Interim / Quarterly Report • Oct 7, 2021
Interim / Quarterly Report
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2021 half-year report
EUR thousand
| H1 2021 |
H1 2020 | Change in % | |
|---|---|---|---|
| Revenue | 120,778 | 113,930 | 6.0 |
| Adjusted EBITDA* | 10,465 | 6,000 | 74.4 |
| Adjusted EBITDA margin in %* | 8.4 | 5.0 | 68.0 |
| Adjusted EBIT* | 5,261 | 1,332 | >100 |
| Adjusted EBIT margin in %* | 4.2 | 1.1 | >100 |
| Consolidated net income | 1,453 | 15,647 | 90.7 |
| Free cash flow | 7,850 | 21,467 | 63.4 |
| Earnings per share in EUR | 0.36 | 3.92 | 90.8 |
| 30 June 2021 |
31 Dec. 2020 | Change in % | |
|---|---|---|---|
| Total assets | 223,215 | 198,502 | 12.4 |
| Net asset value in EUR million | 155.2 | 153.9 | 0.8 |
| Equity | 82,481 | 80,301 | 2.7 |
| Equity ratio in % | 37.0 | 40.5 | 8.7 |
| Working capital (net) | 43,469 | 34,968 | 24.3 |
| Net debt ratio in years** | 1.7 | 1.6 | 6.2 |
| Average no. of employees in the Group |
1,122 | 1,095 | 2.5 |
| Average no. of employees in the holding company |
15 | 15 | 0.0 |
* Adjustments: Adjusted to reflect extraordinary, prior-period and other effects resulting from reorganisation measures and one-off effects, as well as effects arising from the purchase price allocations
** The reported net debt ratio (in years) represents debt less cash in relation to adjusted EBITDA over the last twelve months
BLUE CAP 2021 HALF-YEAR REPORT Contents
BLUE CAP 2021 HALF-YEAR REPORT Letter to our shareholders
Macroeconomic development in the first half of 2021 needed to strike a balance between the reopening of the economy and challenges on the global procurement markets. The Blue Cap Group made positive progress overall in this environment due to the high level of diversification of its portfolio. With consolidated revenue up slightly at EUR 120.8 million (previous year: EUR 113.9 million) and a significantly improved adjusted EBITDA margin of 8.4% (previous year: 5%), we are very satisfied.
The Plastics Technology segment made a key contribution to the Group's growth with the acquisition of the Hero Group and the current positive order development at con-pearl. Uniplast was able to pass on some of the significant price increases in the plastics market to its customers. In the field of adhesive technology, Planatol recorded positive development and increased revenue and earnings significantly despite generally difficult conditions in the supply of raw materials. The opposite trend was seen in the Coating Technology segment, with Neschen continuing to be affected by lower order volumes, particularly for products for graphic applications. Carl Schaefer was still confronted with the effects of the coronavirus restrictions in the first half of 2021 with reduced delivery volumes. Over the last few months, the Production Technology segment continued to struggle with project delays and postponements.
Net asset value ("NAV") increased slightly in the first half of the year to EUR 155.2 million or EUR 38.82 per share. The calculation has hardly changed overall compared to the end of 2020, since, first of all, the medium-term plans only had to be adjusted in exceptional cases in the first six months and, second, Hero is still included in the NAV at the purchase price shortly after its acquisition in line with the guidelines for private equity valuations. Major changes could arise at the end of 2021 on the basis of the actual figures for the year as a whole and the new corporate plans, which will have been revised by then.
BLUE CAP 2021 HALF-YEAR REPORT Letter to our shareholders
With three acquisitions since the beginning of the year and a capital increase, we are successfully continuing on the growth path we initiated in 2020.
Everything we do is centred on transformation and adding value. Blue Cap put an immense amount of work into this in the first six months of the reporting year, and in partnership with the management teams of the portfolio companies either initiated or already implemented strategic and operational issues. We also grew through acquisitions: After purchasing the Hero Group in January and Recyplast GmbH in April, we were able to announce the acquisition of the HY-LINE Group at the beginning of August. The application specialist for electronic components and systems focuses on innovative technologies and caters to megatrends such as the Internet of Things, smart homes and Industry 4.0 with customised product solutions. The acquisition of the HY-LINE Group contributes to the further diversification of Blue Cap's investment portfolio.
In August 2021, we successfully carried out a capital increase with exclusion of subscription rights and thus strengthened Blue Cap's equity base by EUR 10.8 million. The successful placement with institutional investors underlines the attractiveness of the Blue Cap share, which is reflected not least in a roughly 70% increase in the share price since the beginning of the year. This also reduced the discount on our net asset value.
The foundation for further growth has been laid and we would like to continue pushing this momentum forward. Despite the continuing uncertainties surrounding the Covid-19 pandemic and on the procurement markets, we are looking to the coming months and the 2022 financial year with optimism.
We thank you for your trust and wish you all the best,
Munich, August 2021
Ulrich Blessing Tobias Hoffmann-Becking Matthias Kosch
BLUE CAP 2021 HALF-YEAR REPORT Company & Business modell
----- As an investment company, Blue Cap AG acquires and supports SMEs that have clear potential for improving their earnings and growth prospects.
Companies are acquired in a structured M&A process. The process involves the systematic identification and selection of target companies based on fixed investment criteria. We invest in companies where succession arrangements are unresolved, in Group spin-offs and in the event of shareholder disputes. Our potential acquisitions also, however, include companies facing crisis situations or growth challenges.
OUR FOCUS: SMEs that manufacture, trade in, and offer services relating to industrially manufactured physical goods.
The portfolio companies are managed independently by the management teams and keep their established SME identity. In principle, each company pursues its own strategy. At the same time, the portfolio companies receive close support from Blue Cap with their strategic and operational development. The transformation can include optimising cost structures and margins as well as securing and expanding the company's financial capacity to act (liquidity). Growth through innovation and the strengthening of sales activities are also the focus of our activities. We provide targeted support to companies in the areas of digitalisation and sustainability.
Blue Cap generally only steps in as a temporary owner and follows a best-owner approach. When it appears to make more sense to allow the company to continue on its path with a new ownership structure, Blue Cap can also sell its shares in the portfolio companies. Proceeds realised from exits, as well as support resources, are reinvested in existing and new companies.
HIGHLIGHTS
BLUE CAP 2021 HALF-YEAR REPORT Highlights
At the end of January, Blue Cap AG announced the acquisition of 71% of the shares in Hero GmbH. Hero develops and manufactures high-quality plastic parts and assemblies for vehicle interiors and the household appliance industry. As a specialist in (gas-assisted) injection moulding, the company supports its customers on the path from the product idea to series production. Hero GmbH and its two subsidiaries have been part of the Blue Cap Group since 28 February 2021.
The difficult market environment created by the Covid-19 pandemic created an excellent opportunity for Blue Cap to invest due to a low valuation multiple. With the economy set to recover over the next few years and boosted by various growth measures, earnings and, as a result, also the valuation multiple will increase substantially. The group of companies is planning to step up its distribution activities further and examine options for inorganic growth.
The transaction underlines Blue Cap AG's portfolio strategy of focusing on equity investments with an intact core business and clear growth and improvement potential.
con-pearl GmbH acquired all of the material assets and employees of Recyplast GmbH in April 2021. Recyplast, based in Hillscheid, Rhineland-Palatinate, specialises in the production of regranulate from various plastics. The acquisition of Recyplast and further investments will allow con-pearl to develop a second, independent recycling site for polypropylene and polyethylene regranulate in the coming years. This will see the company expand its raw material base and make it more attractive for recyclate customers and industrial companies that want to dispose of their waste. Stepping up its recycling activities is part of Blue Cap's sustainability strategy.
In recent years, Gämmerler GmbH's business performance has been dominated by consolidation pressure in the printing industry. This pressure was further intensified in the wake of the global Covid-19 pandemic. In light of these circumstances and the lack of a positive market outlook, the management of Gämmerler GmbH made the decision, together with the Blue Cap management team, to focus on the profitable service and spare parts business. This step will make Gämmerler less reliant on the structurally weak and cyclical customer sector in the printing industry and on a small number of large-scale orders for new machinery. The service and spare parts business has long been a firmly established pillar in which the company has built up significant technical competence, sound expertise and, due to the high degree of networking, an extremely broad customer base. The latter is reflected in the world's largest installed base of print finishing systems, with active machinery worth around EUR 300 million. As part of the operational restructuring process, the minority stake of 49% in Gammerler Tech Corporation in the US was also sold to the majority shareholder.
Neschen Coating GmbH expanded its management team as of March 2021 by recruiting Andreas Mertens, who was previously employed as an investment manager at Blue Cap's holding company. Mertens' main remit will include further developing the company's sales and marketing structures in order to further accelerate the growth momentum that has been intact since 2019. In addition to the optimisation of the Filmolux Group, this includes establishing Neschen Coating GmbH's international presence even more firmly and stepping up activities in the highly profitable Industrial Applications business area. One major focal point will be the digitalisation of sales processes. Planatol GmbH also hired a new sales director as of July 2021. Dr Valentino Di Candido holds a doctorate in business management and has extensive knowledge of national and international direct and commercial sales. His activities will focus mainly on ongoing internationalisation, as well as digitalisation within sales.
Having already started to sell properties that are not used by the company itself at the end of 2020, Blue Cap is continuing with this strategy this year. In April, it sold the former em-tec GmbH building and premises in Finning to a private investor. The building was leased to em-tec in the long term as part of the sale of the company in 2020. This was the third property sale within the space of a few months. A former company site in Bavaria and a property not required for operations in Saxony had already been sold in November of last year.
In the first half of 2021, shares in Blue Cap outperformed the benchmark index SDAX. As of 30 June 2021, the stock was trading at EUR 25.80, up by 40% on the opening price on 4 January 2021.
The most significant increase in the share price came at the end of January, when news of the acquisition of Hero GmbH was published and the company announced that the revenue and earnings forecast for the 2020 financial year would be exceeded. The share price was given a further boost with the publication of the key financial figures for the first quarter of 2021. The share reached its half-year high to date of EUR 27.60 on 5 May 2021.
Blue Cap's market capitalisation as of 30 June 2020 came to EUR 103 million. The average daily trading volume was almost unchanged as against the prior-year period and amounts to 3,831 shares across all exchanges (H1 2020: 3,984). The daily average XETRA trading volume was 1,880 shares (H1 2020: 1,942). The remaining shares were largely traded on the Tradegate securities exchange.
Blue Cap SDAX
Blue Cap AG implemented a capital increase corresponding to just under 10% of its share capital on 12 August 2021. The 399,662 new shares (which carry a dividend entitlement as of 1 January 2021) were placed exclusively with institutional investors with an issue price of EUR 27.02. The subscription rights of existing shareholders were excluded. This brings the company's share capital to EUR 4,396,290.00 (previously EUR 3,996,628.00) with 4,396,290 shares (previously 3,996,628).
The gross issue proceeds before costs and commission amount to EUR 10.8 million. The inflow of funds is to be used partly to refinance the acquisition of HY-LINE Verwaltungs GmbH and otherwise to finance the further growth of the Blue Cap Group.
| WKN | A0JM2M |
|---|---|
| ISIN | DE000A0JM2M1 |
| Stock exchange | |
| symbol | B7E |
| EUR 4,396,290.00 | |
| (until 12 Aug. 2021: | |
| Share capital | EUR 3,996,628.00) |
| 4,396,290 (until 12 Aug. | |
| Number of shares | 2021: 3,996,628) |
| XETRA, Frankfurt, Munich, | |
| Stuttgart, Düsseldorf, Berlin, | |
| Trading venues | Tradegate |
| Stock exchange | |
| segments | Scale, m:access |
| Designated sponsor | BankM AG |
| Capital market | mwb fairtrade Wertpapier |
| partner | handelsbank AG |
The capital increase carried out in August 2021 led to a change in the structure of Blue Cap shareholders. The stake attributable to our largest shareholder, PartnerFonds AG, decreased from 46% to 42% on 12 August 2021. Kreissparkasse Biberach increased its participating interest to 13.5% (previously 10.9%) as part of the capital increase. With it's long-term investment strategy, Kreissparkasse is a key anchor shareholder for Blue Cap. The remaining shares are in free float.
At an extraordinary meeting of PartnerFonds AG held in May 2020, the decision was made to liquidate the company. As part of this process, the shares that PartnerFonds AG holds in Blue Cap are to be sold in the long term. There is currently no deadline by which this process has to be completed.
SMC Research started its coverage of Blue Cap's shares in the first quarter of 2021. In the initial study dated 2 March 2021, the share was given a "buy" recommendation with a price target of EUR 44.50. Warburg Research and Edison Investment Research also produce regular analyses of Blue Cap's shares.
| INSTITUTE | DATE | INVESTMENT RECOMMEN DATION |
PRI CE TAR GET |
|---|---|---|---|
| M.M. WARBURG | 9 AUGUST 2021 | BUY | EUR 42.00 |
| SMC RESEAR CH |
7 MAY 2021 | BUY | EUR 46.00 |
| EDISON RESEAR CH 1 |
17 MAY 2021 |
1 For regulatory reasons, Edison's research report, which is mandatory for share issuers in the Scale segment for small and medium-sized companies (SMEs), does not contain any investment recommendation
Active and transparent dialogue with existing and potential shareholders is a top priority for Blue Cap AG. After already expanding its investor relations work last year, the company continued its constructive and open communication with the capital market in the first half of 2021. The management was regularly available as a point of contact for investors, media representatives and analysts at both personal meetings and capital market conferences. All meetings were organised online or by telephone. Key topics included the most recent acquisitions, as well as the strategic and operational development of the individual portfolio companies.
Since the beginning of 2021, Blue Cap has been a member of the German Investor Relations Association (DIRK), allowing it to contribute to the goal of transparent and ongoing capital market communication.
Various conferences are planned for the second half of 2021. Dates for these events can be found in the financial calendar on the Investor Relations website.
Lisa Marie Schraml Investor Relations manager Tel.: +49 89 288909-24 Email: [email protected]
On 25 June 2021, Blue Cap held its Annual General Meeting as a virtual event for the second time in light of the ongoing Covid-19 pandemic. The meeting was chaired by Prof. Bräutigam, Chairman of the Supervisory Board of Blue Cap. Together with the three members of the Management Board, he addressed Blue Cap's shareholders from the company's headquarters in Munich. The Annual General Meeting was broadcast via live stream on the investor portal on the Investor Relations website.
