FP-GROUP RETURNS TO PROFITABILITY IN 2010

Francotyp-Postalia Holding AG, the first complete service provider for mail communication, today presented its annual financial statements for 2010, which confirmed the provisional figures published in February.

The Group’s revenue increased to EUR 147.3 million in 2010, compared with EUR 129.0 million in the previous year. The company generated a profit of EUR 2.7 million, contrasting with the loss of EUR 16.6 million that it suffered the year before. This resulted in earnings per share of EUR 0.23.

EBITDA (earnings before interest, tax, depreciation and amortisation) improved to EUR 25.5 million, against EUR 20.6 million in the previous year. Before restructuring expenses, EBITDA amounted to EUR 26.8 million. In 2010, the company established a EUR 1.3 million provision for the scheduled restructuring of production. Despite increased investment activities, free cash flow totalled EUR 9.4 million in 2010 at roughly the same level as the previous year (EUR 9.8 million).

These figures show that the FP Group exceeded its forecast. Revenue of EUR 140 to 145 million was expected, along with EBITDA of EUR 24 to 26 million before restructuring costs. The significant increase in revenue compared with the previous year partly resulted from a change in the reporting logic as part of the new regulations for sales tax on postal services in Germany as at 1 July 2010. The Group also benefitted from the recovery of the global economy and its success in becoming a complete service provider.

Forecast confirmed

The FP Group confirmed its forecast for the 2011 financial year. The company expects revenues of EUR 160 to 165 million and an EBITDA of between EUR 25 and 27 million before restructuring costs. “We will continue to concentrate on strengthening the company’s financial and earnings power”, declared Hans Szymanski, CEO of the FP Group. “The restructuring measures are already starting to pay off: the FP Group is now positioned in such a way that we are profiting from the changes taking place in the postal markets”, Szymanski continues. The Software and Services segments in particular should contribute to the growth of the company over the coming years.