Jul 13, 2012 - Swedish renewable energy group Morphic Technologies AB (STO:MORP B), which has been undergoing a thorough restructuring in the past months, turned to a net profit in the second quarter of 2012 due to sale of subsidiaries.
The bottom line improved to a profit of SEK 1.7 million (USD 242,000/EUR 198,000) in April-June 2012 from a loss of SEK 21.5 million a year earlier. Revenue plunged to SEK 2.5 million from SEK 33.3 million as Morphic sold all but one of its subsidiaries. At the same time, the divestment of unprofitable businesses led to an improvement in the operating result, where the loss was cut to SEK 4.4 million from SEK 23.1 million.
In addition, Morphic booked capital gains of a total SEK 6.1 million from the sale of the subsidiaries, which led to a positive result on the bottom line.
In May, the Swedish group announced a restructuring plan that included the demerger of its last subsidiary, Cell Impact AB, which produces flow plates for fuel cells. The plan envisaged distribution of Cell Impact's shares to the shareholders and listing of the company on a stock exchange with lower requirements. However, in today's financial report, Morphic said it was awaiting a "clear candidate for a structural deal" before starting the demerger process.
(SEK 1.0 = USD 0.142/EUR 0.117)
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