Connect Group: Interim statement Q1 2012

For the first 3 months of 2012 Connect Group posted net sales of EUR 41.6 million vs. 43.1 million in the first quarter of 2011. It should be noted that the Q1 2011 was an exceptionally good quarter in which the Group caught up on delivery delays caused by the component shortage in late 2010.
Net profit developed positively to EUR 1.3 million compared with EUR 1.0 million in the first quarter of 2011. The order book increased to EUR 80 million compared with EUR 70.7 million at the end of 2011. This increase is mainly due to the acquisition of the Halin group in the Netherlands in early 2012, which adds EUR 8 million to the order book.

From 1 January 2012, the Dutch group Halin is included 100 percent in the figures of Connect Group. Halin’s sales during the first 3 months amounted to EUR 4.5 million, with a slightly positive net result.  Immediately after the takeover, Connect Group set about integrating Halin. Halin companies were renamed Connect Group, and after a study it was decided to group all Connect Group activities in the  buildings at Veldhoven, the Netherlands. This merger will be fully implemented and completed in 2012. Initially, the merger will result in limited additional costs and efficiency losses, but from 2013 the merger will provide a stronger commercial and operational entity in the Netherlands, able to fall back on the Connect Group production facilities in Romania and the Czech Republic in order to reduce production costs.

The current economic climate and the uncertainty of financial markets in Europe are playing an important role in demand for electronic components and systems. Clients defer orders but also ask for faster production starts. This calls for a high degree of employee flexibility and introduces a limited degree of inefficiency into the organization.
Based on the order book, Connect Group remains positive for the rest of the year. The group's financial position has been considerably strengthened by the capital increase in 2011 and the good results of 2011 and 2012. The financing through factoring provides sufficient space for the company to absorb all necessary working capital fluctuations.

 Statement by the persons responsible for preparing the interim statement

This interim statement was drawn up under the responsibility of the management of Connect Group. The figures given in this statement have not been audited. This interim statement does not contain all the information referred to in IFRS 34.

In November 2012, the company will simplify the interim statement of the 3rd quarter results and no longer include a balance sheet, income statement and cash flow statement.

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