technotrans SE

Earnings Release • Nov 7, 2014

News Details

Corporate | 7 November 2014 07:24

technotrans AG: technotrans remains on growth trajectory – revenue and earnings continue to rise

technotrans AG / Key word(s): 9-month figures/Interim Report

07.11.2014 / 07:24

---

Revenue climbs 5.7 percent to EUR 82.2 million / Earnings per share reach EUR 0.47 at nine-month mark / Positive outlook for 2014 financial year

Sassenberg, November 7, 2014

In a generally rather subdued macroeconomic environment, the technotrans Group increased its revenue by 5.7 percent to EUR 82.2 million in the first nine months of the current financial year (previous year: EUR 77.8 million). Meanwhile the operating result (EBIT) rose by 56.2 percent to EUR 4.7 million (previous year: EUR 3.0 million). Compared with the prior-year period (3.9 percent) technotrans thus improved its EBIT margin to 5.8 percent, at the top end of its expectations for the 2014 financial year (EBIT margin of between 4 and 6 percent).

“The first nine months are behind us, and technotrans is strategically on track. As expected, the technotrans Group once again enjoyed success in the third quarter of 2014. At EUR 27.9 million and an EBIT margin of 6.3 percent for Q3, we again succeeded in increasing both revenue and earnings compared with the previous year, but also when measured against our performance throughout 2014 itself. Our share of revenue from outside the printing industry is growing steadily,” explained Henry Brickenkamp, Chief Executive Officer of technotrans AG.

Profit after tax rose as the year progressed to EUR 3.0 million, representing an increase of 74.2 percent on the 2013 figure (previous year: EUR 1.7 million). After deduction of the minority interests there is a EUR 1.2 million improvement in the net income for the period to EUR 3.0 million compared with the first nine months of 2013 (previous year: EUR 1.8 million). This represents earnings per share outstanding of EUR 0.47 (previous year EUR 0.27).

The companies of the technotrans Group had an average of 769 (previous year: 768) employees in the current financial year of 2014.

The Segments

In the Technology segment , revenue increased from EUR 48.2 million in the previous year to EUR 53.5 million in the current year. The increase of around EUR 5.3 million or 11.1 percent compared with the prior-year period is mainly attributable to the successful expansion of business in the non-print area. Here, the segment profited both from accelerating business in the laser industry and from a growing revenue share for the self-developed technologies for temperature control, filtration, cooling lubricant preparation and spray lubrication. In addition, the printing industry likewise delivered higher revenue in the third quarter of 2014 than in the weak third quarter of 2013. Positive factors affecting the revenue performance included our increased market shares for offset printing and the arrival of new production models for digital and flexographic printing. As a result, the technotrans Group realises 65 percent of its revenue in this segment.

The financial performance in the Technology segment thus showed a palpable improvement in the first nine months of the 2014 financial year. Whereas a loss of EUR 1.8 million had been reported for the corresponding period of the previous year, the segment achieved a balanced overall result in the year in progress. The segment ended the third quarter of 2014 with its first positive result since the end of 2012: EUR 0.2 million (previous year: EUR -0.9 million).

The Services segment was unable to repeat the business performance of the previous two quarters in 2014, and the revenue figure of EUR 9.5 million was also down compared with the prior-year quarter (EUR 10.5 million). Over the nine-month period, revenue for the segment therefore showed a slight decrease of 3.2 percent on the 2013 figure (previous year: EUR 29.6 million). On the one hand the downturn in business stems from weaker demand due to the smaller installed base in the print sector, and on the other hand from a continuing reluctance to invest that is affecting the Technical Documentation business area.

The financial performance in the Services segment was again stable in the period under review and the healthy level of recent quarters was maintained. At the nine-month mark the result for the segment of EUR 4.8 million (previous year: EUR 4.8 million) is unchanged from the prior-year level; the return for the segment over this period is 16.6 percent, compared with 16.2 percent in the previous year.

Financial Position

Financial Position – Free Cash Flow Up

technotrans is able to present a strong balance sheet at September 30, 2014:

equity rose 4.5 percent to EUR 45.7 million in the period under review, taking the equity ratio to 59.0 percent. Net liquidity for the group improved again and remained positive at EUR 3.2 million. Cash and cash equivalents were up slightly at EUR 17.6 million compared with the end of 2013.

