H+H boosts first half margins

H+H boosts first half margins
Published: 31 August 2004

Aerated concrete producer H+H International pushed ahead the operating profit at the EBITDA level by 32.8% to DKr.152.6m (€20.5m) on a turnover 7.2% higher at DKr.684.2m (€92.0m) in the first six months of 2004.  Helped by a more than halving of the interest charge to DKr.3.1m (€0.4m), the pre-tax profit jumped by 58.8% to DKr.114.3m (€15.4m).  Great Britain is the main contributor, accounting for 56.3% of turnover and 69.3% of the EBITDA.  In spite of volumes being slightly lower than in the same period last year, the EBITDA rose by 12.7% to DKr.86.2m (€11.6m) on a turnover 1.5% higher.  The production plant at Borough Green is being improved in the second half, which will lead to a reduction in production costs and to some increase capacity, but planning permission is currently being sought a more substantial increase in capacity.  Volumes in Germany and Denmark were well ahead, with turnover advancing by 16.4% to DKr.251.9m (€33.9m) and EBITDA by 61.3% to DKr.75.0m (€10.1m).  Capacity at the Wittenborn plant is being expanded and an additional autoclave as well as a new packaging unit is being installed at the Hamm plant in North-Rhine Westphalia. Elsewhere, improved volumes were also seen in the smaller Finnish, Swedish and Norwegian markets.