Cencorp - Company Announcement

Cencorp strengthened its financial position to secure the delivery ability required by the order book

Cencorp Corporation     Stock Exchange Release 1 June 2011 at 15.30 Finnish time



CENCORP STRENGTHENED ITS FINANCIAL POSITION TO SECURE THE DELIVERY ABILITY
REQUIRED BY THE ORDER BOOK 



Due to higher than anticipated growth in the order book of automation
applications, the amount of working capital engaged with semi-finished products
and components in Cencorp is bigger than estimated. In addition, the production
capacity of automation applications is fully utilized. In April-May 2011,
Cencorp's order book has varied between EUR 6.0-6.7 million, whereas in the
corresponding period last year, the order book was some EUR 1.7 - 2.8 million.
On the publishing date of this release, Cencorp's order book stands at around
EUR 6.2 million. 



In order to secure the delivery ability to meet the order book, Cencorp has
agreed with AC Finance BV, a subsidiary of Ahlström Capital Oy, on a short-term
loan of EUR one million. AC Invest BV, another subsidiary of Ahlström Capital
Oy, holds some 5.1% of Cencorp's shares. The main terms and conditions of the
loan are as follows: the loan period begins on 1 June 2011 and ends on 31
December 2011. Furthermore, the lender has the right to terminate the loan
prematurely in occasions more specifically determined in the loan agreement,
and Cencorp has anytime the right to repay the loan. The interest on the loan
capital is 9.5% p.a. 



In addition, Savcor Group Oy, which holds some 34.8% of Cencorp's shares, and
Cencorp have agreed on transferring the due date of a loan of some EUR 1.4
million, granted by Savcor Group Oy in 2009 and converted into convertible bond
on 25 May 2010, from the end of June till the end of 2011. On the publishing
date of this release, the remaining amount of this loan is some EUR 1.2
million. Other loan terms and conditions remain unchanged. 



“The financial package agreed today enables us to increase the production
capacity of the automation applications in a planned way to meet the
requirements of our growth and to secure our delivery ability. The situation is
very typical for a growth company. The financial package was quickly arranged
by the main shareholders of the company,” says Mats Eriksson, Cencorp's
President and CEO. 



Cencorp's market guidance remains unchanged as follows: Cencorp expects net
sales for 2011 to amount to approximately EUR 35 - 39 million, provided that no
essential change takes place in the current economic landscape. The 12-month
result from operations is expected to improve from 2010. 



Cencorp Corporation



Mats Eriksson

President and CEO



For more information:

President and CEO Mats Eriksson, tel. +358 400 358 982,
mats.eriksson@cencorp.com 



Distribution:

NASDAQ OMX, Helsinki

Main media



Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of the customers' production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorp's customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.