Quarterly Report • Feb 14, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
DOC UM E N TAT ION OF COMMITMENT
1 A P R I L T O 31 DECE M BE R 2017
Outlook raised after dynamic first nine months of the financial year
Operating business remains at a high level, significant incoming orders and sales growth, disproportionately high increase in earnings
Operating outlook for financial year raised to Group sales of € 545 million and Group net income after minority interest of between € 20 million and € 21 million. Effects of antitrust proceedings against a subsidiary not yet quantifiable.
| 01.04.-31.12. | I. -III. Quarter 2017/2018 |
I. -III. Quarter 2016/2017 |
Change | |
|---|---|---|---|---|
| Incoming orders | €'000 | 407,911 | 376,391 | +8.4% |
| Sales | €'000 | 404,350 | 357,528 | +13.1% |
| EBITDA | €'000 | 49,449 | 35,667 | +38.6% |
| EBIT | €'000 | 31,458 | 19,946 | +57.7% |
| Earnings before tax (EBT) | €'000 | 29,915 | 17,842 | +67.7% |
| Group net income after minority interest | €'000 | 16,357 | 9,727 | +68.2% |
| Earnings per share pursuant to IFRS | € | 1.51 | 0.98 | +54.1% |
| Weighted average number of shares | Number | 10,832,475 | 9,969,471 | +8.7% |
| Employees | Number | 2,482 | 2,526 | -1.7% |
Following a dynamic first half of the year, GESCO Group continued generating brisk business in the third quarter. Three out of four segments recorded a rise in incoming orders, sales and earnings over the reporting period. Sales saw a double-digit increase overall in the first nine months of the financial year, and the earnings figures increased at a disproportionate rate. The subsequent fourth quarter then displayed further strong momentum and, according to the preliminary figures, brought incoming orders and sales to a high level.
Alongside this positive operating development, a number of non-operating one-off effects impacted earnings in the reporting period. A subsidiary in the Mobility Technology segment resolved to discontinue one of its divisions after the close of its reporting period as part of a strategic realignment. The division affected by the closure focuses primarily on the development and production of tools for the powertrains of internal combustion engines. The associated one-off expense in the amount of around € 2 million has been taken into consideration in these financial statements. On the other hand, we succeeded in reaching an agreement with the financial authorities at the turn of the year from 2017 to 2018 following several years of negotiations; this agreement led to a positive one-off effect in the amount of € 1.7 million. This effect has also been reported in these financial statements.
As outlined in our ad hoc announcement on 12 December 2017, the Federal Cartel Office (Bundeskartellamt) commenced investigations against Dörrenberg Edelstahl GmbH, a 90 % subsidiary of GESCO AG, within the scope of its investigations into manufacturers of steel products on the grounds of suspected anti-competitive collusion and behaviour between 2003 and 2015. The Federal Cartel Office offered Dörrenberg Edelstahl GmbH the possibility to discontinue the proceedings by way of mutual consent in return for payment of a high single-digit-million amount. We are currently examining the matter and the options available in consultation with legal advisers. No final decision regarding further action has been reached. As a result, a potential negative impact on earnings resulting from the antitrust proceedings has not yet been taken into account in the present report on the nine-month period, with the exception of provisions for anticipated legal and consulting costs.
GESCO orients its business activity towards the letter of the law as well as values and standards. Against the backdrop of the proceedings, we have critically re-examined existing rules and processes, developed a Group-wide code of conduct and scheduled expanded training for GESCO Group managing directors and management staff .
We recently stated that the outlook for the year as a whole would be at the upper end of the ranges we originally specifi ed, with Group sales amounting to € 530 million and Group net income after minority interest to € 18 million. Based on the information currently available, we have increased this forecast to € 545 million for Group sales and € 20 million to € 21 million for Group net income after minority interest. These fi gures do not include a potential negative impact on earnings resulting from the antitrust proceedings against Dörrenberg Edelstahl GmbH, as this amount cannot be reliably determined or estimated on the basis of the information currently available.
Warm regards,
Dr. Eric Bernhard (Chairman of the Executive Board)
At the turn of the year from 2016 to 2017, GESCO AG acquired 100 % of the shares in Pickhardt & Gerlach Group (PGW), Finnentrop, Germany, a leading strip steel processor, as part of a succession planning process. This company generates sales of roughly € 30 million and has approximately 40 employees. PGW was already included in the Group balance sheet for 2016/2017 with its assets and liabilities, while the company has only been included in the Group income statement since the beginning of the current financial year 2017/2018.
