In the first quarter of the 2015/16 financial year, Bene Group's performance was again affected by the weak European economy, the highly competitive environment in the international office furniture market, the decline of the oil price, and the political conflict between Russia and Ukraine and the thus weak rubel. However, on account of the large-scale ADNOC project in Abu Dhabi, which is now at an advanced stage, the Group reported a 9.8% year-on-year increase in revenue to EUR 38.5 million (m), compared to EUR 35.1m in the first quarter of 2014/15.

The progress made on the project was also reflected in the gross profit margin, which improved to 60.6% during the period under review (Q1 2014/15: 58.6%). As a result, Bene again remained within the target range for this indicator.

In spite of the restructuring costs incurred in the first quarter, staff costs and other administrative expenses were virtually unchanged on the comparative period of the 2014/15 financial year. As a result of the restructuring measures, Group head count has fallen to 973 since the start of the current financial year (31 Jan. 2015: 1,048).

Due to increased profitability and changes in the cost structure, EBITDA was positive by EUR 0.2m in the first three months of 2015/16, compared with a loss of EUR 0.6m in the same period a year earlier. Adjusted for extraordinary restructuring costs, EBITDA for the period amounted to EUR 2.8m (Q1 2014/15: EUR 0.2m). EBIT and earnings before tax improved by EUR 1.2m over the same period.

Consolidated total assets stood at EUR 86.3m as at 30 April 2015 (31 Jan. 2015: EUR 88.3m). This decline was mirrored in total equity and the equity ratio.

Despite continuing to record losses, Bene reported a year-on-year improvement in operating profit before working capital changes, of EUR 0.1m, as well as a reduction of EUR 3.9m in net working capital compared with a year earlier. As a result, cash flows from operating activities amounted to EUR 2.5m in the reporting period. 

Plans for reverse stock split followed by capital increase

Bene AG's tender offer to investors ended on 27 March 2015, and Bartenstein Holding GmbH and grosso holding GmbH were presented as the Austrian investors. At the same time, the Group agreed on a comprehensive financing package with both of the investors and with the financing banks. This provides for a reverse stock split and a reduction in the share capital to around EUR 1.9m, followed by a capital increase of EUR 18m carried out through a joint holding company, excluding shareholders' statutory subscription rights. Through the reverse stock split the accumulated loss of Bene AG (by 30.04.2015: EUR 64.8m) should be partially covered. Once the financing package has been implemented, the holding company will have a stake of over 90% of Bene AG shares. Implementation of the agreement requires the approval of the Bene AG Extraordinary General Meeting, which is taking place today. The new investors will provide the Group with an injection of fresh capital, securing Bene's long-term future as a going concern. As a result, the Company will be well placed to achieve growth on the international markets.

Outlook

In the coming months, the Bene Group will continue to face a challenging economic climate on the markets where it operates, which will be further exacerbated by the current political situation in Ukraine. Against this backdrop the Group will maintain its strong focus on the restructuring process, as well as carrying on its regular evaluation of all locations and markets.

The interim report on the first quarter of 2015/16 is available for download at http://bene.com/en/bene-services/investor-relations/reports/.

About Bene

Bene is a leading international specialist in the design and furnishing of inspiring office and working environments. Bene defines the office as a living space and its concepts, products and services turn this philosophy into reality. It combines a tradition of quality stretching back 225 years with innovation and award-winning design. The corporate group is listed on the Vienna Stock Exchange, has its head office and production facilities in Waidhofen an der Ybbs, Austria, and is active in more than 40 countries. As a full-service provider, Bene implements office concepts, and thereby contributes to its customers' corporate success.


For further details please contact:
Martina Vomela
BENE AG
Schwarzwiesenstrasse 3
3340 Waidhofen/Ybbs
Austria
IR Hotline: +43-7442-500-3100
ir@bene.com

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