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ISS - THEON INTERNATIONAL PLC presents its financial results for the nine months ended 30 September 2024, consistently meeting guidance and strategic objectives

Company: Theon International PLC Date: 2024-10-15 Language: English Register to download
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# Table of Contents

| ECONOMIC PERFORMANCE REVIEW                                                        | 3          |
|------------------------------------------------------------------------------------|------------|
| Financial highlights                                                               | 5<br>5     |
| Selected<br>Performance,<br>Capital<br>Structure<br>and<br>Liquidity<br>Indicators | 9<br>9     |
| ASSETS, LIABILITIES AND FINANCIAL POSITION                                         | 10<br>10   |
| INCOME                                                                             | 1 3<br>1 3 |
| CASH FLOWS                                                                         | 15<br>15   |

3

### The main product categories are:

Theon International Plc together with its subsidiaries form the Group "Theon" ("The Group").

The Group is a leading developer and manufacturer of customizable night vision, thermal imaging and Electro-Optical ISR systems for military and security applications in Europe with a global footprint. Theon was founded in 1997 and has since become one of the most relevant players in the sector with offices in Athens, Cyprus, Kempen, Arlington, Abu Dhabi, Dubai, Zug, Copenhagen, and Singapore, coupled with manufacturing facilities in Athens, Wetzlar and Plymouth. Theon's commercial presence extends to 70 countries, across all continents.

The Group generates revenue by selling products primarily to government procurement agencies, armed forces worldwide, defense primes and law enforcement agencies worldwide.

> **Night vision and thermal imaging systems for vehicles and digital platforms**

![](_page_2_Picture_15.jpeg)

**Sights for night driving and upgrade kits for armoured vehicles**

**Full range of night vision sights and thermal imaging instruments**

**Night vision monoculars and binoculars**

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

<span id="page-2-0"></span>![](_page_2_Picture_0.jpeg)

### Economic Performance Review

![](_page_3_Picture_0.jpeg)

In September 2024, Theon International Plc ratified and approved the acquisition of 60% of the shares and voting rights in Harder Digital group. The acquisition will be performed through a cash injection of €34 million. The German government has approved the foreign direct investment (FDI), with effect from 7 October 2024.

During the third quarter 2024, Theon and EXOSENS signed a long-term supply agreement, securing their business relationship until 2026, with an option for 2027. The agreement aims to streamline production and delivery schedules for critical night vision components, ensuring Theon's supply of Image Intensification Tubes, a key element in maintaining its market leadership. This partnership is expected to enhance operational efficiency and reduce lead times, further strengthening the Group's competitive edge in the defense market.

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

![](_page_3_Picture_7.jpeg)

<span id="page-4-0"></span>![](_page_4_Picture_0.jpeg)

#### **ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

2023 2024

![](_page_4_Figure_9.jpeg)

*For the nine months ended September 2024 and 2023*

**115.8222.6** Revenue (in € m) **540.2 400.0**  31 December 2023 30 September 2024 Soft backlog (in € m) **82.1 121.0**  2023 2024 Order intake (in € m)

![](_page_5_Picture_0.jpeg)

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

![](_page_5_Figure_6.jpeg)

Earnings per Share

*For the nine months ended September 2024 and 2023*

![](_page_5_Figure_7.jpeg)

![](_page_5_Figure_8.jpeg)

![](_page_5_Figure_4.jpeg)

Adjusted EBIT margin

![](_page_6_Picture_0.jpeg)

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

The Operating Cash Flow presents a decline from -€12.80 million in the nine-month period ended 30 September 2023 to -€38.10 million in the nine-month period ended 30 September 2024. This decrease is mainly attributed to a substantial increase in sales, resulting in a corresponding rise in receivables.

Adjusted EBIT amounted to €50.60 million, showcasing a rise of 115.26% compared to the same period last year. This translates to an adjusted EBIT margin of 22.73%, which represents a significant improvement from the 20.31% margin recorded in the nine-month period ended 30 September 2023.

Despite the net profit increase for the period compared to the previous year, earnings per share (EPS) have decreased by 21.13%. This reduction is primarily attributable to the issuance of an additional 40 million shares in the last quarter of 2023 and a further 10 million shares in the first quarter of 2024.

Night vision devices (accounting for 93% of the total Revenue) rose from €107.2 million in the nine-month period ended 30 September 2023 to €208.1 million in the nine-month period ended 30 September 2024. This increase is attributed to the new contracts awards and the exercise of existing contracts' options. Europe remains the leader in sales, with the other geographic markets experiencing significant growth.