On 7 December 2017, GESCO AG sold its shares in Protomaster GmbH, Willkau-Haßlau, Germany, in line with the resolution adopted in February 2017. The company's managing director, together with a co-investor, acquired the shares by way of a management buyout. Protomaster was deconsolidated on 30 November 2017.
The financial years of GESCO AG and GESCO Group run from 1 April to 31 March of the following year, while the financial years of the subsidiaries coincide with the calendar year. This interim statement for the first nine months of financial year 2017/2018 therefore encompasses the operating months January to September 2017 of the Group's subsidiaries.
On the one hand, the general conditions for GESCO improved significantly in this period. Following years of stagnation, the VDMA (Mechanical Engineering Industry Association) forecast growth of 3 % for 2017. On the other hand, optimisation projects that we defined and launched within the context of Portfolio Strategy 2022 are increasingly bearing fruit. Finally, Pickhardt & Gerlach Group, which was acquired at the turn of the year from 2016 to 2017, contributed external growth.
On the whole, GESCO Group generated brisk demand over the first nine months of the financial year. Following an above-average opening quarter in terms of incoming orders and margins, the second and third quarters also saw high performance. The Group recorded the highest quarterly sales in its history during the third quarter alone, at € 139.6 million.
In the third quarter, which encompasses the operating months July to September in the case of the subsidiaries, the brisk business development seen in the first half of the year continued.
Incoming orders increased by 4.4 % compared to the same quarter in the previous year, from € 126.1 million to € 131.6 million. Sales rose by 8.4 % to € 139.6 million (previous year's period: € 128.8 million). On an organic basis, i.e. without the inclusion of the newly acquired Pickhardt & Gerlach Group, incoming orders would have declined at a high level by 2.1 %, and sales would have increased by 1.9 %.
The aforementioned one-off expenditure from the discontinuation of a division at a subsidiary, which had a total volume of around € 2 million, was recorded as a significant event after the reporting date of the respective company in the third quarter. The one-off earnings from the cessation of tax proceedings totalling around € 1.7 million are also included in this quarter.
In total, the key earnings figures saw a much stronger rise than sales. The material expenditure ratio increased in relation to total income, while the personnel expenditure ratio declined. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 15.3 % to € 16.9 million (€ 14.6 million). The disproportionately small increase in depreciation and amortisation meant that earnings before interest and taxes (EBIT) rose even more sharply, by 18.7 % to € 11.1 million (€ 9.3 million). Following a considerable improvement in the financial result, a higher tax rate and unchanged minority interest in incorporated companies, Group net income after minority interest rose by 18.7 % to € 5.8 million (€ 4.9 million).
Throughout the entire nine-month period, the positive development of the operating business was reflected in the growth in incoming orders and sales as well as a disproportionate rise in the key earnings figures. Incoming orders increased by 8.4 % to € 407.9 million (€ 376.4 million); sales rose by 13.1 % to € 404.4 million (€ 357.5 million). In organic terms – in other words, excluding the newly acquired Pickhardt & Gerlach Group – incoming orders climbed by 1.2 %, while sales increased by 5.9 %.
While the material expenditure ratio remained almost unchanged year on year in relation to total income, the personnel expenditure ratio declined due to better capacity utilisation. With a 38.6 % increase, EBITDA grew much more strongly than sales and came in at € 49.4 million (€ 35.7 million). EBIT climbed from € 19.9 million to € 31.5 million, which represents growth of 57.7 %. Following an improvement in the financial result, slightly higher taxes and increased minority interest in incorporated companies, Group net income after minority interest rose by 68.2 %, to € 16.4 million (€ 9.7 million). Earnings per share in accordance with IFRS saw disproportionately low growth of 54.1 %, as the number of shares rose following the capital increase in March 2017. It reached € 1.51, compared to € 0.98 in the previous year's period.
With increased earnings and higher depreciation, cash flow for the period rose by 37.0 % compared to the previous year's period, reaching € 36.5 million (€ 26.7 million). In view of the expansion of current assets as a result of the brisk operating business, cash flow from ongoing business activities fell to € 21.2 million (€ 30.7 million).
The order backlog stood at € 194.6 million at the end of the nine-month period; the order backlog of Protomaster GmbH, which was sold in December 2017, is no longer included in this figure.
