Interim / Quarterly Report • Jul 23, 2014
Interim / Quarterly Report
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INTERIM REPORT 06.30.2014
STRATEC DEVELOPS AND MANUFACTURES FULLY AUTOMATED ANALYZER SYSTEMS BASED ON ITS OWN PATENTED TECHNOLOGIES FOR ITS PARTNERS IN THE FIELDS OF CLINICAL DIAGNOSTICS AND BIOTECHNOLOGY. STRATEC'S PARTNERS ARE MOSTLY GLOBAL PLAYERS OPERATING IN THE IN-VITRO DIAGNOSTICS INDUSTRY. THESE COMPANIES MARKET STRATEC'S SYSTEMS UNDER THEIR OWN NAMES, IN GENERAL TOGETHER WITH THEIR OWN REAGENTS, AS SYSTEM SOLUTIONS TO LABORATORIES, BLOOD BANKS, AND RESEARCH INSTITUTES AROUND THE WORLD.
| HIGHLIGHTS / KEY GROUP FIGURES AT A GLANCE |
03 |
|---|---|
| LETTER FROM THE BOARD OF MANAGEMENT |
04 |
| INTERIM GROUP MANAGEMENT REPO RT |
06 |
| CON SOLIDATED BALANCE SHEET E 30, 2014 AS OF JUN |
11 |
| CON SOLIDATED STATEMENT OF COMP REHENSIVE INCOM E iod from April 1 to June 30, 2014 for the Per |
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| CON SOLIDATED STATEMENT OF COMP REHENSIVE INCOM E 1 to June 30, 2014 for the Per iod from Ja nuary |
14 |
| CON SOLIDATED STATEMENT OF CHANGES IN EQUITY for the Per iod from Ja nuary 1 to June 30, 2014 |
15 |
| CON SOLIDATED CASH FLOW STATEMENT for the Per iod from Ja nuary 1 to June 30, 2014 |
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| NO TES TO THE GROUP INTERIM REPO RT for the Per iod from Ja nuary 1 to June 30, 2014 |
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| ADDITION AL INFO RMATION |
23 |
STRATEC interim report as of june 30, 2014 02
Sales of 1 69.1 million in 6M/2014 (+14.9%; 6M/2013: 1 60.1 million)
EBIT margin of 16.3%2 in 6M/2014 (+260 basis points; 6M/2013: 13.7%)
EBIT of 1 11.2 million 2 in 6M/2014 (+36.0%; 6M/2013: 1 8.3 million)
Consolidated net income of 1 9.6 million 2 in 6M/2014 (+47.3%; 6M/2013: 1 6.5 million)
Earnings per share of 1 0.822 in 6M/2014 (+46.4%; 6M/2013: 1 0.56)
| in v thousands | 01.01.- 06.30.2014 |
01.01.- 06.30.2013 1 |
Change |
|---|---|---|---|
| Sales | 69,050 | 60,071 | +14.9 % |
| EBIT | 11,232 2 | 8,257 | +36.0 % |
| EBIT margin (%) | 16.3 2 | 13.7 | +260 BPS |
| Consolidated net income | 9,635 2 | 6,543 | +47.3 % |
| Earnings per share (1) | 0.82 2 | 0.56 | +46.4 % |
| No. of employees (06.30.) | 546 | 543 | +0.6 % |
| in v thousands | 06.30.2014 | 12.31.20131 | Change |
|---|---|---|---|
| Shareholders' equity | 100,170 | 97,179 | +3.1 % |
| Total assets | 124,992 | 117,788 | +6.1 % |
| Equity ratio ( %) | 80.1 | 82.5 | -240 BPS |
1 The accounting methods used in the consolidated financial statements were amended in line with IAS 8 in the 2013 financial year. Reference is made in this respect to the information in the 2013 Annual Report in Section A of the notes to the consolidated financial statements.
2 2014 figure adjusted to exclude a one-off item resulting from recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. Unadjusted EBIT amounts to 1 10.3 million, the corresponding EBIT margin amounts to 14.9%, consolidated net income to 1 8.9 million and earnings per share to 1 0.76. The effective amount of the liability due may differ at the time of payment.
