technotrans SE

Earnings Release • Nov 5, 2013

News Details

Corporate | 5 November 2013 07:16

technotrans AG: Figures for Q§ and 9M 2013 (news with additional features)

technotrans AG / Key word(s): Interim Report/Quarter Results

05.11.2013 / 07:16

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Press release

Growth story of technotrans intact despite temporary weakness

Revenue grows by 17.6 percent to EUR 77.8 million after nine months / EBIT only EUR 3.0 million / growth strategy to be pursued further / customer projects in new markets are largely running according to schedule

Sassenberg, November 5, 2013

Revenue for the technotrans Group in the first nine months of 2013 climbed 17.6 percent to EUR 77.8 million (previous year EUR 66.1 million). This growth was driven first and foremost by the acquisition of KLH Kältetechnik GmbH and its Asian sister companies at the start of 2013. The third quarter of 2013 brought in revenue of EUR 25.3 million, up 4.7 percent on the prior-year quarter (EUR 24.2 million). After the nine months of the 2013 financial year, EBIT amounted to EUR 3.0 million, or 12.0 percent less than at the same point of the previous year (EUR 3.4 million). The EBIT margin at the reporting date fell to just 3.9 percent (previous year 5.2 percent). EBIT for the third quarter reached EUR 0.8 million (previous year EUR 1.7 million), which corresponds to an EBIT margin of 3.0 percent. This decrease was primarily due to the unexpectedly weak business performance. Net income for the nine-month period came to EUR 1.7 million (previous year EUR 2.1 million). Earnings per share, for shares outstanding, are therefore EUR 0.25 after nine months (previous year EUR 0.33).

‘The unsatisfactory revenue performance in the Technology segment compared with the original target stemmed mainly from the renewed, unexpectedly sharp downturn in business with customers from the printing industry,’ says Henry Brickenkamp, CEO of technotrans AG. ‘The activities in other sales markets are making headway, but are not yet in a position to compensate for this volume in the short term.’

The number of employees in the group rose from 662 at the end of 2012 to 787 on September 30, 2013. There were 624 (504) employees in Germany and 163 (149) internationally. The increase in the current financial year is attributable to the acquisitions and the above-average number of new apprentices.

The segments

The first nine months of the financial year saw the Technology segment generate revenue of EUR 48.2 million (previous year EUR 39.0 million). The increase is largely attributable to business expansion following the takeover of KLH. On the other hand print business again declined (especially compared to the drupa year 2012), at a rate which could not be counterbalanced by sales in other areas. This became particularly apparent in the third quarter, when revenue for the segment reached just EUR 14.8 million and was therefore merely on a par with the previous year despite growth in the new markets (previous year EUR 14.7 million; after adjustment for the ‘drupa effect’ the prior-year quarter would have brought in approximately EUR 13.4 million). The revenue shortfall compared with the original plans for 2013 now amounts to around EUR 7 million; this has prompted the Board of Management to reduce the target for the full year.

From the unexpectedly low revenue total, the Technology segment again brought in a slightly higher loss, which amounted to nearly EUR -0.9 million in the third quarter of 2013 (previous year EUR +0.1 million). This brought the aggregate loss for the first nine months of 2013 to EUR -1.8 million (EUR -1.0 million). Over and above the effects of the revenue shortfall, the total reflects investment in accessing new sales markets and, to a lesser extent, one-off measures e.g. for the adjustment of international structures.

Revenue for the Services segment at the nine-month mark reached EUR 29.6 million (EUR 27.1 million). The 9.1 percent year-on-year growth is driven in part by the acquisition of KLH. Thus, the rise of 11.1 percent in the third quarter to EUR 10.5 million (EUR 9.5 million) is partly attributable to the implementation of corresponding segment reporting at the new subsidiary since mid-way through the year.