During the nine-month period, the Production Process Technology segment benefited from the trend towards automation, and incoming orders grew by 5.0 % compared to the previous year's period, amounting to € 56.0 million (€ 53.3 million). Following the production of a number of machines and plants during the first two quarters, deliveries increased considerably in the third quarter. Accordingly, sales were higher than in the two preceding quarters at € 48.4 million and also exceeded the previous year's figure of € 45.2 million. EBIT rose disproportionately, increasing by 43.5 % to € 2.0 million (€ 1.4 million). For the year as a whole, we anticipate that sales and earnings for the segment will exceed the previous year's results.
The Resource Technology segment generated strong gains in incoming orders, sales and earnings; the first-time inclusion of the Pickhardt & Gerlach Group in the Group income statement in the current financial year also contributed to this trend. Incoming orders increased by 16.5 % to € 202.2 million (€ 173.5 million); sales rose by 23.4 % to € 205.4 million (€ 166.4 million). In organic terms – in other words, excluding the PGW Group – incoming orders and sales would have risen by 0.9 % and 7.9 % respectively. EBIT stood at € 27.8 million, which was more than twice the previous year's figure of € 13.7 million. The solid rise in earnings was partially influenced by certain special effects in the first quarter, while the margin level in the subsequent quarters stabilised at a high level. For the year as a whole, we expect the segment to develop positively with strong year-on-year sales and earnings growth.
In the Healthcare and Infrastructure Technology segment, incoming orders and sales rose almost in parallel: the volume of incoming orders rose by 10.5 % to € 96.4 million (€ 87.2 million), while sales rose by 10.0 % to € 96.6 million (€ 87.8 million). EBIT grew from € 8.7 million to € 9.5 million. This 8.5 % rise, which is disproportionately low compared to sales, is primarily due to one-off effects for growth projects. For the year as a whole, we expect sales and earnings to be higher than the previous year's figures.
The Mobility Technology segment fell significantly short of the positive development of the other segments. While customer demand for supplier parts remained positive, the tool manufacturers recorded negative development. In total, incoming orders fell to € 53.3 million (€ 62.3 million) and sales fell to € 54.5 million (€ 59.7 million). The closure of a division at one of the subsidiaries mentioned in the introduction to this report led to the aforementioned one-off expense of around € 2 million, with the result that EBIT in the reporting period was negative at € -0.4 million compared to € 3.5 million in the previous year's period. For the year as a whole, we anticipate that sales and earnings for this segment will see a marked decrease compared to the previous year's results.
Protomaster GmbH, which was sold on 7 December 2017, was also allocated to the Mobility Technology segment. The company was deconsolidated on 30 November 2017. Protomaster was included in the segment reporting in this quarterly statement, along with its full sales figure at the point of deconsolidation of € 10.3 million and its negative EBIT of around € -0.1 million. This was offset by a positive earnings contribution resulting from the deconsolidation of around € 0.2 million, which has been included in the Reconciliation segment.
In the balance sheet as at 31 March 2017, the assets and liabilities of Protomaster GmbH were reported as "held for sale". As a result of the sale of the company in December 2017, these items are no longer included in the present balance sheet.
The marked expansion of operating business led to a 6.6 % increase in the balance sheet total to € 468.8 million (31 March 2017: € 439.9 million). Investments were somewhat lower than amortisation and depreciation, with non-current assets falling slightly while current assets increased. Liquid assets stood at € 36.7 million (€ 35.1 million) as at the reporting date. On the liabilities side, equity rose by 5 % to € 224.8 million (€ 214.1 million) as a result of the improvement in earnings, which corresponded to an equity ratio of 48.0 % (48.7 %). Current and non-current liabilities to financial institutions increased marginally overall to € 126.8 million (€ 122.4 million).
The companies supported their modern technical equipment with investments of € 15.9 million (€ 12.6 million) in property, plant and equipment and intangible assets. This total volume was distributed among a series of smaller and medium-sized individual projects. At € 6.5 million, the focus was on the Healthcare and Infrastructure Technology segment in the reporting period.
There were 2,482 employees at GESCO Group at the end of the reporting period (2,526). The 115 employees of Protomaster GmbH are no longer included in the figure for the reporting period, as the company was deconsolidated. The 37 employees of the Pickhardt & Gerlach Group were not yet included in the previous year's figure. Adjusted for these effects from the changes to the scope of consolidation, the number of employees increased slightly during the nine-month period.
