Financial highlights annual report 2016
  • Revenue increased by 6.4% in local currencies (organic growth) and decreased slightly in DKK to DKK 1,611 million.

  • EBITDA of DKK 210.6 million before special items, which is at the top end of our initial outlook of DKK 190-210 million.

  • Adverse impact from weak GBP and increasing raw material costs offset by a positive market development and benefits from commercial and operational excellence programmes.

  • Investments of DKK 83.3 million were made during 2016 in line with our guidance in the region of DKK 80 million.

  • EBIT margin before special items of 7.6% against a long-term target of minimum 6-8%.

  • ROIC was 15.5% against a long-term target of minimum 12%.

  • Net interest-bearing debt on 31 December 2016 of DKK 387 million. NIBD over EBITDA ratio is 1.8.

  • On 16 March 2017 a new committed credit facility was agreed with Danske Bank A/S subject to H+H's fulfilment of certain formal requirements concerning the execution of the loan agreement by all relevant H+H group entities and renewal of certain security.

  • Cash flow from operating activities of DKK 143.1 million (2015: 112.1 million) and cash flow from investing activities of DKK (75.0) million (2015: (53.9) million).

  • Free cash flow DKK 68.1 million (2015; DKK 58.2 million) including proceeds from the asset sale programme which has been completed ahead of schedule and it has exceeded its target of DKK 70 million.

  • Equity on 31 December 2016 of DKK 278 million, which is slightly higher than last year due to profit for the year being offset by an increase in the UK pension obligations.


Outlook for 2017

  • Organic revenue growth is expected to be 5-7%.

  • EBITDA before special items is expected to be DKK 220-240 million.

  • Special items of approximately DKK 25 million cost are expected to be incurred as a result of the Borough Green factory upgrade and resulting need to import products from Poland. The increased transportation cost will be expensed at the point of sale and treated as a special item.

  • Investments excluding mergers, acquisitions and divestments are expected to be in the region of DKK 120 million.

Long term financial targets

Long-term financial targets have been revalued:

  • EBIT margin before special items is upgraded, was minimum 6-8% and is now 8-10%.
  • ROIC is maintained at minimum 12%.

Annual Report 2016