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RTX Interim / Quarterly Report 2023
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Interim / Quarterly Report
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Interim report for Q2 and H1 2023/24
(the period 01.10.2023 - 31.03.2024)
Announcement
to Nasdaq Copenhagen A/S and the media
Nørresundby, 7 May 2024
Announcement no. 25/2024
No. of pages: 15
Q2 meets expectations, with growing orders and sales, in a market, where customer inventories are normalizing and reordering is beginning to pick up.
"The results for Q2 are in line with our expectations for the quarter, reaching sales of DKK 125 million and trimming inventory by DKK 8 million during the quarter. In Q2, we furthermore see an increase in our order intake, indicating a shift towards more typical market dynamics, characterized by shorter order horizons and priority on inventory reductions.
2023/24 is indeed a challenging year for RTX, and in Q2 we have seen business gradually improving. We expect improvements to continue in the coming quarters, and despite some uncertainty we maintain our outlook for the year, as previously communicated in the 2022/23 annual report."
Peter Røpke, CEO
Highlights
- Revenue in Q2 reached DKK 125 million, which is within the expected range of DKK 120-130 million, as communicated in the Q1 report, showing an increase of DKK 43 million (53 %) compared to Q1 2023/24.
- Q2 showed a significant increase in new orders, indicating a gradually normalization in the market.
- EBITDA reached DKK 1 million for the quarter, compared to DKK -31 million in Q1 2023/24.
- Inventory decreased by DKK 8 million in Q2 as we received the last components ordered two years ago. Further reductions will follow throughout the year.
- Q2 showed a negative cash flow of DKK 22 million, whereof DKK 9 million are related to the share buyback program.
- During H1 2023/24, DKK 12 of 20 million in the current Share Buy Back program was utilized.
Outlook
During Q2, we witnessed an increase in new orders compared to the previous quarters. We therefore maintain the communicated outlook for the financial year, despite some uncertainty in the latest quarter, particularly in ProAudio.
- Revenue DKK 580-630 million
- EBITDA DKK 45-60 million
- EBIT DKK 5-20 million
Investor and analyst conference call
On Tuesday, 7 May 2024 at 16:15 pm CET, RTX will hold a conference call for investors and analysts hosted by Danske Bank.
To register for the conference call, please e-mail [email protected].
RTX A/S Strømmen 6, DK-9400 Nørresundby, Denmark • Tel +45 96 32 23 00 • Fax +45 96 32 23 10 • VAT DK 17 00 21 47 • Web www.rtx.dk • E-mail [email protected]
RTX
RTX interim report for Q2 and H1 2023/24
Group Financial Highlights and Key Ratios
(non-audited)
| Amounts in DKK million | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Income statement items | |||||
| Revenue | 125.2 | 180.0 | 207.1 | 387.5 | 782.8 |
| Gross Profit | 57.1 | 74.2 | 88.9 | 175.6 | 358.4 |
| Gross Margin % | 45.6% | 41.2% | 42.9% | 45.3% | 45.8% |
| EBITDA | 0.9 | 7.8 | -29.5 | 49.8 | 107.5 |
| EBITDA % | 0.7% | 4.3% | -14.3% | 12.9% | 13.7% |
| Operating profit/loss (EBIT) | -9.6 | -1.9 | -50.8 | 30.4 | 67.9 |
| Net financials | 1.8 | -1.8 | -1.4 | -11.6 | -8.7 |
| Profit/loss before tax | -7.8 | -3.7 | -52.2 | 18.8 | 59.2 |
| Profit/loss for the period | -6.1 | -2.9 | -40.7 | 14.6 | 46.7 |
| Balance sheet items | |||||
| Net liquidity position(1) | 87.2 | 96.3 | 87.2 | 96.3 | 137.7 |
| Total assets | 467.1 | 547.0 | 467.1 | 547.0 | 578.1 |
| Equity | 325.6 | 346.5 | 325.6 | 346.5 | 377.7 |
| Liabilities | 141.5 | 200.5 | 141.5 | 200.5 | 201.0 |
| Other key figures | |||||
| Development cost financed by RTX before capitalization | 32.2 | 5.7 | 41.5 | 18.1 | 33.2 |
| Capitalized development costs | 7.0 | 3.2 | 10.6 | 6.6 | 13.5 |
| Depreciation, amortization and impairment | 10.5 | 9.7 | 21.2 | 19.4 | 39.6 |
| Cash flow from operations | -4.3 | 14.5 | -22.9 | 36.6 | 97.0 |
| Cash flow from investments | -7.6 | -9.1 | -12.0 | -15.1 | -26.7 |
| Investment in property, plant and equipment | 0.1 | 4.2 | 0.6 | 5.7 | 10.2 |
| Increase/decrease in cash and cash equivalents | -22.7 | 3.5 | -50.4 | 18.3 | 62.5 |
| Amounts in DKK million | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
| --- | --- | --- | --- | --- | --- |
| Key ratios (percentage) | |||||
| Growth in net turnover | -30.4% | 34.0% | -46.6% | 48.6% | 18.0 |
| Profit margin | -7.7% | -1.1% | -24.5% | 7.8% | 8.7 |
| Return on invested capital(2) | 3.4% | 38.3% | 3.4% | 38.3% | 28.7 |