We can look back on a solid first half of 2014 in which we generated substantial sales growth while at the same time significantly raising our EBIT margin.
We boosted our sales for the first six months by 14.9 % to 1 69.1 million. The adjusted EBIT margin rose to 16.3 %, up from 13.7 % in the equivalent period in the prior year. Adjusted earnings per share increased by 46.4 % to 10.82.
Even though we view this development as a normalization in our margin performance and although we expect the company to post healthy developments in the second half of the year, we are not yet in a position to announce the end of the temporary weakness seen in capacity utilization levels in terms of customer test volumes. Given stocking and order processes, we are still witnessing fluctuations within quarters. Extreme fluctuations, such as those at the end of 2012, have not reoccurred since and the strong second quarter gives us reason to expect a further normalization in the service parts business. Based on information currently available, we expect to see positive developments in terms of our sales and earnings performance in the second half of the year as well.
Although there was little to report in terms of significant newsflow during the quarter, the company's operating performance was nevertheless consistently positive. Major development projects are running on schedule and further market launches by our customers are pending. These will gradually contribute to our expected sales growth in the coming quarters. Furthermore, an increase in the dividend to a new record level was approved at the Annual General Meeting.
In 2015 we will be further expanding our existing development and production capacities, most recently extended in 2010. Planning work for these measures has begun and we will keep you informed. Specifically, we are currently planning the construction of a proprietary development building in Romania. Driven not least by the successful conclusion of further development orders currently in negotiation and our planned capacity expansion measures, we intend to uphold our growth both throughout and beyond the forecast period.
Birkenfeld, July 2014
The Board of Management of STRATEC Biomedical AG
Marcus Wolfinger Dr. Robert Siegle Dr. Claus Vielsack
Sales grew by 14.9 % to 169.1 million in the first six months of the 2014 financial year (previous year: 160.1 million). The gross profit (gross profit on sales) increased to 122.6 million (32.7 % of sales), up 13.1 million on the previous year's figure of 119.5 million (32.5 % of sales). This was due to significant growth in the volume of established analyzer systems and the ongoing slightly positive development in turnover with service parts.
Gross development expenses rose by 1 0.7 million to 1 10.6 million, of which 17.7 million were capitalized. Sales-related expenses could be further significantly reduced from 14.3 million to 13.0 million. Administration expenses increased by 11.1 million to 15.8 million. This was chiefly due to the recognition of expenses for the remaining years covered by the residual term of the management board contract for a retired member of the Board of Management.
Due to a higher volume of earnings-neutral development sales, depreciation and amortization rose from 12.9 million to 13.6 million. At 110.3 million, EBIT improved by 24.4 % and significantly exceeded the previous year's figure, and that despite the one-off charge due to the expenses incurred for changes in the Board of Management. The figures include a small positive financial effect, one set also to continue over the remaining quarters of the current financial year, resulting from the termination of a development and supply agreement announced in July 2013. Based on current planning, this monetary item will increase the EBIT margin for the 2014 financial year as a whole by around 30 basis points. The EBIT margin thus amounted to 14.9 % (adjusted: 16.3 %; previous year: 13.7 %). As in the previous year, net financial expenses were marginally negative. The tax result amounted to 11.3 million. STRATEC can therefore report a 36.4 % increase in consolidated net income to 1 8.9 million for the period under report (previous year: 16.5 million). Earnings per share amounted to 10.76 (previous year: 10.56).
Despite ongoing strong demand for analyzer systems and a full development pipeline, inventories only rose slightly from 118.1 million to 118.9 million. Due to the significant reduction in trade receivables, total receivables could be reduced by 10.6 million.
The equity ratio amounted to 80.1 %. The Group has reduced its noncurrent financial liabilities by 1 1.0 million to 15.6 million. The increase in trade payables was driven by higher procurement volumes for raw materials and supplies. Other current liabilities also include the liability for the remaining years covered by the residual term of the management board contract for a retired member of the Board of Management.
The cash flow from operating activities rose significantly from 113.5 million in the previous year to 117.1 million. At 13.9 million, investments fell short of the previous year's figure. Despite the dividend payment, cash and cash equivalents thus increased from 120.7 million to 127.1 million.
