DGAP-News: Balda AG further continues positive trends


DGAP-News: Balda AG / Key word(s): Quarter Results

Balda AG further continues positive trends

12.11.2015 / 08:13


– Sales revenues increase by EUR 0.7 million to EUR 21.3 million

– EBITDA (EUR 1.7 million) and EBIT (EUR 0.4 million Euro) continue on

positive track as expected

– Full-year forecast confirmed, but subject to sale of the operating


Bad Oeynhausen, 12 November 2015 -Today, Balda AG published the Q1 Report

2015 / 2016. Accordingly, during the first three months, the Group

generated sales revenues in the amount of EUR 21.3 million following EUR

20.7 million in the same period during the previous year. This growth is

particularly due to a moderate US Dollar / Euro exchange rate. Consolidated

earnings before interest, taxes and depreciation (EBITDA) and before

extraordinary items thus amount to EUR 2.1 million following EUR 1.8

million last year.

Sales revenues and key earnings figures of the Balda Group during the first

three months 2015 / 2016

During the first quarter, Balda AG generated consolidated sales revenues in

the amount of EUR 21.3 million, which corresponds to an increase by 2.8 %

in comparison to the reference period (previous year: EUR 20.7 million).

During the period under review from July 2015 until September 2015,

earnings before interest, taxes and depreciation (EBITDA) after

extraordinary items were EUR 1.7 million (before extraordinary items: EUR

2.1 million); in the same period during the previous year they amounted to

EUR 1.5 million (before extraordinary items: EUR 1.8 million). This

corresponds to an EBITDA margin after extraordinary items of 7.7 % (before

extraordinary items: 9.4 %). Extraordinary items primarily are accounted

for by expenditure in connection with the consolidation of the US sites and

expenses associated with the planned sales of the operating units.

Also the earnings before taxes and depreciation (EBIT) were affected by the

extraordinary items that, similar to the previous year, amounted to EUR 0.4

million also after the first three months of 2015 / 2016. Before

extraordinary items, the EBIT is only slightly higher in the current period

under review than last year (EUR 0.8 million now compared to EUR 0.7

million in the previous year).

For the first quarter 2015 / 2016 Balda AG reports earnings after taxes of

EUR 0.6 million (previous year: EUR 3.0 million). This lower value compared

to the previous year is primarily due to the lower financial results.

Financial results were significantly lower compared to the previous year as

a consequence of the development of the US Dollar / Euro exchange rate.

Development of the operating segments

During the reporting period from July until September 2015, thanks to

currency benefits, the America segment achieved a sales revenue increase to

EUR 11.9 million (previous year: EUR 10.9 million). Also the EBITDA

increased, which was EUR 1.4 million during the first quarter (previous

year: EUR 0.7 million). Also the operating results of the segment improved

significantly, Balda generated an EBIT of EUR 0.6 million, following

EUR 0.07 million last year.

The Europe segment reports a slight decrease for the first quarter 2015 /

2016; the segment sales revenues amounted to EUR 9.4 million after EUR 9.8

million during the same period last year. The decrease is primarily due to

declining product sales in the medical technology business. This negative

effect was mostly offset though by the accelerated engineering and tooling

business. The segment EBITDA was EUR 0.3 million and therefore also below

the previous year’s value of EUR 0.9 million. Also the EBIT was affected by

the decrease and was EUR -0.2 million compared to EUR 0.4 million during

the same period last year. Extraordinary items amounted to EUR 0.3 million.

In the Other segment, general holding expenses again caused a slightly

negative EBITDA of EUR -0.038 million after EUR -0.1 million in the

reference period.

Summary of important developments during the period under review and beyond

On 23 September 2015 Balda AG announced the sale of all operating

subsidiaries to Paragon Partners from Munich (“Paragon”), subject to

approval by the Annual General Meeting (“AGM”) and the anti-trust

authorities. The purchase agreement provided that the economic transition

of the business take retroactive effect as per 1 July 2015.

On 1 October Balda AG received a further offer: The Heitkamp & Thumann

Group from Düsseldorf (“H&T”) submitted a higher notarized offer. It also

concerned all operating subsidiaries and featured retroactive effect of the

agreement as per 1 July 2015.

In response, on 20 October 2015, Paragon also submitted a higher offer.

Moreover, it was agreed that both the improved offer and the purchase

agreement already concluded would be rendered obsolete entirely in case H&T

or a third party increased their offer to at least EUR 74.0 million. In

this case, an indemnity payment of EUR 1.4 million was agreed.

On 30 October 2015 H&T in turn adjusted its bid and now offered EUR 74.0

million for the operating units, thus overriding the offer and the existing

purchase agreement by Paragon. On 2 November 2015 Balda made the

agreed indemnity payment to Paragon.

Due to the complexity of the situation, Balda AG scheduled the AGM for two

days. The ordinary AGM for the business year 2014 / 2015 will now take

place in Hanover on 30 November and possibly also on 1 December 2015.

The Management and Supervisory Boards have also suggested the payment of a

dividend in the amount of EUR 1.10 per share. At the same time, the share

capital is to be reduced by EUR 0.90 per share in case the sale of the

operating business is approved. Both actions together would result in a

cash outflow and reduction of equity capital in the amount of around EUR

118 million.

“The recent developments and the interest of potential buyers in our

operating units clearly show that Balda is on the right path and has great

growth potential. The market has recognized Balda’s expertise and its

transition to a developer of high-end and sophisticated plastics

solutions”, says Oliver Oechsle, sole Management Board member of Balda AG

and continues: “In view of the current situation, the Supervisory and

Management Boards therefore recommend to approve the offer”.

Note to the publishers:

The Q1 report 2015 / 2016 can now be downloaded from the company’s website


Contact / Contact person

Daniela Münster

Deekeling Arndt Advisors

tel: +49 (0) 5734 922 2555

mobile: +49 (0) 174 335 8111

email: daniela.muenster@deekeling-arndt.de

About Balda

Balda (ISIN: DE0005215107) is a provider of high-end plastics solutions

that rely on quality in sophisticated fields of application in the

healthcare, lifestyle, automotive and consumer electronics industry. Balda

operates in Europe and Northern America and has state of the art production

sites at the Oeynhausen headquarters in Germany and in the US. The

company’s success with its about 780 staff worldwide is based on the use of

modern, cost-efficient technologies and the close cooperation with our

customers in a spirit of trust.



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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen


Phone: +49 (0) 57 34 / 9 22-0

Fax: +49 (0) 57 34 / 9 22-2604

E-mail: ir@balda-group.com

Internet: www.balda-group.com

ISIN: DE0005215107

WKN: 521510

Listed: Regulated Market in Frankfurt (Prime Standard); Regulated

Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,

Munich, Stuttgart

End of News DGAP News Service


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