Our general explanations on the subject of opportunities and risks, as well as the presentation of specific individual risks in the Group financial statements as at 31 March 2017, remain essentially unchanged and valid. For more details, please refer to the Annual Report 2016/2017, which is available online at www.gesco.de, and the supplementary information in the half-year interim report. As explained in the ad hoc announcement on 12 December 2017, there is a risk of a payment having to be made in relation to ongoing antitrust proceedings against Dörrenberg Edelstahl GmbH. The likelihood and amount of any potential payment cannot be determined based on the information currently available.
This quarterly statement for the first nine months of the financial year encompasses the operating months January to September 2017 of the Group's subsidiaries. In the subsequent fourth quarter, which encompasses the operating months October to December 2017 of the subsidiaries, incoming orders at the Group came to roughly € 144 million according to preliminary figures – an increase of around 17 % on the previous year's figure of € 122.4 million. According to preliminary figures, Group sales in the fourth quarter increased by around 15 % compared to the previous year's figure and also reached approximately € 144 million (€ 124.9 million). The high sales level is also due to the fact that a number of machines and plants were delivered in the fourth quarter. All in all, incoming orders have built upon the unusually high result achieved in the first quarter, and sales exceeded even the record figures from the third quarter.
In our half-year interim report in November 2017, we forecast that sales and Group net income after minority interest for 2017/2018 as a whole would come in at the upper end of the ranges we originally had stated, equivalent to sales of around € 530 million and earnings of around € 18 million. Based on our knowledge to date, the operating business in the fourth quarter should have shown considerably better development than we originally anticipated. The one-off effects from the repositioning of a subsidiary and from the cessation of tax proceedings were processed in the nine-month period; based on our current knowledge, we do not expect any additional material non-operating effects on earnings in the fourth quarter. In view of the positive financial developments, particularly in the fourth quarter, we are increasing the forecast for 2017/2018 as a whole, with anticipated sales of around € 545 million and anticipated Group net income after minority interest of € 20 million to € 21 million. As explained above, this forecast does not take into consideration any amount for a possible payment in relation to the antitrust proceedings against our subsidiary Dörrenberg Edelstahl GmbH, as this figure cannot be reliably determined or estimated on the basis of the information currently available.
The Executive Board Wuppertal, February 2018
GESCO AG QUARTERLY STATEMENT / Q3 / 2017/2018 / 1 APRIL TO 31 DECEMBER 2017
| ASSETS €'000 |
31.12.2017 | 31.03.2017 |
|---|---|---|
| A. NON-CURRENT ASSETS | ||
| I. Intangible assets | ||
| 1. Industrial property rights and similar rights and assets as well as licences to such rights and assets | 22,452 | 27,189 |
| 2. Goodwill | 19,184 | 19,424 |
| 3. Prepayments made | 4 | 0 |
| 41,640 | 46,613 | |
| II. Property, plant and equipment | ||
| 1. Land and buildings | 62,295 | 63,738 |
| 2. Technical plants and machinery | 49,411 | 49,403 |
| 3. Other plants, fixtures and fittings | 21,173 | 21,563 |
| 4. Prepayments made and assets under construction | 8,807 | 6,132 |
| 141,686 | 140,836 | |
| III. Financial investments | ||
| 1. Shares in affiliated companies | 40 | 52 |
| 2. Shares in companies valued at equity | 1,130 | 1,044 |
| 3. Investments | 156 | 156 |
| 4. Other loans | 190 | 210 |
