Zenitel reports operational and financial improvements first half of 2016
Zenitel reports revenue of EUR 34.2 million from continuing operations for the first six months of 2016, which is in line with last year. Less revenue in the Oil & Gas market has been compensated with increased revenues from the Security market.
The EBITDA from continuing operations is up with EUR 0.9 million compared to last year. A tight focus on product cost and operational efficiency is improving the company’s performance. Operating Profit (EBIT) from continuing operations is up by EUR 0.3 million for the first six months of 2016 compared to last year. As reported in the Annual Report 2015, the Group is no longer capitalizing development costs on the balance sheet. The direct impact of the development costs accounts for EUR 0.6 million for the six months of 2016.
Net profit from continuing operations for the first six months of 2016 is EUR 1.1 million, compared to EUR 0.8 million last year. For 2015 the Group also reported a profit of EUR 0.7 million related to the Caribbean company, which was divested at the end of last year.
The company is impacted by reduced investments in the Oil & Gas market that are expected to continue for at least another twelve months. Zenitel is however focusing on multiple markets and therefore expects full year results to be in line with comparable 2015 results.
The Board of Directors has given Zenitel Norway AS a proxy to buy 150.000 shares in Zenitel NV in order to implement a long term share incentive plan for the Senior Management Team. The complete interim financial report, including the condensed consolidated financial statements, can be downloaded from here.