| Return on equity(3) | -2.6% | 17.1% | -2.6% | 17.1% | 13.2 |
| Equity ratio | 69.7% | 63.3% | 69.7% | 63.3% | 65.2 |
| Employment | |||||
| Average number of full-time employees | 291 | 295 | 295 | 294 | 299 |
| Average number of FTE employed directly | 259 | 262 | 262 | 262 | 267 |
| Revenue per employee (DKK '000)(3) | 430 | 610 | 702 | 1,318 | 2,618 |
| Operating profit per employee (DKK '000)(3) | -33 | -7 | -172 | 103 | 227 |
| Shares (number of shares in thousands) | |||||
| Average number of shares in distribution | 8,114 | 8,200 | 8,158 | 8,191 | 8,200 |
| Average number of diluted shares | 8,087 | 8,216 | 8,112 | 8,200 | 8,195 |
| Share data (DKK per share at DKK 5) | |||||
| Profit/loss for the year (EPS), per share(3) | -0.8 | -0.4 | -5.0 | 1.8 | 5.7 |
| Profit/loss for the year, diluted (DEPS), per share(3) | -0.8 | -0.4 | -5.0 | 1.8 | 5.7 |
| Dividends, per share | - | - | - | - | - |
| Equity value, per share | 40.4 | 42.2 | 40.4 | 42.2 | 45.9 |
| Listed price, per share | 97.2 | 139.8 | 97.2 | 139.8 | 83.6 |
Note: The Group's financial year runs from 1 October to 30 September. Definitions of the key ratios used are stated in the annual report for 2022/23 in the accounting policies.
(1) Equals total of cash and current equity investments (2) Calculated over a '12 months' period. (3) Not annualized.
RTX interim report for Q2 and H1 2023/24
<
Management report for Q2 and H1 2023/24
Q2 meets expectations, with growing orders and sales, in a market where customer inventories are normalizing and reordering is beginning to pick up.
Revenue
In the second quarter of the financial year, RTX experienced an increasing order intake and have seen revenue picking up, resulting in a Q2 revenue of DKK 125 million, meeting the expectations communicated in the Q1 report (DKK 120-130 million).
Revenue in the current financial year is heavily impacted by the high stock levels at customers, combined with a reduction in order lead times from 18 to 3 months. Consequently, our customers have focused on reducing inventory and returning to a normalized market dynamic with order horizons of typically 3 months, as were found prior to the component crisis and COVID restrictions.
Revenue for H1 of DKK 207 million is considered disappointing by management. However, the increase in revenue during Q2 and the increase in order intake indicates that the market is normalizing. Furthermore, we maintain close relations to our key customers and expand our portfolio with new customers.
Revenue for Q2 2023/24 reached DKK 125 million (Q2 2022/23: DKK 180 million). Revenue for H1 2023/24 amounted to DKK 207 million (H1 2022/23: DKK 387 million).
The positive development in revenue between first and second quarter reflects that a number of customers have reduced their inventories and have started placing new orders. As expected, total revenue for H1 2023/24 is significantly lower than for H1 2022/23. Compared to last year, revenue is negatively impacted by 2.7%, due to the lower USD exchange rate.
- Enterprise segment: Revenue for Q2 2023/24 reached DKK 81 million (Q2 2022/23: DKK 116 million). Revenue for H1 2023/24 amounted to DKK 125 million (H1 2022/23: DKK 270 million). Revenue for H1 is 54% lower than last year.
Revenue
Q2 2023/24
125 DKKm
-30%
YoY growth
-
ProAudio segment: Revenue for Q2 2023/24 reached DKK 41 million (Q2 2022/23: DKK 53 million). Revenue for H1 2023/24 amounted to DKK 65 million (H1 2022/23: DKK 91 million). Revenue for H1 is 29% lower than last year.
-
Healthcare segment: Revenue for Q2 2023/24 reached DKK 4 million (Q2 2022/23: DKK 12 million). Revenue for H1 2023/24 amounted to DKK 17 million (H1 2022/23: DKK 26 million). Revenue for H1 is 33% lower than last year. High focus and efforts have been invested in completing the strategic agreement in the Healthcare segment in Q1, and developing according to plan in Q2. RTX is currently in a transition phase to next generation products, and we expect to see new product releases over the next years as a consequence of the agreement signed in November 2023.
RTX interim report for Q2 and H1 2023/24
| DKK million | Q2 23/24 | Change (%, YoY) | H1 23/24 | Change (%, YoY) |
|---|---|---|---|---|
| Enterprise revenue | 80.9 | -30.1% | 125.4 | -53.6% |
| ProAudio revenue | 40.8 | -22.7% | 64.6 | -29.3% |
| Healthcare revenue | 3.5 | -69.3% | 17.1 | -33.4% |
| Total | 125.2 | -30.4% | 207.1 | -46.6% |
Gross profit for Q2 2023/24 reached DKK 57 million (Q2 2022/23: DKK 74 million). Gross profit for H1 2023/24 amounted to DKK 89 million (H1 2022/23: DKK 176 million).