The Services segment again made a stable contribution towards earnings in the third quarter. At just over EUR 1.6 million for the quarter, the margin reached 15.5 percent (previous year just under EUR 1.6 million, margin 16.6 percent). One-off expenses such as the closing-down of the subsidiary in Sweden filtered into this item. The nine-month result for the segment is EUR 4.8 million (previous year EUR 4.4 million), representing growth of 7.8 percent. The EBIT margin at the reporting date remains virtually unchanged at 16.2 percent.

Financial position

The equity ratio at September 30, 2013 was once again 56.3 percent. The group’s net liquidity, in other words interest-bearing liabilities less cash and cash equivalents, was EUR 1.5 million; gearing (the ratio of net debt to equity) is consequently negative at -3.6 percent.

Based on net income of EUR 1.7 million (previous year EUR 2.1 million) for the nine-month period, the cash flow from operating activities before changes in working capital totalled EUR 5.6 million (previous year EUR 6.5 million). Within working capital, there was a year-on-year change in liabilities due to reporting-date factors, mainly from the scaling-back of liabilities by KLH during the first nine months. Over the same period of the previous year, cash of EUR 0.4 million was released through changes in working capital.

After deduction of interest and income tax payments, the net cash from operating activities for the period under review was again comfortably positive at EUR 2.2 million (previous year EUR 6.1 million).

The cash sum of EUR 5.6 million used for investing activities comprises the customary maintenance investments as well as the cash outflow for the acquisition of the interest in KLH Kältetechnik GmbH and its Asian sister companies (EUR 3.3 million net), plus a conditional purchase price component for the acquisition of Termotek AG (EUR 0.8 million).

At the nine-month mark the free cash flow therefore remained negative at EUR -3.4 million (previous year EUR 5.0 million).

Credit facilities agreed at the start of the financial year were used for example to finance the acquisition of the interest, while scheduled repayments amounting to EUR 3.5 million were made in the course of the first half. A payment of EUR 0.8 million was made to the shareholders by way of a dividend for the 2012 financial year. The net cash employed for financing activities therefore came to EUR 2.7 million (previous year EUR -3.6 million) after nine months. Since the balance sheet date of December 31, 2012 cash and cash equivalents have fallen by 4.0 percent to EUR 18.0 million. In conjunction with available credit facilities approved and promised, the current financial position continues to offer ample leeway for financing current business and also for potential acquisitions.

Outlook

The delay in the recovery coming has been compounded by the unexpectedly sharp downturn in business with customers from the printing industry, resulting in the unsatisfactory business performance in the third quarter of 2013. The revenue shortfall compared with the original plans is in the order that the company is not yet in a position to recoup through its activities in new markets in the short term. The Board of Management has consequently resolved to adjust the targets for the year as a whole. The current position indicates that revenue for the 2013 financial year will reach a total of around EUR 102 million (most recent forecast EUR 105 million). This assumption is based on the expectation that the business performance in the fourth quarter will change only minimally from that of the third quarter. The final total for the year will moreover depend on whether various customer projects can be completed in December as planned, or whether projects will be delayed until the next financial year.

Management is rather more optimistic about developments in the next financial year. Initially it is assumed that revenue growth will reach six percent, on the one hand thanks to the more benign investment climate that the economic forecasts currently anticipate and on the other hand because projects beyond the printing industry will bring in an increasing share of revenue. ‘However, based on recent experience we consider it advisable to anticipate that either of these effects could take rather longer to materialise, because in this respect too we are normally dependent on the progress of development work at our customers’, says Brickenkamp. ‘Opportunities arising from growth in our market shares in the printing industry, from trends in the e-mobility sector or from the laser industry are only built into this estimate to the extent that their impact is already foreseeable today.’

