DGAP-Adhoc: Vivanco Gruppe AG announces its group net income for the first half of the 2009 fiscal year

Vivanco Gruppe AG / Quarter Results

24.08.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Ahrensburg, August 24, 2009: Following on from the operating results
(EBITDA), which achieved budget level in the first quarter of the 2009
fiscal year, the VIVANCO Group was seen to be lagging behind budget
expectations by 0.6 million euros at the end of the first six months of
this year. The EBITDA for this period was minus 1.5 million euros.
 
As a result, Group revenue fell below that of the previous year and
remained below budget. Besides the business activities in the French GSM
market sold at the end of 2008, the serious slowdown in key distribution
markets caused by the economic crisis played a particular role here.
Compared to the same period a year ago and to the budget, East European and
Scandinavian distributors recorded a significant drop in revenues. The
Group's Polish subsidiary also recorded a significant drop in incoming
orders due to the cyclical slump. In addition, Group revenue is also being
hit by heavy fluctuations in the exchange rate for the British pound and
Polish zloty.
 
Despite a sometimes extraordinary slowdown in the economies of the
countries, all remaining markets developed in line with their budgets, and
an increase in market share could be recorded in some regions, although
these failed to compensate for the drop in revenues referred to above.

It proved possible to keep the earnings situation at the Group stable by
introducing sustained and effective cost reduction measures. These
reductions were pushed through mainly in the area of human resources,
marketing and freight expenditure. The effect of these measures will
continue beyond the first six months of this year.
 
The liquidity position at the Group differs little to the situation at the
end of the 2008 fiscal year and remains tense. Insofar the statements in
our Group consolidated annual financial statement and Group management
report for 2008 altogether reflect the situation during the first half of
this year, and are up-to-date. In particular the waiver on interest with
debtor warrant bond issued by MHB Bank AG for the 2009 fiscal year
contributed significantly to safeguarding cash flow during the first six
months of 2009. A necessary contribution to generating liquidity was also
achieved through a clear improvement in working capital management. It also
proved possible to reduce inventory days outstanding at the Group
significantly without causing deterioration in the service level.
 
Currently unsatisfactory is the lack of propensity in the banking sector to
issue operating loans. Also the reduction in ceilings on existing
borrowings despite an established improvement in operating results is
proving to be problematic. This was the cause for having to reject
potentially lucrative business deals during the six months of the year,
which opened up for the Group owing to the insolvency of competitors.
 
During the remaining six months of the 2009 fiscal year the executive board
is expecting an economic recovery in some of the markets strongly affected
to-date by the global finance crisis. A highly positive resonance is
expected from the IFA (Internationale Funkausstellung) in Berlin in
September of this year, where VIVANCO will be presenting a whole range of
new product innovations. Deviating from the forecast drawn-up in the first
quarter of 2009, and owing to the developments in 2009 described above, it
is now to be assumed that only a balanced EBITDA result can be achieved.

The Executive Board
DGAP 24.08.2009 
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Language:     English
Issuer:       Vivanco Gruppe AG
              Ewige Weide 15-17
              22926 Ahrensburg
              Deutschland
Phone:        +49(0) 41 022 31-0
Fax:          +49(0) 41 022 31-2 07
E-mail:       vivancoag@vivanco.de
Internet:     www.vivanco.de
ISIN:         DE000A0H52U4
WKN:          A0H52U
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Düsseldorf, München, Hamburg,
              Stuttgart
 
End of News                                     DGAP News-Service
 
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