In an adhoc announcement Turbon AG announced an equity neutral transfer of currency differences and included preliminary results for 2019.
The provisional consolidated sales were €55.1 million ($59.5 million) in the financial year 2019, compared to €65.2 million ($70.41 million) in the previous year. The forecast for 2019 that was published in the 2018 annual report predicted a turnover of €60 to €65 million ($64.8 million to $70.2 million).
In the interim report for 2019 this was amended to €58 to €60 million ($62.6 million to $64.8 million). Turbon cited that the planned revenue from the remanufactured toner cartridge division lagged behind forecast.
The company explained that preparing the 2019 consolidated financial statements of Turbon AG resulted in the need to rebook the equity position over a longer time period as a result of currency translation differences. Commenting the transfer is indeed equity-neutral, i.e. it has no influence on the amount of equity however, to be carried out in accordance with IAS 21 via the consolidated income statement.
The currency translation differences are from the 1990s to the recent past and arise from the intensive international business relationships between the various Group companies. Over the past two and a half years the realignment of the group of companies has seen the currency translation differences largely disappear. The reclassifications that feature in the 2019 consolidated financial statements amount to -€8.9 million (-$9.6 million).
The pre-tax result was provisionally -€3.2 million plus the -€8.9 millions from the equity-neutral transfers as described above, so a total of -€12.1 million (-$13.04 million) compared to the previous year -€7.0 million (-$7.54 million).
Turbon stated as the reason for the failure to reach the originally forecasted results that sales figures in the printing segment lagged behind what was predicted.
The Group’s equity provisionally amounted to €15.2 million ($16.39 million) on 31 December 2019 compared to €18.8 million ($20.28 million) on 31 December 2018.