All proposed resolutions were approved by a large majority. The dividend of EUR 1.00 per share proposed by the Management Board and the Supervisory Board met with broad approval among the company's shareholders. The dividend consists of a base dividend of EUR 0.75 and a bonus dividend of EUR 0.25 per share resulting from the successful sale of em-tec in May 2020 (previous year: EUR 0.75). This corresponds to a year-on-year increase in the dividend of 33% and a dividend yield of 5.6% based on the XETRA closing price on 30 December 2020 of EUR 17.75. The distribution marks the continuation of Blue Cap AG's stable and sustainable dividend policy.
Blue Cap AG's NAV as of 30 June 2021 came to EUR 155.2 million, up by EUR 1.3 million on the value as of 31 December 2020 (FY 2020: EUR 153.9 million). The NAV corresponds to the fair value of the portfolio companies included in the business areas, less net financial liabilities. The value is calculated using a discounted cash flow procedure. The calculation is based on the approved budget planning of the individual portfolio companies for the years from 2021 to 2023, or their extrapolation for 2024 and 2025. The projections were adjusted as against the previous period to reflect any major changes in expected business development (e.g. at conpearl due to the acquisition of Recyplast and at Carl Schaefer based on the lower volume of deliveries). The majority of the growth rates after the 5-year period have been put at 1.5% (FY 2020: 1.5%). The weighted average cost of capital (WACC) was calculated for each business area on the basis of individual peer groups and comes to 6.5% (FY 2020: 6.6%). The peer group data required for the purposes of the calculation is taken from the annual reports of the companies concerned.
Furthermore, the indicative NAV includes the net debt of the holding company, which is calculated as the net amount of loans and credit balances with banks. Properties that are either used by the company itself or leased to third parties are recognised at their carrying amount less debt for the NAV calculation. The minority interest in INHECO is included in the calculation at fair value.
The NAV of the business areas has increased by 12% as against the NAV as of 31 December 2020 (increase of 35% compared to 30 June 2020). This change is due primarily to the acquisition and inclusion of the Hero Group in the Plastics Technology segment at acquisition cost as of 1 March 2021. The advantageous business development of the con-pearl Group and the acquisition of Recyplast also have a positive effect on the NAV trend, while the reorganisation at Gämmerler GmbH and the adjustment of the business plan at Carl Schaefer Gold- und Silberscheideanstalt GmbH put pressure on the net asset value at the end of the half-year period.
The NAV of the minority interest in INHECO Industrial Heating & Cooling GmbH was increased to reflect the continued profitable growth trajectory.
Net financial debt is up due to the acquisitions and the dividend payment. Proceeds from property sales had the opposite effect.
| EUR million | 30 June | ||
|---|---|---|---|
| 2021 | 31 Dec. 2020 | 30 June 2020 | |
| NAV of the business areas | 118.8 | 106.0 | 88.1 |
| Plastics Technology | 56.9 | 42.3 | 28.0 |
| Coating Technology | 42.8 | 42.9 | 39.5 |
| Adhesive Technology | 12.5 | 11.9 | 14.2 |
| Metal Technology | 4.0 | 5.6 | 3.6 |
| Production Technology | 2.6 | 3.2 | 2.8 |
| NAV of the minority interest1 | 29.1 | 26.1 | 26.0 |
| Net debt (–)/cash-in-hand (+) Blue Cap AG | -1.9 | 9.9 | 12.3 |
| Carrying amount of properties less liabilities of asset holding company | 9.2 | 11.9 | 12.1 |
| Indicative NAV of the Group | 155.2 | 153.9 | 138.5 |
1 The minority stake in INHECO Industrial Heating & Cooling GmbH has been recognised at fair value since the 2020 half-year report, as with the majority shareholdings, to reflect the company's positive business development
1.1 Business development in the first half of 2021
Developments in the global economy in the first half of 2021 were once again dominated by the Covid-19 pandemic. Overall, global GDP continued to recover from the dramatic slump seen in the spring of 2020. There were, however, considerable differences from country to country due to the virus breaking out (again) at different times and also due to the infection protection measures imposed, as well as the vaccination progress made, in the individual countries.
While China had already clearly exceeded its pre-crisis level in the third quarter of 2020, the US economy is expected to surpass its pre-crisis level in the second quarter of 2021. Most other countries will follow a quarter later, although the euro area as a whole is not set to achieve this until early 2022.
The increase in the rate of inflation has picked up speed, especially in the world's advanced economies, due to the uptick in the price of crude oil. Further pressure on consumer prices in the first six months of 2021 came in particular from raw materials prices, which rose significantly in some cases. In the emerging markets, on the other hand, inflation was lower overall than in the previous year. Particularly in China, price increases were much more subdued as companies are being deterred from passing their higher prices on to consumers.
In the first half of 2021, the German economy was caught between two poles: increasing measures to open up the economy and supply bottlenecks. Whereas macroeconomic activity declined in the first three months due to the pandemic, the pace of infection started to slow again at the end of April, meaning that infection control measures have been eased with a positive knock-on effect on economic growth. The German labour market has also benefited from the recovery. Higher energy and commodity prices, however, fuelled a marked increase in prices in the first half of the year.
BLUE CAP 2021 HALF-YEAR REPORT Interim Group Management Report
Following the sluggish recovery of business in the German private equity market in the wake of the coronavirus outbreak, it has gained momentum in recent months. At the end of Q2 2021, the business climate indicator for the later-stage segment rose by 44.3 points to 13.4 balance points compared to the end of 2020, and is thus above the long-term average again for the first time after the Covid-19 shock. The assessment of business expectations (21.5 balance points; previous year: -26.9 balance points) is picking up much more strongly than that of the current business situation (5.3 balance points; previous year: -35.0 balance points).
The individual climate components of the KfW Research Private Equity Barometer are consistently positive at the end of the second quarter of 2021. Only the valuation climate shows negative values and thus a certain dissatisfaction with current entry prices. Significant double-digit improvements can be seen in the assessment of fundraising, investment readiness and the impairment requirement. Assessments of exit opportunities, deal flow and innovation also show double-digit growth compared to the end of 2020. The assessment of funding, the tax framework and entry prices, on the other hand, has developed negatively compared to the previous year.
The first half of 2021 was dominated by economic catch-up effects within the Group. All in all, consolidated revenue at the end of the first half of the year was up by around 6% year-on-year to EUR 120.8 million. Adjusted EBITDA came to EUR 10.5 million (previous year: EUR 6.0 million) and the adjusted EBITDA margin stood at 8.4% (previous year: 5.0%).
In particular, further growth in the Plastics Technology segment due to the acquisition of the Hero Group and the expansion of the packaging business at con-pearl contributed to the positive trend in the Group's key figures. The Adhesive Technology segment has also shown positive development over the last six months. The Planatol Group, for example, took a forward-looking approach by increasing its warehouse inventory levels at the end of 2020, and was able to meet all customer requests in an adhesives market that is currently marred by supply bottlenecks.
The development at Neschen, which operates in the Coating Technology segment, tells the opposite story. The ongoing lower order volume for products for trade fairs and other graphics applications as a result of the Covid-19 pandemic, as well as the loss of a major customer in the area of industrial applications, continued to make themselves felt. Uniplast, which is part of the Plastics Technology segment, developed better than planned in terms of revenue, but was only able to pass on some of the significant increases in raw materials prices to its customers.
At Carl Schaefer, the volume of scrap gold delivered lagged behind the level seen prior to the Covid-19 crisis. Gämmerler GmbH and nokra operate in the Production Technology segment, which is the smallest segment in terms of revenue. Business development at both portfolio companies was also impacted by postponed projects and delays in the completion of system projects in the first half of 2021. In order to make Gämmerler less reliant on the small number of major orders for the printing industry, the company will focus on the profitable service and spare parts business in the future.
FURTHER INFORMATION You can find out more about current changes in our scope of consolidation at www.blue-cap.de/aktuelles
By way of a purchase agreement dated 29 January 2021, Blue Cap AG acquired 71% of the shares in Hero GmbH and its subsidiaries through its subsidiary Blue Cap 11 GmbH. The Hero Group develops and manufactures high-quality plastic parts and assemblies for vehicle interiors and the household appliance industry. With more than 200 employees at four locations in Baden-Württemberg, Hero generates annual revenue of around EUR 40 million. Since the acquisition, the group of companies has complemented Blue Cap's portfolio in the Plastics Technology segment. The transaction was closed successfully on 26 February 2021 and the group of companies was fully consolidated for the first time as of 1 March 2021.
Also in the Plastics Technology segment, con-pearl GmbH acquired all of the material assets and employees of Recyplast GmbH from the insolvency estate of Fischer GmbH, Achern, under an agreement dated 7 April 2021. Recyplast, based in Hillscheid, Rhineland-Palatinate, specialises in the production of regranulate from various plastics. The acquisition will further strengthen the Plastics Technology segment and will allow con-pearl to establish another recycling site for polypropylene and polyethylene regranulate. This will see the company expand its raw material base for plastics. Stepping up its recycling activities is part of Blue Cap's aim to strengthen the role played by sustainability in its investment portfolio.
Overall, the Management Board is satisfied with the company's business development to date as of 30 June 2021, also given the special circumstances and the ensuing consequences that dominated the past financial year.
In the first half of 2021, the consolidated revenue of the Blue Cap Group increased by 6.0% or EUR 6,848 thousand year-on-year to total EUR 120,778 thousand (previous year: EUR 113,930 thousand). The increase can be traced back in particular to the first-time inclusion of the Hero Group as of 1 March 2021. The deconsolidation of em-tec GmbH as of 30 April 2020 and SMB-David as of 30 June 2020, as well as lower revenue due to the Covid-19 pandemic, had the opposite effect.
Looking at the breakdown of consolidated revenue, the German market accounted for 53.6% or EUR 64,720 thousand (previous year: 57.6% or EUR 65,626 thousand), the rest of the EU for 32.4% or EUR 39,112 thousand (previous year: 28.4% or EUR 32,369 thousand) and the rest of the world for 14.0% or EUR 16,945 thousand (previous year: 14.0% or EUR 15,935 thousand).
Other operating income amounts to EUR 3,854 thousand at the end of the first half (previous year: EUR 22,640 thousand) and mainly includes income from the disposal of fixed assets of EUR 1,936 thousand (previous year: EUR 80 thousand), income from the reversal of provisions in the amount of EUR 627 thousand (previous year: EUR 759 thousand), income from bargain
GOOD TO KNOW The consolidated income statement can be found on page 34 of the interim consolidated financial statements.
purchases of EUR 226 thousand (previous year: EUR 0 thousand), as well as income from benefits in kind of EUR 171 thousand (previous year: EUR 158 thousand) and income relating to previous periods of EUR 164 thousand (previous year: EUR 283 thousand). In the previous year, the figure also included income from the deconsolidation of the sold subsidiary em-tec GmbH in the amount of EUR 20,808 thousand.
The Group's total output came to EUR 127,888 thousand in the first half of the year, down on the previous year (EUR 141,300 thousand) in particular due to the deconsolidation income in connection with the sale of em-tec GmbH included in the previous year.
At 50.3% of total output, the ratio of the cost of materials to total output was higher than in the previous year (45.4%), mainly due to the inclusion of deconsolidation income in connection with the sale of em-tec in the prior-year total output. As a result, the gross profit ratio came to 49.7% (previous year: 54.6%) while gross profit, which represents the difference between total output and the cost of materials, came to EUR 63,564 thousand (previous year: EUR 77,098 thousand).
In the half year under review, personnel expenses in the Group amounted to EUR 33,455 thousand (previous year: EUR 32,555 thousand), which corresponds to 26.2% (previous year: 23.0%) of total output. Depreciation and amortisation amounted to EUR 8,697 thousand (previous year: EUR 6,533 thousand) or 6.8% (previous year: 4.6%) of total output. Other expenses fell slightly by EUR 324 thousand to EUR 19,548 thousand and equated to 15.3% of total output (previous year: 14.1%). The inclusion of the Hero Group in the Blue Cap Group was the main factor behind the increase in personnel expenses, depreciation and amortisation, and other expenses. The effects resulting from the deconsolidation of em-tec and SMB-David in the course of the previous year, as well as cost savings at Uniplast, had the opposite effect.
At the halfway point of 2021, EBIT came to EUR 2,765 thousand (previous year: EUR 18,689 thousand), which corresponds to 2.2% (previous year: 13.2%) of total output. The negative interest result of EUR 994 thousand (previous year: EUR 1,285 thousand) was reduced, among other things, by lowering bank debt levels overall.
Consolidated earnings before taxes (EBT) amounted to EUR 1,805 thousand (previous year: EUR 16,586 thousand). The drop in EBIT and consolidated earnings before taxes is due primarily to the deconsolidation income from the sale of em-tec included in the figures for the previous year.
The portfolio companies and, as a result, also the Group are managed on the basis of the adjusted EBITDA margin, among other things. EBITDA, calculated in accordance with IFRS, is adjusted to reflect extraordinary, prior-period and other effects resulting from reorganisation measures, as well as one-off effects (adjustments). In order to ensure consistency with the control parameters used for the portfolio companies, the effects resulting from purchase price allocations (in particular income from "bargain purchases" and amortisation of disclosed hidden reserves) are also corrected.
In the first half of the year, adjustments in operating profit (EBIT) of EUR 3,491 thousand (previous year: EUR 22,276 thousand) and expenses of EUR 5,986 thousand (previous year: EUR 4,919 thousand) were identified that are not included in adjusted EBITDA/adjusted EBIT. This brought the total cumulative adjustments to EUR -2,496 thousand (previous year: EUR 17,357 thousand).
GOOD TO KNOW You can find the adjusted consoli-
dated income statement on page 66.
