For the financial year 2013/2014 (closed on 30 April 2014), the Infranor Group, specialised in the robotisation of machinery, has maintained its net profit after taxes at 1.0 million CHF (1.2 million CHF previous year) while sales increased slightly from 42,7 million CHF (2012/13) to CHF 43,2 million (2013/14). For its 2014/15 financial year, Infranor foresees that it will achieve sales of close to
44.0 million CHF and a net profit after tax at 1.2 million CHF. Furthermore, the details of the planned merger between Infranor Inter Ltd., Zurich and Perrot Duval Holding S.A., Geneva, its main shareholder are expected to be announced on 24 September 2014.


In detail

At 43.2 million CHF, orders received were slightly up on those recorded a year ago (42.6 million CHF or + 1%), reaching the same level as annual sales. This increase was largely due to the return to health of major customers, irrespective of their geographical location. Although the results achieved by the Infranor Division (29.7 million CHF as against 28.0 million CHF on 30 April 2013 and against a budgeted figure of 29.0 million CHF) were convincing, those achieved by the Cybelec Division (13.5 million CHF as against 14.7 million CHF a year ago and against a budgeted figure of 15.0 million CHF) proved to be less so. At an exchange rate in Swiss francs equal to that on 30 April 2013, consolidated orders received would have equalled 43.0 million CHF (- 0.4%).

Consolidated sales reflected a comparable situation in all respects (43.2 million CHF as against 42.7 million CHF on 30 April 2013). Individual increases were sometimes considerable compared to sales for the previous year; these mainly involved the development and production companies, but also certain sales and engineering companies.

The surge in sales did not help to increase the gross margin in absolute terms (24.7 million CHF as against 25.1 million CHF a year ago). Expressed in relative terms (57.1%), the same margin fell slightly compared to the figure recorded on 30 April 2013 (58.8%). This drop is explained on the one hand by the presence of major customers with a lower contribution margin, and on the other by a greater share of direct sales from production companies. The impact of the strong pressure on sales prices, which was progressively felt during the course of the financial year, was not inconsiderable. It should be noted that the effect of the exchange rate had barely any influence on the gross margin.

At 22.1 million CHF, operating expenses were kept under control compared with those recorded during the previous financial year (22.2 million CHF). A key element in this regard was the need to recruit staff members within the production entities in order to address the sustained growth in business activity. The increase in the balance of operating expenses was moderate.

As a result of the slight erosion in the gross margin, the EBIT margin fell to 2.6 million CHF compared to 2.9 million CHF a year ago, and represented a 5.9% share of sales.

Financial expenses (1.1 million CHF) remained unchanged from the previous financial year and included an unrealised exchange rate loss of 0.1 million CHF due to the negative impact of the euro versus the Swiss franc, but also reflected the greater use of bank credit lines by development and production companies. Net profit after taxes of 1.0 million CHF was recorded, in line with the forecast made at the start of the year.

Uneven development of the Divisions

The figures recorded by the Infranor Division during the 2013/14 financial year have been pleasing. The growth in sales was generated mainly by the Spanish servo-motor development and production entity and by certain sales and engineering companies such as Infranor Germany, Great Britain and China.  Other entities fared less favourably, such as the United States and Spain. The traditional customer base as a whole (machine tools, packaging, textiles, etc.) has remained loyal, but the Infranor entities are continuing to increase their offer, either to new sectors beyond the field of industrial production, or by integrating the numeric controller.

Compared to the 2012/13 financial year, the Infranor Division as a whole increased its sales figures by 6.1%, from 28.0 million CHF to 29.7 million CHF. The gross margin, however, fell from 58.3% to 57.1% during the course of the 2013/14 financial year, mainly due to the disproportional increase in 'high-volume' customers, resulting in lower contribution margins. Finally, the division's EBIT margin amounted to 8.1% (9.5% a year earlier), thereby attesting to its earning capacity.

Sales from Cybelec Division fell by 8%, from 14.7 million CHF in 2012/13 to 13.5 million CHF. Cybelec therefore only partially compensated for the loss of some northern European customers. Cybelec saw its growth margin temporarily eroded in relative terms, from 57,7% to 56.0%. Not only was it obliged to accept a number of contracts terminating commercial relations, but the transfer of its assembly activities to China also failed to progress as much as it had hoped. Operating expenses were reduced both by the transfer of certain expenses to the other division and by the fact that some staff members were not replaced immediately.  The EBIT margin (0.4 million CHF) represented virtually 3.1% of the division's total sales, a noticeable recovery compared to the previous year (0.3 million CHF or 1.7%).

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