Gross margin for Q2 2023/24 reached 46% (Q2 2022/23: 41%). Gross margin for H1 2023/24 reached 43% (H1 2022/23: 45%). The gross margin is impacted by the revenue mix of products.
As anticipated, there is a notable increase in gross margin from Q1 to Q2, driven by both the product mix and the higher total revenue, where semi-variable costs are distributed over more products.
During the next quarters of 2023/24, we expect to see a continuous positive development of gross margin from product mix and total revenue volume, combined with our efforts to improve individual gross margin per product.
Gross profit
Q2 2023/24
57 DKKm
-23%
YoY growth
| DKK million | Q2 23/24 | Change (YoY) | H1 23/24 | Change (YoY) |
|---|---|---|---|---|
| Gross profit | 57.1 | -23.1 % | 88.9 | -49.4 % |
| Gross margin | 45.6 % | 4.4 pp. | 42.9 | -2.4 pp. |
Capacity costs, which consist mainly of staff costs and other external expenses, amounted to DKK 63 million in Q2 2023/24 (Q2 2022/23: DKK 70 million) and DKK 129 million in H1 2023/24 (H1 2022/23: DKK 132 million) before capitalization of development costs.
We have exercised cost cautiousness in capacity costs and organizational development, and in parallel increased customer focused activities. In Q1 2023/24, we launched cost reduction initiatives, of which we start to see the impact. The initiatives reflect a balanced effort to bridge the short-term revenue reduction with the long-term growth ambition, where we need skilled and experienced employees to keep developing our customer portfolio and products.
| DKK million | Q2 23/24 | Change (%, YoY) | H1 23/24 | Change (%, YoY) |
|---|---|---|---|---|
| Capacity costs(1) | 63.2 | -9.2% | 129.1 | -2.5% |
| Value of own work capitalized | 7.0 | 117.7% | 10.6 | 61.2% |
| Depreciation etc.(2) | 10.5 | 8.3% | 21.2 | 9.4% |
(1) Staff costs and other external expenses
(2) Depreciation, amortization and impairment
Capitalized development costs: RTX continue to invest in development of new product features and the future product portfolio.
In total, RTX capitalized own development costs of DKK 7 million in Q2 2023/24 (Q2 2022/23: DKK 3 million), and DKK 11 million in H1 2023/24 (H1 2022/23 DKK 7 million).
Depreciations and amortizations amounted to DKK 21 million in H1 2023/24 (H1 2022/23: DKK 19 million) and is a reflection of new product releases and initiated depreciation.
EBITDA for Q2 2023/24 reached DKK 1 million (Q2 2022/23: DKK 8 million). EBITDA for H1 2023/24 amounted to DKK -30 million (H1 2022/23: DKK 50 million). EBITDA for the period is impacted mainly by the revenue level, which is significantly lower than last year, but improving in Q2 compared to Q1.
EBIT for Q2 2023/24 reached DKK -10 million (Q2 2022/23: DKK -2 million). EBIT for H1 2023/24 amounted to DKK -51 million (H1 2022/23: DKK 30 million). The depreciation level is in line with previous periods around DKK 10 million per quarter.
Profit before tax for Q2 2023/24 reached DKK -8 million (Q2 2022/23: DKK -4 million). Profit before tax for H1 2023/24 amounted to DKK -52 million (H1 2022/23: DKK 19 million).
RTX interim report for Q2 and H1 2023/24
| DKK million | Q2 23/24 | Change (YoY) | H1 23/24 | Change (YoY) |
|---|---|---|---|---|
| EBITDA | 0.9 | -6.9 | -29.5 | -79.4 |
| EBIT | -9.6 | -7.7 | -50.8 | -81.2 |
| Profit/loss before tax | -7.8 | -4.1 | -52.2 | -71.0 |
| EPS (DKK per share) | -0.8 | -0.4 | -5.0 | -6.8 |
Equity, Assets, Inventory and Cash Flow
Cash flows from operations (CFFO) for Q2 2023/24 reached DKK -4 million (Q2 2022/23: DKK 15 million). CFFO for H1 2023/24 amounted to DKK -23 million (H1 2022/23: DKK 37 million). CFFO was negatively impacted by operating result and positively impacted by the working capital development, with reduction in both inventory and receivables.
| DKK million | Q2 23/24 | Change (%, YoY) | H1 23/24 | Change (%, YoY) |
|---|---|---|---|---|
| CFFO (1) | -4.3 | -129.8% | -22.9 | -162.6% |
| Net liquidity position (2) | 87.2 | -9.4% | 87.2 | -9.4% |
The net liquidity position of RTX amounted to DKK 87 million at the end of H1 2023/24 compared to DKK 138 million at the start of the fiscal year. The level is positively impacted by the reduction in both inventory and receivables and negatively impacted by operating result for the period.
Total assets were DKK 467 million at the end of H1 2023/24 compared to DKK 547 million at the end of H1 2022/23. The decrease in assets is primarily due to reduction in cash and a decrease in receivables due to the lower activity in the period.