The Ukraine crisis has overshadowed the growth forecast issued by the International Monetary Fund (IMF) for the global economy. In its global economic outlook issued in April, the IMF forecast robust growth in economic output, but warned at the same time of "new geopolitical risks" due to the conflict between Kiev and Moscow. The IMF saw the industrialized economies, above all the USA, as anchors of global growth. The economies of core euro area states were also recovering. The upturn in crisishit countries such as Spain, Portugal, and Greece nevertheless remained fragile. According to the IMF, emerging economies still accounted for more than two thirds of global economic growth, but recent developments here had tended to be disappointing. The Chinese economy had cooled slightly compared with 2013. The IMF nevertheless expected the world's secondlargest economy to post strong growth of 7.5 % this year.
Global economic growth had strengthened in the second half of 2013 and was set to improve further in 2014 and 2015. Following growth of 3 % in the past year, the IMF had forecast an increase of 3.6 % in global economic output in 2014. This should be followed by global economic growth of 3.9 % in 2015.
Having said this, the monetary fund has cut back its growth expectations for the global economy by 0.1 percentage points compared with its previous outlook in January. Alongside flagging developments in emerging economies, IMF experts have also factored the potential implications of the Ukraine crisis into their current global economic outlook. Given the threat of western sanctions, they have cut this year's growth forecast for the Russian economy from 1.9 % to 1.3 %. Any further escalation "could have substantially negative effects for the region through both financial and trading channels".
The company has not yet witnessed any implications from current events in connection with the Ukraine crisis and sanctions against Russia. Our partners, who generally market our systems with their own reagents, have currently reported only a very low level of impact.
Irrespective of the aforementioned developments, global demographic developments represent one of the most serious challenges facing the world. The dynamic growth in the world's population, together with an unprecedented increase in the elderly share of the population and the sharp rise in the number of people with access to medical care, represent key factors which will shape the 21st century. This situation is accompanied by scientific and technological progress, which is opening up ever new possibilities in the fields of medicine, research, diagnostics and life science.
These developments will lead not only to an increase in the numbers of clinical diagnostics tests to be performed, but will also result in new, unique business opportunities for which STRATEC is optimally positioned with its automation solutions and on which it will continue to focus its strategy and operations.
In view of the factors outlined above, global economic risks only have a very limited impact on STRATEC's business performance and business model. Moreover, long-term supply agreements with our customers minimize the potential implications for STRATEC.
In the current year, STRATEC is focusing on achieving further major development milestones, additional market launches, and finalizing negotiations for new development and production contracts. Furthermore, the expansion in the company's production and development capacities is set to play a key role in 2014. One example here is planned construction work at the Romanian location where, depending on the relevant permits being issued, construction work should begin before the end of the current financial year.
For 2014, STRATEC continues to expect substantial sales growth compared with the 2013 financial year accompanied by a slight increase in the EBIT margin. The medium-term financial forecast for the years through to 2017 provides for average annual sales growth of 8 % to 12 % based on the volume of sales generated in the 2013 financial year.
Due to the immense debt accumulated by some countries and economic regions and the resultant potential implications (debt crisis), the level of budgeting reliability remains low for all industries, and for the global economy as a whole. This situation continues to harbor risks for STRATEC's customers and suppliers, as a result of which STRATEC also faces economic risks. The ongoing difficult economic climate also means that STRATEC continues to face increased market risk.
Apart from this, since the assessment of the company's situation provided on April 15, 2014 upon the compilation of the Annual Report for the 2013 financial year, no new information has arisen which could lead to any change in our assessment of the company's expected development.
We analyze and evaluate the risks facing the company and its business environment within the framework of our risk management system, which has been established as an early warning risk identification system. Furthermore, this system also includes a compliance system to ensure compliance with the relevant legal and industry-specific requirements.
STRATEC's business activities basically focus on sustainability and responsible behavior. In future, the company will document this in a sustainability report.
