In This Article:
Solar performed well in Q2 despite the challenges brought about by the COVID-19 pandemic. We reiterate our original EBITA guidance for 2020.
CEO Jens Andersen says:
"Solar’s agile and digital business model has proved itself during the COVID-19 pandemic. We have been able to serve our customers and maintain our delivery performance, and we will continue to invest in our digital transformation.
We continue our journey towards improved profitability, delivering a 35% EBITA increase in Q2 despite a lower revenue compared to Q2 2019.
We are pleased to reiterate our original EBITA guidance despite the fact that we expect a quarter of a billion Danish kroner lower revenue in H2 2020 compared to H2 2019. We owe this to our gross profit margin initiatives, efficiency gains and cost containment.”
Key financial messages
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Due to improved gross profit margin, efficiency gains and cost containment we achieved a 35% EBITA increase despite a revenue decrease of DKK 123m.
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New 2020 guidance: revenue of DKK 11.4bn and reiteration of EBITA of DKK 400m.
| Financial highlights | Q2 2020 | Q2 2019 | H1 2020 | H1 |
| Revenue | 2,745 | 2,868 | 5,790 | 5,825 |
| EBITA | 81 | 60 | 178 | 140 |
| Cash flow from operating activities | 282 | -17 | 239 | -149 |
| Financial ratios (%) | ||||
| Organic growth adj. for number of working days | -1.6 | 5.6 | 0.0 | 5.6 |
| EBITA margin | 3.0 | 2.1 | 3.1 | 2.4 |
| Net working capital, period-end/revenue (LTM) | 11.9 | 12.9 | 11.9 | 12.9 |
| Gearing (NIBD/EBITDA), no. of times | 1.5 | 2.6 | 1.5 | 2.6 |
| * Due to the divestment of our Norwegian training business, STI, in Q1 2019, 2019 and 2020 figures in this announcement relate to our continuing operations. | ||||
Q2 2020 Revenue
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Adjusted organic growth amounted to -1.6% (5.6%).
Q2 2020 EBITA
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We succeeded in increasing EBITA by DKK 21m due to improved gross profit margin, efficiency gains and cost containment despite a revenue decrease of DKK 123m.
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EBITA from core business was up at DKK 80m (DKK 66m) corresponding to an EBITA margin of 3.1% (2.4%).
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As expected, Solar Danmark’s and Solar Norge’s financial performances were negatively affected by roll-out costs for SAP eWM of approx. DKK 2m and approx. DKK 5m respectively.
BIMobject valuation
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Based on the share price on 30 June 2020, the value of BIMobject increased to DKK 204m. Hence, the reversal of a previously performed write-down amounted to DKK 97m (DKK 29m).
2020 outlook
Due to the COVID-19 pandemic, we see an increased risk in the market outlook for 2020 compared to 2019. The new guidance for 2020 in the table below is based on the main assumption that no new significant resurgence of COVID-19 resulting in new lockdowns will take place in our markets.