The reconciliation of the EBITDA presented in the IFRS statement of comprehensive income to adjusted EBITDA and adjusted EBIT is shown below:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| EBITDA (IFRS) | 10,561 | 24,670 |
| Adjustments | ||
| Income from asset disposals | –1,936 | –80 |
| Income from the reversal of provisions | –927 | –759 |
| Other non-operating income | –402 | –629 |
| Income from bargain purchase | –226 | 0 |
| Income from deconsolidation | 0 | –20,808 |
| Losses on disposal of fixed assets | 1,213 | 6 |
| Expenses from restructuring and reorganisation | 606 | 252 |
| Personnel costs in connection with personnel measures | 595 | 538 |
| Legal and consultancy costs in connection with acquisitions and personnel measures |
530 | 300 |
| Other non-operating expenses | 432 | 588 |
| Utilisation of disclosed hidden reserves | 19 | 0 |
| Expenses from deconsolidation measures | 0 | 1,922 |
| Adjusted EBITDA | 10,465 | 6,000 |
| Adjusted EBITDA margin as % of total output, adjusted | 8.4% | 5.1% |
| Depreciation and amortisation | –8,697 | –6,533 |
| Impairment losses and reversals | –201 | 0 |
| Share of profit/loss in associates | 1,102 | 551 |
| Adjustments | ||
| Amortisation of disclosed hidden reserves | 2,390 | 1,275 |
| Impairment losses and reversals | 201 | 38 |
| Adjusted EBIT | 5,261 | 1,332 |
| Adjusted EBIT margin as % of total output, adjusted | 4.2% | 1.1% |
The adjusted EBITDA margin in the first six months of the year came to 8.4% (previous year: 5.1%) of total output. The adjusted EBIT margin in the reporting period came to 4.2% (previous year: 1.1%) of total output. The increase in the adjusted EBITDA margin and the adjusted EBIT margin is due, in particular, to the first-time consolidation of the Hero Group and the positive business developments witnessed in the Plastics Technology and Adhesive Technology segments. Further earnings growth at the medical technology manufacturer INHECO also had a positive impact on the Group's adjusted EBIT margin.
EUR thousand
Revenue in the Plastics Technology segment increased by 33.3% from EUR 48,057 thousand to EUR 64,067 thousand in a half-year comparison. As in the previous year, Plastics Technology is the segment with the highest revenue, contributing 52.0% to total revenue (previous year: 41.4%). Adjusted EBITDA made a marked improvement from EUR 2,517 thousand to EUR 7,229 thousand. The improved earnings figures can be traced back to the first-time inclusion of the Hero Group, the successful reorganisation measures at con-pearl and an overall positive order trend.
EUR thousand
| H1 2021 |
H1 2020 | Change in % |
|
|---|---|---|---|
| Revenue | 64,067 | 48,057 | 33.3 |
| Adjusted EBITDA | 7,229 | 2,517 | >100 |
| Adjusted EBITDA margin as % of total output, adjusted | 11.0 | 5.1 | >100 |
In the first six months of the year, the Coating Technology segment was hit hard by the extensive lockdown measures in Germany and, as a result, by reduced order volumes for products for trade fairs and other graphics applications, as well as by the loss of a major customer in the area of industrial applications. Revenue in the segment fell by 3.2% from EUR 26,257 thousand to EUR 25,406 thousand in a half-year comparison. This was only partially offset by a higher gross profit margin on the cost side, meaning that adjusted EBITDA dropped by 28.0% from EUR 2,623 thousand to EUR 1,888 thousand. With a contribution to revenue of 20.6% (previous year: 22.6%), this segment continues to deliver the second-largest share of total revenue.
| EUR thousand | |||
|---|---|---|---|
| H1 2021 |
H1 2020 | Change in % |
|
| Revenue | 25,406 | 26,257 | 3.2 |
| Adjusted EBITDA | 1,888 | 2,623 | 28.0 |
| Adjusted EBITDA margin as % of total output, adjusted | 7.1 | 9.1 | 22.5 |
Revenue in the Adhesive Technology segment was also still below the prior-year level at the beginning of the year due to the Covid-19 pandemic. While there were bottlenecks in the supply of raw materials in the adhesives market, Planatol was able to safeguard its good supply capability thanks to forward-looking measures to build up inventory levels. As a result, revenue increased significantly from April onwards, coming to EUR 17,464 thousand by the end of the first half, up by approx. 19.0% year-on-year (previous year: EUR 14,671 thousand). Adjusted EBITDA also made a marked improvement from EUR 719 thousand to EUR 1,836 thousand. Adhesive Technology accounted for 14.2% of total revenue in the first half of the year (previous year: 12.6%).
| EUR thousand | |||
|---|---|---|---|
| H1 2021 |
H1 2020 | Change in % |
|
| Revenue | 17,464 | 14,671 | 19.0 |
| Adjusted EBITDA | 1,836 | 719 | >100 |
| Adjusted EBITDA margin as % of total output, adjusted | 10.2 | 4.8 | >100 |
The Metal Technology segment was unable to maintain last year's positive development in delivery volume. Revenue fell by 22.3% from EUR 15,216 thousand to EUR 11,822 thousand in a halfyear comparison. As a result, adjusted EBITDA also fell by 43.1% from EUR 516 thousand to EUR 293 thousand. The segment's contribution to total revenue fell from 13.1% to 9.6%, making it the fourth strongest segment in the Group in terms of revenue.
EUR thousand
| H1 2021 |
H1 2020 | Change in % |
|
|---|---|---|---|
| Revenue | 11,822 | 15,216 | 22.3 |
| Adjusted EBITDA | 293 | 516 | 43.1 |
| Adjusted EBITDA margin as % of total output, adjusted | 2.5 | 3.4 | 26.8 |
Revenue development in the Production Technology segment was impacted in particular by the declining project business at Gämmerler and nokra amid the Covid-19 pandemic. The deconsolidation of SMB-David as of 30 June 2020 also contributed to the drop in revenue as against the previous year. Revenue fell by 66.8% from EUR 5,464 thousand to EUR 1,811 thousand in a halfyear comparison. Adjusted EBITDA, on the other hand, improved by 23.4% from EUR -1,379 thousand to EUR -1,057 thousand. This was due to the deconsolidation of the loss-making SMB-David, as well as to initial effects resulting from the reorganisation measures at Gämmerler GmbH. The company has significantly reduced its cost structure and will now focus on the profitable service and spare parts business. With a contribution to revenue of 1.5% (previous year: 4.7%), Production Technology is the smallest segment in the Group with regard to revenue.
EUR thousand H1 2021 H1 2020 Change in % Revenue 1,811 5,464 66.8 Adjusted EBITDA –1,057 –1,379 23.4 Adjusted EBITDA margin as % of total output, adjusted –55.3 –23.3 100
The Other segment includes the holding and real estate companies of the Blue Cap Group. In addition, the Medical Technology segment was dissolved in April 2020 with the sale of em-tec GmbH, and the key figures of em-tec were allocated to the Other segment until its deconsolidation with effect from 30 April 2020. As a result, the segment's key figures in the current financial year are not comparable with the previous year. The segment achieved revenue with external third parties of EUR 236 thousand in the first half of the current financial year (previous year: EUR 4,404 thousand). Adjusted EBITDA for the segment amounted to EUR 312 thousand (previous year: EUR 1,041 thousand). The contribution to revenue in the first six months was 2.2% (previous year: 5.6%) of total revenue.
| H1 2021 |
H1 2020 | Change in % |
|
|---|---|---|---|
| Revenue (with external third parties) | 236 | 4,404 | 94.6 |
| Adjusted EBITDA | 312 | 1,041 | 70.0 |
| Adjusted EBITDA margin as % of total output, adjusted | 11.4 | 15.3 | 25.5 |
GOOD TO KNOW You can find out more in the consolidated financial statements starting on page 32.
In the first half of the year, Blue Cap Group met its capital requirements largely using its cash flow from operations and through the sale of property held for sale. The main financial resources included long-term and revolving loans, as well as financing based on leasing and factoring.
The right-of-use assets resulting from leasing/rental on the balance sheet amounted to EUR 19,079 thousand as of 30 June 2021 (previous year: EUR 11,501 thousand). They are offset by financial liabilities from lease liabilities of EUR 19,092 thousand (previous year: EUR 11,452 thousand). The increase in right-of-use assets resulting from leasing/rental and financial liabilities from lease liabilities is particularly attributable to the inclusion of the Hero Group in the Blue Cap Group as of 1 March 2021.
Liabilities to banks came to EUR 65,935 thousand as of the half-year reporting date (previous year: EUR 64,579 thousand), most of which are denominated in euros. There was a small volume of foreign currency loans denominated in US dollars in the amount of EUR 1,563 thousand (previous year: EUR 913 thousand) and in Czech koruna in the amount of EUR 6 thousand (previous year: EUR 8 thousand). There were also credit lines of EUR 13,715 thousand that had not been utilised (previous year: EUR 16,634 thousand).
Funds borrowed from banks are also subject to standard market lending conditions (covenants), which require compliance with defined key financial figures in particular. Failure to comply with such covenants can result, among other things, in the lender's right to terminate or in a loan falling due for repayment early. In the past financial half year, despite the negative economic impact of the Covid-19 pandemic, all covenants were met within the Group. Looking ahead to the second half of the year, Blue Cap also expects to see compliance with the covenants thanks to the broadbased financing structure.
| H1 2021 |
H1 2020 | Change in % |
|
|---|---|---|---|
| Cash flow from operating activities | 4,651 | 6,663 | 30.2 |
| Cash flow from investing activities | 3,199 | 14,804 | 78.4 |
| Cash flow from financing activities | –12,491 | –1,437 | >100 |
| Changes in cash funds due to exchange rate fluctuations | –26 | –1 | >100 |
| Cash funds at the beginning of the period | 26,542 | 9,002 | >100 |
| Cash funds at the end of the period | 21,876 | 29,031 | 24.6 |
BLUE CAP 2021 HALF-YEAR REPORT Interim Group Management Report
In the first half of 2021, free cash flow amounted to EUR 7,850 thousand (previous year: EUR 21,467 thousand) and comprises cash flow from operating activities and cash flow from investing activities.
The positive cash flow from operating activities of EUR 4,651 thousand (previous year: EUR 6,663 thousand) was mainly influenced by operating profit (adjusted EBITDA) of EUR 10,465 thousand (previous year: EUR 6,000 thousand) in the first half of 2021. The EUR 4,213 thousand (previous year: EUR 5,850 thousand) increase in working capital (net) and income taxes paid of EUR 1,203 thousand (previous year: EUR 1,125 thousand) had the opposite effect.
Positive cash flow from investing activities of EUR 3,199 thousand (previous year: EUR 14,804 thousand) was determined in particular by payments received from the sale of property held for sale (Finning, Hofolding, Leisnig) in the amount of EUR 10,842 thousand (previous year: EUR 0 thousand). This was offset by payments for additions to the scope of consolidation (acquisition of Hero and Recyplast) totalling EUR 5,193 thousand (previous year: EUR 0 thousand) and investments in property, plant and equipment of EUR 2,589 thousand (previous year: EUR 5,102 thousand). Cash flow from investing activities in the previous year also included proceeds from disposals from the scope of consolidation (sale of em-tec) in the amount of EUR 22,464 thousand and payments from additions to assets held for sale (completion of Finning property) of EUR 2,551 thousand.
Cash outflows from financing activities amounted to EUR 12,491 thousand (previous year: EUR 1,437 thousand) in the first half of 2021 and resulted primarily from the inflow from loans taken out in the amount of EUR 6,750 thousand (previous year: EUR 6,480 thousand) and the payments for the repayment of financial loans of EUR 8,982 thousand (previous year: EUR 5,040 thousand), the repayment of lease liabilities of EUR 2,240 thousand (previous year: EUR 1,418 thousand), the provision of collateral to credit institutions in the amount of EUR 3,200 thousand (previous year: EUR 0 thousand), interest paid of EUR 821 thousand (previous year: EUR 1,676 thousand) and dividends paid to shareholders of the parent company of EUR 3,997 thousand (previous year: EUR 0 thousand).
Overall, this led to a cash-effective decrease in cash funds of EUR 4,640 thousand (previous year: increase of EUR 20,029 thousand). Taking into account the changes in cash funds of EUR -26 thousand (previous year: EUR -1 thousand) that can be traced back to exchange rate fluctuations, positive cash funds of EUR 21,876 thousand (previous year: EUR 29,031 thousand) were calculated at the reporting date. As of 30 June 2021, there were unutilised credit lines in the amount of EUR 13,715 thousand. Together with cash-in-hand and bank balances of EUR 28,674 thousand, this results in cash funds, including unutilised credit lines, of EUR 42,389 thousand as of 30 June 2021.
EUR thousand ASSETS Non-current assets LIABILITIES AND SHAREHOLDERS' EQUITY Current assets Equity Non-current debt capital Current debt capital Equity +2.7% year-onyear 198,502 223,215 198,502 223,215 116,361 (+21.1%) 106,854 (+4.4%) 96,112 102,390 82,481 (+2.7%) 85,263 (+17.2%) 55,471 (+22.1%) 80,301 72,752 45,449 (+12.4%) (+12.4%) 31 Dec. 2020 30 June 2021 31 Dec. 2020 30 June 2021
| EUR thousand | 30 June 2021 |
31 December 2020 |
Change in % |
|---|---|---|---|
| Inventories | 35,530 | 27,499 | 29.2 |
| + Trade receivables | 21,558 | 16,622 | 29.7 |
| – Trade payables | 13,620 | 9,153 | 48.8 |
| = Working capital (net) | 43,469 | 34,968 | 24.3 |
GOOD TO KNOW The Group's net debt ratio is 1.7 years and thus comfortably within the forecast range.
| EUR thousand | 30 June 2021 |
31 December 2020 |
Change in % |
|---|---|---|---|
| Non-current financial liabilities | 49,228 | 46,735 | 5.3 |
| + Current financial liabilities | 16,732 | 17,844 | 6.2 |
| – Cash and cash equivalents | 28,674 | 36,251 | 20.9 |
| = Net financial debt | 37,286 | 28,328 | 31.6 |
| EUR thousand | |||
|---|---|---|---|
| H1 2021 |
H1 2020 | Change in % |
|
| Investments | 7,782 | 7,653 | 1.7 |
| of which in company acquisitions | 5,193 | 0 | |
| of which in financial assets | 0 | 2,551 | |
| of which in property, plant and equipment | 2,589 | 5,102 | 49.3 |
| of which in assets held for sale | 0 | 0 | |
| Depreciation and amortisation | 8,697 | 6,533 | 33.1 |
As of the half-year reporting date, the Group's total assets came to EUR 223,215 thousand, EUR 24,713 thousand or 12.4% higher than in the previous year.
Non-current assets came to EUR 116,361 thousand as of 30 June 2021 (previous year: EUR 96,112 thousand) or 52.1% (previous year: 48.4%) of total assets and are dominated by property, plant and equipment, which increased by EUR 5,826 thousand compared to the previous year to EUR 87,945 thousand or 39.4% (previous year: 41.4%) of total assets. This was primarily due to the first-time consolidation of the Hero Group in March 2021 and to the assets of Recyplast GmbH that were acquired by con-pearl as part of an asset deal in April 2021. This was offset, in particular, by the reclassification of a property held for sale in Geretsried-Gelting to current assets. The marked increase of EUR 10,544 thousand in intangible assets to EUR 12,864 thousand or 5.8% (previous year: 1.2%) of total assets is attributable in particular to the first-time consolidation of the Hero Group.
