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Thursday 29 July, 2010

Takkt AG

TAKKT Group returns to growth




Takkt AG / TAKKT Group returns to growth  processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

Turnover and profit rise in both Europe and North America

Stuttgart, Germany, 29 July 2010. The economic upswing in the first half of
2010 had a positive effect on business developments at TAKKT Group. TAKKT's
business revived considerably in the second quarter, compensating for the
negative growth rates recorded in the first months of 2010 and enabling the
Group to post an organic increase in turnover for the first half-year.
Operational profitability improved significantly compared to the previous year's
period. As forecasted at the beginning of the year, TAKKT Group has returned to
growth. In the light of the positive business climate, the organic growth target
for the company's annual turnover has been raised to around three percent.

Significant events in the first half of 2010
  * Organic increase in turnover of 0.9 percent in the first half-year and 6.6
    percent in Q2
  * EBITDA margin climbs to 13.9 (11.0) percent
  * Earnings per share up 46 percent
  * TAKKT awarded first place in the Investor Relations Awards organised by the
    business magazine Capital


In the first six months of 2010, TAKKT Group benefited from the economic upturn
in all its key sales regions. Consolidated turnover increased by 5.2 percent to
EUR 376.8 (previous year's period: 358.3) million. Adjusted for currency effects
and Central Products LLC (Central), acquired in April 2009, this corresponds to
organic growth of 0.9 percent in turnover. While an organic decrease in turnover
of minus 4.1 percent was recorded in Q1, organic turnover growth of 6.6 percent
was posted in the second quarter. "The growth dynamic remained intact in the
first six months of the current financial year. In March 2010, we predicted that
the company would return to growth in Q2 - this has proved us right", said CEO
Dr Felix A. Zimmermann.

As expected, the gross profit margin increased slightly in the first half to
42.8 (42.3) percent. Excluding the Central acquisition, the increase was 0.8
percentage points. TAKKT Group is continuing to benefit from the improved
procurement conditions agreed during the crisis.

Operational profitability showed a considerable year-on-year improvement in the
first half of 2010 due to a turnover-related increase in infrastructure
utilisation, higher advertising efficiency and the FOCUS measures implemented in
the previous year. EBITDA (earnings before interest, tax, depreciation and
amortisation) rose by 32.2 percent to EUR 52.2 (39.5) million in the first six
months of the year. This corresponds to an increase in the EBITDA margin to
13.9 (11.0) percent.

As usual, cash flow developed strongly during the reporting period, increasing
by 24.3 percent to EUR 36.8 (29.6) million. The cash flow margin was 9.8 (8.3)
percent.

Upturn at TAKKT EUROPE
The  new Group structure introduced on 01 January 2010 (last year's figures have
been  adjusted to  improve comparability)  enabled the  growth rate of the TAKKT
EUROPE  division  to  catch  up  with  the  TAKKT  AMERICA division growth rate.
Although its customers initially remained reluctant to buy, the first six months
of  the year were marked  by a gradual, continuous  recovery at TAKKT EUROPE. In
total,  the  division  generated  turnover  of  EUR  222.4 (218.8)  million - an
increase  of 1.6 percent year-on-year.  With this, TAKKT  EUROPE generated 59.0
(61.0)  percent  of  consolidated  turnover.  Adjusted  for the various currency
effects,  the growth was  equivalent to 0.1 percent  in the first  half and 7.7
percent in Q2.

The Office Equipment Group (OEG) - comprising the Topdeq companies - was unable
to keep up with the high single-digit growth rate posted by the Business
Equipment Group (BEG), which consists of the former KAISER + KRAFT EUROPA
companies. Even after adjusting for the US activities closed at the end of
2009, turnover dropped by a double-digit percentage at the OEG and remained
disappointing. In the light of this, the Group is currently working on
strategically repositioning the Topdeq companies.

TAKKT EUROPE generated EBITDA of EUR 41.9 (31.1) million in the first half of
the year. This took the EBITDA margin from 14.2 percent in H1 2009 to 18.8
percent.

The Group continues to drive the division's expansion in the current financial
year. KAISER + KRAFT began operations in Russia in January. Following a
successful launch in Germany, the new online brand Certeo has now also been
rolled out on the Austrian market. The gaerner Group, which specialises in plant
and office equipment, commenced sales activities in Italy in May 2010.

All companies will expand their range of private label articles due to positive
experience throughout the Group. The BEG has been offering high-quality
transport equipment at fair prices under the name of Quipo since March. In
addition to this, Topdeq has been marketing its own range of high-end office
furniture since January, branded as siqnatop.

In April 2010, TAKKT acquired minority interests in the Dutch company Vink Lisse
B.V. and the Belgian subsidiary KAISER + KRAFT N.V. for a purchase price of
approximately EUR 11 million.

TAKKT AMERICA posts solid growth
Turnover  at the TAKKT AMERICA division came  in at USD 204.4 (185.8) million in
the  reporting  period.  This  corresponds  to  a year-on-year increase of 10.0
percent.  Adjusted for  the Central  acquisition, the  division's turnover still
grew by 3.4 percent based on US dollar figures in the first half, with growth of
5.5 percent  recorded  in  the  second  quarter.  Translated  into the reporting
currency  Euro, turnover increased by  10.7 percent to EUR 154.5 (139.6) million
during  the first  six months.  TAKKT AMERICA  therefore contributed 41.0 (39.0)
percent to consolidated turnover.