The total value of development cost incurred before capitalization of DKK 32.2 million in Q2 2023/24 includes investment in strategic collaboration with a large global Healthcare company regarding a new generation of wireless infrastructure for patient monitoring solutions for the hospital healthcare sector (ref. note 4).
Return on Invested Capital is calculated over a 12 months period, and is impacted by the lower revenue. For H1 2023/24 ROIC was 3% (H1 2022/23: 37%).
The equity ratio of RTX continues to be at a solid level at 70% at the end of H1 2023/24 (H1 2022/23: 60%).
Outlook for 2023/24
RTX maintains the outlook for the financial year 2023/24 as communicated on 13 November 2023 and in our annual report for 2022/23, with revenue of DKK 580-630 million, EBITDA of DKK 45-60 million and EBIT of DKK 5-20 million.
Revenue for 2023/24: 80% of revenue is expected to come from existing products, and 20% from new product and module launches. Q2 showed a revenue
Equity ratio
70%
ROIC
3%
of DKK 125 million and Q1 a revenue of DKK 82 million. The outlook for 2023/24 reflects a stepwise return to a normalized production and delivery pattern. By the end of 2024, we expect to approach a fully normalized run rate of product sales, but it will vary from customer to customer. We expect to continue to see improvements in the coming quarters, particularly in Q4. The outlook is still subject to uncertainties, particularly in the ProAudio segment, combined with the timing for reaching a normalized production and delivery pattern. However, we maintain our outlook for the year, as previously communicated in the 2022/23 annual report.
Gross margin is expected to be positively impacted by the product mix, and negatively impacted by the lower total revenue, compared to last year. Overall the gross margin for 2023/24 is expected to improve during H2.
Capacity costs for 2023/24 are expected to end lower than for 2022/23. This is a result of cost controlling measures implemented by management in Q1 2023/24 and expected to be maintained throughout the year. The impact of the efforts will be most evident in H2 2023/24.
Inventory, comprises components, finished goods, and goods in transit. We expect to see a reduction of component inventory during the rest of 2023/24, as components will be used in sold products and inflow of components is returning to normal practice, where they are sourced by our production partners. The absolute
RTX interim report for Q2 and H1 2023/24
Risks and uncertainties for the 2023/24 financial year
Forward-looking statements:
The above statements on the Group's future conditions, including in particular, future revenue and operating profit (EBITDA), reflect Management's current outlook and carry some uncertainty. These statements can be affected by several risks and uncertainties, which mean that actual developments and results can be materially different from the expectations expressed directly or indirectly in this interim report. These risks and uncertainties include, but are not limited to, general economic conditions and developments, changes in demand for RTX's products and services, competition, technological changes, fluctuations in currencies, component availability and fluctuations in sub-contractor supplies as well as legislative and/or regulatory changes.
size of the inventory reduction depends on development in revenue.
The outlook is based on dialogue with key customers on their expectations for 2023/24, combined with our market insight on new customers and products. The USD FX rate creates some uncertainty regarding the full-year outlook as the vast majority of revenue and cost of sales are USD denominated. For a full list of assumptions behind the outlook, refer to the annual report for 2022/23 (pages 34-35).
Share buyback
Based on the revised capital policy announced on 29 August 2023, RTX announced on 30 November 2023, that RTX would initiate a share buyback program up to DKK 20 million during 2023/24. By the end of Q2 2023/24, 145,040 shares had been purchased under the Safe Harbour Program at a value of DKK 12 million. The program continues up to the announced DKK 20 million under the regulations of Safe Harbour and RTX's capital policy.
