M.J.MAILLIS GROUP announces its Consolidated Financial Results for the 1st Half 2007:
- Consolidated Turnover of Euro188.1 mln versus Euro189.0 mln in the 1st half of 2006 (Euro182.3 mln in the 2nd half of 2006).
- Consolidated Earnings before Interest, Taxes and Depreciation (E.B.I.T.D.A.) of Euro16.3 mln versus Euro24.9 mln in the relevant period of 2006 (Euro13.2 mln in the 2nd half of 2006).
- Consolidated Net Income before disposal of subsidiaries of Euro 0.8 mln versus Euro5.6 mln in the 1st half of 2006 (consolidated losses of -Euro3.4 mln in the 2nd half of 2006).
- Consolidated losses after the disposal of subsidiaries of -Euro5.8 mln vs consolidated net income of Euro5.6 mln in the relevant period of 2006.
In the 1st half of 2007, the Group results were burdened by a one-off accounting loss of Euro6.6 mln from the disposal of subsidiaries as part of the on-going restructuring actions that were presented in company s announcements dated 26/6/07 and 3/8/07. The loss is related to goodwill write offs and extraordinary losses associated with the disposal of subsidiaries, and is not related with the operating results and cash flows of the Group.
Above actions are expected to result in enhanced consolidated results for the Group, estimated at approximately Euro1 mln annually. The company expects to derive such benefits by reason of economies of scale achieved through the merging of activities and the anticipated positive effects on the total working capital of the Group. The creation of larger subsidiaries is expected to have a positive effect on the subsidiaries' own operations, as well as to the operations of the Group's headquarters.
In comparison with the 1st half of 2006, Consolidated Turnover was marginally down by 0.5%, affected also by the negative translation impact of the USD. Steel strap turnover was up by 0.7%, plastic strap by 6.7% and film by 7.5%. Machine sales lagged by 10% compared to the 1st half of 2006, but recovered significantly vs. the 2nd half of 2006 posting a 12% increase.
In the midst of very competitive market environment, the Group managed to increase Gross Profit and EBITDA by 21.5% and 23.5% respectively in absolute figures vs. the 2nd half of 2006.
This trend is expected to continue based on:
1. the promotion of high value-added and thus higher margin products through the subsidiaries' network,
2. the completion and start up of the investments in the plastic packaging materials (Film, PET strap,) and in the high tensile steel strap, and
3. the re-organisation of the sales teams in Europe.
In parallel, the Group will continue the restructuring actions to reduce cost and improve profitability, and will proceed with further public announcements in respect of these actions, which are expected to be completed by the end of the 1st quarter 2008.