Roblon’s full-year guidance for 2019/20 maintained

Interim report – Q3 2019/20 (the period 1 November 2019 – 31 July 2020)

The Board of Directors of Roblon A/S has today considered and approved the interim report for Q3 2019/20

Highlights of the interim report of the Roblon Group:

  • Order intake of DKKm 196.7 (DKKm 204.2). The order intake grew in the FOC product group, while it declined in the Composite product group.
  • The order book at 31 July 2020 stood at DKKm 28.2 (DKKm 83.1), and the decline was primarily related to the Composite product group.
  • As expected, the Group’s revenue was adversely impacted by COVID-19 in the third quarter of 2019/20. Revenue amounted to DKKm 204.8 (DKKm 173.0).
  • The gross margin increased to 54.5% (41.0%), mainly as a result of an improved product mix and due to the fact that the year-earlier period was adversely affected by loss of productivity and inventory write-downs on Senvion-related activities.
  • Settlement received from Senvion in the amount of DKKm 45.3 was recognised in other operating income.
  • Operating profit (EBIT) ex the DKKm 45 net settlement from Senvion amounted to DKKm 2.2 (operating loss of DKKm 15.4), which was in line with the most recent profit guidance.
  • Profit before tax, ex. settlement from Senvion, amounted to DKKm 1.9 (a loss of DKKm 12.3). 
  • A loss before tax from discontinued operations of DKKm 3.0 related to a provision for loss on seller financing made in connection with the sale of discontinued operations in 2017.
  • Profit after tax for the period – including settlement from Senvion – amounted to DKKm 33.4 (a loss of DKKm 29.1).
  •  At 31 July 2020, Roblon’s equity stood at DKKm 247.2 (DKKm 201.7).

The Group’s profit before tax excluding Senvion was DKKm 1.9, adversely affected by COVID-19, which caused sales orders to be postponed, leading to reduced revenue. Moreover, Roblon’s earnings in the FOC product group were not satisfactory. Activities are underway that are expected to lift earnings within a short period of time. Due to the COVID-19 situation, the full anticipated effects of these productivity-enhancing measures have not been achieved in the current financial year, although a positive development was seen in the past quarter.

Guidance for full year 2019/20
Management assesses that the fourth quarter of 2019/20 will also be adversely impacted by COVID-19 developments in North and South America, two important markets for Roblon.

In August 2020, Management submitted an application for foregiveness of a COVID-19 loan taken out in the United States. Preliminary indications from the lender are that the Company meets the loan foregiveness criteria. Accordingly, the Company expects loan foregiveness of around DKKm 4.7, which amount has been factored into the profit guidance for 2019/20.

At the end of Q3 2019/20, Management maintains its full-year guidance for 2019/20. Management thus guides revenue in the range of DKKm 250-270 (2018/19: DKKm 267.2, ex. Senvion DKKm 241.8) and a profit before tax in the range of DKKm 0-5, DKKm 45-50 including Senvion (2018/19: a loss of DKKm 19.7, ex. Senvion a profit of DKKm 4.4). The guided profit before tax includes foregiveness of debt of DKKm 4.7 in the US. Accordingly, due to the adverse operational impact of COVID-19, the underlying profit before tax is expected to be DKKm 0-5 million lower than previously guided in the interim financial statements for H1 2019/20.

Sale of head office
Roblon has initiated the prospective sale of the Group’s head office in Frederikshavn. Roblon signed an agreement with an external commercial real estate agent to explore the possibilities of selling the head office, which is listed at a cash price of DKKm 32.5. 

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. Investments will have to be made in the Gærum facilities. However, as well as generating positive synergies in the day-to-day operations, this initiative is expected to have a positive impact on Roblon’s future results, liquidity and equity. The potential sale of Roblon's existing head office in Frederikshavn has not been factored into the profit guidance for 2019/20.

Frederikshavn, 17 September 2020

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


Attachment

  • Company Announcement no 9 - 2020 Q3

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