The Group maintains its focus on international markets, thus capturing even greater market share through innovative products and ongoing client relations' support. International markets continue to be a key priority of the Group. Sales in the Greek market represent a mere 0.29% of the total revenue.

The net profit for the period attributable to the Company's shareholders amounted to €38.6 million (nine-month period ended 30 September 2023: €13.90 million). On 30 September 2024, the total assets of the Group were €323.12 million (31 December 2023: €210.52 million) and the net assets of the group were €195.66 million (31 December 2023: €77.36 million).

The Revenue amounted to €222.61 million (nine- month period ended 30 September 2023: €115.76 million). The operating profit for the same period, was €49.77 million (ninemonth period ended 30 September 2023: €23.51 million).

The nine-month period ended 30 September 2024 is characterized by a 92.30% increase in the topline, resulting in a substantial increase in operating profit (111.72% increase compared to the ninemonth period ended 30 September 2023).

As at 30 September 2024, the soft backlog stands at €400.0 million, reflecting a decrease of 25.95% compared to €540.2 million on 31 December 2023. The soft backlog includes the remaining contract value of the existing and expected contracts.

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

![](_page_6_Picture_18.jpeg)

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The IPO proceeds resulted in a 5.9% leverage ratio in the nine-month period ended 30 September 2024 compared to -0.1% in the year ended 31 December 2023.

Back to Tables of Contents

The Board of Directors' policy preserves a solid capital base, to maintain investor, creditor, and market confidence in the Group and to allow the future expansion. During the reporting period, no changes occurred on Capital Management.

As at 30 September 2024, an amount of €50 million is held in fixed-term deposits with maturities exceeding three months, classified within current assets but not recognized as cash and cash equivalents. This represents an increase of €10 million compared to 30 June 2024. The reallocation of funds into longer-term deposits has resulted in a decrease in cash and cash equivalents and has contributed to the observed change in the leverage ratio, as these deposits are excluded from cash for the purposes of that calculation. The net cash position, including fixed-term deposits in the calculations, would be -€35,882,737, with a corresponding leverage ratio of -15%.

| IN EURO                                  | 30 September<br>2024 | 31 December<br>2023 | VARIANCE    |
|------------------------------------------|----------------------|---------------------|-------------|
| Long-term loan<br>obligations            | 42,523,896           | 32,742,460          | 9,781,436   |
| Short-term<br>loan<br>obligations        | 33,898,362           | 32,777,312          | 1,121,050   |
| Total<br>debt                            | 76,422,258           | 65,519,772          | 10,902,486  |
| Less: Cash<br>and<br>cash<br>equivalents | (62,304,995)         | (65,639,067)        | 3,334,072   |
| /<br>Net debt<br>(cash)                  | 14,117,263           | (119,295)           | 14,236,558  |
| Equity                                   | 195,658,150          | 77,357,508          | 118,300,642 |
| Non-current liabilities                  | 42,825,213           | 33,069,037          | 9,756,176   |
| Total<br>capital<br>employed             | 238,483,363          | 110,426,545         | 128,056,818 |

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

<span id="page-8-0"></span>![](_page_8_Picture_0.jpeg)

# Selected Performance, Capital Structure and Liquidity Indicators

*For the nine months ended 30 September*

| IN<br>EURO                      |                                                                      | 2024                                | 2023                               |           |
|---------------------------------|----------------------------------------------------------------------|-------------------------------------|------------------------------------|-----------|
| Return<br>on<br>(ROE)<br>Equity | profit<br>after<br>Net<br>tax<br>=<br>Equity                         | 38,614,343<br>=<br>=<br>195,658,150 | 13,904,527<br>0.20<br>53,330,265   | 0.26<br>= |
| Adjusted<br>EBITDA<br>margin    | Adjusted<br>EBITDA<br>=<br>Revenue                                   | 52,252,304<br>=<br>=<br>222,609,889 | 24,802,605<br>0.23<br>115,758,779  | 0.21<br>= |
| Adjusted<br>EBIT<br>margin      | Adjusted<br>EBIT<br>=<br>Revenue                                     | 50,602,041<br>=<br>=<br>222,609,889 | 23,507,133<br>0.23<br>115,758,779  | 0.20<br>= |
| Debt<br>ratio                   | Debt<br>=<br>Debt<br>+ Equity                                        | 76,422,258<br>=<br>=<br>272,080,408 | 56,982,401<br>0.28<br>110,312,666  | 0.52<br>= |
| ratio<br>Current                | Current<br>assets<br>=<br>liabilities<br>Current                     | 289,032,134<br>=<br>=<br>84,632,517 | 157,457,334<br>3.42<br>109,669,882 | 1.44<br>= |
| ROCE                            | Adjusted<br>EBIT<br>=<br>Invested<br>capital                         | 50,602,041<br>=<br>=<br>238,483,363 | 23,507,133<br>0.21<br>67,766,102   | 0.35<br>= |
| Quick<br>ratio                  | Current<br>assets<br>-<br>inventories<br>=<br>liabilities<br>Current | 204,652,057<br>=<br>=<br>84,632,517 | 94,223,537<br>2.42<br>109,669,882  | 0.86<br>= |

