Management report to the condensed financial statements for the period ended 30 June 2013
Results for the period
The Fleischhauer Group realised total revenues of € 21,303,000 in the first six months of 2013, an increase of 8.4% compared to the same period of the previous year (€ 19,646,000). Cost of sales increased by € 1,894,000 to € 13,184,000. Gross profit amounted to € 8.12 million a decrease of € 237,000 in comparison with the first half of 2012. Profit before interest and tax decreased by € 1,105,000 and resulted in a small loss from operations of € 85,000.Net profit fell to a loss of € 223,000 (profit of € 757,000 in the first half of 2012).
The Fleischhauer Group has further increased its profit as compared to the same period in 2012. Over the period profit before tax increased by 11%.
Other operating income has decreased as a result of the lower stock value of Your Drinks AG as compared to the first half of 2012. During the first half of 2013 stock value decreased with € 635,000 compared to an increase of € 200,000 over the first half of 2012.
The development of Your Drinks AG has been slowed down compared to the forecast as given in the trading update in the fall of 2012. Instead of during the first quarter 2013, first orders will be realized in the last quarter of 2013.
The issue of a bond prospectus in combination with other professional costs resulted in an incidental spending of € 250,000 during the first half of 2013.
Income tax charge
Interim period tax expense is based on the estimated average annual effective income tax rate for the Group of 24.7% (6 months ended 30 June 2012 24.7%).
Change in Investments
The reduction in fair value of € 635K regarding the stocks of Your Drinks AG is included in Investments.
Issued capital
Issued and fully paid up capital as at June 30 2013 amounted to € 2,390,000. There were no movements in the issued capital of the Company during the current interim reporting period.
Related party transactions
There is a related party relationship with Quivest BV. Office space and related office services have been provided by Quivest, during the period the company has paid €56,000 (2012: € 56,000) .The outstanding balance with Quivest at 30 June 2013 is a receivable of € 525,000 (2012: € 485,000). There have been no changes in the related party transactions as described in the latest annual report during the first six months of this financial year.
Subsequent events
There have been no material reportable events subsequent to 30 June 2013.
Principal risks and uncertainties for the remaining six months of the financial year.
The principal trading business of the Group is carried on by its subsidiar y, G. Fleischhauer IngenieurBüro GmbH & Co KG. The order book of the Fleischhauer Group remains strong and the directors are
optimistic on the revenues and results for the rest of the year.
The outcomes of the latest Annual General Meeting that were informed to the market on October 7 2013, resulted in a limitation of the board’s possibilities to attract additional equity investors. The Group now being limited in financing through issue of capital will pursue autonomous growth and acquisitions which can be financed from the Company’s own cash flow. The Board of Directors is well casted and except for the issuance of equity capital, not limited in its acting powers.
Approval of interim financial statements
The interim financial statements were approved by the board of directors on October 28 2013. The board of directors states that to the best of their knowledge,
(i) the condensed set of financial statements which has been prepared in accordance with the applicable set of accounting standards gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole, and
(ii) the interim management report includes a fair view of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
There have been no material changes to the risks and uncertainties for the Group as outlined in the 2012 Annual Report; these risks and uncertainties remain applicable for the financial performance of the Group for the remainder of 2013.
On behalf of the board:
Dr. J.E. Haag
Director and Chairman of the board