RTX A/S
Peter Thostrup
Chair
Peter Røpke
CEO
Financial calendar
Expected publication of financial information for the financial year 2023/24:
28 August 2024
Interim report Q3 2023/24
28 November 2024
Annual report for 2023/24
Enquiries and further information:
CEO, Peter Røpke or
CFO, Mille Tram Lux tel +45 96 32 23 00
RTX interim report for Q2 and H1 2023/24
Income Statement
(non-audited)
| Amounts in DKK '000 | Note | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|---|
| Revenue | 3 | 125,209 | 179,987 | 207,109 | 387,497 | 782,777 |
| Value of own work capitalized | 4 | 7,016 | 3,223 | 10,639 | 6,601 | 13,525 |
| Cost of sales | -68,156 | -105,834 | -118,193 | -211,876 | -424,346 | |
| Other external expenses | -17,439 | -17,982 | -36,732 | -34,423 | -72,419 | |
| Staff costs | -45,714 | -51,577 | -92,364 | -97,987 | -192,013 | |
| Operating profit/loss before depreciation and amortization (EBITDA) | 916 | 7,817 | -29,541 | 49,812 | 107,524 | |
| Depreciation, amortization and impairment | 4 | -10,548 | -9,736 | -21,247 | -19,416 | -39,628 |
| Operating profit/loss (EBIT) | -9,632 | -1,919 | -50,788 | 30,396 | 67,896 | |
| Financial income | 5 | 3,039 | 677 | 3,655 | 3,159 | 3,840 |
| Financial expenses | 5 | -1,213 | -2,473 | -5,062 | -14,799 | -12,569 |
| Profit/loss before tax | -7,806 | -3,715 | -52,195 | 18,756 | 59,167 | |
| Tax on profit/loss | 1,717 | 813 | 11,483 | -4,161 | -12,452 | |
| Profit/loss for the period | -6,089 | -2,902 | -40,712 | 14,595 | 46,715 | |
| Earnings per share | ||||||
| Earnings per share (DKK) | -0.8 | -0.4 | -5.0 | 1.8 | 5.7 | |
| Earnings per share, diluted (DKK) | -0.8 | -0.4 | -5.0 | 1.8 | 5.7 |
Statement of Comprehensive Income
(non-audited)
| Amounts in DKK '000 | Note | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|---|
| Profit/loss for the period | -6,089 | -2,902 | -40,712 | 14,595 | 46,715 | |
| Items that can be reclassified subsequently to the income statement | ||||||
| Exchange rate adjustments of foreign subsidiaries | 873 | -820 | -861 | -4,336 | -3,289 | |
| Fair value adjustment relating to hedging instruments | -43 | 208 | 70 | 2,822 | 1,852 | |
| Tax on hedging instruments | 10 | -46 | -15 | -621 | -407 | |
| Fair value of hedging instruments reclassified to the income statement | 32 | -487 | 212 | -157 | -27 | |
| Tax on hedging instruments reclassified | -7 | 108 | -47 | 35 | 6 | |
| Other comprehensive income, net of tax | 865 | -1,037 | -641 | -2,257 | -1,865 | |
| Comprehensive income for the period | -5,224 | -3,939 | -41,353 | 12,338 | 44,850 |
RTX interim report for Q2 and H1 2023/24
Balance Sheet
(non-audited)
| Amounts in DKK '000 | 31.03.24 | 31.03.23 | 30.09.23 |
|---|---|---|---|
| Assets | |||
| Own completed development projects | 15,399 | 27,683 | 27,356 |
| Own development projects in progress | 47,865 | 24,824 | 19,714 |
| Software | 842 | - | 1,015 |
| Goodwill | 7,797 | 7,797 | 7,797 |
| Intangible assets | 71,903 | 60,304 | 55,882 |
| Right-of-use assets (lease assets) | 48,595 | 50,875 | 51,155 |
| Plant and machinery | 16,848 | 20,649 | 20,285 |
| Other fixtures, tools and equipment | 3,288 | 3,905 | 4,165 |
| Leasehold improvements | 10,015 | 10,745 | 10,665 |
| Tangible assets | 78,746 | 86,174 | 86,270 |
| Deposits | 6,703 | 6,730 | 6,757 |
| Deferred tax assets | 7,608 | 1,916 | 2,161 |
| Other non-current assets | 14,311 | 8,646 | 8,918 |
| Total non-current assets | 164,960 | 155,124 | 151,070 |
| Inventories | 99,812 | 112,671 | 102,167 |
| Trade receivables | 103,745 | 163,207 | 168,343 |
| Contract development projects in progress | 2,782 | 4,746 | 4,819 |
| Income taxes | 309 | - | - |
| Other receivables | 2,601 | 8,959 | 8,464 |
| Prepaid expenses | 5,627 | 6,005 | 5,526 |
| Receivables | 115,064 | 182,917 | 187,152 |
| Current asset investments in the trading portfolio | 32,666 | 31,208 | 31,029 |
| Current asset investments | 32,666 | 31,208 | 31,029 |
| Cash at bank and in hand | 54,556 | 65,051 | 106,671 |
| Total current assets | 302,098 | 391,847 | 427,019 |
| Total assets | 467,058 | 546,971 | 578,089 |
| Amounts in DKK '000 | 31.03.24 | 31.03.23 | 30.09.23 |
