Corporate | 24 May 2007 09:43
Muehlhan AG / Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
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PRESS RELEASE
Muehlhan switches to accounting in accordance with International Financial
Accounting Standards IFRS
• Increased transparency allows international comparability
• Effects from switch improve turnover and result 2006
• Future excess of Entry Standard requirements
Hamburg, 24 May 2007. With immediate effect, Muehlhan AG (Entry Standard;
ISIN DE000A0KD0F7) will conduct its accounting in accordance with the
International Financial Accounting Standards IFRS. The Hamburg company,
which operates globally in the marine surface protection sector, has
previously produced its financial statements in accordance with German law
(HGB) and this change will increase transparency for the capital markets
and allow for international comparability.
'As a company operating on a global basis, the switch to IFRS allows us to
better meet the needs of international standards on the financial markets,'
says Chief Financial Officer, Carsten Ennemann. 'Our experience with our
foreign investors has shown us the importance of comparability. We are sure
that the increased transparency will help us to find new investors.'
Muehlhan will from 30 September 2007 on produce quarterly reports in
addition to the half-yearly reports and accounting and publication will be
made exclusively in accordance with IFRS standards. This clearly exceeds
the requirements of the Entry Standard.
First effects of the switch can be seen in the 2006 annual financial
statements: The original Group results produced in accordance with German
HGB regulations were switched over to the new standard. This improved the
after-tax result to approximately EUR 3.9 million (HGB: EUR 0.1 million).
In comparison with the figures released in the annual report at the end of
March, turnover has increased from EUR 183.3 million to EUR 184.4 million
by the modified account of contract revenue for construction contracts.
Key data; Comparison of important changes from HGB to IFRS:
In TEUR FY 2006 (IFRS) FY 2006 (HGB)
Turnover 184,389 183,279
EBITDA * 14,309 11,066
EBIT ** 8,535 3,302
Group net profit
after minority interests 3,646 156
Assets *** 46,746 42,669
Equity 59,287 53,975
* EBITDA: Group annual net income plus taxes, interests and depreciation on
fixed assets
** EBIT: Group annual net income plus taxes and net interest income
*** Assets: Non-current assets minus deferred tax assets
The significant improvement in the result is due mainly to the different
treatment under HGB and IFRS of accounting of goodwill from company
purchases: Corresponding to IFRS, Muehlhan no longer depreciates goodwill
on a scheduled basis but valuates it as asset value subject to an
'impairment test.' In 2006, this improved the after-tax result by about EUR
2 million. The new evaluation of capital increase measures 2006 leads to
positive one-time effects: The result improves by approx. EUR 3.3 million
before taxes, as the costs for the stock market flotation (EUR 2.1 million)
can be set off against existing capital reserves. Expenses from the issue
of industrial loans in the amount of EUR 1.2 million are divided over the
term of the loans (ten years).
Ennemann: 'On 30 May we will be publishing the figures for the first
quarter on an IFRS basis and will give an outlook for the whole of the 2007
financial year.'
About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which includes surface protection
for wind turbines, chemical production plants and fuel storage depots,
steel bridges, cranes and machinery. The company’s patented technology
brand-named μ-jet guarantees especially high quality and efficiency in
the removal of old coatings and rust, particularly in the open sea.
Muehlhan was established in Hamburg in 1881 and today employs some 2,300
people in 31 subsidiaries around the world. In 2006 the company generated
revenues of EUR 184 million (IFRS). For further information, visit
www.muehlhan.com
Press contact:
Ties Kaiser
Muehlhan AG
Tel: +49-40-75271-156
E-mail: kaiser@muehlhan.com
DGAP 24.05.2007
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Language: English
Issuer: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
www: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Indices:
Listed: Freiverkehr in Berlin-Bremen, Hamburg, München, Stuttgart;
Entry Standard in Frankfurt
End of News DGAP News-Service
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