| 1,516 | 1,462 | |
| IV. Other assets | 1,596 | 1,662 |
| V. Deferred tax assets | 3,416 | 3,431 |
| 189,854 | 194,004 | |
| B. CURRENT ASSETS | ||
| I. Inventories | ||
| 1. Raw materials and supplies | 24,787 | 22,928 |
| 2. Unfinished products and services | 53,057 | 38,759 |
| 3. Finished products and goods | 72,924 | 63,054 |
| 4. Prepayments made | 881 | 426 |
| 151,649 | 125,167 | |
| II. Receivables and other assets | ||
| 1. Trade receivables | 75,467 | 69,206 |
| 2. Amounts owed by affiliated companies | 1,513 | 1,302 |
| 3. Amounts owed by companies valued at equity | 302 | 836 |
| 4. Other assets | 12,504 | 6,806 |
| 89,786 | 78,150 | |
| III. Cash and credit with financial institutions | 36,696 | 35,146 |
| IV. Accounts receivable and payable | 858 | 852 |
| 278,989 | 239,315 | |
| C. ASSETS HELD FOR SALE | 0 | 6,596 |
| 468,843 | 439,915 |
| EQUITY AND LIABILITIES | 31.12.2017 | 31.03.2017 |
|---|---|---|
| €'000 A, EQUITY |
||
| I, Subscribed capital | 10,839 | 10,839 |
| II, Capital reserves | 72,364 | 72,364 |
| III, Revenue reserves | 131,041 | 118,468 |
| IV, Own shares | -119 | 0 |
| V, Other comprehensive income | -4,316 | -2,748 |
| VI, Minority interest (incorporated companies) | 15,025 | 15,172 |
| 224,834 | 214,095 | |
| B, NON-CURRENT LIABILITIES | ||
| I, Minority interest (partnerships) | 1,772 | 1,790 |
| II, Provisions for pensions | 16,427 | 17,101 |
| III, Other non-current provisions | 643 | 610 |
| IV, Liabilities to financial institutions | 85,380 | 81,667 |
| V, Other liabilities | 2,299 | 2,206 |
| VI, Deferred tax liabilities | 4,479 | 3,495 |
| 111,000 | 106,869 | |
| C, CURRENT LIABILITIES | ||
| I, Other provisions | 11,825 | 11,851 |
| II, Liabilities | ||
| 1, Liabilities to financial institutions | 41,467 | 40,760 |
| 2, Trade payables | 19,143 | 13,135 |
| 3, Prepayments received on orders | 25,288 | 17,383 |
| 4, Liabilities to affiliated companies | 74 | 460 |
| 5, Liabilities to companies valued at equity | 1 | 12 |
| 6, Other liabilities | 35,066 | 26,706 |
| 121,039 | 98,456 | |
| III, Accounts receivable and payable | 145 | 27 |
| 133,009 | 110,334 | |
| D, LIABILITIES HELD FOR SALE | 0 | 8,617 |
| 468,843 | 439,915 |
| €'000 | III. Quarter 2017/2018 | III. Quarter 2016/2017 |
|---|---|---|
| 1. Sales revenues | 139,614 | 128,784 |
| 2. Change in stocks of finished and unfinished products | 3,866 | -5,106 |
| 3. Other company-produced additions to assets | 4 | 405 |
| 4. Other operating income | 2,898 | 967 |
| 5. TOTAL INCOME | 146,382 | 125,050 |
| 6. Material expenditure | -73,475 | -59,659 |
| 7. Personnel expenditure | -37,704 | -35,336 |
| 8. Other operating expenditure | -18,314 | -15,407 |
| 9. EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) | 16,889 | 14,648 |
| 10. Amortisation of intangible assets and depreciation on property, plant and equipment | -5,802 | -5,307 |
| 11. EARNINGS BEFORE INTEREST AND TAX (EBIT) | 11,087 | 9,341 |
| 12. Earnings from investments | 131 | 0 |
| 13. Earnings from companies valued at equity | 61 | 12 |
| 14. Other interest and similar income | 292 | 11 |
| 15. Interest and similar expenditure | -692 | -637 |
| 16. Minority interest in partnerships | -102 | -58 |
| 17. FINANCIAL RESULT | -310 | -672 |
| 18. EARNINGS BEFORE TAX (EBT) | 10,777 | 8,669 |
| 19. Taxes on income and earnings | -4,278 | -3,083 |
| 20. GROUP NET INCOME | 6,499 | 5,586 |
| Minority interest in incorporated companies | -700 | -701 |
| GROUP NET INCOME AFTER MINORITY INTEREST | 5,799 | 4,885 |
| EARNINGS PER SHARE (€) PURSUANT TO IFRS | 0,53 | 0,49 |
| WEIGHTED AVERAGE NUMBER OF SHARES | 10,819,514 | 9,958,826 |
GESCO AG QUARTERLY STATEMENT / Q3 / 2017/2018 / 1 APRIL TO 31 DECEMBER 2017
| €'000 | I.-III. Quarter 2017/2018 | I.-III. Quarter 2016/2017 |
|---|---|---|
| 1. Sales revenues | 404,350 | 357,528 |
| 2. Change in stocks of finished and unfinished products | 10,900 | 3,206 |
