn up for sale. There
are currently no potential buyers of the buildings, but the sales
process continues. After the sale, the Group’s Danish activities
will be centred 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.
Forward-looking statementsVarying proportions
of Roblon’s sales are attributable to the Composite product group,
which is characterised by a project sales structure. This makes it
difficult at any given time to forecast total future revenue for a
specific period, i.e. three-month, six-month or 12-month
periods.
The above forward-looking statements, in particular revenue and
earnings projections, are inherently uncertain and subject to risk.
Many factors are beyond Roblon’s control, and actual results may
consequently differ significantly from the projections expressed in
the above earnings guidance. Such factors include, but are not
limited to, changes in market and competitive situation, changes in
demand and purchasing behaviour, foreign exchange and interest rate
fluctuations and general economic, political and commercial
conditions.
Frederikshavn, 9 December 2021 Roblon A/S
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
- Company Announcement no 7 -2021
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