• Group revenue increases by 12.4% to EUR 45.3 million
• Net cash from operating activities rises to EUR 7.4 million
• Dividend payment proposed for first time

United Labels AG (ISIN: DE0005489561), an enterprise specialising in comicware sold under licence, has confirmed its results reported on March 7, 2007, concerning the 2006 financial year, which proved to be the most successful annual period in the company's history. Group revenue rose by 12.4% to EUR 45.3 million (2005: EUR 40.3 million). Growth within this area was driven mainly by accelerated sales in the key account segment. EBIT increased to EUR 2.0 million (2005: EUR 1.3 million). The EBIT margin stood at 4.4% (2005: 3.2%). Consolidated net profit almost doubled year on year, rising to EUR 1.5 million (2005: EUR 0.8 million). Thus, earnings per share amounted to EUR 0.35 (2005: EUR 0.19).
Net cash from operating activities increased to EUR 7.4 million (2005: EUR 4.4 million). Growth within this area was attributable principally to the solid net profit generated by the Group and an improvement in working capital.
In achieving these results, United Labels AG exceeded its targets for FY 2006 by a significant margin. Against this backdrop, the Management Board will be proposing a dividend payment of EUR 0.20 per share.

Revenue growth in both segments

Group revenue growth in 2006 was driven mainly by the Key Account segment. Benefiting from an expanded range of listed products and a higher proportion of targeted retail campaigns, United Labels AG generated revenue of EUR 34.3 million within the Key Account segment, thus propelling year-on-year growth by 14% in 2006.
The company also strengthened its merchandise presence within the Special Retail segment. Revenue attributable to this area of the business amounted to EUR 11.0 million, a rise of 7.8% on the previous year. The company's positive performance in this segment was a tribute to incisive restructuring measures in Germany and organic growth in Italy.
The comicware specialist is planning to accelerate growth in both segments over the coming years, the main emphasis being on extending the breadth of its merchandise placements while at the same time increasing the frequency of placement. In parallel, United Labels AG is focusing on concept solutions for key accounts and specialty retailers, as well as stepping up its efforts within the area of integrated multimedia sales channels, such as mobile phones, home entertainment, the internet and TV advertising. The company has been pursuing this approach since 2006, with the express purpose of complementing and supportingstandard marketing concepts. Ultimately, this strategy is designed to raise sales volumes of United Labels´ licensed merchandise.

Buoyant sales in Germany contribute to consolidated earnings.

The Group's German parent company proved to be a driving force behind growth over the course of 2006, generating sales revenue of EUR 28.9 million (+22%). The parent company's post-tax profit rose almost fourfold to EUR 2.0 million, thus contributing to higher consolidated earnings. Growth was driven mainly by the significant increase in revenues generated within the Key Account segment. Business with specialty retailers in Germany showed the first signs of success following extensive restructuring measures implemented by the company. By concentrating on high-revenue customers and by streamlining cost structures, United Labels succeeded in improving the segment result of Special Retail by a significant margin.
The UK subsidiary United Labels Ltd. continued to focus on the Key Account segment. Expansion within this region remains a challenge, as the UK market has proved to be more intricate than anticipated. In view of this, United Labels AG has set itself a target of achieving sustained profitability within this high-volume market as from 2006 at the earliest.
Italy saw a boom within the area of specialty retailing in 2006. Here, sales revenue doubled to approx. EUR 0.9 million. In Spain, United Labels has opened up new opportunities by launching a comicware outlet at Barcelona Airport – a flagship store that may prove successful as a model for other United Labels shops at major European airports.

Powerful portfolio of licences in 2007

United Labels AG is committed to maintaining a strong portfolio of licences within the Entertainment/Character category, the prime objective being to market trend-driven merchandise associated with the world's leading cartoon characters. In 2007, its portfolio of high-impact brands includes "The Peanuts", "Disney Princess", "SpongeBob SquarePants", "The Wild Soccer Bunch" and "The Simpsons", as well as "Barbie" and "Dora", which were added in 2006.