2009 - Jaarverslag

Various TenCate initiatives to promote technological developments andinnovations were fulfilled. A number of interesting projects werelaunched, the highlights being the formation of the ThermoplasticAffordable Primary Aircraft Structure (TAPAS) consortium and theThermoplastic Composites Research Centre (TPRC). Despite the pooreconomic climate and the disappointing trend in sales, TenCate iscontinuing to invest in the future.FINANCIAL PERFORMANCENET RESULTThe net result decreased to € 23.9 million in 2009 (2008: € 51.1 million).This result includes a € 4.9 million impairment of a participatinginterest and a € 9.5 million book profit on the sale of the Australianjoint venture Geofabrics Australasia and Permess Hong Kong.The decrease in profit occurred across a broad front and was the resultof the financial crisis, which led to a sharp deterioration in the salesmarkets.Ten Cate gave priority to the monitoring of the bank covenants anddebt reduction in 2009 in order to maintain a strong balance sheet.Relatively little was invested (€ 17.3 million). The working capital wasreduced by € 105 million and debt by € 136 million.This setting of priorities was partly at the expense of the net profittrend.COMPOSITION OF THE COMPANYIn view of the emphasis on cash management, acquisitions were highlyrestrained and two companies were sold in 2009.◾ On 31 March 2009, a 49% interest was acquired in TigerTurf(Auckland, New Zealand). This marketing organisation andproducer of synthetic turf pitches also has sites in Australia,the United Kingdom and the United States.The following were sold:◾ The 50% interest in Geofabrics Australasia. It was not possible toacquire a controlling interest in this joint venture, which generatedover € 30 million of revenues (50%) and was profitable in 2008.The sale took place on 26 June 2009.◾ The Permess Hong Kong sales office on 15 December 2009 to themanagement. Sales amounted to just under € 5 million in 2008.REVENUESNet revenues declined by 18% in 2009, both in total and in organicterms. The currency effect (+ 2% due to the stronger dollar) anddivestments (– 2%) cancelled each other out.Revenues in the Advanced Textiles & Composites sector declined by17%. The biggest decrease occurred in the Advanced Armour USAgroup where, in contrast to 2008, no major projects were secured.In Europe, sales of work and safety wear fell, partly due to a lackof investments in industry. In the United States, there was a furtherincrease in sales of fire-resistant TenCate Defender M for militarypersonnel.In the Geosynthetics & Grass sector the decline in revenues amountedto 21%. The geosynthetics market in the United States reached a lowpoint, partly because investments by business and the public sectorfailed to materialise sufficiently. Sales of synthetic turf declinedworldwide due to tight limits on financing facilities for our customers.Annual Report 2009 27