SOURCE: Service Point Solutions, S.A.

October 26, 2007 07:02 ET

SPS triples earnings in 3Q07 posting EUR 6mn in net profit for the first nine months

BARCELONA, SPAIN--(Marketwire - October 26, 2007) - SPS triples earnings in 3Q07 posting EUR 6mn in net profit for the first nine months

- Presence in new markets and a more diversified service offering mitigated quarterly seasonality, as evidenced by the tripling in net profit year-over- year

- Revenues rose 84% in 9M07, driven by organic growth and the four most recent acquisitions

- At EUR 10mn EBIT was double that of last year, reflecting operating profitability and the adequate integration of acquired companies. The EBIT margin widened to 6.5%

- Net profit jumped to EUR 6mn in 9M07 from EUR 3mn a year earlier

Barcelona, 26 October 2007- In the first nine months of 2007 Service Point Solutions, S.A (SPS.MC) recorded significant growth throughout the P&L. These results are shaped by:

1. First-time consolidation of four acquisitions:

-Service Point Netherlands (Formaly Cendris DM) from 1 October 2006

-Allkopi (Norway) and CBF Print Management (UK) from 1 June 2007

2.Mitigated 3Q seasonality vis-à-vis 2006 thanks to an enhanced geographic and service mix. 3Q07 earnings were significantly higher throughout the P&L with revenues up 88%, EBITDA up 46% and EBIT 79% higher.

+---------------------+-------+-------+------+
|                     |3T 2007|3T 2006|Var. %|
+---------------------+-------+-------+------+
|Total Revenues       | 54 722| 29 042| 88,4%|
+---------------------+-------+-------+------+
|Gross Margin         | 39 702| 21 487| 84,8%|
+---------------------+-------+-------+------+
|EBITDA               |  6 009|  4 125| 45,7%|
+---------------------+-------+-------+------+
|EBIT                 |  2 442|  1 362| 79,3%|
+---------------------+-------+-------+------+
|Minority Interest    |       |       |      |
+---------------------+-------+-------+------+
|Financial Expenses   |   -973| -1 030| -5,5%|
+---------------------+-------+-------+------+
|Profit to Parent Com.|  1 503|    365|311,8%|
+---------------------+-------+-------+------+
|Net Debt             | 39 862| 43 980| -9,4%|
+---------------------+-------+-------+------+
|Equity               |155 057| 90 247| 71,8%|
+---------------------+-------+-------+------+
+---------------------+-------+-------+------+
+---------------------+-----+-----+
|     % in Sales      |     |     |
+---------------------+-----+-----+
|Gross Margin         |72,6%|74,0%|
+---------------------+-----+-----+
|EBITDA               |11,0%|14,2%|
+---------------------+-----+-----+
|EBIT                 | 4,5%| 4,7%|
+---------------------+-----+-----+
|Profit to Parent Com.| 2,7%| 1,3%|
+---------------------+-----+-----+
+---------------------+-----+-----+
All the above, combined with enhanced financial management, drove third quarter net profit three times higher year-over-year to EUR 1.5mn. Profit for 9M07 was double that of a year earlier.

Net profit, 2007 vs. 2006

See graph in attachment

In all, top line growth in 9M07 was 84%. Of this, organic growth accounted for 5%.

+---------------------+-------+------+------+
|                     | 9M07  | 9M06 |Var. %|
+---------------------+-------+------+------+
|Total Revenues       |155 839|84 701| 84,0%|
+---------------------+-------+------+------+
|Gross Margin         |113 143|62 119| 82,1%|
+---------------------+-------+------+------+
|EBITDA               | 20 112|12 903| 55,9%|
+---------------------+-------+------+------+
|EBIT                 | 10 084| 5 020|100,9%|
+---------------------+-------+------+------+
|Minority Interest    | -3 025|-1 918| 57,7%|
+---------------------+-------+------+------+
|Financial Expenses   |   -606|   -59|927,1%|
+---------------------+-------+------+------+
|Profit to Parent Com.|  6 003| 3 049| 96,9%|
+---------------------+-------+------+------+
|Net Debt             | 39 862|43 980| -9,4%|
+---------------------+-------+------+------+
|Equity               |155 057|90 247| 71,8%|
+---------------------+-------+------+------+
+---------------------+-------+------+------+
+---------------------+-----+-----+
|     % in Sales      |     |     |
+---------------------+-----+-----+
|Gross Margin         |72,6%|73,3%|
+---------------------+-----+-----+
|EBITDA               |12,9%|15,2%|
+---------------------+-----+-----+
|EBIT                 | 6,5%| 5,9%|
+---------------------+-----+-----+
|Profit to Parent Com.| 3,9%| 3,6%|
+---------------------+-----+-----+
|USD vs Euro          | 1,34| 1,24|
+---------------------+-----+-----+
|GBP vs Euro          | 0,68| 0,68|
+---------------------+-----+-----+
+---------------------+-----+-----+
EBITDA grew 55.9% year-over-year to EUR 20.1mn in 9M07. The revenue mix at the new, less capital intensive companies and the use of operating leases at Service Point Netherlands and Allkopi logically implies lower EBITDA margins. Nonetheless these companies made a positive contribution to operating profit which doubled in 9M07, while the EBIT margin reached 6.5%.

CAGR in quarterly EBITDA, 2006-2007

See graph in attachment

CAGR in quarterly EBIT, 2006-2007

See graph in attachment

Net profit doubled in 9M07 to EUR 6.0mn.

Looking to the balance sheet, debt fell to EUR 39.9mn (-9.4%), including the debt assumed to finance the acquisitions of Allkopi, CBF and Quality Imprés. This level of debt implies a ratio to pro forma FY06 EBITDA, adjusted for all the acquisitions made, of 1.4x. Most of SPS' bank debt is under a loan facility syndicated by Lloyds TSB Bank, which was extended by EUR 40mn to EUR 100mn in September. The final conversion period for the outstanding 3.73% of SPS 2005 convertible bonds has been set for the second half of November 2007 in a resolution approved at the Assembly of Bondholders held on 22 June 2007. This proposal was ratified at the General Shareholders' Meeting on 28 June 2007.

Equity rose 71.8% to EUR 155.2mn. This reflects the EUR 54.3mn capital increase undertaken in February 2007 to finance the acquisition of Cendris Document Management B.V. (EUR 35mn) and the significant jump in net profit over the last year.

In terms of shareholder remuneration, a 1x30 scrip issue was approved at the General Shareholders' Meeting held in June 2007. The issue will be executed during 1H08. At the same meeting, the shareholders approved the payment of a net dividend of EUR 0.02/share against the share premium account. This divided was paid out on 27 July 2007.

Conclusion

The first nine months of the year are marked by strong business momentum at both the organic and non-organic levels. This momentum is underpinning significant top and bottom line growth quarter after quarter. This growth is complemented by a healthier balance sheet. The company, which continues to actively increase the portfolio of potential acquisition targets, will invest its EUR 80mn or so in available resources in continued profitable growth, organic and non-organic. This strategy will be executed to ensure ongoing growth in earnings per share and, accordingly, shareholder remuneration.

For further information:

Service Point Solutions

Cori Pellicer

P: +34 93 508 24 00

F: +34 93 508 24 42

coripellicer@servicepoint.net

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