Annual Report 2023/24
The English-language edition of the Annual Report will be
published in January 2025 at www.roblon.com
Summary
The Group reports profit from continuing operations for
2023/24. Divestment process underway for Roblon’s US
subsidiary.
For its continuing operations, Roblon realised revenue
of DKKm 245.4 and an operating profit (EBIT) before special items
of DKKm 29.3, equalling an EBIT margin of 11.9%.
In Company Announcement no. 7 of 16 September 2024, Management
announced the initiation of a process to divest Roblon’s US
subsidiary. Both demand and the competitive situation had
deteriorated to such an extent that Management made the decision to
initiate a divestment of the subsidiary.
At the end of 2023, the business intelligence company CRU
(www.crugroup.com/), which covers the FOC industry, expected that
the US market would in 2024 return to normal market conditions
comparable to those of 2022. This did not happen, however, in part
because the launch of government stimulus projects to fund the
roll-out of broadband in the USA proceeded more slowly than
expected. Also, the competitive conditions in a temporarily reduced
addressable market have become significantly tougher, partly due to
competition from the Far East.
Following the announcement of the divestment process for its US
subsidiary, Roblon has received a number of enquiries from
potential buyers. Management expects the divestment process to be
finalised by the end of March 2025. Consequently, the US subsidiary
is reported under discontinued operations in the annual report for
2023/24. Comparative figures for 2022/23 have been restated
accordingly.
In the coming years, Roblon’s activities will focus on the
development of products and services for the primary market,
comprising the EMEA countries and selected overseas customers and
customer leads. Roblon’s defined primary market is growing, boosted
by the current and future expansion of international digitalisation
and energy grid infrastructure.
During the 2023/24 financial year, the Board of Directors
decided to downsize the Executive Management from three to two
members in a bid to strengthen the Company’s strategy execution.
Accordingly, Roblon’s CEO, Lars Østergaard, resigned his position
on 13 May 2024. Kim Müller, who until 13 May 2024 held the position
of CTO, took over the reins as CEO, and Carsten Michno, until 13
May 2024 the Company’s CFO, took on the position of Co-CEO/CFO.
Selected financial highlights for the Group’s continuing
operations
- Order intake of DKKm 236.9 (DKKm
202.7)
- Revenue of DKKm 245.4 (DKKm
245.0)
- Gross profit of DKKm 149.3 (DKKm
127.5), equalling a gross margin of 60.8% (52.0%)
- Operating profit before
depreciation, amortisation and impairment (EBITDA) and before
special items of DKKm 44.9 (DKKm 27.3)
- Operating profit (EBIT) before
special items of DKKm 29.3 (DKKm 10.0), equalling an EBIT margin of
11.9% (4.1%)
- Profit from continuing operations
before tax of DKKm 27.2 (DKKm 24.6)
- Return on invested capital (ROIC)
before tax of 16.1% (5.2%)
- Earnings per B share after tax of
DKK 11.7 (DKK 11.3)
- Product development costs in
2023/24 totalled DKKm 7.6 (DKKm 6.1), corresponding to 3.1% (2.5%)
of total revenue
Selected financial highlights for the Group’s continuing
and discontinued operations
- Loss after tax for continuing and
discontinued operations of DKKm 9.6 (a loss of DKKm 4.6)
- Net cash inflow from operations
for the period of DKKm 56.2 (DKKm 17.8)
- Net cash outflow for the year of
DKKm 11.8 (net inflow of DKKm 21.4), mainly due to a DKKm 55.0
reduction of operating credits
- The Group worked purposefully to
reduce its working capital in 2023/24 and succeeded during the
period. This strengthened the Company’s liquidity resources, which
amounted to DKKm 101.9 at 31 October 2024 (DKKm 66.2)
- The equity ratio, positively
affected by the reduction of total assets, amounted to 71.4%
(57.0 %)
Roblon’s revenue for the financial year 2023/24 was DKKm 245.4
(DKKm 245.0), in line with last year. Revenue for the Composite
product group amounted to DKKm 185.4 (DKKm 154.0). The DKKm 31.4
improvement was due to a realised increase in deliveries of
strength members for submarine cables, while deliveries to the
offshore oil and gas industry were realised at the same level as
last year. The FOC product group generated revenue of DKKm 60.0
(DKKm 91.0). The DKKm 31.0 decline reflected the continuing
challenging market conditions for the FOC industry in EMEA in
2024.
EBIT before special items was an operating profit of DKKm 29.3
(DKKm 10.0), and the improvement was due to a favourable product
mix and profitability improvements realised through technology and
process enhancements. EBIT for 2023/24 was adversely affected by
remuneration during the notice period for the parent company’s
former CEO and the General Manager of the Group’s Czech subsidiary
totalling DKKm 4.4.
EBIT after special items amounted to DKKm 29.3 (DKKm 27.9). The
2022/23 figure was positively affected by a profit of DKKm 17.9
from the sale of the former head office building in
Frederikshavn.
Revenue for 2023/24 in Roblon’s US subsidiary, recognised under
discontinued operations, amounted to DKKm 102.2 (DKKm 110.0). The
drop in revenue was attributable to the current US market
conditions in the fibre optic cable industry and the fact that the
competitive conditions became significantly tougher during 2023/24,
partly due to competition from the Far East. Discontinued
operations realised a loss before tax of DKKm 26.9 (a loss of DKKm
27.7), in line with Management's guidance.
Realised EBITDA and EBIT for continuing and discontinued
operations for 2023/24 were in line with Management’s guidance.
Roblon realised a net loss for the year for continuing and
discontinued operations of DKKm 9.6 for 2023/24 (a loss of DKKm
4.6).
Based on the reported loss for the year 2023/24, the Board of
Directors proposes to the shareholders at the general meeting that
no dividend be distributed.
Guidance for 2024/25
In Company Announcement no. 11 of 18 November 2024, Roblon set out
Management’s revenue and earnings guidance for the 2024/25
financial year.
Management expects the challenging market conditions for the FOC
product group to continue in the 2024/25 financial year. Management
foresees a decrease in gross margin in 2024/25 compared with
2023/24, partly due to an expected change in product mix and partly
due to expected stronger price competition.
Management’s guidance with respect to continuing operations for
FY 2024/25 is as follows:
- Revenue of DKKm 210-240 (realised
2023/24: DKKm 245.4).
- Operating profit before
depreciation, amortisation and impairment (EBITDA) and before
special items of DKKm 30-40 (realised 2023/24: DKKm 44.9).
- Operating profit (EBIT) before
special items of DKKm 16-26 (realised 2023/24: DKKm 29.3).
- Special items relating to costs
in connection with the divestment of the subsidiary are expected to
be DKKm 2.5-4.
Revenue and results of the Company’s US subsidiary in the
process of being divested are reported as discontinued operations
and are consequently not included in the above guidance for the
2024/25 financial year. As the Company is in the middle of an
ongoing divestment process, Management is currently not in a
position to calculate how the divestment of the US subsidiary will
affect the financial statements.
The guidance for the year is subject to significant uncertainty,
mainly related to the continuing geopolitical challenges and market
conditions for the FOC product group, which are expected to
continue to be impacted by the aftermath of the 2022 COVID-19
pandemic period.
Frederikshavn, 19 December 2024
Roblon A/S
Jørgen Kjær Jacobsen
Kim Müller
Chairman
CEO
Enquiries regarding this announcement should be
addressed to:
Co-CEO Carsten Michno, tel. +45 9620 3300
Roblon A/s (LSE:0QCT)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
Roblon A/s (LSE:0QCT)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