| --- | --- | --- | --- |
| Equity and liabilities | |||
| Share capital | 42,339 | 42,339 | 42,339 |
| Share premium account | 170,439 | 170,439 | 170,439 |
| Currency adjustments | 7,990 | 7,804 | 8,851 |
| Cash flow hedging | -73 | 362 | -293 |
| Retained earnings | 104,859 | 125,509 | 155,769 |
| Equity | 325,554 | 346,453 | 377,105 |
| Lease liabilities | 48,591 | 49,621 | 49,517 |
| Deferred tax liabilities | - | 3,887 | 6,154 |
| Provisions | 1,389 | 1,855 | 1,389 |
| Deferred income | 16,710 | - | - |
| Other payables | - | 13,434 | 724 |
| Non-current liabilities | 66,690 | 68,797 | 57,784 |
| Lease liabilities | 5,481 | 6,316 | 6,896 |
| Prepayments received from customers | 10,513 | 16,970 | 16,113 |
| Trade payables | 31,806 | 61,633 | 57,599 |
| Contract development projects in progress | 4,663 | 8,952 | 3,817 |
| Income taxes | 158 | 11,560 | 17,779 |
| Provisions | 2,716 | 1,793 | 2,716 |
| Other payables | 19,477 | 24,497 | 38,280 |
| Current liabilities | 74,814 | 131,721 | 143,200 |
| Total liabilities | 141,504 | 200,518 | 200,984 |
| Total equity and liabilities | 467,058 | 546,971 | 578,089 |
RTX interim report for Q2 and H1 2023/24
<
Equity Statement
(non-audited)
| Amounts in DKK '000 | Share capital | Share premium | Currency adjustments | Cash flow hedging | Retained earnings | Total |
|---|---|---|---|---|---|---|
| Equity at 1 October 2022 | 42,339 | 170,439 | 12,140 | -1,717 | 108,439 | 331,640 |
| Profit/loss for the period | - | - | - | - | 14,595 | 14,595 |
| Exchange rate adjustments of foreign subsidiaries | - | - | -4,336 | - | - | -4,336 |
| Fair value adjustment relating to hedging instruments | - | - | - | 2,822 | - | 2,822 |
| Tax on hedging instruments | - | - | - | -621 | - | -621 |
| Fair value of hedging instruments reclassified to the income statement | - | - | - | -157 | - | -157 |
| Tax on hedging instruments reclassified | - | - | - | 35 | - | 35 |
| Other comprehensive income, net of tax | - | - | -4,336 | 2,079 | - | -2,257 |
| Comprehensive income for the period | - | - | -4,336 | 2,079 | 14,595 | 12,338 |
| Share-based remuneration | - | - | - | - | 2,194 | 2,194 |
| Deferred tax on equity transactions | - | - | - | - | 281 | 281 |
| Other transactions | - | - | - | - | 2,475 | 2,475 |
| Equity at 31 March 2023 | 42,339 | 170,439 | 7,804 | 362 | 125,509 | 346,453 |
Share capital of DKK 42,339,190 consists of 8,467,838 shares at DKK 5 (DKK 43,214,190 consisting of 8,642,838 shares at 31 March 2022). The Group holds 259,031 treasury shares at 31 March 2023 (459,924 shares at 31 March 2022). There are no shares carrying special rights.
| Amounts in DKK '000 | Share capital | Share premium | Currency adjustments | Cash flow hedging | Retained earnings | Total |
|---|---|---|---|---|---|---|
| Equity at 1 October 2023 | 42,339 | 170,439 | 8,851 | -293 | 155,769 | 377,105 |
| Profit/loss for the period | - | - | - | - | -40,712 | -40,712 |
| Exchange rate adjustments of foreign subsidiaries | - | - | -861 | - | - | -861 |
| Fair value adjustment relating to hedging instruments | - | - | - | 70 | - | 70 |
| Tax on hedging instruments | - | - | - | -15 | - | -15 |
| Fair value of hedging instruments reclassified to the income statement | - | - | - | 212 | - | 212 |
| Tax on hedging instruments reclassified | - | - | - | -47 | - | -47 |
| Other comprehensive income, net of tax | - | - | -861 | 220 | - | -641 |
| Comprehensive income for the period | - | - | -861 | 220 | -40,712 | -41,353 |
| Share-based remuneration | - | - | - | - | 1,751 | 1,751 |
| Current tax on equity transactions | - | - | - | - | - | - |
| Deferred tax on equity transactions | - | - | - | - | 113 | 113 |
| Acquisition of treasury shares | - | - | - | - | -12,062 | -12,062 |
| Other transactions | - | - | - | - | -10,198 | -10,198 |
| Equity at 31 March 2024 | 42,339 | 170,439 | 7,990 | -73 | 104,859 | 325,554 |
Share capital of DKK 42,339,190 consists of 8,467,838 shares at DKK 5 (DKK 42,339,190 consisting of 8,467,838 shares at 31 March 2023). The Group holds 400,889 treasury shares at 31 March 2024 (259,031 shares at 31 March 2023). There are no shares carrying special rights.