Apart from the factors outlined in the "Report on forecasts and other statements concerning the company's expected development", we do not see any changes compared with the risks and opportunities identified in the Group Management Report for the 2013 financial year dated April 15, 2014. Details of our risk management system and our company's specific opportunity and risk profile can be found in the "Opportunity and Risk Report" section of our 2013 Group Management Report. Information about our use of financial instruments can be found in Section F of the 2013 Group Management Report.
| ASSETS in v thousands |
06.30.2014 | 12.31.2013 | 01.01.20131 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Goodwill | 4,481 | 4,427 | 4,547 |
| Other intangible assets | 26,563 | 25,761 | 22,280 |
| Property, plant and equipment | 16,609 | 17,013 | 17,108 |
| Interests in associates | 404 | 392 | 363 |
| Deferred tax assets | 828 | 867 | 2,135 |
| 48,885 | 48,460 | 46,433 | |
| CURRENT ASSETS | |||
| Raw materials and supplies | 10,355 | 8,391 | 8,857 |
| Unfinished products, unfinished services | 6,092 | 7,758 | 7,846 |
| Finished products and goods | 2,485 | 1,942 | 807 |
| Trade receivables | 19,516 | 23,372 | 25,627 |
| Future receivables from construction contracts | 1,286 | 1,312 | 1,011 |
| Receivables from associates | 69 | 65 | 96 |
| Income tax receivables | 6,001 | 3,523 | 2,016 |
| Other receivables and other assets | 2,433 | 1,585 | 2,182 |
| Other financial assets | 723 | 646 | 366 |
| Cash and cash equivalents | 27,147 | 20,734 | 13,209 |
| 76,107 | 69,328 | 62,017 | |
| TOTAL ASSETS | 124,992 | 117,788 | 108,450 |
| SHAREHOLDERS' EQUITY AND DEBT in v thousands |
06.30.2014 | 12.31.2013 | 01.01.2013 1 |
|---|---|---|---|
| SHAREHOLDERS' EQUITY | |||
| Share capital | 11,791 | 11,770 | 11,738 |
| Capital reserve | 17,919 | 17,219 | 16,247 |
| Revenue reserves | 69,635 | 67,766 | 58,768 |
| Other equity | 825 | 424 | 789 |
| 100,170 | 97,179 | 87,542 | |
| DEBT | |||
| Non -current debt |
|||
| Non-current financial liabilities | 5,603 | 6,643 | 7,459 |
| Pension provisions | 14 | 14 | 28 |
| Deferred taxes | 1,659 | 1,389 | 1,604 |
| 7,276 | 8,046 | 9,091 | |
| Current debt |
|||
| Current financial liabilities | 2,209 | 1,895 | 1,183 |
| Trade payables | 6,275 | 4,402 | 4,288 |
| Liabilities to associates | 205 | 211 | 282 |
| Other current liabilities | 6,634 | 4,520 | 5,218 |
| Current provisions | 684 | 679 | 608 |
| Income tax liabilities | 1,539 | 857 | 238 |
| 17,546 | 12,563 | 11,817 | |
| TOTAL SHAREHOLDERS' EQUITY AND DEBT | 124,992 | 117,788 | 108,450 |
| in v thousands | 04.01.-06.30.2014 | 04.01.-06.30.2013 1 |
|---|---|---|
| Sales | 34,680 | 29,786 |
| Cost of sales | -23,327 | -20,746 |
| Gross profit | 11,353 | 9,040 |
| Research and development expenses | -1,545 | -738 |
| Information only: Total research and development expenses | -4,889 | -5,076 |
| Information only: Capitalized research and development expenses |
3,344 | 4,338 |
| Sales-related expenses | -1,322 | -2,086 |
| General administrative expenses | -2,302 | -2,329 |
| Other operating expenses | -278 | -41 |
| EBIT | 5,906 | 3,846 |
| Net financial expenses | 2 | -97 |
| Earnings before taxes (EBT) | 5,908 | 3,749 |
| Current tax expenses | -513 | -254 |
| Deferred tax expenses | -132 | -570 |
| Consolidated net income | 5,263 | 2,925 |
| Items that may be subsequently reclassified to profit or loss |
||
| Currency translation differences from translation of foreign operations |
247 | -381 |
| Comprehensi ve income |
5,510 | 2,544 |
| Earnings per share in 3 | 0.45 | 0.25 |
| No. of shares used as basis | 11,759,486 | 11,727,142 |
| Earnings per share, diluted, in 3 | 0.45 | 0.25 |