| 3. Other company-produced additions to assets | 437 | 1,639 |
| 4. Other operating income | 6,333 | 4,491 |
| 5. TOTAL INCOME | 422,020 | 366,864 |
| 6. Material expenditure | -208,182 | -180,132 |
| 7. Personnel expenditure | -113,271 | -107,178 |
| 8. Other operating expenditure | -51,118 | -43,887 |
| 9. EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) | 49,449 | 35,667 |
| 10. Amortisation of intangible assets and depreciation on property, plant and equipment | -17,991 | -15,721 |
| 11. EARNINGS BEFORE INTEREST AND TAX (EBIT) | 31,458 | 19,946 |
| 12. Earnings from investments | 189 | 0 |
| 13. Earnings from companies valued at equity | 247 | 95 |
| 14. Other interest and similar income | 333 | 61 |
| 15. Interest and similar expenditure | -2,068 | -2,156 |
| 16. Minority interest in partnerships | -244 | -104 |
| 17. FINANCIAL RESULT | -1,543 | -2,104 |
| 18. EARNINGS BEFORE TAX (EBT) | 29,915 | 17,842 |
| 19. Taxes on income and earnings | -11,268 | -6,526 |
| 20. GROUP NET INCOME | 18,647 | 11,316 |
| Minority interest in incorporated companies | -2,290 | -1,589 |
| GROUP NET INCOME AFTER MINORITY INTEREST | 16,357 | 9,727 |
| EARNINGS PER SHARE (€) PURSUANT TO IFRS | 1,51 | 0,98 |
| WEIGHTED AVERAGE NUMBER OF SHARES | 10,832,475 | 9,969,471 |
| €'000 | I.-III. Quarter 2017/2018 | I.-III. Quarter 2016/2017 | ||
|---|---|---|---|---|
| 1. Group net income | 18,647 | 11,316 | ||
| 2. Revaluation of benefit obligations not impacting income | 295 | -1,730 | ||
| 3. Items that cannot be transferred to the income statement | 295 | -1,730 | ||
| 4. Difference from currency translation | ||||
| a Reclassification into the income statement | 0 | 0 | ||
| b Changes in value with no effect on income | -1,948 | -471 | ||
| 5. Difference from currency translation for companies valued at equity | ||||
| a Reclassification into the income statement | 0 | -2 | ||
| b Changes in value with no effect on income | -161 | -19 | ||
| 6. Market valuation of hedging instruments | ||||
| a Reclassification into the income statement | 0 | -36 | ||
| b Changes in value with no effect on income | 129 | 173 | ||
| 7. Items that can be transferred to the income statement | -1,980 | -355 | ||
| 8. Other income | -1,685 | -2,085 | ||
| 9. Total result for the period | 16,962 | 9,231 | ||
| of which share attributable to minority interest | 2,173 | 1,477 | ||
| of which share attributable to GESCO shareholders | 14,789 | 7,754 |
GESCO AG QUARTERLY STATEMENT / Q3 / 2017/2018 / 1 APRIL TO 31 DECEMBER 2017
| €'000 | I.-III. Quarter 2017/2018 | I.-III. Quarter 2016/2017 |
|---|---|---|
| Group net income (including share attributable to minority interest in incorporated companies) | 18,647 | 11,316 |
| Depreciation on property, plant and equipment and amortisation of intangible assets | 17,991 | 15,721 |
| Earnings from companies valued at equity | -247 | -95 |
| Share attributable to minority interest in partnerships | 244 | 104 |
| Increase in non-current provisions | -215 | -110 |
| Other non-cash income | 114 | -274 |
| CASH FLOW FOR THE PERIOD | 36,534 | 26,662 |
| Losses from the disposal of property, plant and equipment/intangible assets | 57 | 58 |
| Gains from the disposal of property, plant and equipment/intangible assets | -384 | -365 |
| Gains due to changes to the scope of consolidation | -229 | 0 |
| Increase in stocks, trade receivables and other assets | -39,491 | -4,933 |
| Increase in trade creditors and other liabilities | 24,736 | 9,310 |
| CASH FLOW FROM ONGOING BUSINESS ACTIVITIES | 21,223 | 30,732 |
| Incoming payments from disposals of property, plant and equipment/intangible assets | 1,193 | 558 |
| Disbursements for investments in property, plant and equipment | -15,555 | -12,405 |
| Disbursements for investments in intangible assets | -384 | -226 |
| Disbursements due to changes to the scope of consolidation | -1,641 | 0 |
