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Francotyp-Postalia Holding AG, the first full-service provider for mail communications, has significantly improved its revenues in the past financial year. According to preliminary calculations, the company generated revenues of €147.6 million as against €129.0 million in the previous year. EBITDA rose to €25.4 million after €20.6 million in the previous year. Before restructuring costs, EBITDA even increased to €26.7 million; the company recognised a provision for a planned restructuring in production of €1.3 million in 2010.
The Francotyp-Postalia Group has outperformed the forecast it raised in November 2010 with these preliminary figures. Revenues had been expected to amount to between €140 and €145 million with EBITDA before restructuring costs of €24 to 26 million. The clear surge in revenues as against the previous year is not just as a result of the positive effects of the recovery of the global economy and the successful evolution of the Group into a full-service provider. Rather, a change in the reporting logic under the new regulations for sales tax on postal services in Germany as at 1 July 2010 also had a positive impact on revenues.
Return to profitability
The improvement in earnings highlights the positive overall business performance. This is essentially thanks to the successful restructuring in the last two years, substantially lower write-downs and strict cost management. As a result, EBIT and consolidated net profit also grew in addition to EBITDA. EBIT climbed to €7.6 million in 2010 after €‑15.7 million in the previous year, in which non-recurring write-downs had reduced earnings considerably. The consolidated net profit increased to €1.7 million after a loss of €16.6 million in the previous year. Deliberately focusing on strengthening financial and earnings power is also seen in a remaining strong free cash flow, the net total of cash generated by operating activities and used in investing activities, of €9.4 million which is still on previous year’s level despite (€9.8 million) higher investing activities in 2010.
“The FP Group is on the right path. In the current year, we will successfully implement the necessary restructuring in production to ensure the company’s long-term future,” said Hans Szymanski, CEO of the Francotyp-Postalia Group.
Revenue and earnings growth planned for 2011
The FP Group is anticipating revenues of €160 to €165 million and EBITDA of between €25 and €27 million before restructuring. In addition to the sales tax regulations, the company will also continue to benefit from its ongoing development away from being a mail management specialist and towards being a full-service provider for all aspects of mail communications. “In the medium to long term, we feel there is great potential in the field of digital communications – where our company both ranks among the pioneers and offers state-of-the-art software solutions,” announced Szymanski. The FP Group is aiming to further improve its earnings and financial power with its high-margin products and services.
Francotyp-Postalia Holding AG will present its final, audited results for the 2010 financial year on 28 April 2011.