Baxi Group (Heating Finance plc) reports solid performance in Q4 with sales up 8% and operating profits up by 11%. Full year operating profits up 30% Derby, UK - Monday, 30th March 2009 - Heating Finance plc has reported a solid performance for Q4 08 with consolidated group sales up 8% (compared to Q4 07), and Q4 08 operating profits before exceptional items, impairment charges and goodwill amortisation up 11% from £38.9 million to £43.1 million.
YTD sales were up 11%, but at constant currency were 2% ahead; however the cost saving measures resulted in YTD operating profits up £20.6 million (an increase of 30%) to £89.9 million. Changes in currency exchange rates did not have a material impact on full year profits.
Net cash flow from operating activities before reorganisation costs in the year to date was £34.1 million ahead of last year at £113.8 million.
The Group is now seeing the results of the major restructuring of the Group's French business coming through with significant cost savings being achieved. The French business reported a 2008 operating loss of £7.3 million compared to a £13.9 million loss in 2007, and the restructuring already undertaken will result in further significant cost reductions in 2009. Elsewhere the Group maintained its strong performance in the Germany market with Q4 turnover up 27% in Euros and overall turnover up 22% in 2008. The Group is performing particularly well in new technologies with strong orders for micro-CHP technology and solar collectors and accessories. In the UK the Group grew market share in 2008 by 1.8% despite highly competitive conditions, with Baxi boiler volumes up 11% in Q4, when the total UK boiler market was down by 6%.
Elsewhere market conditions were weak - in Italy Q4 turnover was down 11% in Euros in line with the local boiler market, and in Iberia Q4 turnover was down 11% in local currency in a difficult market.
Baxi Group Chief Executive Martyn Coffey commented; "These are difficult market conditions. We are now seeing commodity prices reducing raw material and component costs, which is helpful. Germany is also proving to be a steady market for us and providing growth in the new technology areas. We are also benefiting from the comprehensive restructuring plan we put into place for France last year. However we need to aggressively manage our costs in these markets. We are working hard to do this with a purchasing programme underway to review direct costs and headcount reduction programmes in the UK and Spain.”
- ends -
For further information contact Joanne Milroy, Eloqui - 0207 534 0620 / 07980 393920
Baxi Group is one of Europe's biggest manufacturers and distributors of domestic and commercial space and water heating systems, operating in a market worth over €16 billion of annual sales.
We employ more than 4,200 people across Europe with a turnover exceeding €1 billion. The Group has significant market shares across all major European countries. Beyond Western Europe, Baxi Group has a market leading position in growing markets, such as Russia and Ukraine. In addition to our direct presence in China and the Czech Republic, Baxi Group has joint venture partnerships in developing economies like Turkey. In total Baxi Group operates in more than 70 countries worldwide.
Baxi Group owns and sells some of the leading brands in the European market for heating products. These include the Baxi brand in the UK, Italy, Turkey, Russia, and eastern European markets; Heatrae Sadia and Potterton in the UK, Chappée and Ideal Standard in France, BaxiRoca in Spain, Brötje in Germany, and Baymak in Turkey.
We are constantly developing heating solutions to meet the growing demand for high-performance, coupled with low- or zero-carbon delivery of space and water heating. In addition to manufacturing high efficiency boilers, we are committed to new heating technologies that play a major role in tackling climate change. Our product range already includes biomass boilers, solar collectors and heat pump products as well as unparalleled developments in what will be tomorrow's favoured heating solution, mCHP.
Indeed, Baxi Group is the acknowledged leader in the field of combined heat and power. For over 20 years we have been delivering mCHP solutions to meet the needs of homes and businesses across Europe. mCHP improves the way we use our limited fuel resources by generating electricity at the point where it is used, thereby reducing energy losses and CO2 emissions.
In total, over 20,000 Baxi Group mCHP systems have already been installed all over Europe (February 2009). These mCHP installations have produced 2 billion kilowatt hours of electricity - enough to meet the needs of over 450,000 households for one year. They have saved over 1.2 million tons of CO2 - the annual emissions of 168,000 homes. The associated CO2 savings are the equivalent of taking 700,000 return flights from Frankfurt to New York.
Baxi Group is the mCHP class leader, with a range of solutions that are already transforming how we deliver heat and power. Dachs installations meet the needs of single- and multi-family homes, hotels and hospitals. Ecogen provides a compact, wall-hung mCHP solution suitable for single-family households. Gamma 1.0 is an integrated hydrogen fuel cell-based appliance that will enable Baxi Group to meet ever-increasing energy performance demands. Gamma represents another first for Baxi Group and completes the portfolio of ground-breaking mCHP products that meet our needs for today and for tomorrow.
With Baxi Group, be first in mCHP.
