Shares in Belgian wind power components maker Hansen Transmissions International hit their lowest level for a year last month, as the firm warned its operating environment will remain challenging for the next two quarters. Hansen also released results for the first half of its 2011 financial year, which showed revenues had declined to €239 million during the six months to 30 September compared with €286 in the first half of last year.
However, Hansen said its EBITDA margin improved to 9.5%, from 6% during the same period last year, mainly driven by successful implementation of cost reduction measures. Still, the firm’s net loss for the period increased to €10 million from €8.9 million in H1 2010.
The London-listed company, which makes gearboxes for wind turbines, also said that, as a result of recent significant adaptations to wind gearbox delivery schedules, volumes expectations for the second half of the firm’s current financial year have been reduced.
As a consequence, Hansen believes its revenue will decrease by around 10% compared to that achieved last year (€532 million), having previously issued guidance of up to 10% growth.
According to Hansen, it is continuing to reduce costs to minimise the effect of lower revenues on profitability. The company added that it had successfully arranged amendments to its banking covenants and that it had traded comfortably within its covenant level during the three months to 30 September.
Market: London
Symbol: HSN
Price: 46.4p
12 month high/low: 140.75p/40p
Market cap: £311m
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