Turnover of Nilorn Group goes up for second quarter

21 Jul '08

6 min read

CASH FLOW, INVESTMENTS, FINANCING AND LIQUIDITY:
Cash flow from operating activities totalled SEK 4.0m (-15.6). Cash flow from investments amounted to SEK -2.7m (49.9) during the period. Interest-bearing net liability at the end of the quarter was SEK 5.4m (0.7), compared with SEK 3.4m (45.3) at the start of the financial.

Cash and cash equivalents at the end of the period totalled SEK 18.6m (38.1). In addition, unutilized bank loans already granted total SEK 12.1m (13.9).

PERSONNEL:
The average number of employees in the Group at the end of the quarter was 262, thereof 124 women. The comparable figures, i.e. excluding the Turkish acquisition, are 235 persons thereof 119 women. This gives 7 more persons than at the start of the year and 6 more than at the same time previous year.

REPORT OF THE CORPORATE SEGMENTS:
The Geographical areas are the Group's primary segments. There are chart for turnover and operating profit for the quarter and half year at page 7.

As can be seen, Asia increase in importance both regarding turnover and profit. The reason is that more clients have their production in Asia and that Nilorn is building local logistic centres. The close-down of the production in Turkey affected the area Rest of Europe negative in the second quarter.

SIGNIFICANT EVENTS:
• Nilorn establish a Joint-Ventue with Hembly in China
Nilörngruppen AB (publ) has via the subsidiary Nilorn East Asia Ltd, signed a joint-venture agreement with Hembly International Holdings Limited for an establishment in China. This company will offer complete, creative and tailormade solutions to existing and potential clients.

The offer includes branding and design, product development, sales, purchase, stockholding and supply of labels, packaging and other accessories to clients within the fashion and textile industry. The company will be established during the last quarter in 2008

• Nilorn Turkey changed from production unit to sourcing and sales office
Nilorn Etikett in Turkey has liquidated the production, established co-operation with local producer and concentrated the business to sourcing- and sales activities.

RISKS AND UNCERTAINTY FACTORS:
Nilörngruppen with its international operation is continually exposed to different financial risks. The principal risks and uncertainty factors affecting Nilörngruppen are described on page 32 in Nilörngruppen's annual report for 2007. The reported risks are assessed to be unchanged in all essential ways.

ACCOUNTING POLICIES:
This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Annual Accounts Act. The accounting policies applied are described in the Nilörngruppen annual report for 2007.

The accounting policies are unchanged from the 2007 annual accounts and are based upon International Financial Reporting Standards in the form in which they have been adopted by the EU.

The Parent Company accounts have been prepared in accordance with the Swedish Financial Reporting Board recommendation RFR 2.1, Accounting for Legal Entities, and the Annual Accounts Act.

PARENT COMPANY:
The operations of the Parent Company largely consist in Group-wide functions such as branding and design, product development, finance, administration, in-formation and IT. The average number of employees at the end of the period was 21 (17).

Net turnover for the quarter totalled SEK 6.2m (6.3). Operating profit totalled SEK -6.7m (-6.1) and profit after net financial items was SEK 2.9m (4.2). Net financial items include dividends from subsidiaries of SEK 3.8m (8.0).

AUDITING:
This report has not been the object of special review by the company's auditors.

The Nilorn Group

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