| 0.26 |  |  |
|------|--|--|
|      |  |  |
|      |  |  |
| 0.52 |  |  |
|      |  |  |
| 0.35 |  |  |
|      |  |  |

**ECONOMIC PERFORMANCE REVIEW**

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

CASH FLOWS

<span id="page-9-0"></span>![](_page_9_Picture_0.jpeg)

### Assets

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

![](_page_9_Picture_8.jpeg)

![](_page_9_Picture_9.jpeg)

| EURO<br>IN                            | September<br>30<br>2024 | December<br>31<br>2023 |
|---------------------------------------|-------------------------|------------------------|
| Assets                                |                         |                        |
| plant<br>and<br>equipment<br>Property | 24,123,062              | 17,358,467             |
| Intangible<br>assets                  | 4,994,392               | 1,470,095              |
| Right<br>of<br>use assets             | 1,050,098               | 908,907                |
| Investment<br>property                | 659,046                 | 703,802                |
| Investment<br>in<br>associates        | 2,765,611               | 1,099,085              |
| Other<br>non-current assets           | 158,571                 | 150,932                |
| Deferred<br>tax assets                | 332,966                 | 48,258                 |
| Non-current<br>assets                 | 34,083,746              | 21,739,546             |
| Inventories                           | 84,380,077              | 63,613,462             |
| Trade<br>accounts receivable          | 81,132,646              | 46,087,790             |
| Other<br>receivables                  | 8,680,774               | 10,977,857             |
| Other<br>financial<br>assets          | 520,525                 | 208,156                |
| Prepayments                           | 2,013,117               | 2,255,011              |
| deposits<br>Term                      | 50,000,000              | -                      |
| Cash<br>and<br>cash<br>equivalents    | 62,304,995              | 65,639,067             |
| Current<br>assets                     | 289,032,134             | 188,781,343            |
| Total<br>assets                       | 323,115,880             | 210,520,889            |

ECONOMIC PERFORMANCE REVIEW

**ASSETS, LIABILITIES AND FINANCIAL POSITION**

INCOME

![](_page_10_Picture_0.jpeg)

### Liabilities and financial position

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

![](_page_10_Picture_8.jpeg)

| IN<br>EURO                                                      | September<br>30<br>2024 | December<br>31<br>2023 |
|-----------------------------------------------------------------|-------------------------|------------------------|
| Equity                                                          |                         |                        |
| Equity<br>attributable<br>to the<br>owners of<br>the<br>Company | 195,658,150             | 77,357,508             |
| Liabilities                                                     |                         |                        |
| and<br>borrowings<br>Loans                                      | 38,427,991              | 25,521,669             |
| owed<br>for<br>share<br>buy-back<br>Amount                      | 3,511,618               | 6,656,157              |
| for<br>staff<br>Provision<br>retirement<br>indemnities          | 217,560                 | 198,320                |
| liabilities<br>Lease                                            | 584,287                 | 564,634                |
| Government<br>grants                                            | 83,757                  | 128,257                |
| liabilities<br>Non-current                                      | 42,825,213              | 33,069,037             |
| Trade<br>accounts payable                                       | 28,417,583              | 41,811,689             |
| liabilities<br>Lease                                            | 477,682                 | 401,526                |
| and<br>borrowings<br>Loans                                      | 25,872,995              | 25,391,700             |
| owed<br>for<br>share<br>buy-back<br>Amount                      | 7,547,685               | 6,984,086              |
| liabilities<br>Contract                                         | 1,803,363               | 5,240,112              |
| tax payable<br>Income                                           | 11,065,168              | 7,974,569              |
| Accrued<br>and<br>other<br>current liabilities                  | 9,448,041               | 12,290,662             |
| liabilities<br>Current                                          | 84,632,517              | 100,094,344            |
| Total<br>liabilities                                            | 127,457,730             | 133,163,381            |
| Total<br>equity<br>and<br>liabilities                           | 323,115,880             | 210,520,889            |

ECONOMIC PERFORMANCE REVIEW

**ASSETS, LIABILITIES AND FINANCIAL POSITION**

INCOME

For the nine-month period ended 30 September 2024, trade receivables demonstrate a notable 76.04% increase, aligned with the substantial revenue growth recorded during the same period. As at 30 September 2024, the trade accounts receivable balance includes €48,231,876 receivables from related parties, mainly attributable to Hensoldt Theon Nightvision Gmbh and Hensoldt–Theon Gbr.