RTX interim report for Q2 and H1 2023/24
Cash Flow Statement
(non-audited)
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Operating profit/loss (EBIT) | -9,632 | -1,919 | -50,788 | 30,396 | 67,896 |
| Reversal of items with no effects on cash flow | |||||
| Depreciation, amortization and impairment | 10,548 | 9,736 | 21,247 | 19,416 | 39,628 |
| Other items with no effects on cash flow | 10,972 | 1,578 | 5,092 | -6,596 | -9,903 |
| Change in working capital | |||||
| Change in inventories | 5,702 | 5,379 | 55 | -10,418 | 8,243 |
| Change in receivables | -16,228 | 8,831 | 72,501 | 40,715 | 35,891 |
| Change in trade payables, etc.. | -5,725 | -2,790 | -50,074 | -22,457 | -31,410 |
| Cash flow from operating activities | -4,363 | 20,815 | -1,967 | 51,056 | 110,345 |
| Financial income received | 369 | 170 | 2,056 | 2,131 | 2,991 |
| Financial expenses paid | -122 | -4,660 | -5,090 | -14,532 | -12,944 |
| Income taxes paid | -206 | -1,816 | -17,938 | -2,008 | -3,400 |
| Cash flow from operations | -4,322 | 14,509 | -22,939 | 36,647 | 96,992 |
| Investments in own development projects | -7,509 | -4,933 | -11,440 | -9,360 | -15,442 |
| Acquisition of intangible assets | - | - | - | - | -1,040 |
| Acquisition of property, plant and equipment | -84 | -4,231 | -614 | -5,749 | -10,236 |
| Sale of tangible assets | - | - | - | - | 49 |
| Deposits on leaseholds | 9 | 15 | 54 | 87 | 60 |
| Acquisition / sale of current asset investments in the trading portfolio, net | - | - | -38 | -97 | -97 |
| Cash flow from investments | -7,584 | -9,149 | -12,038 | -15,119 | -26,706 |
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
| --- | --- | --- | --- | --- | --- |
| Repayment of lease liabilities | -1,673 | -1,900 | -3,369 | -3,259 | -7,822 |
| Acquisition of treasury shares | -9,105 | - | -12,062 | - | - |
| Paid dividend | - | - | - | - | - |
| Cash flow from financing activities | -10,778 | -1,900 | -15,431 | -3,259 | -7,822 |
| Increase/decrease in cash and cash equivalents | -22,684 | 3,460 | -50,408 | 18,269 | 62,464 |
| Exchange rate adjustments on cash | -5,767 | 995 | -1,707 | 3,057 | 482 |
| Cash and cash equivalents at the beginning of the period, net | 83,007 | 60,596 | 106,671 | 43,725 | 43,725 |
| Cash and cash equivalents at the end of the period, net | 54,556 | 65,051 | 54,556 | 65,051 | 106,671 |
| Cash and cash equivalents at the end of the period, net are composed as follows: | |||||
| Cash at bank and in hand | 54,556 | 65,051 | 54,556 | 65,051 | 106,671 |
| Cash and cash equivalents at the end of the period, net | 54,556 | 65,051 | 54,556 | 65,051 | 106,671 |
RTX interim report for Q2 and H1 2023/24
Notes
1 Accounting policies
The interim report is presented in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and additional Danish disclosure requirements for interim reporting of listed companies. An interim report has not been prepared for the Parent.
The accounting policies applied in this interim report are consistent with those applied in the Company's 2022/23 annual report which was presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies. We refer to the 2022/23 annual report for a more detailed description of the accounting policies.
The applied accounting policies are unchanged compared to the annual report for 2022/23. New or amended standards and interpretations becoming effective for the financial year 2023/24 have no material impact on the interim report.
2 Estimates and assumptions
The preparation of interim reports requires management to make financial estimates and assumptions that affect the application of accounting policy and recognised assets, liabilities, income and expenses. Actual results might be different from these estimates.
The material estimates that management make when applying the accounting principles of the Group and the material uncertainty connected with these estimates and assumptions are unchanged in the preparation of the interim report compared to the preparation of the annual report as per 30 September 2023.
3 Segment information
In accordance with internal reporting, RTX reports on the three target markets segments; Enterprise, ProAudio and Healthcare. Costs are reported by allocating costs directly attributable to the three reportable market segments whereas common functions costs etc. (primarily other external expenses, staff costs and depreciations related to IT, finance, overall management, joint facilities, joint technology projects, and supply chain management) are reported as non-allocated in accordance with internal reporting.
3 Segment information (continued)
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Revenue | |||||
| Enterprise | 80,868 | 115,685 | 125,398 | 270,478 | 527,061 |
| ProAudio | 40,799 | 52,765 | 64,629 | 91,354 | 186,070 |
| Healthcare | 3,542 | 11,537 | 17,082 | 25,665 | 69,646 |
| Group | 125,209 | 179,987 | 207,109 | 387,497 | 782,777 |
| EBITDA | |||||
| Enterprise | 21,448 | 29,036 | 20,262 | 93,243 | 160,811 |
| ProAudio | 15,404 | 19,143 | 23,725 | 32,288 | 70,469 |
| Healthcare | 766 | 1,234 | 1,082 | 5,236 | 29,928 |
| Non-allocated | -36,702 | -41,596 | -74,610 | -80,955 | -153,684 |
| Group | 916 | 7,817 | -29,541 | 49,812 | 107,524 |
| EBIT | |||||
| Enterprise | 16,062 | 24,341 | 9,445 | 83,786 | 141,162 |
| ProAudio | 13,947 | 17,385 | 20,690 | 28,918 | 64,466 |
| Healthcare | 514 | 1,016 | 566 | 4,799 | 29,388 |
| Non-allocated | -40,155 | -44,661 | -81,489 | -87,107 | -167,120 |
| Group | -9,632 | -1,919 | -50,788 | 30,396 | 67,896 |
RTX interim report for Q2 and H1 2023/24
Notes
3 Segment information (continued)
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Revenue, geographical segments | |||||
| Denmark | 21,080 | 5,336 | 24,631 | 5,971 | 12,370 |
| France | 11,562 | 30,622 | 14,291 | 77,344 | 116,908 |
| Germany | 17,664 | 31,380 | 20,816 | 55,916 | 86,215 |
| Other Europe | 30,682 | 24,115 | 46,897 | 51,066 | 98,945 |
| USA | 10,101 | 58,867 | 42,190 | 99,458 | 261,330 |
| Hong Kong | 518 | 6,655 | 5,506 | 48,463 | 93,546 |
| Other Asia and Pacific | 33,593 | 21,454 | 52,769 | 46,267 | 110,413 |
| Other | 9 | 1,558 | 9 | 3,012 | 3,050 |
| Group | 125,209 | 179,987 | 207,109 | 387,497 | 782,777 |
Revenue distributed to geographic area according to the geographical location of the customer entity being invoiced.
