Francotyp-Postalia Holding AG, a provider of mail management services active worldwide, was able to increase its earnings power in the previous financial year, despite the global economic and financial crisis. While revenue were down from € 142.4 million in the previous year to € 129.0 million due to the recession, the Company increased its EBITDA result from € 18.2 million in 2008 to € 20.6 million in 2009.
During 2009, revenue within the FP Group moved in two different directions. Recurring revenue from service agreements, rental business and the sale of consumables remained stable for the installed base, comprising some 260,000 franking machines worldwide. However, the economic and financial crisis made itself felt through a marked downturn in the propensity of companies to invest, resulting in negative comparative figures for new business for the Company's franking and inserting machine segment. The worst recession of the post-War era also made it necessary to revalue freesort, acquired in 2006. The depreciation on goodwill had a non-recurring negative effect of € 12.5 million on net earnings, but did not affect the Company's liquidity.
Operationally, the FP Group was able to improve its results in 2009. This positive development was mainly due to successful restructuring and tough cost management. As a result, material expenses fell to € 32.2 million, compared to € 43.3 million in the previous year. Following finalization of the site continuation agreement in 2009, personnel expenses were cut to € 48.4 million, compared to € 55.3 million in the previous year. Restructuring costs themselves came to € 1.4 million in 2009, compared to € 4.0 million in the previous year. After adjusting for these costs, EBITDA for 2009 came to € 22.0 million, putting it at the same level as in the previous year. Due to the write down made on freesort, a net loss for the Group of € -16.8 million was posted, compared to € -15.7 million in the previous year.
Despite extremely difficult operating conditions, the FP Group managed to increase its financial strength in 2009. Free cash flow - which represents the balance between cash flow from operating activies and cash flow from investing activities - came to € 9.0 million, compared to € 3.0 million in the previous year. "In what has been a very difficult economic environment, we have concentrated on strengthening our financial and earnings power. This strategy clearly paid off in 2009," stated Hans Szymanski, member of the FP Management Board responsible for finance.
In view of the uncertainty facing the economy as a whole and the sectors in which the FP Group operates, no quantitative forecast can be made for the current financial year at the present time. "In this difficult market situation we shall definitely be focussing on high-margin products and services, in order to further improve the medium and long-term earnings power of the FP Group," was Hans Szymanski's comment.
The final audited results for the financial year 2009 will be presented by Francotyp-Postalia Holding AG on 29th April 2010.
LinkedIn