Current assets increased from EUR 102,390 thousand or 51.6% to EUR 106,854 thousand or 47.9% of total assets, in particular due to the first-time consolidation of the Hero Group and the reclassification of the Geretsried-Gelting property previously included in non-current assets. The purchase price payment in connection with the acquisition of the Hero Group had the opposite effect. Inventories (EUR 35,530 thousand, previous year: EUR 27,499 thousand) accounted for 15.9% (previous year: 13.9%), trade receivables (EUR 21,558 thousand, previous year: EUR 16,622 thousand) for 9.7% (previous year: 8.4%), cash and cash equivalents (EUR 28,674 thousand, previous year: EUR 36,251 thousand) for 12.8% (previous year: 18.3%) and assets held for sale
Equity ratio of the Blue Cap Group as of 30 June 2021.
(EUR 5,171 thousand, previous year: EUR 7,697 thousand) to 2.3% (previous year: 3.9%) of total assets.
The share of equity (EUR 82,481 thousand, previous year: EUR 80,301 thousand) in relation to total capital amounted to 37.0% (previous year: 40.5%) on the half-year reporting date. The slight drop in relation to total assets was due in particular to the first-time consolidation of the Hero Group and the overall increase in total assets.
Non-current liabilities increased considerably by EUR 12,511 thousand to EUR 85,263 thousand or 38.2% (previous year: 36.7%) of total capital. In particular, this increase was driven by higher bank and lease liabilities, as well as deferred tax liabilities from the first-time consolidation of the Hero Group. Non-current liabilities consist of non-current financial liabilities to banks totalling EUR 49,228 thousand (previous year: EUR 46,735 thousand) or 22.1% (previous year: 23.5%), provisions for pensions and similar commitments of EUR 9,449 thousand (previous year: EUR 9,018 thousand) or 4.2% (previous year: 4.5%), non-current lease liabilities of EUR 13,651 thousand (previous year: EUR 8,701 thousand) or 6.1% (previous year: 4.4%), deferred tax liabilities of EUR 10,902 thousand (previous year: EUR 7,425 thousand) or 4.9% (previous year: 3.7%), and other non-current liabilities and provisions in the amount of EUR 2,006 thousand (previous year: EUR 847 thousand) or 0.9% (previous year: 0.4%) of total assets.
Current liabilities also increased significantly by EUR 10,022 thousand to EUR 55,471 thousand or 24.9% (previous year: 22.9%) of total capital due in particular to the first-time consolidation of Hero and to higher trade payables overall. Current liabilities include, in particular, current liabilities to banks of EUR 16,732 thousand (previous year: EUR 17,844 thousand) or 7.5% (previous year: 9.0%), current lease liabilities of EUR 5,441 thousand (previous year: EUR 2,751 thousand) or 2.4% (previous year: 1.4%), trade payables of EUR 13,620 thousand (previous year: EUR 9,153 thousand) or 6.1% (previous year: 4.6%), other current non-financial liabilities of EUR 8,244 thousand (previous year: EUR 6,160 thousand) or 3.7% (previous year: 3.1%) and other current provisions of EUR 4,623 thousand (previous year: EUR 4,043 thousand) or 2.1% (previous year: 2.0%) of total capital.
YOU CAN FIND FURTHER INFORMATION on the acquisition online at www.blue-cap.de/aktuelles
By way of a purchase agreement dated 5 August 2021, Blue Cap AG acquired approximately 93% of the shares in HY-LINE Verwaltungs GmbH and its four operating subsidiaries through its subsidiary Blue Cap 12 GmbH for a purchase price in the lower third of the double-digit millions. The management team of HY-LINE took a substantial single-digit percentage stake in the acquisition. Over the last few years, the group of companies has transformed itself from a value-added distributor to a supplier of products and systems with a special focus on technical consulting and application competence. Its customers primarily come from the electronics industry, medical technology, the energy sector and the media and communications industry. Its main sales markets are Germany, Austria and Switzerland. With around 80 employees, HY-LINE generates annual revenue of approximately EUR 40 million to EUR 50 million at its four locations. The closing of the transaction and first-time consolidation of the group of companies into the Blue Cap Group are planned for 1 September 2021.
On 12 August 2021, Blue Cap AG increased the company's share capital by issuing 399,662 new no-par value bearer shares, each representing EUR 1.00 of the share capital, in return for cash contributions, making partial use of the Authorised Capital 2018/I and excluding shareholders' subscription rights. The new shares carry profit-sharing rights as of 1 January 2021. The price per new share is EUR 27.02.
Only institutional investors were admitted to subscribe to the new shares as part of a private placement. The gross issue proceeds from the capital increase amount to EUR 10.8 million. The funds are to be used partly to refinance the acquisition of HY-LINE Verwaltungs GmbH, with the remainder intended to finance the further growth of the Blue Cap Group.
The business activities of Blue Cap AG and its portfolio companies are associated with both opportunities and risks which could have an impact on the business activities and on the financial position, cash flows and financial performance of the Group were they to materialise. As part of its opportunity and risk management system, Blue Cap has established organisational regulations and measures that enable the company to identify opportunities and risks at an early stage and to take appropriate action to address them.
A detailed explanation of the opportunity and risk management system, as well as the relevant individual risks, can be found in the 2020 Annual Report on pages 110 to 118. The overall assessment of the risk situation also included here continues to apply unchanged. Based on the information currently available, there are no evident risks that, either individually or in combination, could pose a risk to the survival of the Blue Cap Group or have any material negative impact on its financial position, cash flows and financial performance.
The current reporting period remains dominated by the Covid-19 pandemic. As a result, and given the current developments, we have provided updated information on significant individual risks below in the interests of transparency.
In its economic forecast released in June 2021, the ifo Institute continues to assume that the global economy will recover over the next few years. The uncertainties directly associated with the Covid-19 pandemic pose the greatest risk. The forecast depends in particular on the further course that the pandemic takes, the progress made with vaccination programmes and the revival of economic activity, together with the implications of this trend.
Risks include the fact that the production and distribution of vaccines to combat Covid-19 will not be fast enough, allowing new and even more infectious variants of the virus to emerge. As a result, there may be a need for further infection control measures that would put a damper on consumer and investment spending. There is also a risk that vaccination uptake in the population will be too low, making herd immunity impossible to achieve.
Further risks relate to the significantly accelerated inflation rate in the reporting year. Particularly in the world's advanced economies, inflation has risen significantly during the course of the year in connection with the increase in energy prices, as well as various primary products, and the price development in container freight traffic. If these effects prove to not only be of a temporary nature, this could lead to higher input costs and subsequently to sustained higher inflation.
In the management report for the 2020 financial year, we referred to the overall increase in default risks on customer receivables as a result of the Covid-19 pandemic. The crisis is leaving a significant mark on profits and debt levels at a large number of companies. Insolvency figures have not increased, partly thanks to public-sector loans, loan guarantees, tax deferrals and the temporary suspension of the obligation to file for insolvency in many countries. As soon as many of these measures are lifted or reduced, there is a risk that the number of corporate insolvencies will increase, which would translate into higher default risks on customer receivables and, as a result, liquidity risks.
Blue Cap's diversified investment portfolio and the independent business models of the portfolio companies, which operate in different markets and regions, limit these default risks. In order to reduce the risk of bad debts, the Group companies have an adequate accounts receivable management system in place, take out commercial credit insurance where it makes sense to do so and regularly report to the holding company on possible default risks that have been identified.
The business activities of the operational divisions within the Group play a key role in defining the Group's opportunity and risk profile. As a result of the Covid-19 crisis, procurement, production and unit sales risks in particular again played more of a role in the course of spring 2021.
In recent months, numerous manufacturing companies have been confronted with rising prices as well as bottlenecks in the procurement of primary products. Freight rates for containers have also risen sharply due to high capacity utilisation levels in maritime transport.
Price fluctuations on the procurement markets can have a negative impact on manufacturing costs, among other things, making them one of the current procurement risks. The lack of availability of primary products also poses an increased production risk and can lead to disruptions in production processes, and even to production downtime, if the supply of primary products is held up. This has the potential to reduce output quantity and increase unit sales risks as a result.
Within the Blue Cap Group, the portfolio companies operating in the Plastics Technology segment in particular were faced with price increases and reduced availability of raw materials. The portfolio companies counter these risks through regular supplier monitoring and close coordination with suppliers and logistics service providers alike, by entering into strategic partnerships with key suppliers and by establishing new sources of supply for primary products.
is the Group's forecast adjusted EBITDA margin for the 2021 financial year.
The further economic recovery in the 2021 financial year will depend to a large extent on the pace of vaccination in the fight against the coronavirus and, as a result, on how new infection figures develop, whether further virus variants emerge and whether there ends up being a need for further infection control measures. In its economic forecast for the 2021 financial year updated in June 2021, the ifo Institute expects the global economy to grow by 6.6% in 2021 (previous year: -3.2%). This means that the forecast has been lifted slightly compared to the estimate that the institute published back in December.
GDP growth is expected to come to 5.4% in the world's advanced economies (previous year: -4.8%) and 8.6% in the emerging markets (previous year: -0.5%). In the United States, economic output is set to increase by 6.5% (previous year: -3.5%), with an increase of 3.1% in Japan (previous year: -4.7%), 4.6% in the euro area (previous year: -6.7%) and 6.5% in the United Kingdom (previous year: -9.8%). The Chinese economy had already surpassed the pre-crisis level in the third quarter of 2020 and economic output there is expected to increase by 9.0% overall in the current financial year (previous year: 2.3%).
Contrary to previous estimates, global inflation is expected to pick up to 2.5% in the reporting year (previous year: 1.6%). This trend is being driven in particular by the marked increase in the price of crude oil, as well as rising prices for, and the increasing shortage of, numerous raw materials.
The German economy will grow by 3.3% in the reporting year after contracting by -5.1% in the previous year. Progress made in vaccinating against Covid-19, for example, picked up considerable pace during the first half of the year. This allowed numerous infection control measures to be lifted, paving the way for a recovery in many sectors of the economy. In the short term, however, bottlenecks and price increases for numerous raw materials and industrial primary products will have a dampening effect. The unemployment rate is expected to dip slightly to 5.8% in the reporting year (previous year: 5.9%).
| Forecast for 2021 (H1 report) |
Forecast for 2021 (annual |
report 2020) Actual 2020 | |
|---|---|---|---|
| Revenue (EUR million) | 265–275 | 255–265 | 233.0 |
| Adjusted EBITDA margin as % of total output, adjusted |
8.0–9.0 | 8.0–9.0 | 7.6 |
| Net debt ratio in years | ≤ 2.75 | ≤ 2.75 | 1.6 |
Based on business developments in the first half of 2021 and the first-time consolidation of HY-LINE, the Management Board expects the Group's revenue for 2021 as a whole to be in the range of EUR 265 million to EUR 275 million (previous year: EUR 233.0 million) with an adjusted EBITDA margin of between 8.0% and 9.0% (previous year: 7.6%). The updated forecast for the existing portfolio is based on the lower end of the revenue range forecast in the 2020 Annual Report and takes into account the inclusion of the acquired HY-LINE Group in the Blue Cap Group on 1 September 2021 in terms of revenue and earnings.
Blue Cap's financial strength plays an important role for both financing banks and investors. As a result, the debt repayment period is an important control parameter for the Group. The Management Board still expects the Blue Cap Group's net debt ratio, based on adjusted EBITDA, not to exceed 2.75 years in the forecast year.
In addition to further developing its existing business areas with a view to increasing their net asset value, Blue Cap is constantly looking into further opportunities to expand and dispose of investments. The target figures shown do not take into account effects from planned further acquisitions or disposals of portfolio companies and real estate assets. In addition, possible company acquisitions and sales can lead to a change in the scope of consolidation of the Blue Cap Group between the balance sheet dates, with a corresponding effect on the control parameters. Based on the growth path that the Group has embarked upon, the Management Board still expects to see positive development in deal flow and acquisition activities, as well as further sales of property assets rented to third parties.
In the Plastics Technology segment, the Management Board expects to see a year-on-year increase in revenue and the adjusted EBITDA margin in 2021 as a whole, in particular due to the first-time consolidation of the Hero Group as of 1 March 2021 and the positive business development overall. Possible negative effects on the Group's plans could result in a further increase in raw materials prices, the uncertain availability of primary products, production interruptions at automotive customers due to the current chip shortage, and more.
Revenue and the adjusted EBITDA margin in the Coating Technology segment will likely be down slightly in a year-on-year comparison based on the current forecast. In particular, the loss of a major customer in the area of industrial applications and reduced advertising budgets for customers had a negative impact on revenue and the adjusted EBITDA margin. Potential revenue from current sales activities and the substitution of merchandise with higher-margin Neschen products are having the opposite effect.
Looking ahead to the rest of the current financial year, the Adhesive Technology segment is planning continued positive revenue development above the level of the previous year. The sustained good delivery capacity and the expansion of sales activities under the expanded management team in particular should contribute to this. The adjusted EBITDA margin should be roughly on par with the previous year in the reporting year. Possible revenue and earnings risks could arise from the further development of raw materials prices and the availability of primary products, as well as from a continued sluggish revenue trend in the area of adhesive application systems.
This year, the Metal Technology segment is expected to record revenue and an adjusted EBITDA margin significantly below the previous year's levels. In particular, the fact that delivery quantities are low due to the pandemic is contributing to this development.
In the Production Technology segment, revenue will be down significantly in a year-on-year comparison this year. The drop in project business at nokra as a result of the pandemic is having a negative impact on segment development. The move by Gämmerler to focus on the profitable service and spare parts business, which was initiated in the first quarter of 2021, coupled with the loss of SMB-David will also result in lower revenue compared to the previous year, with a positive effect on the adjusted EBITDA margin.
Due to the uncertainty arising from the Covid-19 pandemic with regard to further macroeconomic development, as well as possible further negative effects, it is possible that future results could take a very different path to that currently expected by the Management Board. The results reported by the Group and the individual segments are also influenced by other effects that are impossible to plan. These include, among other things, effects on results from the acquisition or restructuring of portfolio companies, as well as the sale and deconsolidation of subsidiaries.