4 Development costs
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Development cost incurred before capitalization(1) | 32,196 | 5,653 | 41,529 | 18,065 | 33,177 |
| Value of own work capitalized(2) | -7,006 | -2,747 | -10,619 | -5,535 | -11,789 |
| Total amortization and impairment on development projects | 5,918 | 6,169 | 11,957 | 12,222 | 24,002 |
| Development costs recognized in the profit/loss account | 31,108 | 9,075 | 42,867 | 24,752 | 45,390 |
(1) Total value of development cost incurred before capitalization of DKK 32.2 million in Q2 2023/24 includes investment in strategic collaboration with a large global Healthcare company regarding a new generation of wireless infrastructure for patient monitoring solutions for the hospital healthcare sector. The investment relates to deferred income of DKK 16.7 million which will be recognized as income on a long-term basis.
(2) Total value of own capitalized of DKK 7.0 million in Q2 2023/24 according to the income statement includes own tangible assets of DKK 0.0 million (Q2 2022/23: DKK 0.5 million). Total value of own capitalized of DKK 10.6 million in H1 2023/24 according to the income statement includes own tangible assets of DKK 0.0 million (H1 2022/23: DKK 1.1 million).
RTX interim report for Q2 and H1 2023/24
Notes
5 Financial items
| Amounts in DKK '000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Exchange rate gains (net) | 2,074 | - | - | - | - |
| Fair value adjustments of investments in trading portfolio | 190 | 337 | 1,599 | 1,028 | 849 |
| Gain on hedging instruments (net) | - | - | - | 1,505 | 1,094 |
| Other financial income | 775 | 340 | 2,056 | 626 | 1,897 |
| Total financial income | 3,039 | 677 | 3,655 | 3,159 | 3,840 |
| Exchange rate losses (net) | - | 1,474 | 3,398 | 13,288 | 8,673 |
| Financing element, IFRS 16 | 586 | 561 | 1,182 | 1,136 | 2,448 |
| Loss on hedging instruments (net) | 406 | 170 | - | - | - |
| Other financial costs | 221 | 268 | 482 | 375 | 1,448 |
| Total financial expenses | 1,231 | 2,473 | 5,062 | 14,799 | 12,569 |
6 Fair value hierarchy for financial instruments
The below indicates the classification of the financial instruments divided in accordance with the fair value hierarchy:
- Listed prices in an active market for the same type of instrument (level 1)
- Listed prices in an active market for similar assets or liabilities or other valuation methods, where all significant input is based on observable market data (level 2)
- Valuation methods, where any significant input is not based on observable market data (level 3)
| Amounts in DKK '000 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial instruments (hedging), liability | - | -342 | - | -342 |
| Bonds listed on the stock exchange, in the trading portfolio | 32,666 | - | - | 32,666 |
| Financial net assets at fair value at 31 March 2024 | 32,666 | -342 | - | 32,324 |
| Financial instruments (hedging), asset | - | 1,231 | - | 1,231 |
| Bonds listed on the stock exchange, in the trading portfolio | 31,208 | - | - | 31,208 |
| Financial net assets at fair value at 31 March 2023 | 31,208 | 1,231 | - | 32,439 |
Financial hedging instruments comprise standard foreign exchange forward contracts with the USD/DKK exchange rate as the main element affecting the fair value of the contracts.
RTX interim report for Q2 and H1 2023/24
Management's Statement
The Board of Directors and the Executive Board have today considered and adopted the interim report of RTX A/S for the second quarter and first half of the financial year 2023/24 (covering the period 1 October 2023 to 31 March 2024).
The interim report is prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and additional Danish disclosure requirements for the interim reporting of listed companies. The interim report has not been audited or reviewed by the Company's auditor.
We consider the applied accounting policies appropriate for the interim report to provide, in our opinion, a true and fair view of the Group's assets, liabilities and financial position as of 31 March 2024 and of its financial performance and cash flow for the second quarter and first half of 2023/24.
We consider Management's review to give a true and fair view of the Group's activities and finances, profit/loss for the period and the Group's financial position as a whole, as well as a true and fair description of the most material risks and uncertainties facing the Group.
Noerresundby, 7 May 2024
Executive Board
Peter Røpke
President and CEO
Mille Tram Lux
CFO
Board of Directors
Peter Thostrup
Chair of the Board
Henrik Schimmell
Deputy Chair
Lars Christian Tofft
Board member
Jesper Mailind
Board member
Katja Millard
Board member
Mogens Vedel Hestbæk
Board member
Kevin Harritsø
Employee Representative
Kurt Heick Rasmussen
Employee Representative
Camilla Munk
Employee Representative
Design and production tested
RTX
RTX A/S
Stroemmen 6
9400 Noerresundby
Denmark
rtx.dk