| No. of shares used as basis, diluted | 11,812,079 | 11,767,479 |
| in v thousands | 01.01.-06.30.2014 | 01.01.-06.30.20131 |
|---|---|---|
| Sales | 69,050 | 60,071 |
| Cost of sales | -46,466 | -40,574 |
| Gross profit | 22,584 | 19,497 |
| Research and development expenses | -2,947 | -2,010 |
| Information only: Total research and development expenses | -10,627 | -9,945 |
| Information only: Capitalized research and development expenses |
7,680 | 7,935 |
| Sales-related expenses | -2,997 | -4,270 |
| General administrative expenses | -5,810 | -4,672 |
| Other operating expenses | -556 | -288 |
| EBIT | 10,274 | 8,257 |
| Net financial expenses | -79 | -169 |
| Earnings before taxes (EBT) | 10,195 | 8,088 |
| Current tax expenses | -969 | -479 |
| Deferred tax expenses | -302 | -1,066 |
| Consolidated net income | 8,924 | 6,543 |
| Items that may be subsequently reclassified to profit or loss |
||
| Currency translation differences from translation of foreign operations |
401 | -407 |
| Comprehensi ve income |
9,325 | 6,136 |
| Earnings per share in 3 | 0.76 | 0.56 |
| No. of shares used as basis | 11,758,754 | 11,726,332 |
| Earnings per share, diluted, in 3 | 0.76 | 0.56 |
| No. of shares used as basis, diluted | 11,803,859 | 11,771,823 |
| Share capital |
Capital reserve |
|
|---|---|---|
| 11,738 | 16,247 | |
| 10 | 184 | |
| 88 | ||
| 4 | ||
| 11,748 | 16,523 | |
1 Previous year's figures adjusted in line with the information provided in the notes to the consolidated financial statements in the 2013 Annual Report (A. General disclosures).
| in v thousands | Share capital |
Capital reserve |
|
|---|---|---|---|
| Balance at 01.01.2014 | 11,770 | 17,219 | |
| Equity transactions with owners | |||
| Dividend payment | |||
| Issue of subscription shares from stock option programs, less costs of capital issue after taxes |
21 | 544 | |
| Allocations due to stock option plans | 156 | ||
| Total comprehensive income | |||
| Balance at 06.30.2014 | 11,791 | 17,919 |
| Other equity | Revenue reserves | ||||
|---|---|---|---|---|---|
| Group equity |
Currency translation |
Pension plans |
Treasury stock |
Free revenue reserves |
Accumulated net income |
| 87,542 | 1,033 | -32 | -212 | 19,392 | 39,376 |
| -6,567 | -6,567 | ||||
| 194 | |||||
| 88 | |||||
| 6,136 | -407 | 6,543 | |||
| 90 | 86 | ||||
| 87,483 | 626 | -32 | -212 | 19,392 | 39,438 |
| Other equity | Revenue reserves | ||||
|---|---|---|---|---|---|
| Group equity |
Currency translation |
Pension plans |
Treasury stock |
Free revenue reserves |
Accumulated net income |
| 97,179 | 654 | -18 | -212 | 19,392 | 48,374 |
| -7,055 | -7,055 | ||||
| 565 | |||||
| 156 | |||||
| 9,325 | 401 | 8,924 | |||
| 100,170 | 1,055 | -18 | -212 | 19,392 | 50,243 |
| in v thousands | 01.01.-06.30.2014 | 01.01.-06.30.20131 |
|---|---|---|
| Consolidated net income (after taxes) | 8,924 | 6,543 |
| Depreciation and amortization | 3,588 | 2,909 |
| Current income tax expenses | 969 | 479 |
| Income taxes paid less income taxes received | -2,774 | -2,370 |
| Financial income | -61 | -69 |
| Financial expenses | 100 | 238 |
| Interest paid | -97 | -231 |
| Interest received | 61 | 42 |
| Other non-cash expenses | 218 | 251 |
| Other non-cash income | -584 | -293 |
| Cash flow | 10,344 | 7,499 |
| Change in deferred taxes through profit or loss | 302 | 1,066 |
| Profit on disposals of non-current assets | -1 | -6 |
| Decrease in inventories, trade receivables and other assets | 2,339 | 4,219 |
| Increase in trade payables and other liabilities | 4,077 | 728 |
| Inflow of funds from operating activities | 17,061 | 13,506 |
| Incoming payments from disposals of non-current assets | ||
| Property, plant and equipment | 1 | 6 |
| Outgoing payments for investments in non-current assets | ||