Blue Cap sees the company's positive development to date and its tried-and-tested business model as confirmation of its strategy and is well positioned with its existing organisational structure in both the short and long term. As a result, the company expects to grow and strengthen its operating profitability over the next few financial years.
Munich, 30 August 2021
The Management Board
as of 30 June 2021
| Reference | H1 2021 |
H1 2020 | |
|---|---|---|---|
| Revenue | D.1 | 120,778 | 113,930 |
| Change in inventories | 3,205 | 4,725 | |
| Other services provided by the company and capitalised | 52 | 5 | |
| Other income | D.2 | 3,854 | 22,640 |
| Total output | 127,888 | 141,300 | |
| Cost of materials | D.3 | –64,324 | –64,203 |
| Personnel expenses | D.4 | –33,455 | –32,555 |
| Other expenses | D.5 | –19,548 | –19,872 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 10,561 | 24,670 | |
| Depreciation and amortisation | D.6 | –8,697 | –6,533 |
| Impairment losses and reversals | D.6 | –201 | 0 |
| Share of profit/loss in associates | 1,102 | 551 | |
| Earnings before interest and taxes (EBIT) | 2,765 | 18,689 | |
| Impairment losses and reversals of impairment losses pursuant to IFRS 9 | 34 | –817 | |
| Financing income | 198 | 14 | |
| Financing expenses | –1,191 | –1,300 | |
| Earnings before taxes (EBT) | 1,805 | 16,586 | |
| Income tax expense | –158 | –986 | |
| Consolidated net income | 1,647 | 15,600 | |
| of which attributable to | |||
| Owners of the parent company | 1,453 | 15,647 | |
| Non-controlling interests | 194 | –47 | |
| Earnings per share in EUR (basic) | D.7 | 0.36 | 3.92 |
| Earnings per share in EUR (diluted) | D.7 | 0.36 | 3.92 |
| Reference | H1 2021 |
H1 2020 | |
|---|---|---|---|
| Consolidated net income | 1,647 | 15,600 | |
| Remeasurements of defined benefit plans, before tax | –14 | 0 | |
| Remeasurement of financial assets measured under other comprehensive income and gains (losses) from the disposal of these, before tax |
0 | 15 | |
| Items that are not subsequently reclassified to profit or loss | –14 | 15 | |
| Currency translation differences, before tax | 122 | 18 | |
| Items that are subsequently reclassified to profit or loss subject to certain conditions |
122 | 18 | |
| Other comprehensive income before tax | 107 | 33 | |
| Income taxes related to remeasurements of defined benefit plans | 5 | 0 | |
| Income taxes related to the remeasurement of financial assets through profit or loss |
0 | 0 | |
| Total income taxes on other comprehensive income that are not reclassified to income or expense |
5 | 0 | |
| Other comprehensive income | 112 | 33 | |
| Total comprehensive income | 1,759 | 15,633 | |
| of which attributable to | |||
| Owners of the parent company | 1,565 | 15,680 | |
| Non-controlling interests | 194 | –47 |
| 30 June | |||
|---|---|---|---|
| Reference | 2021 | 31 Dec. 2020 | |
| ASSETS | |||
| Intangible assets | E.1 | 12,864 | 2,321 |
| Property, plant and equipment | E.2 | 87,945 | 82,118 |
| Investment property | E.3 | 1,566 | 1,988 |
| Financial investments accounted for using the equity method | E.4 | 4,859 | 3,757 |
| Participating interests | 134 | 176 | |
| Other financial assets | E.5 | 3,803 | 250 |
| Other non-financial assets | E.6 | 1,166 | 1,372 |
| Deferred tax assets | 4,024 | 4,130 | |
| Non-current assets | 116,361 | 96,112 | |
| Inventories | E.7 | 35,530 | 27,499 |
| Current contract assets | E.8 | 7,132 | 2,617 |
| Trade receivables | 21,558 | 16,622 | |
| Other financial assets | E.9 | 3,547 | 6,569 |
| Income tax receivables | 2,043 | 3,187 | |
| Other non-financial assets | E.10 | 3,197 | 1,949 |
| Cash and cash equivalents | 28,674 | 36,251 | |
| Assets held for sale | E.11 | 5,171 | 7,697 |
| Current assets | 106,854 | 102,390 | |
| Total assets | 223,215 | 198,502 |
| 30 June | |||
|---|---|---|---|
| Reference | 2021 | 31 Dec. 2020 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Subscribed capital | E.12 | 3,997 | 3,997 |
| Capital reserve | 5,266 | 5,266 | |
| Other equity components | –1,007 | –1,119 | |
| Retained earnings | 69,590 | 72,044 | |
| Equity attributable to the owners of the parent company | 77,845 | 80,187 | |
| Non-controlling interests | 4,635 | 114 | |
| Total shareholders' equity | 82,481 | 80,301 | |
| Provisions for pensions and similar commitments | 9,449 | 9,018 | |
| Other provisions | E.13 | 1,717 | 748 |
| Deferred tax liabilities | 10,902 | 7,425 | |
| Non-current financial liabilities | 63,196 | 55,561 | |
| Total non-current liabilities | 85,263 | 72,752 | |
| Other provisions | E.13 | 4,623 | 4,043 |
| Income tax liabilities | 2,715 | 3,019 | |
| Current contract liabilities | 630 | 604 | |
| Trade payables | 13,620 | 9,153 | |
| Other current financial liabilities | 25,639 | 22,469 | |
| Other current non-financial liabilities | 8,244 | 6,160 | |
| Total current liabilities | 55,471 | 45,449 | |
| Total equity and liabilities | 223,215 | 198,502 |
| Equity attributable to shareholders of the parent company | ||||
|---|---|---|---|---|
| Other equity components | ||||
| Subscribed capital | Capital reserve | Reserve for remeasure ments of defined benefit plans |
Currency translation reserve |
|
| As of 1 Jan. 2020 | 3,980 | 5,082 | 38 | 29 |
| Capital increase/reduction | 17 | 183 | 0 | 0 |
| Dividend payments | 0 | 0 | 0 | 0 |
| Total before total comprehensive income for the period |
3,997 | 5,266 | 38 | 29 |
| Consolidated income | 0 | 0 | 0 | 0 |
| Other comprehensive income after tax | 0 | 0 | –124 | –190 |
| As of 31 Dec. 2020 | 3,997 | 5,266 | –86 | –162 |
| As of 1 Jan. 2021 | 3,997 | 5,266 | –86 | –162 |
| Acquisition of shares of minority shareholders | 0 | 0 | 0 | 0 |
| Dividend payments | 0 | 0 | 0 | 0 |
| Change in scope of consolidation | 0 | 0 | 0 | 0 |
| Total before total comprehensive income for the period |
3,997 | 5,266 | –86 | –162 |
| Consolidated income | 0 | 0 | 0 | 0 |
| Other comprehensive income after tax | 0 | 0 | –10 | 122 |
| As of 30 Jun. 2021 | 3,997 | 5,266 | –96 | –40 |
| Total | Non-controlling interests |
Total majority share holders |
Retained earnings | Reserve from accounting using the equity method |
Reserve for changes in the fair value of financial assets |
|---|---|---|---|---|---|
| 66,986 | 180 | 66,806 | 58,456 | 0 | –779 |
| 218 | 18 | 200 | 0 | 0 | 0 |
| –2,988 | –3 | –2,985 | –2,985 | 0 | 0 |
| 64,216 | 195 | 64,021 | 55,471 | 0 | –779 |
| 16,492 | –81 | 16,573 | 16,573 | 0 | 0 |
| –407 | 0 | –407 | 0 | 0 | –93 |
| 80,301 | 114 | 80,187 | 72,044 | 0 | –872 |
| 80,301 | 114 | 80,187 | 72,044 | 0 | –872 |
| –90 | 90 | 90 | 0 | 0 | |
| –3,998 | –2 | –3,997 | –3,997 | 0 | 0 |
| 4,418 | 4,418 | 0 | 0 | 0 | 0 |
| 80,721 | 4,441 | 76,280 | 68,137 | 0 | –872 |
| 1,647 | 194 | 1,453 | 1,453 | 0 | 0 |
| 112 | 0 | 112 | 0 | 0 | 0 |
| 82,481 | 4,635 | 77,845 | 69,590 | 0 | –872 |
| H1 2021 |
H1 2020 | |
|---|---|---|
| Consolidated income | 1,647 | 15,600 |
| Increase (–)/decrease (+) in inventories | –5,999 | –10,180 |
| Increase (–)/decrease (+) in trade receivables | –963 | 3,266 |
| Increase (–)/decrease (+) in contract assets | 53 | –259 |
| Increase (–)/decrease (+) in other receivables and assets | –795 | 3,012 |
| Increase (+)/decrease (–) in provisions | 103 | 2,239 |
| Increase (+)/decrease (–) in trade payables | 2,749 | 1,064 |
| Increase (+)/decrease (–) in contract liabilities | 25 | –24 |
| Increase (+)/decrease (–) in other liabilities | 1,075 | 6,459 |
| Depreciation, amortisation and impairment losses on intangible assets and property, plant and equipment |
8,898 | 6,533 |
| Profit (–)/loss (+) from the disposal of intangible assets and property, plant and equipment | –723 | 5 |
| Profit (–) from company acquisitions (bargain purchase) | –235 | 0 |
| Profit (–) from deconsolidation measures | 0 | –21,823 |
| Other non-cash expenses (+)/income (–) | –1,311 | –393 |
| Contribution to earnings from currency effects | 94 | 14 |
| Interest expenses (+)/interest income (–) | 1,077 | 1,288 |
| Income tax expense (+)/income tax income (–) | 158 | 986 |
| Income taxes paid (–)/income tax refunds (+) | –1,203 | –1,125 |
| Cash flow from operating activities | 4,651 | 6,663 |
| H1 2021 |
H1 2020 | |
|---|---|---|
| Proceeds (+) from disposals of property, plant and equipment | 118 | 0 |
| Payments (–) for investments in property, plant and equipment | –2,589 | –5,102 |
| Payments (–) for investments in intangible assets | –27 | –60 |
| Proceeds (+) from disposals of assets held for sale | 10,842 | 0 |
| Payments (–) from additions to assets held for sale | 0 | –2,551 |
| Payments (–) for additions to the scope of consolidation | –5,193 | 0 |
| Proceeds (+) from disposals from the scope of consolidation | 0 | 22,464 |
| Proceeds (+) from disposals of investments accounted for using the equity method | 1 | 42 |
| Proceeds (+) from disposals of participating interests | 42 | 0 |
| Interest received (+) | 6 | 11 |
| Cash flow from investing activities | 3,199 | 14,804 |
| Proceeds (+) from equity contributions from non-controlling interests Proceeds (+) from equity contributions from shareholders of Blue Cap AG |
0 0 |
18 200 |
| Dividends paid (–) to shareholders of the parent company | –3,997 | 0 |
| Proceeds (+) from (financial) loans taken out | 6,750 | 6,480 |
| Payments (–) for the repayment of (financial) loans | –8,982 | –5,040 |
| Payments (–) for the repayment of lease liabilities | –2,240 | –1,418 |
| Payments (–) for collateral to credit institutions | –3,200 | 0 |
| Interest paid (–) | –821 | –1,676 |
| Dividends paid (–) to other shareholders | –2 | –2 |
| Cash flow from financing activities | –12,491 | –1,437 |
| Cash-effective change in cash funds | –4,640 | 20,029 |
| Changes in cash funds due to exchange rate fluctuations | –26 | –1 |
| Cash funds at the beginning of the period | 26,542 | 9,002 |
| Cash funds at the end of the period | 21,876 | 29,031 |
as of 30 June 2021
Blue Cap AG is registered in the commercial register of the Local Court (Amtsgericht) of Munich, Germany, under the number HR B 162 137. The company's address is Ludwigstrasse 11, 80539 Munich.
Blue Cap AG (hereinafter referred to as "Blue Cap" for short, ISIN: DE000A0JM2M1, listed in the "Scale" segment of the Frankfurt Stock Exchange and the "m:access" segment of the Munich Stock Exchange) is a listed investment holding company established in 2006 that has its registered office in Munich. Blue Cap invests in manufacturing companies in the SME segment offering clear potential for improvement and growth. Blue Cap focuses on target companies with revenue of between EUR 30 million and EUR 80 million and stable core business. Its potential investment targets also include companies with unresolved succession arrangements and group spin-offs. The focus of our target companies' activities tends to be in Germany, Austria and Switzerland. Blue Cap makes a long-term commitment to its portfolio companies, contributing its own operational expertise and liquidity. The management has long-standing M&A, industrial and restructuring experience. All Blue Cap subsidiaries are managed independently and pursue independent strategies. The Blue Cap portfolio currently includes companies from the fields of plastics technology, coating and adhesive technology, metal technology and production technology. It also included a company in the field of medical technology until April 2020.
The business activities of the Blue Cap AG Group and its subsidiaries (hereinafter also referred to as the "Blue Cap Group" or "Blue Cap") are presented in detail in the segment reporting section.
These unaudited interim consolidated financial statements, prepared as of the reporting date of 30 June 2021, are to be read in conjunction with the consolidated financial statements for 2020. The disclosures contained in the consolidated financial statements for 2020 also apply to these interim consolidated financial statements, unless changes are explicitly addressed in these interim consolidated financial statements.
All mandatory pronouncements issued by the International Accounting Standards Board (IASB) which have been adopted by the EU as part of the endorsement process were taken into account when preparing these interim consolidated financial statements.
The effects of the amendments/new provisions not yet adopted into EU law on the Blue Cap Group are currently still being examined. No significant impact is expected at present.
The scope of consolidation of the Blue Cap Group is derived from the application of IFRS 10 (Consolidated Financial Statements) and IFRS 11 (Joint Arrangements).
In addition to the parent company, the scope of consolidation as of 30 June 2021 comprises 32 (31 December 2020: 29) companies that are fully consolidated. Of these companies, 20 (31 December 2020: 17) are based in Germany and 12 (31 December 2020: 12) have their registered offices in other countries.
As of 30 June 2021, seven subsidiaries (31 December 2020: six) were not included in the interim consolidated financial statements because they are of minor importance for the presentation of a true and fair view of the Group's financial position, cash flows and financial performance. The total revenue of these companies corresponds to less than one per cent of the Group's revenue.
