As a result of the sale of the US subsidiary Parvus Corp, which was completed on 1 October 2013 and which generated a net profit of Euro 21.39 million, the related financials have been recognised in accordance with IFRS 5 concerning non-current assets held for sale and discontinued operations. For the purpose of clarity in presenting the financial performance of the Group, the historical income statement figures compared with those of 2013 have been restated to take account of this classification as discontinued operations.
As a result, "continuing operations" means all operations included within the new scope of consolidation of the Eurotech Group as of 1 October 2013.

Amaro (Italy), 14 March 2014

  • Consolidated revenues: from EUR 78.74 million to EUR 66.11 million
  • Consolidated gross profit: from EUR 39.51 million to EUR 32.81 million
  • Consolidated EBITDA: from EUR 3.66 million to EUR 0.45 million
  • Consolidated EBIT: from EUR -3.89 million to EUR -11.93 million
  • Consolidated pre-tax loss from continuing operations: from EUR 4.19 million to EUR 11.39 million
  • Consolidated profit from discontinued operations: from EUR 2.66 million to EUR 21.39 million
  • Group net profit (loss): from EUR -2.78
  • million to EUR 8.24 million
  • Net financial position: a net cash balance of EUR 15.11 million, as compared to a net debt balance in 2012 of EUR 11.45 million
  • Group shareholders' equity: EUR 108.10 million
  • Eurotech S.p.A.: from a net loss of EUR 0.42 million to net profit of EUR 19.97 million
* figures referring to 2012 have been restated compare to values originally presented following the application of IFRS 5
The Board of Directors of Eurotech S.p.A has today examined and approved the draft Statutory Financial Statements and Consolidated Financial Statements at 31 December 2013, which are to be presented to the shareholders at their ordinary meeting.

Revenue for the Group settled at EUR 66.11 million in 2013, as compared to EUR 78.74 million in 2012. This decline in revenues was greatly accentuated by the unfavourable exchange rate between the yen and the euro in 2013 as compared to 2013. At constant exchange rates, the difference in revenues between 2012 and 2013 would be 6.7%, as compared to 16.0% based on the actual figures. The major part of the decline was caused by the HPC business unit, which accounted for almost two-thirds of the total difference: the concentration of sales to a few customers and with
large orders make sales of the SBU HPC highly variable depending on the timing with which the orders are collected, and this phenomenon was seen in 2013 in a macroscopic way. At constant exchange rates, the NanoPC SBU showed just a slight decrease, around 2.5%. Among the geographic areas in which the Group operates, the major drop was in the US, due in particular to the postponement of the delivery of two orders belonging to our transportation vertical market for reasons liked to factors not controllable by us and related mainly to customers' procedures for testing and
qualification of their own products. The stagnation in European demand remain present like in 2012, while growth was posted in Japan (although it cannot be seen in the financials due to the significant worsening of the yen-euro exchange rate from 2012 to 2013) as a result both of product development and other investments made by us and of the monetary and financial policies implement in the country, which helped to stimulate Japanese industry and promote exports.

Gross profit settled at the levels expected by management and in 2013 came to 49.6%, which is a slight decline from the margin of 50.2% of the prior year. Margin variability remains correlated with the mix of products sold, with products of different types, applications and target markets providing different margins. Nonetheless, a constant focus on the purchasing of materials has helped to keep margins under control and to meet the targets set at the start of the year.
This stability in margins, which is also being seen in orders currently in progress, also confirms how our customers recognise Eurotech's ability to provide solutions with high levels of added value.



distributed by