Hologram Industries releases results.
Hologram Industries has now published its full results for 2004 having previously given the market a flavour by releasing its sales figures (see HN Vol 19, No 2). As it turns out, this appetiser was not necessarily indicative of the entree, for although sales increased by [euro]2.0m to [euro]18.6 m (+ 12.2%), operating income fell [euro]0.5m, from [euro]2.8m to [euro]2.3m (-19%). On the other hand, net income (after taxes, financial income and exceptional items) increased from [euro]1.0m to [euro]1.5m (+[euro]0.5m, + 47.5%) largely due to increased financial income (+[euro]0.2m) and much lower income tax (-[euro]0.5m).
Cash flow from operations at [euro]3.4m was much the same as in 2003 ([euro]3.6m) but after taking into account working capital changes 2004 showed a net cash flow improvement of [euro]0.5m. When the non-operating cash flow items of capital investments, financial items (debt, dividends etc) and exchange rate differences are included, HI achieved a net positive cash flow of [euro]3.5m compared with just [euro]0.6m in 2003 and finished the year with a cash mountain of [euro]8m, a value equal to nearly half the company's sales for 2004.
As predicted by the company, sales in Eastern Europe (Poland) fell significantly (-[euro]1.6m, -14.5%) whilst sales in Asia Pacific, boosted by the one-off technology transfer to China of [euro]3.2m (see HN Vol 17, Nos 6/7), increased by [euro]2.9 m (+500%). If the value of the technology transfer is ignored, it is significant that Eastern Europe accounts for 61% of HI's sales and ID 74% of product sales.
As well as this notable financial performance, HI was awarded in the year ISO 9001:2001, achieved the security systems certification CWA 14641:2003 (the first hologram manufacturer to do so) and received an Innovation Award from the French National Agency for the Promotion of Research.