| Intangible assets | -3,048 | -4,378 |
| Property, plant and equipment | -858 | -1,249 |
| Outgoing payments for acquisitions of consolidated companies | 0 | -127 |
| Outflow of funds for investing activities | -3,905 | -5,748 |
| Outgoing payments for repayment of financial liabilities | -747 | -288 |
| Incoming payments for issues of shares for employee stock option programs |
565 | 194 |
| Dividend payment | -7,055 | -6,567 |
| Outflow of funds for financing activities | -7,237 | -6,661 |
| Cash-effective change in cash and cash equivalents | 5,919 | 1,097 |
| Cash and cash equivalents at start of period | 20,734 | 13,209 |
| Change in scope of consolidation | 0 | 84 |
| Impact of exchange rate movements | 494 | -258 |
| Cash and cash equivalents at end of period | 27,147 | 14,132 |
The consolidated financial statements of STRATEC Biomedical AG as of December 31, 2013 were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the balance sheet date. In the interim report as of June 30, 2014, which has been prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", application has been made of the same accounting methods as in the consolidated financial statements for the 2013 financial year.
Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of June 30, 2014.
There were no indications of any potential impairment in goodwill at the balance sheet date.
The company's interim reports are neither audited, nor subject to an audit review, by the group auditor, WirtschaftsTreuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Stuttgart.
Reference is made to the consolidated financial statements of STRATEC Biomedical AG as of December 31, 2013 with regard to further information concerning the individual accounting and valuation methods applied.
The Group's currency is the euro. Unless otherwise indicated, all amounts have been stated in thousand euros (1thousand).
At the end of the 2013 financial year, the accounting methods used to recognize projects were voluntarily adjusted in order to implement recommendations made by the German Financial Reporting Enforcement Panel (DPR). Moreover, the presentation of shareholders' equity and of the statement of changes in equity were also voluntarily amended and errors were corrected. Further details and a presentation of the overall implications can be found on Pages 48 to 53 of our consolidated financial statements as of December 31, 2013. To ensure comparability, the figures reported for January 1, 2013 and for the period from January 1, 2013 to June 30, 2013 have been adjusted accordingly.
There have been no changes in segmentation compared with the consolidated financial statements as of December 31, 2013.
Segment data by operating segment for the period from January 1 to June 30, 2014
| in v thousands | Instrumen tation |
All other segments |
Recon ciliation |
Total |
|---|---|---|---|---|
| Sales | 71,258 | 3,537 | -5,745 | 69,050 |
| EBIT | 10,289 | 43 | -58 | 10,274 |
| Assets | 135,357 | 6,678 | -17,043 | 124,992 |
Segment data by operating segment for the period from January 1 to June 30, 2013
| in v thousands | Instrumen tation |
All other segments |
Recon ciliation |
Total |
|---|---|---|---|---|
| Sales | 62,167 | 2,071 | -4,167 | 60,071 |
| EBIT | 8,978 | -453 | -437 | 8,088 |
| Assets | 126,441 | 4,345 | -21,860 | 108,926 |
The breakdown of sales by geographical region represents the distribution of the STRATEC Group's products. As the customers of the STRATEC Group generally supply their country outlets and customers from their own central distribution centers, however, this breakdown of sales does not represent the geographical distribution of the final operating locations of the STRATEC Group's analyzer systems.
