DDH primed for further growth 

Development in figures

DDH realised a profit on ordinary activities before nonrecurrent expenditure of DKK 41.6 million in 2010, which is a similar figure to that in 2009. A loss in the building construction consulting section in Orbicon | Leif Hansen A/S (hereinafter Orbicon) and the negative outcome of legal action for damages from an earlier dispute between the municipal authority in Skive and DDH mean that in 2010 DDH realised a loss of DKK 27.4 million before tax and minority interests, against a profit of DKK 26.2 million in 2009.

The development in the company’s results in 2010 can primarily be attributed to:

• Continued positive development in HedeDanmark a/s, which achieved its best result since its establishment as an independent subsidiary in 2004
• A loss in Orbicon A/S as a consequence of a negative result in consultancy related to building construction, restructuring costs and extraordinary amortisation of goodwill
• Positive development in Hedeselskabet Sp. z o.o.’s ordinary activities, which for the first time resulted in a profit before net income from the sale of carbon credits • Continued losses in Xergi A/S
• An upturn in Own Forests
• Legal action for damages stemming from an earlier
  dispute

* Profit/loss from ordinary activities is excl. non-recurrent expenses of DKK 42.4 million concerning Orbicon A/S (DKK 22 million from extraordinary amortisation of goodwill and DKK 8 million in restructuring costs) and DKK 12.4 million concerning the outcome of legal action for damages which went against DDH.

Expectations
Focus on the green area, a better aquatic environment and sustainable renewable energy are all compatible with the spirit of the times, and thus the fundamental forecasts for DDH’s business areas are promising. However, the market conditions under which DDH operates remain challenging. Many of DDH’s business activities are dependent on politically determined framework conditions. Denmark, which is the company’s primary market, is currently subject to a great deal of focus on the need to rein back on public expenditure. Greater focus on effective cost management is expected to result in further public sector outsourcing within DDH’s business areas.

Fiercer competition within several business areas is also expected to have an effect on earnings. DDH expects to return pre-tax profits of almost DKK 30 million in 2011.