HTC Group Posts Turnover growth of 11% for half year
17 August 10
HTC Sweden AB, based in Söderköping, a manufacturing and contracting company within floor care and concrete grinding has posted the group’s best ever turnover and earnings performance in the first half of 2010. The half-year result before tax was MSEK 5,4 (4,2), a margin of 3,4% (2,9). The result before tax for the second quarter was MSEK 7,3 (-0,6), a margin of 8,4% (-0,8).
The revenue for first half and second quarter of 2010 is the Group’s best ever. Compared with previous year the difference is even more pronounced, especially since the US dollar exchange rate for the first half of 2010 is about 9 percent lower than for the same period last year. A significant part of the Group’s sales are in US dollar through the wholly owned subsidiary in Knoxville, Tennessee, USA. The Group’s gross margins were in all essential parts unchanged compared with last year at comparable exchange rates. The Group’s expenses have not increased to the same extent why the result before tax and profit margin before tax was improved.
The company says that demand increased in all regions compared to the first half of 2009 and also for all main product groups, i.e. machinery, dust extractors, metal and resin tools and Twister™. When the previous year’s figures are adjusted to the current exchange rates it gave a turnover increase of between 12 and 35 % depending on main product group. In its annoucment HTC comments that this was a “welcomed sign of an underlying sustainability in the recovery is that the demand for machines, which are more capital-intensive for the customers, has followed the upward trend, plus the fact that Twister™ throughout the recession showed a double-digit growth by a wide margin over a rolling twelve months period.”
During the first half of 2010, the company has launched several new products including completely new range of machines and dust extractors. HTC Greyline™ which has been developed for the demolition, floor preparation, renovation and rental markets was launched during the second quarter with a demand that substantially exceeded initial projections. The metal tool CX and a further developed Twister™ tailored for certain department store environments have been successfully introduced worldwide and HTC is currently an international market leader within floor grinding systems based on diamond technology and patented technical solutions including the unique diamond-based cleaning and maintenance system Twister™ now sold internationally. The head office with product development and production is located in Söderköping. There are sales companies in the USA, Germany, the UK and France. There is also specialised production in the USA. Since August 2006, British company 3i Group has been a minority shareholder in HTC Sweden. 3i is the global leader within private equity and focuses, among other things, on minority investments in organic rapidly-growing companies and organisations that are expanding rapidly through company acquisitions.