United Labels AG:Report on first nine months of 2019

Announcement by United Labels AG dated 10/23/2018
ISIN: DE 0005489561, WKN: 548956, Ticker: ULC


United Labels AG: Report on first nine months

Favourable outlook for Germany – Impact from closure of Spanish subsidary



Muenster, 23 October 2019. United Labels AG recorded Group revenue of €17.3 million (prev. year: €20.1 million) in the first nine months of 2019. As outlined in the context of the first-half report, considerably more special-deal merchandise within the Key Account segment was placed for the important fourth quarter of the current financial year. This will result in a revenue shift towards the fourth quarter in this specific segment. Order backlog at Group level was up by 23% at €4.8 million for the last quarter (prev. year: €3.9 million). At the same time, revenue at the Spanish subsidiary fell by 31% to €7.2 million (prev. year: €10.4 million), which had an adverse effect on earnings.


Business developments in Spain have necessitated the closure of the local company in the form of insolvency proceedings. This was disclosed as part of a mandatory notification issued by the Group this week. As a result, the investment carrying amount reported in the separate financial statements of the parent company has been reduced in full, i.e. as a full impairment loss. Within the Group, impairment losses were recognised in respect of goodwill attributable to Iberica as well as associated deferred tax assets.


Group earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first nine months remained largely unchanged year on year at €1.7 million (prev. year: €1.8 million).

Having accounted for one-time effects, Group earnings before interest and taxes (EBIT) amounted to €-1.6 million (prev. year: €1.4 million).

Group earnings at the end of the period stood at €-2.7 million (prev. year: €0.4 million). Of this figure, a total of €-2.6 million is attributable to goodwill impairment due to developments in Spain as well as an adjustment of €-1.1 million in respect of deferred tax assets. As part of deconsolidation at the end of the year, however, initial estimates point to the possibility of a positive consolidation effect of around €1.5 million. No receivables are due from the Spanish entity in respect of the other United Labels companies.

The developments in Spain will have an adverse effect on annual guidance figures, the extent of which is currently being reviewed.


At the parent company, equity amounted to €4.9 million (31 Dec. 2018: €6.4 million), which corresponds to an equity ratio of 26.3% (31 Dec. 2018: 28.7%).


Substantial order intake in recent months led to an increase in order backlog (as at 30 Sept. 2019) in Germany, up by 52% to €10.8 million (prev. year: €7.1 million). For the Group as a whole order backlog was up by 20% at €10.9 million (prev. year: €9.1 million).


Net cash from operating activities rose to €4.7 million (prev. year: €2.1 million) as a result of exceptional effects.


Alongside a number of additional Key Account activities, the fourth quarter will see the shipment of new Special Retail collections centred around "Der kleine Rabe Socke", "Pummel & Friends", "Harry Potter" and "Tacheles".


The report issued by United Labels AG for the first nine months of 2018 can be downloaded from the company's website in the coming weeks:
http://www.unitedlabels.com/investor-relations/finanzberichte


Further information:
United Labels AG – Investor Relations -
Gildenstraße 6, 48157 Münster, Tel.: +49 (0) 251-3221-0, Fax: +49 (0) 251-3221-960
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