The Hero Group (as subsidiaries of the holding company Blue Cap 11 GmbH) was included in the consolidated financial statements of Blue Cap AG for the first time as of 1 March 2021. As a result, comparison with the previous year's income statement is only possible to a limited extent. The key figures from the income statement of the Hero Group, which is part of the Plastics Technology segment, were as follows in the first half of 2021:
EUR thousand
| H1 2021 |
|
|---|---|
| Revenue | 13,591 |
| Total output | 13,889 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 2,864 |
| Earnings before interest and taxes (EBIT) | 605 |
Blue Cap 11 GmbH acquired 71% of the shares in Hero GmbH as part of a share deal under a purchase agreement dated 29 January 2021.
The full consolidation of the acquired shares requires a purchase price allocation (PPA) in accordance with IFRS 3. The PPA is used to reflect the assets and liabilities of Hero GmbH and its subsidiaries. The acquisition was completed successfully when the transaction was closed on 26 February 2021. For materiality reasons, Hero GmbH and its subsidiaries, Engel Formenbauund Spritzguss GmbH and H+E Automotive GmbH, were fully consolidated for the first time as of 28 February 2021. This means that the acquisition date and measurement date for the PPA is 28 February 2021.
The Hero Group develops and manufactures high-quality plastic parts and assemblies for vehicle interiors and the household appliance industry in four locations in Baden-Württemberg. The Hero Group is allocated to the Plastics Technology segment as of its inclusion in the Group.
The consideration for the acquisition amounted to EUR 10,629 thousand, paid in cash. Incidental costs of EUR 302 thousand were incurred in connection with the acquisition.
The amounts of the identifiable assets and liabilities acquired are as follows based on a preliminary assessment conducted at the time of acquisition. Deferred tax assets and liabilities have not been netted (since the purchase price allocation is still provisional, the values shown remain subject to change):
| EUR thousand | Fair value |
|---|---|
| Intangible assets | 11,749 |
| Property, plant and equipment | 12,531 |
| Other financial assets | 198 |
| Deferred tax assets | 6 |
| Other non-financial assets | 11 |
| Non-current assets | 24,496 |
| Inventories | 2,012 |
| Contract assets | 4,569 |
| Actual tax refund claims | 45 |
| Trade receivables | 3,974 |
| Other non-financial assets | 383 |
| Cash | 6,305 |
| Current assets | 17,287 |
| Provisions for employee benefits | 241 |
| Other provisions | 1,372 |
| Deferred tax liabilities | 4,379 |
| Other financial liabilities | 8,687 |
| Non-current liabilities | 14,678 |
| Other provisions | 265 |
| Actual tax liabilities | 2,080 |
| Trade payables | 1,718 |
| Other financial liabilities | 6,506 |
| Other non-financial liabilities | 1,282 |
| Current liabilities | 11,851 |
| Net assets | 15,254 |
| EUR thousand | |
|---|---|
| Consideration in cash | 10,629 |
| Non-controlling interests | 4,424 |
| Subtotal | 15,052 |
| Bargain purchase | –202 |
con-pearl GmbH, a portfolio company of Blue Cap AG, acquired all material assets and employees of Recyplast GmbH from the insolvency estate of Fischer GmbH for an amount running into the low single-digit millions under an agreement dated 7 April 2021. Recyplast, based in Hillscheid, Rhineland-Palatinate, specialises in the production of regranulate from various plastics. A bargain purchase of EUR 24 thousand was achieved as part of the acquisition.
Due to the acquisition's minor significance for the Group as a whole, no further information is provided.
Neschen Coating GmbH has taken over the remaining 40% of the shares in Filmolux Scandinavia AB from the latter's previous co-shareholder effective 31 March 2021. This means that Neschen Coating GmbH holds 100% of the shares in Filmolux Scandinavia AB as of this date.
Due to the acquisition's minor significance for the Group as a whole, no further information is provided.
No further company acquisitions were made in the first half of 2021.
No subsidiaries were sold in the first half of 2021.
For information on changes in the scope of consolidation in the first half of 2020, please refer to the notes to the consolidated financial statements that form part of the consolidated financial statements as of 31 December 2020.
The accounting policies applied in the past business year generally continued to apply unchanged to these interim consolidated financial statements.
In general, the main assumptions, estimates and judgements used in the preparation of the interim consolidated financial statements match those used in the consolidated financial statements as of 31 December 2020.
The Blue Cap Group's revenue consists primarily of revenue from contracts with customers. These primarily consist of sales of goods, services rendered and revenue from contract manufacturing. The Blue Cap Group also generates a small amount of other revenue (primarily from the rental of real estate).
In accordance with IFRS 15, revenue is recognised at a point in time or over time and comprises the following for the reporting year and the comparative period:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Revenue recognised over time | 48,854 | 49,561 |
| Revenue recognised at a point in time | 71,923 | 64,369 |
| Revenue | 120,778 | 113,930 |
The geographical revenue breakdown is based on the customer's registered office as follows:
EUR thousand
| H1 2021 |
% | H1 2020 |
% | |
|---|---|---|---|---|
| Germany | 64,720 | 53.6 | 65,626 | 57.6 |
| Rest of Europe | 39,112 | 32.4 | 32,369 | 28.4 |
| Third countries | 16,945 | 14.0 | 15,935 | 14.0 |
| Revenue | 120,778 | 113,930 |
Other income includes the following:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Profit from deconsolidation | 0 | 20,808 |
| Bargain purchase income | 226 | 0 |
| Foreign currency translation | 17 | 24 |
| Income relating to previous periods | 164 | 283 |
| Income from the disposal of fixed assets | 1,936 | 80 |
| Income from the reversal of provisions | 627 | 759 |
| Miscellaneous other income | 884 | 685 |
| Other income | 3,854 | 22,640 |
The bargain purchase income results from the acquisition of the Hero Group, as well as from the acquisition of the assets of Recyplast GmbH.
The income from the disposal of fixed assets mainly results from the sale of production and administrative properties in Hofolding that are not required for operations and are rented out to third parties.
The cost of materials includes the direct costs incurred in connection with the generation of revenue and comprises the following:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Cost of raw materials, consumables and supplies, and purchased merchandise |
–62,998 | –63,596 |
| Cost of purchased services | –1,326 | –606 |
| Cost of materials | –64,324 | –64,203 |
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Wages and salaries | –27,772 | –26,963 |
| Social security costs and expenses for pension plans | –5,683 | –5,593 |
| Personnel expenses | –33,455 | –32,555 |
The amount of wages, salaries, social security costs and expenses for pension plans increased due to the first-time inclusion of the Hero Group. The fact that the subsidiaries SMB-David finishing lines GmbH i.l. and em-tec GmbH are no longer included, unlike in the comparative period, had the opposite effect.
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Outgoing freight, commission and distribution costs | –3,840 | –3,106 |
| Advertising costs | –305 | –667 |
| Vehicle and travel expenses | –651 | –839 |
| Legal and consultancy costs | –1,920 | –1,914 |
| Training and temporary employment costs | –301 | –307 |
| Rent, leasing and storage costs | –700 | –551 |
| Operating costs and maintenance costs for operating resources | –7,069 | –7,138 |
| Contributions, fees and insurance costs | –1,296 | –1,295 |
| Losses from the disposal of assets | –1,307 | –100 |
| Extraordinary and prior-period expenses | –720 | –2,411 |
| Miscellaneous other expenses | –1,440 | –1,544 |
| Other expenses | –19,548 | –19,872 |
Miscellaneous other expenses mainly relate to expenses for IT, communications, office supplies and other taxes.
Depreciation and amortisation mainly relates to intangible assets, property, plant and equipment and right-of-use assets under leases.
In the first half of 2021, impairment losses were recognised primarily on a property held for sale and on property, plant and equipment that is not currently in use. In the comparative period, no impairment losses were recognised on intangible assets or on property, plant and equipment.
No reversals of impairment losses were recognised in the reporting period or in the same period of the previous year.
Earnings per share are as follows:
| H1 2021 |
H1 2020 | ||
|---|---|---|---|
| Consolidated net income after tax attributable to the owners of the parent company |
EUR thousand |
1,453 | 15,647 |
| Weighted average number of shares to calculate earnings per share |
|||
| Basic | No. | 3,992,766 | 3,988,862 |
| Diluted | No. | 3,992,766 | 3,988,862 |
| Earnings per share | |||
| Basic | EUR | 0.36 | 3.92 |
| Diluted | EUR | 0.36 | 3.92 |
| EUR thousand | Internally generated intangible assets |
Purchased concessions, industrial property rights and similar rights and assets |
Rights to use intangible assets |
Total |
|---|---|---|---|---|
| Cost | ||||
| As of 1 Jan. 2021 | 1,306 | 11,632 | 297 | 13,235 |
| Changes in the consolidated group | 758 | 12,162 | 0 | 12,920 |
| Reclassification | 0 | 0 | 0 | 0 |
| Additions | 0 | 27 | 4 | 32 |
| Disposals | 0 | –11 | 0 | –11 |
| Exchange rate effects | 0 | 0 | 0 | 0 |
| As of 30 June 2021 | 2,064 | 23,810 | 302 | 26,175 |
| Accumulated amortisation and impairment losses As of 1 Jan. 2021 |
–1,082 | –9,681 | –151 | –10,914 |
| Changes in the consolidated group | 0 | –1,151 | 0 | –1,151 |
| Reclassification | 0 | 0 | 0 | 0 |
| Disposals | 0 | 11 | 0 | 11 |
| Amortisation | –49 | –1,172 | –35 | –1,257 |
| Impairment losses/reversal of impairment losses |
0 | 0 | 0 | 0 |
| Exchange rate effects | 0 | 0 | 0 | 0 |
| As of 30 June 2021 | –1,131 | –11,994 | –187 | –13,311 |
| Carrying amounts | ||||
| 31 Dec. 2020 | 224 | 1,951 | 146 | 2,321 |
| 30 June 2021 | 933 | 11,816 | 115 | 12,864 |
The additions resulting from changes in the consolidated group are attributable to the first-time consolidation of the Hero Group and particularly relate to an acquired patent, an order backlog existing on the acquisition date and the acquired customer base of the Hero Group.
Amortisation in the amount of EUR 1,257 thousand (H1 2020: EUR 541 thousand) is shown in the consolidated income statement under the item "Amortisation". Impairment losses on intangible assets in the amount of EUR 0 thousand (H1 2020: EUR 0 thousand) were recognised in the current financial year. No reversals of impairment losses were recognised in the periods presented.
The rights to use intangible assets relate primarily to the software required for the operations of the Group companies.
| EUR thousand | Land and buildings |
Technical equipment and machinery |
Operating and office equipment |
Prepay ments and assets under construction |
Rights of use for land and buildings |
Rights of use for technical equipment and machinery |
Rights of use for operating and office equipment |
Total |
|---|---|---|---|---|---|---|---|---|
| Cost | ||||||||
| As of 1 Jan. 2021 | 70,787 | 125,824 | 29,593 | 0 | 10,477 | 1,275 | 5,099 | 243,055 |
| Changes in the consolidated group | 1,782 | 10,582 | 3,593 | 0 | 4,741 | 7,002 | 273 | 27,973 |
| Reclassification | –6,329 | 41 | –14 | 0 | 0 | 0 | 0 | –6,302 |
| Additions | 116 | 1,932 | 346 | 0 | 1,038 | 1,458 | 154 | 5,043 |
| Disposals | 193 | 230 | –90 | 0 | –288 | 0 | –1,000 | –955 |
| Exchange rate effects | 3 | 56 | 8 | 0 | 51 | 0 | 1 | 119 |
| As of 30 June 2021 | 66,552 | 138,665 | 33,435 | 0 | 16,019 | 9,736 | 4,526 | 268,933 |
| Accumulated depreciation and impairment losses As of 1 Jan. 2021 |
–34,670 | –95,972 | –24,799 | 0 | –2,768 | –366 | –2,363 | –160,937 |
| Changes in the consolidated group | –519 | –7,093 | –2,547 | 0 | –1,417 | –2,882 | –132 | –14,591 |
| Reclassification | 1,263 | 0 | 8 | 0 | 0 | 0 | 0 | 1,272 |
| Disposals | 7 | –422 | 76 | 0 | 288 | 0 | 1,000 | 950 |
| Depreciation | –714 | –3,300 | –779 | 0 | –1,133 | –809 | –693 | –7,429 |
| Impairment losses/reversal of impairment losses |
0 | –157 | 0 | 0 | –31 | 0 | 0 | –188 |
| Exchange rate effects | –3 | –45 | –6 | 0 | –11 | 0 | 0 | –65 |
| As of 30 June 2021 | –34,637 | –106,989 | –28,046 | 0 | –5,072 | –4,057 | –2,187 | –180,988 |
| Carrying amounts | ||||||||
| 31 Dec. 2020 | 36,117 | 29,852 | 4,794 | 0 | 7,710 | 909 | 2,736 | 82,118 |
| 30 June 2021 | 31,915 | 31,677 | 5,389 | 0 | 10,947 | 5,679 | 2,339 | 87,945 |
The additions to property, plant and equipment due to the change in the consolidated group result from the first-time consolidation of the Hero Group companies and the assets acquired by conpearl GmbH from the insolvency of Recyplast GmbH.
Depreciation of property, plant and equipment and rights of use for property, plant and equipment amounting to EUR 7,429 thousand (H1 2020: EUR 5,902 thousand) are shown in the consolidated income statement under the item "Depreciation". Impairment losses on unused property, plant and equipment and rights of use totalling EUR 188 thousand (H1 2020: EUR 0 thousand) were recognised. No reversals of impairment losses were recognised, as in the comparative period.
A property in Geretsried-Gelting previously included in property, plant and equipment was reclassified as held for sale in accordance with IFRS 5 due to a specific intention to sell it on the reporting date.
| EUR thousand | Investment property |
|---|---|
| Cost | |
| As of 1 Jan. 2021 | 2,122 |
| Changes in the consolidated group | 0 |
| Reclassification | –496 |
| Additions | 0 |
| Disposals | 0 |
| Exchange rate effects | 0 |
| As of 30 June 2021 | 1,625 |
| As of 1 Jan. 2021 | –134 |
|---|---|
| Changes in the consolidated group | 0 |
| Reclassification | 86 |
| Disposals | 0 |
| Depreciation | –11 |
| Impairment losses/reversal of impairment losses | 0 |
| Exchange rate effects | 0 |
| As of 30 June 2021 | –59 |
| 31 Dec. 2020 | 1,988 |
|---|---|
| 30 June 2021 | 1,566 |
As of the reporting date, there is one investment property in Pforzheim and one undeveloped property in Finning that is held as an investment property.
