Algol Group´s 2007 financial year similar to preceding period

The Algol Group´s financial year in 2007 was very much a repeat of the
preceding period. Net sales and total sales increased, but the total
operational result weakened. The key factors included the strong trend within
industry on the one hand and the investments in the healthcare sector´s
development and expansion programme on the other. The solidity of the Algol
Group remained excellent.

Net sales for the Algol Group amounted to EUR 188.5 million, representing
growth of more than 3 percent over the previous year. Total sales, which
reflects the volume of operations in the technical trade branch, amounted to
EUR 256 million, which is approximately 6 percent more than in the previous
year. The total result was EUR 3.2 million, which is down on the previous year.
The Group´s solidity was over 59 percent.

The continued strong economic trand in Finland and the Eurozone boosted the
success of the Group´s industrial sectors. Algol Chemicals again recorded a
year of stable development and improved its results in all its sectors in the
Nordic markets, the Baltics, Russia and Ukraine. Key focus areas for the
company included improving its logistics networks and applying the European
Union´s REACH chemicals industry legislation to practical operations.

Algol Technics improved its result and increased its sales following continued
investments by industry. The company continued to develop its organisation and
to focus its operations on a more customer-oriented and diverse service model.
The company´s order book was still very strong at the beginning of the new
financial period.

Algol Pharma´s sales increased, but its operational result decreased and fell
short of the target. This was partly due to the expansion investments in the
sector, as expected, but also due to a decline in the wholesale prices of
certain products, the loss of one key representation agreement, and partly also
to the slower than expected development of new markets. The company´s
comprehensive development programme in Finland and abroad continues.

The weakening economic trend and forecasts of slower growth are increasing
uncertainty also in the Algol Group´s home markets in Northern and Northeastern
Europe. The conditions at the start of the year are nevertheless encouraging,
and all three Group companies have budgeted cautious growth for the 2008
financial year. The entire Algol Group will continue to develop its operations
in order to provide even more comprehensive service packages that are honed
together with customers and manufacturing partners.
[
HREF="http://www.algol.fi/algol/website_eng.nsf/HTMLDocs/Content_Avainlukuja">>&
nbsp;Key figures 2007

]

« Back