| Incoming payments from disposals of financial assets | 33 | 25 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | -16,354 | -12,048 |
| Disbursements to shareholders (dividends) | -3,794 | -6,650 |
| Incoming payments from the sale of own shares | 942 | 882 |
| Disbursements for the purchase of own shares | -1,051 | -926 |
| Incoming payments from minority interests | 0 | -10 |
| Disbursements to minority interests | -2,583 | -5,809 |
| Incoming payments from raising (financial) loans | 15,315 | 9,359 |
| Outflow for repayment of (financial) loans | -12,317 | -16,366 |
| CASH FLOW FROM FUNDING ACTIVITIES | -3,488 | -19,520 |
| Changes in cash and cash equivalents | 1,381 | -836 |
| Exchange-rate related changes in cash and cash equivalents | -232 | -38 |
| FINANCIAL MEANS ON 01.04. | 35,547 | 36,581 |
| FINANCIAL MEANS ON 31.12. | 36,696 | 35,707 |
| €'000 | Subscribed capital |
Capital reserves |
Revenue reserves |
Own shares |
Exchange equalisati on items |
Revalua tion of pensions |
Hedging in struments |
Total | Minority interest in corporated companies |
Equity capital |
|---|---|---|---|---|---|---|---|---|---|---|
| AS AT 01.04.2016 | 8,645 | 54,662 | 119,171 | -5 | 852 | -3,140 | -101 | 180,084 | 15,689 | 195,773 |
| Distributions | -6,650 | -6,650 | -735 | -7,385 | ||||||
| Acquisition of own shares |
-926 | -926 | -926 | |||||||
| Disposal of own shares | -49 | 931 | 882 | 882 | ||||||
| Acquisition of shares in subsidiaries |
-1,903 | -1,903 | -1,636 | -3,539 | ||||||
| Increase in subscribed capital from own funds |
1,330 | -1,330 | 0 | 0 | ||||||
| Result for the period | 9,727 | -414 | -1,669 | 110 | 7,754 | 1,477 | 9,231 | |||
| AS AT 31.12.2016 | 9,975 | 53,332 | 120,296 | 0 | 438 | -4,809 | 9 | 179,241 | 14,795 | 194,036 |
| AS AT 01.04.2017 | 10,839 | 72,364 | 118,468 | 0 | 1,113 | -3,858 | -3 | 198,923 | 15,172 | 214,095 |
| Distributions | -3,794 | -3,794 | -2,320 | -6,114 | ||||||
| Acquisition of own shares |
-1,051 | -1,051 | -1,051 | |||||||
| Disposal of own shares | 10 | 932 | 942 | 942 | ||||||
| Result for the period | 16,357 | -1,958 | 274 | 116 | 14,789 | 2,173 | 16,962 | |||
| AS AT 31.12.2017 | 10,839 | 72,364 | 131,041 | -119 | -845 | -3,584 | 113 | 209,809 | 15,025 | 224,834 |
GESCO AG QUARTERLY STATEMENT / Q3 / 2017/2018 / 1 APRIL TO 31 DECEMBER 2017
| Production Process Technology |
Resource Technology |
Healthcare and Infrastructure Technology |
Mobility Technology |
Reconciliation | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| €'000 | 2017/ 2018 |
2016/ 2017 |
2017/ 2018 |
2016/ 2017 |
2017/ 2018 |
2016/ 2017 |
2017/ 2018 |
2016/ 2017 |
2017/ 2018 |
2016/ 2017 |
2017/ 2018 |
2016/ 2017 |
| Order backlog | 48,888 | 47,726 | 67,775 | 63,288 | 34,300 | 33,379 | 43,684 | 45,651 | 0 | 0 | 194,647 | 190,044 |
| Incoming orders | 56,022 | 53,332 | 202,233 | 173,547 | 96,371 | 87,187 | 53,285 | 62,325 | 0 | 0 | 407,911 | 376,391 |
| Sales revenues | 48,356 | 45,222 | 205,381 | 166,410 | 96,633 | 87,840 | 54,470 | 59,670 | -490 | -1,614 | 404,350 | 357,528 |
| of which with other segments | 5 | 1,037 | 449 | 570 | 0 | 0 | 36 | 7 | -490 | -1,614 | 0 | 0 |
| Depreciation/amortisation | 2,181 | 2,329 | 3,024 | 2,957 | 4,632 | 4,761 | 3,380 | 3,439 | 4,774 | 2,235 | 17,991 | 15,721 |
| EBIT | 1,976 | 1,377 | 27,787 | 13,705 | 9,489 | 8,743 | -373 | 3,454 | -7,421 | -7,333 | 31,458 | 19,946 |
| Investments | 2,215 | 914 | 2,606 | 2,625 | 6,469 | 4,420 | 4,507 | 4,350 | 144 | 322 | 15,941 | 12,631 |
| Employees (No./reporting date) | 472 | 460 | 748 | 712 | 759 | 720 | 484 | 616 | 19 | 18 | 2,482 | 2,526 |
GESCO Group's statement for the first nine months (1 April to 31 December 2017) of financial year 2017/2018 (1 April 2017 to 31 March 2018) was prepared on the basis of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB). It was drawn up in compliance with IAS 34.