In order to accelerate growth further, technotrans is stepping up the sales activities in the new markets. ‘In an effort to see that the additional customer projects are completed successfully, we continue to invest considerable amounts in resources. The resulting revenue will then bring the cost ratios back down to normal levels’, says Dirk Engel, CFO of technotrans AG. The revenue growth and the ongoing optimisation processes should therefore help improve the EBIT margin to 6 to 7 percent next year. ‘The technotrans growth story thus remains fully intact and, as matters stand,’ says Brickenkamp. ‘The attainment of our medium and long-term goals is merely being postponed by a year.’ The company will publish firm guidance for the 2014 financial year at the usual time in March.

Note: Statements made in this report relating to future developments are based on our cautious estimate 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 can be downloaded from the internet on www.technotrans .com , under Investor Relations – Reports.

Dates: Eigenkapitalforum November 11. – 12., 2014

The 2013 Annual Report is scheduled for publication on

March 11, 2014.

Securities : technotrans AG – ISIN DE000A0XYGA7 – German Securities Identification No. WKN A0XYGA

Contact : technotrans AG

Corporate Communications/

Investor Relations

Thessa Roderig

Tel. +49 (0)2583 301-1887

e-mail thessa. roderig@technotrans .de

technotrans Group

Key figures acc. to IFRS

		Change	1.1.-30.9.13	1.1.-30.9.12	FY 2012	FY 2011
Earnings
Revenue	EUR ‘000	17.6%	77,769	66,126	90,662	97,265
Technology	EUR ‘000	23.5%	48,189	39,018	53,733	61,673
Services	EUR ‘000	9.1%	29,580	27,108	36,929	35,592
Gross profit	EUR ‘000	6.1%	24,335	22,941	31,652	30,779
EBITDA 1	EUR ‘000	-3.4%	5,465	5,657	8,319	7,980
Earnings before interest and taxes (EBIT)	EUR ‘000	-12.0%	3,026	3,439	5,357	4,787
Net profit for the period	EUR ‘000	-17.1%	1,736	2,095	3,094	3,019
as % of revenue	%		2.2%	3.2%	3.4%	3.1%
Net result per share (IFRS)	EUR	-22.9%	0.25	0.33	0.48	0.47
Balance sheet
Issued capital	EUR ‘000	0.0%	6,908	6,908	6,908	6,908
Equity	EUR ‘000	8.4%	43,098	39,768	40,865	37,291
Equity ratio	%		56.3%	57.9%	63.2%	55.5%
Return on equity	%		4.0%	5.4%	7.9%	8.5%
Balance sheet total	EUR ‘000	11.5%	76,520	68,640	64,705	67,215
Net debt 2	EUR ‘000		-1,545	-430	-8,462	4,890
Working capital 3	EUR ‘000	19.5%	27,400	22,933	27,087	18,527
ROCE 4	%		5.3%	6.3	10.1%	8.9%
Employees
Employees (average)		21.3%	768	633	646	659
Personnel expenses	EUR ‘000	16.3%	27,883	23,966	32,651	33,224
as % of revenue	%		35.9%	36.2%	36.0%	34.2%
Revenue per employee	EUR ‘000	-3.1%	101	105	140	148
Cash flow
Cash flow 5	EUR ‘000		2,220	6,075	10,979	5,868
Free Cash flow 6	EUR ‘000		-3,409	5,021	13,172	3,606
Shares
Number of shares at end of period		0.5%	6,466,510	6,432,775	6,455,404	6,432,775
Share price (max)	EUR	65.1%	10.35	6.27	7.20	7.51
Share price (min)	EUR	68.3%	6.90	4.10	4.10	4.01

1 EBITDA = EBIT + amortisation of goodwill + depreciation of property,

plant and equipment and intangible assets

2 Net debt = interest-bearing liabilities – cash and cash equivalents

3 Working capital = current assets – current liabilities

4 ROCE = EBIT / Capital employed

5 Cash flow = Net cash from operating activities acc. to Cash flow Statement

6 Free Cash flow = Net cash from operating activities + net cash used for investments

acc. to Cash flow Statement

End of Corporate News

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Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=TDBTCFSLRD

Document title: Press release Q3/9M 2013

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05.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.

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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

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