Monday, May 9, 2011

Service Point Solutions is back in the black!


Joel’s comment: “Speaking in $USD dollars” (and based on the EURO/USD exchange rate this morning), Service Point Solutions earned a whopping $92,147 bottom line profit on sales of $78,757,100. (Should I have used the term “ekes out” instead of the word, “whopping”? Well, all kidding aside, a profit – any profit - is better than a loss!)


First-quarter revenue rose 4.7% to €54.7 million (EURO)

1Q11 EBITDA was the highest in seven quarters

The company expects to post over €20 million (EURO) in EBITDA in 2011

9 May 2011 – Service Point Solutions SA (ticker: SPS.MC) registered growth in all its key income statement headings in 1Q11. The first-quarter release marks the company’s return to profits.

In the first quarter of 2011, Service Point’s revenue rose 4.7% year-on-year to €54.7 million (EURO), ahead of our guidance for topline growth of 3% for the quarter. The recent trends in business volumes, new customer wins and average customer orders, the growth in online sales and the consolidation of Holmbergs in Sweden from May give us the confidence to venture that revenue in 2011 will exceed €230 million, leaving EBITDA of more than €20 million.

Topline growth in 1Q11, coupled with control over operating expenses, drove EBITDA 8% higher year-on-year to €4.7 million, its highest level in seven quarters, while the EBITDA margin expanded. EBIT, meanwhile, jumped 50.4% to €2.0 million. Service Point returned to profits in 1Q11, with net profit of €64 thousand, compared to a loss of €334 thousand in 1Q10.

On 19 April the company closed the €14.5 million equity issue approved at an EGM on 21 February. The issue was oversubscribed by 1.4x, demonstrating shareholder support for the company’s 2011- 2013 business plan. The proceeds will be used to support the Group’s organic growth, prioritising the online segment, and to fund the acquisition of Holmbergs in Sweden, which will reinforce our presence in the important Scandinavian market.

In 1Q11 the company also signed a refinancing agreement with 100% of the banks party to its syndicated loan. Essentially the new agreement extends the loan maturity to a single bullet payment in 3Q13 and establishes new, dynamic financial covenants in line with current earnings and the Group’s business strategy for 2011-2013.

Service Point Solutions ( is a leading provider of document and information management solutions. It services a broad spectrum of industries, including the AEC, corporate, financial, public services and educations segments. It employs 2,400 people across nine countries (the UK, US, Spain, Germany, Netherlands, Belgium, Norway, France and Sweden) via a network of 128 service points worldwide and 794 facilities management programs. SPS is headquartered in Spain and listed on the Madrid and Barcelona stock exchanges (ticker: SPS.MC).

For further information: Service Point Solutions, S.A.

Pablo Divasson del Fraile

Tel +34 93 5082400 / Fax +34 93 5082442

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