Tornos Group reports doubled net profits in 2007
For 2007, Tornos was aiming for sales growth of around 10 per cent accompanied by an expected improvement in the EBIT margin of between 7.5 per cent and 8.5 per cent. These targets have been exceeded. In the year under review, gross sales advanced to CHF 287.4 million, representing an increase of 14.7 per cent on the previous financial year (2006: CHF 250.5 million).
EBIT was CHF 32.7 million (2006: CHF 17.6 million), representing a margin of 11.4 per cent. It should be noted that this result includes CHF 2.9 million in non-recurring income. Ignoring these, the EBIT margin would be 10.4 per cent in comparison with 7.0 per cent in 2006.
The year closed with net profit of CHF 35.1 million, more than double that of the previous year (2006: CHF 17.2 million). However, it should be mentioned that last year’s result includes exceptional items totalling CHF 6.2 million from the above-mentioned non-recurring profits and deferred tax credits of CHF 3.4 million. As at 31.12.07, equity had increased to CHF 160.2 million, accounting for 73.2 per cent of the balance sheet total of CHF 218.9 million. In 2007 the group thus wiped out its debts and had a net cash surplus of CHF 27.3 million at 31 December 2007, unlike in 2006 where the group had a net debt of some CHF 7.4 million.
Distribution to shareholders by reimbursing the par value In view of these positive results, the Board of Directors will propose to the Annual General Meeting on 8 April 2007 that a dividend of CHF 0.50 per share be distributed. The intention is to effect this distribution by reimbursing the par value of each share, which will go from CHF 5 to CHF 4.50.
