Audited statements and Corporate Governance report

Riga, Latvia, 2013-10-28 19:31 CET (GLOBE NEWSWIRE) -- SAF Tehnika” publishes its audited consolidated and non consolidated financial statements for financial year 2012/2013 according to Section 56th, 5th paragraph of „Law on the Financial Instruments Market”

Net turnover of the “SAF Tehnika” Group which consists of SAF Tehnika AS (hereinafter – the Parent) operating from Riga, Latvia, a wholly owned subsidiary “SAF North America LLC” and a joint-venture company “SAF Services LLC” where the Parent holds 50% of the company’s shares, in the 2012/ 2013 financial year was LVL 9.38 million (EUR 13.34 million) which represents a decrease by 3% comparing to the previous financial year. While the reporting year can be characterized by increasing global competition between producers of microwave transmission equipment, the Group managed to keep its customer base, meanwhile also attracting new customers by offering products according to market demands and highest quality standards. In addition, the Group developed customized solutions for particular client needs and provided support during installation and commissioning stages. Delays in the Group’s supply chain and customer payments forced certain shipments to be put on hold, thus, affecting expected sales result. Export represented 98.41% of turnover amounting to LVL 9.23 million (EUR 13.13 million). During the reporting period the products of the Group were exported to 86 countries in the world.

“SAF Tehnika” has retained financial stability. The audited net cash flow of the Group for 12 months was positive and amounted to LVL 646 thousand (EUR 919 thousand).

During the reporting year the Group made investments in the amount of LVL 342 thousand (EUR 487 thousand) to acquire property, plant and equipment such as IT infrastructure, production and research equipment, as well as software and other licenses in order to improve manufacturing, R&D, testing and other company-wide processes. In addition Group invested in products certification.

The Group’s financial result of 2012/ 2013 was a loss of LVL 30 thousand (EUR 42 thousand).

The Parent company’s financial result for 2012/2013 was a loss of LVL 15 thousand (EUR 21 thousand).

The main difference between Consolidated Interim Report for financial year 2012/2013 (published on 14/08/2013) and audited consolidated Financial statement was due to corrections in income recognition for sales cases where significant risks connected with ownership and compensation for equipment sold according to Incoterms delivery conditions were transferred to a customer after end of financial year. The impact of this change was decrease in annual turnover by 164 thousand LVL (233 thousand EUR) which will be recognized in turnover of the first quarter of financial year 2013/2014 as well as respective change in expenses part and net result.

Attachments:

Audited consolidated Financial statements for “SAF Tehnika” for year ended 30 June 2013

Audited non - consolidated Financial statements for “SAF Tehnika” for year ended 30 June 2013

Corporate Governance report for financial year 2012/2013

Aira Loite COO, Member of the Board +371 67 046 833 Aira.Loite@saftehnika.com