The division still benefits from the broad diversification of its client base
and product portfolio. As expected, the companies within the Office Equipment
Group (OEG) experienced a slight year-on-year decline in turnover as they tend
to be late-cycle businesses. Thanks to high growth rates in the second quarter,
the Plant Equipment Group (PEG) posted a single-digit increase in turnover
overall. With high single-digit rates of organic growth, the Specialties Group
(SPG) recorded the strongest gain. Including Central, growth here even ran well
into double figures.

In the period under review, TAKKT AMERICA generated EBITDA of EUR 14.1 (12.1)
million. This corresponds to an EBITDA margin of 9.1 (8.7) percent. Adjusted for
Central, the EBITDA margin was 8.9 (8.4) percent.

Following the successful launch of Hubert in Germany and France, the brand will
be rolled out into the Swiss market in autumn 2010. The PEG has also been active
on the North American market with the online-only brand Industrialsupplies.com
since June. Furthermore all three groups of the TAKKT AMERICA division are
intensifying their private label engagement.

Business climate gives grounds for more optimistic forecast
For  the remainder  of 2010, TAKKT  expects the  economic recovery in Europe and
North  America to continue, though with  slightly diminished dynamic. "We should
be  able to exceed the upper limit of  organic growth of two percent targeted at
the  beginning of the  year. We currently  expect to see  growth of around three
percent. If we achieve this turnover goal, the EBITDA margin for the whole Group
should come close to the lower end of the long-term target corridor of twelve to
15 percent", said Dr Florian Funck, CFO.

Conference call
We invite you to directly address the Management Board with your questions. We
will be hosting a conference call for this purpose at 15:00 (CEST) on 29 July
2010, during which we will be open to questions. To take part, please dial the
following number: +49 69 201744-295 (access code: 779134#).

Short profile of TAKKT AG
TAKKT  is the leading B2B direct  marketing specialist for business equipment in
Europe  and North America. The Group is represented with its brands in more than
25 countries.  The  product  range  of  the  TAKKT  subsidiaries  comprises over
160,000 items  for the  areas of  business and  warehouse equipment, classic and
design-oriented  office furniture  and accessories,  and supplies for retailers,
the food service industry and the hotel market.

TAKKT Group employs some 1,800 staff, has around three million customers
worldwide and distributes more than 55 million catalogues and mailings per year.

TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse's Prime
Standard on 01 January 2003.

IFRS figures for TAKKT Group to the end of Q2 2010

in EUR million

+----------------+-------+--------+-----------+---------+----------+-----------+
|                |Q2 2010|Q2 2009*|Change in %|HY 1 2010|HY 1 2009*|Change in %|
+----------------+-------+--------+-----------+---------+----------+-----------+
|Turnover TAKKT  |  191.0|   171.9|       11.1|    376.8|     358.3|        5.2|
|Group           |       |        |           |         |          |           |
|                |       |        |           |         |          |           |
|Organic growth  |       |        |        6.6|         |          |        0.9|
|                |       |        |           |         |          |           |
|  TAKKT EUROPE  |  108.4|    98.6|        9.9|    222.4|     218.8|        1.6|
|                |       |        |           |         |          |           |
|  TAKKT AMERICA |   82.6|    73.3|       12.7|    154.5|     139.6|       10.7|
|  (€)           |       |        |           |         |          |           |
|                |       |        |           |         |          |           |
|  TAKKT AMERICA |  105.0|    99.5|        5.5|    204.4|     185.8|       10.0|
|  ($)           |       |        |           |         |          |           |
+----------------+-------+--------+-----------+---------+----------+-----------+
|EBITDA          |   23.5|    12.6|       86.5|     52.2|      39.5|       32.2|
|                |       |        |           |         |          |           |
|EBITDA margin   |   12.3|     7.3|           |     13.9|      11.0|           |
+----------------+-------+--------+-----------+---------+----------+-----------+
|EBIT            |   18.4|     7.7|      139.0|     42.3|      30.5|       38.7|
|                |       |        |           |         |          |           |
|EBIT margin     |    9.6|     4.5|           |     11.2|       8.5|           |
+----------------+-------+--------+-----------+---------+----------+-----------+
|Profit before   |   15.9|     6.1|      160.7|     37.6|      27.5|       36.7|
|tax             |       |        |           |         |          |           |
|                |       |        |           |         |          |           |
|Pbt margin      |    8.3|     3.5|           |     10.0|       7.7|           |
+----------------+-------+--------+-----------+---------+----------+-----------+
|Cash flow       |   16.3|     9.9|       64.6|     36.8|      29.6|       24.3|
|                |       |        |           |         |          |           |
|Cash flow margin|    8.5|     5.8|           |      9.8|       8.3|           |
+----------------+-------+--------+-----------+---------+----------+-----------+



 * The 2009 figures have been adjusted to the new segment structure for the sake
of comparability.


Contacts:
Dr Felix A. Zimmermann, CEO Tel. +49 711 3465-8201
Dr Florian Funck, CFO Tel. +49 711 3465-8207

Email: [email protected]



[HUG#1434502]



 --- End of Message --- 

Takkt AG
Neckartaltstr. 155 Stuttgart null


Listed: Regulierter Markt in Frankfurter Wertpapierbörse;


    Press Release as PDF: 

http://hugin.info/131631/R/1434502/380103.pdf



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