The accounting and valuation principles applied generally correspond to those in the consolidated financial statements as at 31 March 2017. The financial statements are affected by the accounting and valuation methods as well as assumptions and estimates which affect the level and recognition of assets, liabilities and contingent liabilities on the balance sheet and of the income and expenditure items. Sales-related figures are accrued throughout the year.
Pickhardt & Gerlach Group, Finnentrop, Germany, which was acquired at the turn of the year from 2016 to 2017, was included in the Group income statement for the first time at the start of the current financial year (2017/2018). Pickhardt & Gerlach was already included in the Group balance sheet as at the reporting date 31 March 2017.
On 7 December 2017, GESCO AG sold its shares in Protomaster GmbH, Willkau-Haßlau, Germany, in line with the resolution adopted in February 2017. The company's managing director, together with a co-investor, acquired the shares within the scope of a management buyout. Protomaster was deconsolidated on 30 November 2017.
| Book value | Fair value | ||||
|---|---|---|---|---|---|
| €'000 | 31.12.2017 | 31.03.2017 | 31.12.2017 | 31.03.2017 | |
| Trade receivables | 75,467 | 69,206 | 75,467 | 69,206 | |
| Other receivables | 9,710 | 6,489 | 9,710 | 6,489 | |
| of which hedging instruments | 431 | 0 | 431 | 0 | |
| Cash and cash equivalents | 36,696 | 35,146 | 36,696 | 35,146 | |
| Assets held for sale | 0 | 6,596 | 0 | 6,596 | |
| FINANCIAL ASSETS | 121,873 | 117,437 | 121,873 | 117,437 | |
| Trade payables | 19,143 | 13,135 | 19,143 | 13,135 | |
| Liabilities to financial institutions | 126,847 | 122,427 | 126,847 | 122,427 | |
| Other liabilities | 58,041 | 44,783 | 58,041 | 44,783 | |
| of which hedging instruments | 71 | 127 | 71 | 127 | |
| Liabilities held for sale | 0 | 8,617 | 0 | 8,617 | |
| FINANCIAL LIABILITIES | 204,031 | 188,962 | 204,031 | 188,962 |
Hedging instruments at fair value are measured using the market price method, taking into account generally observable input parameters (such as exchange and interest rates). This method is the equivalent of Level 2 pursuant to IFRS 13.81 et seq.
Business relationships between fully consolidated and not fully consolidated companies within the Group are conducted under regular market terms and conditions. Receivables from related companies are mainly due from Connex SVT Inc., USA, and Frank Lemeks Tow, Ukraine. Stefan Heimöller, member of the Supervisory Board, maintains business relationships to a minor extent with Dörrenberg Edelstahl GmbH and with SVT GmbH, both of which are 90 % subsidiaries of GESCO AG, through his company Platestahl Umformtechnik GmbH. These business relationships are conducted under regular market terms and conditions.
| Publication of the quarterly statement for the first nine months (1 April to 31 December 2017) |
14 February 2018 | GESCO AG Investor Relations |
|---|---|---|
| Annual accounts press conference and analysts' meeting |
28 June 2018 | Johannisberg 7 42103 Wuppertal |
| Publication of the quarterly statement for the first quarter (1 April to 30 June 2018) |
14 August 2018 | Germany |
| Annual General Meeting at the Stadthalle, Wuppertal, Germany |
30 August 2018 | |
| Publication of the Half Year interim report (1 April to 30 September 2018) |
14 November 2018 | [email protected] www.gesco.de |
Investor Relations Johannisberg 7 42103 Wuppertal Germany Telefon +49 202 24820-18 Telefax +49 202 24820-49 [email protected]
This document contains forward-looking statements that are based on current assumptions and forecasts of the Executive Board of GESCO AG. These statements are therefore subject to risks and uncertainties. The results and business development of GESCO AG and the GESCO Group may, under certain circumstances, deviate substantially from the estimates provided in this document. GESCO AG does not assume any obligation to update such forward-looking statements or adjust them according to future events or developments.
Despite extensive precautions, discrepancies may occur between this document and the accounting documents submitted to the German Federal Gazette, especially for technical reasons (e.g. conversion of electronic formats). In this case, the version submitted to the German Federal Gazette prevails.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.