Investment property includes land, buildings and parts of buildings with a fair value of EUR 2,265 thousand (31 December 2020: EUR 3,149 thousand) on the reporting date. The fair value was calculated based on external valuation reports and internal calculations (Level 3). The calculation assumes that the current use of the building represents the highest-value and best use.
For information on security rights over real property, please refer to the notes on other financial commitments in the notes to the consolidated financial statements in the consolidated financial statements as of 31 December 2020.
Investment property generated rental income of EUR 0 thousand (H1 2020: EUR 332 thousand) in the reporting period. Expenses of EUR 31 thousand (H1 2020: EUR 75 thousand) were incurred in the current year for the maintenance of the investment property used.
As of 30 June 2021, one associate (31 December 2020: two) over which the Blue Cap Group can exert significant influence, but not control, through involvement in its financial and corporate policies, is included in the consolidated financial statements using the equity method.
The stake in GämmerlerTech Corporation (Palmetto/USA) was sold in the first half of 2021 to the co-shareholder who had held the remaining shares in this company up until that time. This disposal is part of the strategic realignment of the Production Technology segment within the Blue Cap Group.
| Shareholding in % | |||
|---|---|---|---|
| Company name | Registered office | 30 June 2021 |
31 Dec. 2020 |
| GammerlerTech Corporation | Palmetto/USA | 0.0 | 49.0 |
| INHECO Industrial Heating and Cooling GmbH |
Planegg | 42.0 | 42.0 |
As the individual associates are not material for the Blue Cap Group in their own right, no detailed financial information has been provided.
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Profit | 1,102 | 551 |
| Other comprehensive income | 0 | –5 |
| Total comprehensive income | 1,102 | 546 |
The positive development in profit and total comprehensive income in a year-on-year comparison is due to the increased demand for the products of INHECO Industrial Heating and Cooling GmbH in connection with the Covid-19 pandemic.
The profit stated in the comparative period also includes the expense from the sale of Gämmerler Ltd. in the amount of EUR 110 thousand.
In the context of the sale of the company property in Finning, which had been rented out to third parties up until it was sold, EUR 3,200 thousand was furnished as collateral for a financing loan. EUR 3,000 thousand of this is included in other non-current financial assets.
Other non-current financial assets also mainly relate to deposits paid for properties rented in Germany and abroad (office, warehouse and production properties).
As of the reporting date, this item mainly consists of prepayments made on various items of property, plant and equipment and, to a lesser extent, prepayments made on intangible assets.
| EUR thousand | 30 June 2021 31 Dec. 2020 |
||
|---|---|---|---|
| Raw materials, consumables and supplies | 14,129 | 9,864 | |
| Unfinished goods, services in progress | 6,656 | 5,342 | |
| Finished goods and merchandise | 14,745 | 12,292 | |
| Inventories | 35,530 | 27,499 |
The impairment losses recognised on inventories in the current financial year amount to EUR 3,572 thousand (31 December 2020: EUR 3,541 thousand). The impairment takes marketability, age and all apparent storage and inventory risks into account.
The increase in inventories of raw materials, consumables and supplies, unfinished goods, services in progress and finished goods and merchandise in the reporting period is due primarily to the first-time inclusion of the Hero Group in the Blue Cap Group and, in part, to increased inventory levels at some Group subsidiaries.
The increase in current contract assets is due primarily to the first-time inclusion of the Hero Group in the Blue Cap Group.
The other current financial assets include EUR 0 thousand (31 December 2020: EUR 602 thousand) in receivables from associates and EUR 409 thousand (31 December 2020: EUR 372 thousand) in receivables from companies in which the Group does not hold any significant participating interest. They also include security retained for factoring services, an amount deposited in an escrow account in connection with the sale of em-tec GmbH in the amount of EUR 1,500 thousand, as well as current collateral in the amount of EUR 200 thousand for a financing loan.
| EUR thousand | 30 June 2021 |
31 Dec. 2020 |
|---|---|---|
| Prepayments on inventories | 685 | 259 |
| VAT receivables | 606 | 435 |
| Receivables from social benefits, levies and other statutory claims | 102 | 68 |
| Other receivables from employees (advances) | 57 | 26 |
| Miscellaneous other non-financial assets | 1,748 | 1,162 |
| Other non-financial assets | 3,197 | 1,949 |
Two properties held for sale in Finning and Hofolding, which are rented out to third parties, were sold in the first half of 2021. The positive effect on earnings achieved amounts to a total of around EUR 1,000 thousand.
A production and administrative property (part of the Other segment) in Geretsried-Gelting, which is rented out partly within the Group and partly to third parties, is to be sold and was therefore reclassified as held for sale in accordance with IFRS 5 as of the reporting date. Further longterm rental is not consistent with the Blue Cap Group's strategic orientation. The plan is to carry out the disposal process in the second half of 2021.
In addition to the already existing Authorised Capital (see also Annual Report 2020), the Annual General Meeting of 25 June 2021 passed a resolution cancelling the Authorised Capital 2016/I, creating new authorised capital and amending Article 4 (Authorised Capital) of the Articles of Association.
By way of a resolution passed by the Annual General Meeting on 25 June 2021, the Management Board is authorised, with the consent of the Supervisory Board, to increase the company's share capital by a total of up to EUR 500 thousand on one or more occasions in the period leading up to 31 May 2026 in return for cash contributions and/or contributions in kind, with the option of excluding shareholders' subscription rights (Authorised Capital 2021/I).
Other provisions changed as follows:
| EUR thousand | Other person nel-related provisions |
Onerous contracts |
Miscellaneous other provisions |
Total |
|---|---|---|---|---|
| As of 1 Jan. 2021 | 167 | 1,374 | 3,250 | 4,791 |
| of which current | 0 | 1,374 | 2,669 | 4,043 |
| of which non-current | 167 | 0 | 581 | 748 |
| Exchange rate effects | 0 | 0 | 0 | 0 |
| Changes in the consolidated group | 0 | 0 | 1,793 | 1,793 |
| Additions | 7 | 378 | 2,714 | 3,099 |
| Utilisation | –27 | –473 | –2,446 | –2,945 |
| Compounding | 0 | 0 | 0 | 0 |
| Reversal | 0 | –279 | –120 | –399 |
| As of 30 June 2021 | 148 | 1,001 | 5,191 | 6,340 |
| of which current | 0 | 1,001 | 3,622 | 4,623 |
| of which non-current | 148 | 0 | 1,569 | 1,717 |
In addition to provisions for warranty claims and provisions for retention obligations, miscellaneous other provisions in the reporting period and in the comparative period consist primarily of provisions for outstanding invoices, restructuring, customer bonuses and third-party sales premiums.
The information provided to the Management Board of the Blue Cap Group (the "chief operating decision maker") for the purposes of resource allocation and the assessment of segment performance focuses on the industrial sectors of the individual equity investments. The presentation of segment reporting is consistent with the management approach, and is based on the internal organisational and reporting structures.
The individual segments represent different industries with different products and services and are managed separately. The legal entities can all be clearly assigned to a segment.
The companies belonging to the con-pearl Group, the newly added Hero Group and the Knauer-Uniplast Group are allocated to the Plastics Technology segment. Neschen GmbH and its sales subsidiaries make up the Coating Technology segment. The Adhesive Technology segment comprises the companies in the Planatol Group. Carl Schaefer Gold- und Silberscheideanstalt GmbH is included in the Metal Technology segment and the companies nokra Optische Prüftechnik und Automation GmbH and Gämmerler GmbH make up the Production Technology segment. Blue Cap AG and other holding and shelf companies are allocated to the Other segment. em-tec GmbH was allocated to the Other segment in the reporting period up until the time at which the company was deconsolidated. Further information on the segments and the associated companies can be found in the combined interim group management report.
As a result, the Group's reportable segments in accordance with IFRS 8 are as follows for the reporting and comparative periods:
| H1 2021 | Plastics Technol |
Coating Technol |
Adhesive Technol |
Metal Technol |
Production Technol |
"Other" | Total segments |
Consolida | Group |
|---|---|---|---|---|---|---|---|---|---|
| EUR thousand | ogy | ogy | ogy | ogy | ogy | segment | tion | ||
| Revenue with external third parties |
64,067 | 25,406 | 17,469 | 11,819 | 1,782 | 236 | 120,778 | 0 | 120,778 |
| Revenue with Group companies |
0 | 0 | 2 | 3 | 29 | 2,490 | 2,525 | –2,525 | 0 |
| Total revenue | 64,067 | 25,406 | 17,471 | 11,822 | 1,811 | 2,726 | 123,303 | –2,525 | 120,778 |
| Total output | 66,527 | 26,983 | 18,166 | 11,853 | 2,159 | 4,554 | 130,242 | –2,355 | 127,888 |
| EBITDA | 7,369 | 1,802 | 1,784 | 295 | –1,350 | 480 | 10,380 | 181 | 10,561 |
| Depreciation, amortisation and impairment |
–6,627 | –1,219 | –688 | –47 | –136 | –388 | –9,105 | 208 | –8,898 |
| of which impairment losses/reversals |
–157 | 0 | –31 | 0 | 0 | –13 | –201 | 0 | –201 |
| Result from valuation based on the equity method |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,102 | 1,102 |
| EBIT | 742 | 583 | 1,096 | 248 | –1,486 | 92 | 1,275 | 1,490 | 2,765 |
| Adjusted total output | 65,908 | 26,763 | 18,027 | 11,845 | 1,912 | 2,746 | 127,200 | –2,571 | 124,629 |
| Adjusted EBITDA | 7,229 | 1,888 | 1,836 | 293 | –1,057 | 312 | 10,501 | –36 | 10,465 |
| Adjusted EBITDA margin | 11.0% | 7.1% | 10.2% | 2.5% | –55.3% | 11.4% | 8.3% | 1.4% | 8.4% |
| Net debt ratio* (in years) | 1.3 | 1.5 | 0.5 | 0.6 | 18.2 | 1.7 | 1.7 | ||
| Investments/divest ments** |
–4,994 | –370 | –47 | 0 | 2,350 | 6,254 | 3,193 | 0 | 3,193 |
| of which company acquisitions/disposals |
–5,193 | 0 | 0 | 0 | 0 | 0 | –5,193 | 0 | –5,193 |
| Working capital (net)*** | 15,038 | 15,943 | 8,816 | 1,541 | 2,076 | 53 | 43,469 | 0 | 43,469 |
|---|---|---|---|---|---|---|---|---|---|
| Segment assets | 115,846 | 42,546 | 17,398 | 3,039 | 5,501 | 118,494 | 302,824 | –79,610 | 223,215 |
| Segment liabilities | 89,275 | 27,066 | 10,103 | 1,632 | 3,395 | 56,999 | 188,471 | –47,737 | 140,734 |
* The reported net debt ratio (in years) represents the segment's debt less cash in relation to adjusted EBITDA over the last twelve months.
** The investments/divestments shown relate to proceeds from (+) / payments for (–) property, plant and equipment, intangible assets, investment property and acquisitions of companies and participating interests.
*** The reported working capital (net) corresponds to the segments' inventories plus trade receivables, less trade payables.
| Plastics | Coating | Adhesive | Metal | Production | |||||
|---|---|---|---|---|---|---|---|---|---|
| H1 2020 | Technol | Technol | Technol | Technol | Technol | "Other" | Total | Consolida | |
| ogy | ogy | ogy | ogy | ogy | segment | segments | tion | Group | |
| EUR thousand | |||||||||
| Revenue with external third parties |
48,057 | 26,257 | 14,576 | 15,216 | 5,429 | 4,394 | 113,930 | 0 | 113,930 |
| Revenue with Group companies |
0 | 0 | 88 | 0 | 34 | 2,125 | 2,248 | –2,248 | 0 |
| Total revenue | 48,057 | 26,257 | 14,664 | 15,216 | 5,464 | 6,518 | 116,178 | –2,248 | 113,930 |
| Total output | 50,294 | 29,053 | 14,960 | 15,273 | 6,350 | 27,688 | 143,618 | –2,318 | 141,300 |
| EBITDA | 2,325 | 2,740 | 338 | 547 | –946 | 21,625 | 26,628 | –1,958 | 24,670 |
| Depreciation, amortisation and impairment |
–4,173 | –1,067 | –623 | –53 | –177 | –676 | –6,770 | 237 | –6,533 |
| of which impairment losses/reversals |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Result from valuation based on the equity method |
0 | 0 | 0 | 0 | –191 | 0 | –191 | 742 | 551 |
| EBIT | –1,848 | 1,673 | –285 | 494 | –1,315 | 20,949 | 19,668 | –979 | 18,689 |
| Adjusted total output | 49,719 | 28,796 | 14,943 | 15,242 | 5,927 | 6,805 | 121,430 | –2,318 | 119,113 |
| Adjusted EBITDA | 2,517 | 2,623 | 719 | 516 | –1,379 | 1,040 | 6,036 | –36 | 6,000 |
| Adjusted EBITDA margin | 5.1% | 9.1% | 4.8% | 3.4% | –23.3% | 15.3% | 5.0% | 1.5% | 5.0% |
| Net debt ratio* (in years) | 4.5 | 1.9 | 1.1 | 0.6 | 0.0 | 2.4 | 2.3 | ||
| Investments/divest ments** |
–1,915 | –722 | –59 | –2 | 11 | 17,480 | 14,792 | 0 | 14,792 |
| of which company acquisitions/disposals |
0 | 0 | 0 | 0 | 0 | 22,464 | 22,464 | 0 | 22,464 |
| Working capital (net)*** | 9,141 | 15,181 | 7,006 | 1,343 | 2,189 | 107 | 34,968 | 0 | 34,968 |
|---|---|---|---|---|---|---|---|---|---|
| Segment assets | 75,743 | 39,548 | 15,425 | 2,853 | 9,889 | 121,242 | 264,700 | –66,198 | 198,502 |
| Segment liabilities | 58,750 | 24,732 | 10,343 | 1,569 | 6,232 | 54,702 | 156,328 | –38,127 | 118,201 |
* The reported net debt ratio (in years) represents the segment's debt less cash in relation to adjusted EBITDA over the last twelve months.
** The investments/divestments shown relate to proceeds from (+) / payments for (–) property, plant and equipment, intangible assets, investment property and acquisitions of companies and participating interests.
*** The reported working capital (net) corresponds to the segments' inventories plus trade receivables, less trade payables.
The Hero Group, which was acquired in the first half of 2021, will be allocated to the Plastics Technology segment.