Based on profit after tax of EUR 3.0 million (previous year: EUR 1.7 million) the operating cash flow in the first nine months of 2014 improved as expected to EUR 7.4 million (previous year: EUR 3.6 million). Net cash from operating activities reached a total of EUR 6.0 million (previous year: EUR 2.2 million). The cash outflow from investing activities showed a year-on-year fall as expected, amounting to

EUR -2.3 million (previous year: EUR -5.6 million). The free cash flow at the end of the third quarter of 2014 was consequently again outstanding at EUR 3.7 million (previous year: EUR -3.4 million).

The cash flow from financing activities of EUR -2.8 million (previous year: EUR +2.7 million) comprises the scheduled repayment and the raising of short-term bank loans as well as the dividend distribution to technotrans shareholders.

Outlook

The moderate economic development remains in line with the original expectations for the current financial year. technotrans has good prospects of making the current financial year a success under its own momentum. By systematically continuing to pursue our growth strategy, we will achieve a further slight increase in revenue assuming business goes according to plan in 2014.

For the Technology segment, the Board of Management expects to achieve revenue growth of between five and eight percent in 2014. It has built a slight drop in the printing industry’s revenue share into this assumption, because demand for offset presses worldwide has showed a renewed fall in 2014 compared with 2013. On the other hand it expects robust demand for digital and flexographic printing presses. technotrans’ own development projects are also making a substantial contribution to revenue in the new markets. Alongside the laser segment, mechanical engineering as well as stamping and forming technology, medical technology is another driver of growth. Over the coming quarters the Board of Management is expecting energy storage technology and scanner technology to make additional contributions to revenue. The Services segment generates a relatively high proportion of overall revenue and thus plays an important part in keeping business stable. As matters stand revenue for 2014 is expected to be roughly on a par with the previous year.

Despite the slight economic slowdown, technotrans stands by its targets. “We are aiming for revenue of EUR 110 million in 2014 with EBIT in the region of 6 percent; these figures are at the upper end of our guidance for the financial year,” declared Dirk Engel, CFO of technotrans AG. “The earnings situation depends substantially on how the revenue volume and revenue mix develop further. From the present perspective we also expect to be able to increase revenue and earnings still further in the next financial year.”

technotrans Group

Key data acc. to IFRS

Key figures (in TEUR)
	9 month	9 month	Change
	2014	2013
Consolidated Income Statement
Revenue	82.179	77.769	5,7%
Technology	53.544	48.189	11,1%
Services	28.635	29.580	-3,2%
Gross profit	27.473	24.335	12,9%
EBITDA	6.883	5.465	25,9%
EBIT (operating result)	4.727	3.026	56,2%
EBIT margin (in %)	5,8%	3,9%
Profit after tax	3.027	1.756	72,4%
Net result per share (in EUR)	0,47	0,27	74,1%
Cashflow
Cashflow	6.033	2.220	171,8%
Free Cash flow	3.716	-3.409	209,0%
Employees
Average number of employees	769	768	0,1%
Bilanz
Balance sheet	77.531	76.520	1,3%
Equity	45.714	43.098	6,1%
Equity ratio (in %)	59,0%	56,3%	4,7%
Net dept	-3.234	1.545	309,3%

Note: Statements made in this report relating to future developments are based on our careful assessment of future events. The actual performance of the company may differ substantially from that planned, as it depends on a large number of market-related and economic factors, some of which are beyond the company’s control.

Download: The full Interim Report 1-9/2014 can be downloaded from the Internet at www.technotrans .de , under Investor Relations – Reports.

Dates: The 2014 Annual Report is scheduled for publication on March 10, 2015.

Securities : technotrans AG – ISIN DE000A0XYGA7 – WKN A0XYGA

Contact : technotrans AG

Henry Brickenkamp / Dirk Engel

Coordination: Katharina Arens

Tel. +49 (0)2583 301-1890

e-mail: katharina.arens @technotrans .de

---

07.11.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language:	English
Company:	technotrans AG
	Robert-Linnemann-Str. 17
	48336 Sassenberg
	Germany
Phone:	+49 (0)2583 – 301 – 1000
Fax:	+49 (0)2583 – 301 – 1030
E-mail:	info@technotrans.de
Internet:	http://www.technotrans.de
ISIN:	DE000A0XYGA7
WKN:	A0XYGA
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News	DGAP News-Service

- - -
295712  07.11.2014