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

### Trade accounts receivable

#### Cash and cash equivalents and term deposits

As at 30 September 2024, €50,000,000 was invested in term deposits with maturities exceeding three months, which includes a portion of the net IPO proceeds.

![](_page_11_Picture_0.jpeg)

### Intangible assets

During the nine-month period ended 30 September 2024, the Group acquired assets at a cost of €3,620,830 (nine-month period ended 30 September 2023: €566,354). This amount primarily relates to the development of new platform-based products through outsourcing part of the Research and Development (R&D).

### Trade accounts payable and accrued and other current liabilities

The 32.03% decrease in trade payables compared to the figures as at 31 December 2023 is attributed to the Group's annual operating cycle, consistent with the 20% reduction observed in the prior nine-month period ended 30 September 2023.

![](_page_11_Picture_11.jpeg)

# Assets Liabilities and financial position

ECONOMIC PERFORMANCE REVIEW

**ASSETS, LIABILITIES AND FINANCIAL POSITION**

INCOME

<span id="page-12-0"></span>![](_page_12_Picture_0.jpeg)

### Income

Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

![](_page_12_Picture_9.jpeg)

*For the nine months ended 30 September*

IN EURO **2024 2023** Revenue 222,609,889 115,758,779 Cost of sales (157,469,986) (82,313,956) **Gross profit 65,139,903 33,444,823**  Other income 337,102 320,204 Administrative expenses (9,745,848) (6,704,356) Selling and distribution expenses (2,429,627) (1,585,102) Research and development expenses (3,253,982) (1,875,424) Impairment loss on trade receivables (150,000) - Other expenses (127,563) (93,012) **Operating profit 49,769,985 23,507,133**  Finance income 3,537,436 714,300 Finance costs (5,446,498) (3,931,840) **Net finance costs (1,909,062) (3,217,540)** Share of profit of equity-accounted investees 1,666,526 398,779 **Profit before tax 49,527,449 20,688,372**  Income tax expense (11,197,814) (6,766,461) Deferred tax 284,708 (17,384) **Profit for the period after tax 38,614,343 13,904,527** 

ECONOMIC PERFORMANCE REVIEW

ASSETS, LIABILITIES AND FINANCIAL POSITION

**INCOME**

The Management provides the adjusted EBITDA performance measure as it closely monitors this metric at a consolidated level and deems it integral for comprehending the Group's financial performance. Adjusted EBITDA is calculated by adjusting profit for the period after tax to exclude the impact from taxation, net finance costs, depreciation and amortization, impairment of fixed assets, gains from the revaluation of assets, the share of profit of equity-accounted investees and the effects of significant items of income and expenses, which might have an impact on the quality of earnings, such as restructuring costs, legal expenses and impairments resulting from an isolated, non-recurring event.

![](_page_13_Picture_0.jpeg)

### Adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA)

### Disaggregation of revenue from contracts with customers

*For the nine months ended 30 September*

In the following table, revenue is disaggregated based on primary geographical markets, major products and the timing of revenue recognition. *For the nine months ended 30 September*

| EURO<br>IN                | 2024       | 2023       |
|---------------------------|------------|------------|
| Profit<br>after<br>tax    | 38,614,343 | 13,904,527 |
| Income<br>tax expense     | 11,197,814 | 6,766,461  |
| Deferred<br>tax           | (284,708)  | 17,384     |
| Profit<br>before<br>tax   | 49,527,449 | 20,688,372 |
| Adjustments               | 242,536    | 2,818,761  |
| EBIT                      | 49,769,985 | 23,507,133 |
| Non<br>recurring<br>items | 832,056    | -          |
| Adjusted<br>EBIT          | 50,602,041 | 23,507,133 |
| Adjusted<br>EBITDA        | 52,252,304 | 24,802,605 |

| IN<br>EURO                       | 2024        | 2023        |
|----------------------------------|-------------|-------------|
| geographic<br>markets<br>Primary |             |             |
| Europe                           | 183,171,397 | 98,723,826  |
| Asia                             | 8,962,656   | 6,737,360   |
| Americas                         | 29,400,223  | 10,289,190  |
| Oceania                          | 1,075,613   | 8,403       |
|                                  | 222,609,889 | 115,758,779 |
| products<br>Major<br>categories  |             |             |
| Night                            | 208,092,404 | 107,164,825 |
| Thermal                          | 12,598,594  | 6,418,514   |
| Miscellaneous                    | 579,400     | -           |
| Other                            | 1,339,491   | 2,175,440   |
|                                  | 222,609,889 | 115,758,779 |
| Total<br>Revenue                 | 222,609,889 | 115,758,779 |

