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2011-06-01 14:30:00 CEST 2011-06-01 14:30:02 CEST REGULATED INFORMATION Cencorp - Company AnnouncementCencorp strengthened its financial position to secure the delivery ability required by the order bookCencorp 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. |
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