In the comparative period, the Production Technology segment included SMB-David finishing lines GmbH i.l., which has since been deconsolidated.
In the comparative period, the "Other" segment included em-tec GmbH, which was sold in April 2020. The gains from the deconsolidation of this company are also shown in the "Other" segment in the comparative period.
The segment results for the reported segments can be reconciled to earnings before tax as follows:
EUR thousand
| Group | ||||
|---|---|---|---|---|
| H1 2021 |
H1 2020 | |||
| EBIT of the reportable segments | 1,183 | –1,281 | ||
| Other segments | 92 | 20,949 | ||
| Consolidation | 1,490 | –979 | ||
| Impairment losses according to IFRS 9 | 34 | –817 | ||
| Financing income | 198 | 14 | ||
| Financing expenses | –1,191 | –1,300 | ||
| Earnings before taxes (EBT) | 1,805 | 16,586 |
The cash funds included in the cash flow statement include all cash and cash equivalents reported in the statement of financial position (cash-in-hand, bank balances, time deposits and available-for-sale financial instruments with a maturity of less than three months) less overdrafts that can be terminated at any time.
The cash funds developed as follows:
| EUR thousand | 30 June 2021 |
30 June 2020 |
|---|---|---|
| Cash and cash equivalents | 28,674 | 44,427 |
| Liabilities to banks under current account agreements | –6,798 | –15,397 |
| Cash funds | 21,876 | 29,031 |
In addition to investments of EUR 2,589 thousand in various property, plant and equipment, the main payments from investing activities in the first half of 2021 result from the acquisition of the Hero Group in the amount of EUR 5,193 thousand and the acquisition of the main assets of Recyplast GmbH.
The main proceeds in the first half of 2021 result from the sale of three properties not required for operations, which had been held for sale, amounting to EUR 10,842 thousand.
In connection with the sale of a property in Finning, a security deposit was made with a bank in the amount of EUR 3,200 thousand. As this represents new collateral for the original financing of the sold property, this payment is reported under cash flow from financing activities.
In the first half of 2021, no proceeds were generated from the sale of fully consolidated subsidiaries.
The proceeds from disposals of fully consolidated subsidiaries are broken down as follows:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Cash inflow from buyer | 0 | 22,474 |
| Cash outflow/inflow from the sale/deconsolidation of cash and cash equivalents/current account liabilities |
0 | –10 |
| Net cash inflow from the disposal | 0 | 22,464 |
The payments from acquisitions of fully consolidated subsidiaries are broken down as follows:
| EUR thousand | H1 2021 |
H1 2020 |
|---|---|---|
| Cash outflow for acquisitions | –11,496 | 0 |
| Cash inflow/outflow from the acquisition of cash and cash equivalents/ current account liabilities |
6,303 | 0 |
| Net cash outflow from acquisitions | –5,193 | 0 |
In the reporting period, there was a total cash outflow for the Blue Cap Group – excluding changes in value due to exchange rates – of EUR 4,640 thousand (H1 2020: cash inflow of EUR 20,029 thousand).
The table below shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include any fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of the fair value.
| EUR thousand | |||||||
|---|---|---|---|---|---|---|---|
| Financial assets by category | Carrying amount 30 June 2021 |
Amortised cost |
Fair value through OCI |
Fair value through profit or loss |
Fair value 30 June |
2021 Hierarchy | |
| Non-current assets | |||||||
| Participating interests | FVOCI | 134 | 134 | 134 | Level 1 | ||
| Miscellaneous other financial assets | 3,803 | ||||||
| of which free-standing derivatives | FVPL | 5 | 5 | 5 | Level 2 | ||
| of which miscellaneous other financial assets | FVPL | 30 | 30 | 30 | Level 2 | ||
| of which miscellaneous other financial assets | AC | 3,768 | 3,768 | 3,768 | |||
| Current assets | |||||||
| Trade receivables | 21,558 | ||||||
| of which recognised at amortised cost | AC | 21,558 | 21,558 | 21,558 | |||
| Other financial assets | 3,547 | ||||||
| of which miscellaneous other financial assets | AC | 3,547 | 3,547 | 3,547 | |||
| Cash and cash equivalents | AC | 28,674 | 28,674 | 28,674 | |||
| Financial liabilities by category | Carrying amount 30 June 2021 |
Amortised cost |
Fair value through OCI |
Fair value through profit or loss |
Fair value 30 June |
2021 Hierarchy | |
| Non-current liabilities | |||||||
| Non-current financial liabilities | 63,196 | ||||||
| of which liabilities to banks | FLAC | 49,257 | 49,257 | 50,407 | Level 2 | ||
| of which lease liabilities | n/a | 13,651 | |||||
| of which miscellaneous other financial liabilities | FLAC | 288 | 288 | 288 | |||
| Current liabilities | |||||||
| Trade payables | FLAC | 13,620 | 13,620 | 13,620 | |||
| Other financial liabilities | 25,639 | ||||||
| of which liabilities to banks | FLAC | 16,732 | 16,732 | 16,732 | Level 2 | ||
| of which lease liabilities | n/a | 5,441 | |||||
| of which miscellaneous other financial liabilities | FLAC | 3,466 | 3,466 | 3,466 | |||
| Summary per category | |||||||
| Financial assets at fair value through profit or loss Financial assets at fair value through other |
FVPL | 34 | |||||
| comprehensive income | FVOCI | 134 | |||||
| Financial assets measured at amortised cost | AC | 57,548 | |||||
| Financial liabilities measured at amortised cost | FLAC | 83,363 |
The net gains or losses in the individual categories according to IFRS 9 for the first half of 2021 and the comparative period are shown below:
| EUR thousand | H1 2021 |
H1 2020 | ||
|---|---|---|---|---|
| Financial assets at fair value through profit or loss | FVPL | -3 | 0 | |
| Financial assets at fair value through other comprehensive | ||||
| income | FVOCI | 0 | 15 | |
| Financial assets measured at amortised cost | AC | 163 | –717 | |
| Financial liabilities at fair value through profit or loss | FLFVPL | 87 | 3 | |
| Financial liabilities measured at amortised cost | FLAC | -1,130 | –1,250 | |
| Total | -884 | –1,949 | ||
There are no significant default risks on the reporting date.
The risk from contractually agreed cash flows for financial liabilities is presented below:
| 30 June 2021 |
Contractually agreed cash flows |
Up to one year | 2–5 years | More than 5 years |
|---|---|---|---|---|
| EUR thousand | ||||
| Liabilities to banks | 65,988 | 16,732 | 38,999 | 10,257 |
| Trade payables | 13,620 | 13,620 | 0 | 0 |
| Other financial liabilities | 3,755 | 3,466 | 288 | 0 |
The cash flows from other financial liabilities with a maturity of more than one year are primarily deposits received for rented properties.
The Blue Cap Group also receives a small volume of insignificant cash flows from the derivatives used.
| EUR thousand | 30 June 2021 |
31 December 2020 |
|---|---|---|
| Total assets | 223,215 | 198,502 |
| Equity (excl. non-controlling interests) | 77,845 | 80,187 |
| Equity ratio | 34.87% | 40.40% |
There are no material contingent liabilities as of the reporting date.
As of the reporting date, the Group has commitments from outstanding orders amounting to EUR 7,741 thousand (31 December 2020: EUR 4,912 thousand), of which EUR 7,087 thousand are current commitments (31 December 2020: EUR 3,800 thousand).
As of the reporting date, there are also obligations (in accordance with IFRS 16.59b (iv)) from leases that have already been entered into but have not yet commenced. The rights of use from these leases have a value of around EUR 265 thousand.
By way of a purchase agreement dated 5 August 2021, Blue Cap AG acquired approximately 93% of the shares in HY-LINE Verwaltungs GmbH (hereafter "HY-LINE") and its four operating subsidiaries through its subsidiary Blue Cap 12 GmbH for a purchase price in the lower third of the double-digit millions. The management team of HY-LINE took a substantial single-digit percentage stake in the acquisition. The acquisition of the shares in HY-LINE is expected to be completed on 1 September 2021.
Over the last few years, the HY-LINE Group has transformed itself from a value-added distributor to a supplier of products and systems with a special focus on technical consulting and application competence. Its customers primarily come from the electronics industry, medical technology, the energy sector and the media and communications industry. Its main sales markets are Germany, Austria and Switzerland. With around 80 employees at four locations, HY-LINE generates revenue of EUR 40 million to EUR 50 million every year.
On 12 August 2021, Blue Cap AG increased the company's share capital by issuing 399,662 new no-par value bearer shares, each representing EUR 1.00 of the share capital, in return for cash contributions, making partial use of the Authorised Capital 2018/I and excluding shareholders' subscription rights. The new shares carry profit-sharing rights as of 1 January 2021. The price per new share is EUR 27.02.
Only institutional investors were admitted to subscribe to the new shares as part of a private placement. The gross issue proceeds from the capital increase amount to EUR 10.8 million. The funds are to be used partly to refinance the acquisition of HY-LINE Verwaltungs GmbH, with the remainder intended to finance the further growth of the Blue Cap Group.
After the end of the first half of 2021, no further events of particular importance occurred that need to be taken into account in the income statement or in the statement of financial position.
These interim consolidated financial statements of Blue Cap AG for the first half of 2021 were approved for publication by the Management Board on 30 August 2021.
Munich, 30 August 2021
Blue Cap AG The Management Board
Ulrich Blessing Tobias Hoffmann-Becking Matthias Kosch
65
for the period from 1 January to 30 June 2021
| H1 2021 |
% | H1 2020 | % | Change in % |
|
|---|---|---|---|---|---|
| Revenue | 120,832 | 97.0 | 113,937 | 95.7 | 6.1 |
| Change in inventories | 3,154 | 2.5 | 4,725 | 4.0 | 33.3 |
| Other own work capitalised | 52 | 0.0 | 5 | 0.0 | >100 |
| Other operating income | 591 | 0.5 | 446 | 0.4 | 32.6 |
| Adjusted total output | 124,629 | 100.0 | 119,113 | 100.0 | 4.6 |
| Cost of materials | –64,318 | 51.6 | –64,203 | 53.9 | 0.2 |
| Personnel expenses | –32,860 | 26.4 | –32,018 | 26.9 | 2.6 |
| Other operating expenses | –16,985 | 13.6 | –16,893 | 14.2 | 0.5 |
| Adjusted EBITDA | 10,465 | 8.4 | 6,000 | 5.0 | 74.4 |
| Depreciation and amortisation | –6,307 | 5.1 | –5,219 | 4.4 | 20.8 |
| Share of profit/loss in associates | 1,102 | 0.9 | 551 | 0.5 | 100.0 |
| Adjusted EBIT | 5,261 | 4.2 | 1,332 | 1.1 | >100 |
| Financial income | 12 | 0.0 | 11 | 0.0 | 4.0 |
| Financial expenses | –1,122 | 0.9 | –1,300 | 1.1 | 13.6 |
| Financial result | –1,111 | 0.9 | –1,288 | 1.1 | 13.8 |
| Income from adjustments | 4,974 | 4.0 | 22,323 | 18.7 | 77.7 |
| Expenses from adjustments | –6,863 | 5.5 | –5,781 | 4.9 | 18.7 |
| Adjustments | –1,889 | 1.5 | 16,542 | 13.9 | >100 |
| Earnings before taxes | 2,261 | 1.8 | 16,586 | 13.9 | 86.4 |
| Income tax expense | –613 | 0.5 | –986 | 0.8 | 37.8 |
| Minority interests | –194 | 0.2 | 47 | 0.0 | >100 |
| Consolidated net income | 1,453 | 1.2 | 15,647 | 13.1 | 90.7 |
| H1 2021 |
H1 2020 | |
|---|---|---|
| EBITDA (IFRS) | 10,561 | 24,670 |
| Adjustments | ||
| Income from asset disposals | –1,936 | –80 |
| Income from the reversal of provisions | –927 | –759 |
| Other non-operating income | –402 | –629 |
| Income from bargain purchase | –226 | 0 |
| Income from deconsolidation | 0 | –20,808 |
| Losses on disposal of fixed assets | 1,213 | 6 |
| Expenses from restructuring and reorganisation | 606 | 252 |
| Personnel costs in connection with personnel measures | 595 | 538 |
| Legal and consultancy costs in connection with acquisitions and personnel measures | 530 | 300 |
| Other non-operating expenses | 432 | 588 |
| Utilisation of disclosed hidden reserves | 19 | 0 |
| Expenses from deconsolidation measures | 0 | 1,922 |
| Adjusted EBITDA | 10,465 | 6,000 |
| Adjusted EBITDA margin as % of total output, adjusted | 8.4% | 5.1% |
| Depreciation and amortisation | –8,697 | –6,533 |
| Impairment losses and reversals | –201 | 0 |
| Share of profit/loss in associates | 1,102 | 551 |
| Adjustments | ||
| Amortisation of disclosed hidden reserves | 2,390 | 1,275 |
| Impairment losses and reversals | 201 | 38 |
| Adjusted EBIT | 5,261 | 1,332 |
| Adjusted EBIT margin as % of total output, adjusted | 4.2% | 1.1% |
Please do not hesitate to contact us if you have any questions:
Investor Relations Manager Tel.: +49 89 288909-24 Email: [email protected]
| Date | Event |
|---|---|
| 6–7 September 2021 | 2021 Equity Forum Autumn Conference Location: online |
| 22–24 November 2021 | German Equity Forum Location: online |
Matthias Kosch
Blue Cap AG Ludwigstrasse 11 80539 Munich +49 89 288909-0 [email protected]
_ Michael Königshofer, Photographer
_ Blue Cap AG
As of August 2021 © Blue Cap AG
The half-year report is published in German and English. The German version is always the authoritative version. You can also find the half-year report on our website at www.blue-cap.de/investor-relations
This report contains forward-looking statements. These statements are based on the current experience, assumptions and forecasts of the Management Board, and on the information currently available to it. The forward-looking statements are not to be understood as guarantees of future developments and results referred to therein. Rather, future developments and results depend on a variety of factors. They involve various risks and uncertainties and are based on assumptions that may not prove to be accurate. These risk factors include, in particular, the factors mentioned in the risk report of the 2020 Annual Report and the H1 2020 interim financial report. We assume no obligation to update the forward-looking statements included in this report. This half-year report does not constitute an offer to sell, nor an invitation to submit an offer to buy, securities of Blue Cap AG.
Ludwigstrasse 11 80539 Munich
Tel.: +49 89 288909-0 blue-cap.de
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