Better Than Expected At The Outset.
Holland Colours, a global producer of colorants and additives for plastics for the building & construction, packaging and coatings markets, delivered better results in 2020/2021 than the company expected at the start of the financial year, which coincided with many countries around the world going into lockdown.
Thanks to a stringent focus on employee safety, commitment to customers, and tight controls on costs and investments, the Company is able to report the following results for financial year 2020/2021:
• 5% revenue decrease on the previous financial year;
• Operating result from continued operations was € 12.4 million versus € 10.8 million previous year;
• Net result after discontinued operations was € 9.6 million versus € 7.9 million prior year and net earnings per share came in at € 11.00 versus € 9.09 prior year;
• Final dividend proposed of € 4.8 million (€ 5.50 per share).
Revenue for the 2020/2021 financial year was € 96.0 million, a decrease of 5% on the previous year (€?101.5 million). This included a negative impact (€?2.2 million) arising from the translation from USD to EUR.
The EMEIA division (Europe, the Middle East, India, and Africa) saw a revenue decline of 6%, and all focus
segments were down compared to the previous year. Revenue in Asia was down by 8% in functional currency, primarily due to lower volumes. Revenue growth of 5% in functional currency for the Americas division was mainly the result of higher volumes.
The net margin for the Group was € 46.2 million, an increase of € 0.5 million on the year before. The margin as a percentage of revenue ended higher at 48%, versus 45% in the previous year. This increase was due to a favorable geographical and product mix.
Operating expenses were € 33.8 million, down € 1.1 million (3%) from the previous year, primarily due to
lower travel costs. Labor costs, maintenance and forex-related devaluations of receivables were also
favorable compared to the previous year. In the United States the Company received assistance amounting
to € 1 million under the US government’s Payroll Protection Program. The operating result from continued
operations was €?12.4 million, versus €?10.8 million for the previous year.
The net result was € 9.6 million (€?11.10 per share) versus €?7.9 million in the previous year (€?9.09 per
share). In line with Holland Colours’ dividend policy, a final dividend of € 4.8 million is proposed (€ 5.50 per share).
Net cash flow came in at € 9.0 million, versus € 0.2 million last year. The higher net cash flow was a result of, among other things, a higher cash flow from operating activities of € 2.0 million, the favorable
development of working capital, which amounted to € 3.8 million, a reduction in investments to € 2.3 million, and favorable translation differences on Cash and Cash Equivalents of € 0.6 million.
The Company paid € 0.8 million less income tax. Higher dividend of € 0.9 million paid in November 2020.
There were no changes in the company’s funding. Except for the liabilities related to IFRS 16, the company
remains loan free.
Our priority at the outset of the COVID-19 pandemic was to first take care of our employees. The divisions
took various steps, including introducing new work schemes, and our people acted carefully and
responsibly to minimize the chances of the coronavirus entering Holland Colours.
With all measures in place, we could then focus on keeping our customers supplied. The deliveries to our
customers have not been affected due to the pandemic.
For more information on the full financial results as published today, please refer to the Holland Colours
Holland Colours does not make forward-looking statements. However, because of COVID-19, the outlook
appears more unstable and there continues to be uncertainty.
At the same time, based on our growth strategy and accompanying internal improvements we feel there
are grounds for optimism.
Apeldoorn, June 3, 2021
Board of Management
Tanja van Dinteren
Eelco van Hamersveld
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