Monday, August 9, 2010

Service Point - Financial Results 1H 2010

Service Point just issued its 1H 2010 Report.

Before you look at the detailed SP 1H 2010 report and read SP’s press release, just a quick comparison (of Q2 2010 results) of the only two public companies who have significant interests in the “reprographics” business and industry:

American Reprographics Co……Q2 2010
REVENUES………………. 115.1 MIL USD
EBITDA……………………. 23.1 MIL USD
EBITDA Margin…………… 18.5%

Service Point……………………Q2 2010
REVENUES…………….…... 53.5 MIL EURO
EBITDA…………………….. 3.67 MIL EURO
EBITDA Margin…………….. 6.9%

Service Point’s “Results – 1H 2010” can be found at:

If you want to compare SP's 1H 2010 numbers with previous numbers (for several years), Bloomberg publishes that information at this Internet address:

And, this is the Press Release Service Point Issued on August 6, 2010:
Service Point attains profits in the second quarter of 2010

The company’s results follow a positive development in line with the forecast of sustained improvement throughout the 2010 financial year and compared to the second half of 2009. EBIT (earnings before interest and taxes) for the second quarter exceeds the figure recorded in the same period of last year.

6 August 2010. - Service Point Solutions, S.A. (Stock Exchange symbol: SPS.MC) closed the first half of 2010 with sales of € 105.7 million, 6.3% below those of the preceding year. The various cost-reduction measures continue to have a positive impact on the income statement, showing that, with a lower level of revenues, better comparable results are obtained.

In June 2010, five of the eight countries where Service Point has a presence registered increased sales in spite of the weakness still experienced by the AEC (architecture, engineering and construction) segment, which was offset by growth in print by order, education (which is proving to be anti-cyclical with new contracts in Germany and
England) and financial (+28% in June compared to the same period last year).

Standardised EBITDA reached € 8 million, with progress in the reduction of margins with respect to the previous year. All countries where the Group is present, excluding the French subsidiary Reprotechnique, have made a positive contribution to the company’s EBITDA.

EBIT (earnings before interest and taxes or operating profit) for the second quarter exceeds the figure obtained in the same period last year.

Evolution by market

The quarter-on-quarter comparison shows a progressive improvement in the reported period. In addition, all countries – except for France with Reprotechnique, owned by Service Point as to 51% – made a positive contribution to the company’s EBITDA.

Norway, the United Kingdom, the Netherlands and the United States have been the main contributors to the Group’s cash flow generation in the first half of 2010. Germany, Spain and Belgium continue increasing their activity. In addition, the Spanish subsidiary increased its revenues by 15% in June with respect to the same month in 2009. Notably, all countries are showing signs of stabilisation and progressive improvement in their overall results.

Growth plan

As announced at the last Annual General Meeting, Service Point intends to recover the path of growth through strategic acquisitions of sound and long-standing companies carried out at attractive valuation multiples.

At present, Service Point is at the stage of the legal and accounting due diligence of an acquisition the results of which are satisfactorily progressing; the target company’s integration, before taking into account economies of scale and synergies of costs and revenues, makes a positive contribution to all metrics of Service Point’s income
statement and balance sheet.

Reprotechnique’s restructuring plan

The shareholders of Reprotechnique, a French company where Service Point holds a 51% stake acquired in June 2008, have formally applied for a “Redressement Judiciaire”, a process aimed at redressing the company’s economic trend and undertaking a plan to make the said subsidiary viable whilst not entailing an additional financial burden on shareholders’ funds.

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