| in v thousands | Germany | EU | Other | Total |
|---|---|---|---|---|
| January – June 2014 | 8,361 | 29,187 | 31,502 | 69,050 |
| 12.1 % | 45.6 % | 42.3 % | 100.0 % | |
| in v thousands | Germany | EU | Other | Total |
| January – June 2013 | 10,203 | 26,376 | 23,492 | 60,071 |
| 17.0 % | 43.9 % | 39.1 % | 100.0 % |
Sales can be broken down by geographical regions (customer locations) as follows:
Research and development expenses not fulfilling the capitalization criteria set out in IAS 38 (Intangible Assets) amounted to 12.9 million in the first six months of the 2014 financial year (previous year: 12.0 million) and mainly involve personnel and material expenses. The STRATEC Group invested a total of 110.6 million in research and development in the first six months of the 2014 financial year (previous year: 19.9 million).
The development in shareholders' equity at the STRATEC Group has been presented in the consolidated statement of changes in equity on Pages 15 and 16.
The number of ordinary shares with a nominal value of 11.00 each issued by STRATEC AG as of June 30, 2014, amounts to 11,790,945. These are all bearer shares.
STRATEC AG owned a total of 12,223 treasury stock at the interim balance sheet date. This corresponds to a prorated amount of 112,223.00 of the company's share capital and to a 0.10 % share of its equity.
Members of the Board of Management / Managing Directors and employees held the following numbers of subscription rights (share option rights) at the interim balance sheet date:
| Board of Management / Managing Directors |
Employees | Total | |
|---|---|---|---|
| Outstanding on 01.01.2014 | 148,500 | 92,100 | 240,600 |
| Issued | 40,000 | 9,050 | 49,050 |
| Exercised | 15,000 | 5,700 | 20,700 |
| Lapsed | 0 | 0 | 0 |
| Forfeited | 0 | 0 | 0 |
| Outstanding on 06.30.2014 | 173,500 | 95,450 | 268,950 |
Of the stock options granted in the first six months, 40,000 (previous year: 0) were granted to members of the Board of Management (previous year: 0), as in the previous year 0 to managing directors of subsidiaries, and 9,050 (previous year: 23,550) to employees.
Furthermore, members of the Board of Management exercised 15,000 stock option rights in the first six months (previous year: 0). As in the previous year, managing directors of subsidiaries did not exercise any stock option rights in this period. Employees exercised 5,700 stock option rights (previous year: 10,000). To service the stock option rights exercised, a total of 20,700 shares were created from conditional capital (previous year: 10,000).
As in the previous year, no stock option rights lapsed in the period under report.
Furthermore, no stock options rights were forfeited for managing directors or employees (previous year: 2,000 for each category).
Including temporary employees the STRATEC Group had a total workforce of 546 employees as of June 30, 2014 (previous year: 543).
No events of particular significance with material implications for the business performance of our Group have occurred since the interim balance sheet date.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remainder of the financial year.
| July 23, 2014 | Interim Report as of June 30, 2014 |
|---|---|
| October 22, 2014 | Interim Report as of September 30, 2014 |
| German Equity Forum, Frankfurt / Main, Germany | |
| November 2014 | – Analysts' conference – |
Furthermore, based on current planning, STRATEC will be taking part in the following capital market conferences in 2014:
| September 2014 | 11th Annual Goldman Sachs European Medtech and Healthcare Services Conference, London, UK |
|---|---|
| Berenberg Bank & Goldman Sachs German Corporate Conference, Munich, Germany |
|
| November 2014 | HSBC Healthcare Day 2014, Frankfurt /Main, Germany Jefferies 2014 Global Healthcare Conference, London, UK |
| December 2014 | Berenberg Bank European Conference, Pennyhill Park, UK |
Partially incomplete/subject to amendment
STRATEC Biomedical AG designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.
Further information about STRATEC is available on the internet at www.stratec.com.
STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany
Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec.com
Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]
Forward-looking statements involve risks: This interim report contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.
This interim report contains various disclosures of an economic nature that do not form part of the relevant accounting requirements. These disclosures are to be viewed as a supplement to, rather than as a substitute for the disclosures made in accordance with IFRS.
Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.
This interim report is also available in German.
Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999
[email protected] www.stratec.com
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