The Group has two optronic divisions, night and thermal. Segmentation is based on the fact that the relevant devices have different technologies, characteristics, and components (tubes/sensors). More specifically, night vision products have image intensification technology and thermal products have thermal imaging technology. The "Other" category encompasses services and spare parts, while the "Miscellaneous" category includes any products that do not fit within the other defined categories.

ECONOMIC PERFORMANCE REVIEW

ASSETS, LIABILITIES AND FINANCIAL POSITION

**INCOME**

<span id="page-14-0"></span>![](_page_14_Picture_0.jpeg)

### Cash flows

#### Trading update FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2024

*For the nine months ended 30 September*

| IN EURO                                                 | 2024         | 2023         |
|---------------------------------------------------------|--------------|--------------|
| Cash flows from operating activities                    |              |              |
| Profit for the period after tax                         | 38,614,343   | 13,904,527   |
| Non cash items                                          | 14,142,020   | 10,809,772   |
|                                                         | 52,756,363   | 24,714,299   |
| Changes in working capital:                             |              |              |
| Increase in inventories                                 | (21,904,965) | (29,254,171) |
| (Increase) /<br>Decrease in trade and other receivables | (32,663,518) | 1,506,965    |
| (Decrease) /<br>Increase in trade and other payables    | (26,714,386) | 5,850,481    |
| Cash (used in) /<br>from operation activities           | (28,526,506) | 2,817,574    |
| Income tax paid                                         | (8,107,215)  | (7,285,078)  |
| Interest paid                                           | (1,464,069)  | (8,327,825)  |
| Net cash used in operating activities                   | (38,097,790) | (12,795,329) |
| Cash flows from investing activities                    |              |              |
| Payments for non current assets                         | (11,531,012) | (5,768,259)  |
| Payments for financial assets                           | (258,104)    | -            |
| Proceeds from sale of non current assets                | 4,881        | 30,954       |
| Investment in term deposits                             | (50,000,000) | (6,010,239)  |
| Proceeds from loans receivables                         | -            | 7,235,649    |
| Dividends received                                      | -            | 17,689       |
| Interest received                                       | 2,139,536    | 206,145      |
| Net cash flows used in investing activities             | (59,644,699) | (4,288,061)  |

| IN EURO                                                   | 2024          | 2023         |
|-----------------------------------------------------------|---------------|--------------|
| Cash flows financing activities                           |               |              |
| Repayment of borrowings                                   | (126,465,848) | (52,516,887) |
| Proceeds from borrowings from financial institutions      | 138,788,736   | 58,887,254   |
| Outflows of lease liabllities                             | (372,453)     | (212,051)    |
| Proceeds from share capital increase                      | 100,000,000   | -            |
| Repayment of share buy back aggreement                    | (3,211,000)   | -            |
| Dividends paid                                            | (14,438,235)  | -            |
| Net cash flows from financing activities                  | 94,301,200    | 6,158,316    |
| Net decrease in cash and cash equivalents                 | (3,441,289)   | (10,925,074) |
| Cash and cash equivalents at 1 January                    | 65,639,067    | 24,035,135   |
| Foreign exchange differences                              | 107,217       | 841,264      |
| Closing Cash and cash equivalents balance at 30 September | 62,304,995    | 13,951,325   |

ECONOMIC PERFORMANCE REVIEW

ASSETS, LIABILITIES AND FINANCIAL POSITION

INCOME

![](_page_14_Picture_8.jpeg)

theon.com

[theon.com](https://www.theon.com/medias/news/item/146-theon-euronext-initiative-highgrowth-tech-companies)

#### **THEONINTERNATIONAL PLC**

5, Agios Antoniosstr. Muskita Building 2 1st floor, Office/Apart. 102 2002 Nicosia Cyprus

#### **THEONSENSORS S.A.**

57, Ioannou Metaxa str., Koropi,GR-19441 Greece

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*This document should be read in conjunction with the semi-annual report 2024, the annual report 2023 and the accompanying press releases.*