technotrans SE

Earnings Release • Mar 11, 2014

News Details

Corporate | 11 March 2014 08:25

technotrans AG: technotrans continues to expect moderate growth

technotrans AG / Key word(s): Final Results

11.03.2014 / 08:25

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Press release

technotrans continues to expect moderate growth

2013 financial year completed in line with adjusted expectations /

revenue up 16.0 percent to EUR 105.2 million / EBIT margin reaches 4.4 percent / dividend 20 cents per share / drive to increase revenue share from outside printing industry making good progress

Sassenberg, March 11, 2014

The revenue total for the technotrans Group reached EUR 105.2 million in the past financial year, representing growth of 16.0 percent compared with the previous year (EUR 90.7 million). This increase was driven first and foremost by the takeover of KLH Kältetechnik GmbH and its Asian sister companies.

The printing industry, on the other hand – still technotrans’ most important sales market – again performed more weakly than expected in the past financial year. In consequence, revenue of EUR 105.2 million ultimately came in merely at the bottom end of the target range for the year as a whole (EUR 110 million, +/- 5 percent). Overall, EBIT for the 2013 financial year reached EUR 4.6 million, compared with EUR 5.4 million in the previous year (-13.6 percent); that equates to an EBIT margin of 4.4 percent. As a result, the earnings target for 2013

(EBIT margin of 6 to 7 percent) defined at the start of the financial year was not achieved.

“Developments in the 2013 financial year confirmed our resolve to maintain our assertive pursuit of a course of strategic reorientation. The process of tapping new sales markets with the goal of actively taking control of organic growth again made good progress in 2013. It is merely that it is taking longer than we anticipated to realise the revenue potential of a number of projects. We therefore view the 2013 financial year as a year of transition and will continue following our chosen course”, explained Henry Brickenkamp, Board of Management Spokesman of technotrans AG. “In the 2013 financial year we achieved our goal of increasing our revenue share from outside the printing industry to 30 percent. Following the takeover of Termotek AG in 2011, we have thus added considerable breadth to our presence in the growing market of the laser industry with the acquisition of KLH.”

The net profit for the 2013 financial year is EUR 3.0 million, equivalent to a rate of return of 2.9 percent (previous year 3.4 percent). Earnings per share outstanding consequently came to EUR 0.47. The Board of Management and Supervisory Board will propose to the Shareholders’ Meeting in May 2014 that

a dividend of EUR 0.20 per share outstanding be distributed. “This brings us much closer to our future goal of distributing 50 percent of the consolidated net profit, provided no current investment requirements or major acquisitions stand in the way of using financial resources in this way,” declared Dirk Engel, Finance Director of technotrans AG.

The number of employees in the technotrans Group increased from 662 to 777 in the course of 2013.

The segments

The Technology segment benefited considerably from the takeover of the KLH companies und achieved revenue of EUR 66.0 million (previous year EUR 53.7 million, representing 22.8 percent growth. On the other hand print business receded throughout the year and the anticipated revival in demand for printing presses in the second half failed to materialise.

The Technology segment was unable to carry the previous year’s improvement in profitability over into the 2013 financial year. While the renewed fall in revenue from the printing industry adversely affected profit contributions, so far the investment in accessing new sales markets has not produced an adequate counterbalancing effect. The amortisation of intangible assets to the tune of

EUR 0.7 million in connection with the acquisition of KLH also diminished the return for the segment last year. Overall, earnings before interest and taxes (EBIT) for the Technology segment thus deteriorated year on year from EUR -0.8 million

to EUR -1.8 million.

Revenue for the Services segment again developed well in the 2013 financial year. The 6.2 percent growth, taking the total to EUR 39.2 million (previous year

EUR 36.9 million) is attributable in part to business expansion following the takeover of KLH. One of the key factors in this development was again the subsidiary gds AG, which provides services, software and translations.

The Services segment profited from the slight revenue growth and improved its result by 5.7 percent to EUR 6.4 million (EUR 6.1 million). This represents an EBIT margin of 16.5 percent, virtually unchanged from the previous year. The overall financial performance in the Services segment again proved to be very stable.

Financial position

technotrans is able to present a strong balance sheet at the reporting date: the equity ratio reached 59.9 percent, cash and cash equivalents came to EUR 16.7 million and the group’s net liquidity, in other words interest-bearing liabilities less cash and cash equivalents, stayed positive at EUR 0.9 million.

On the basis of net income for the year of EUR 3.0 million (previous year EUR 3.1 million), the cash flow from operating activities before working capital changes totalled EUR 7.6 million (previous year EUR 8.8 million). The changes in working capital had a negative cash flow effect of around EUR 3.4 million.

The reduction in liabilities had an especially high impact on liquidity over the course of the year. Net cash from operating activities amounted to EUR 2.7 million (previous year EUR 11.0 million). The net cash employed for investing activities came to EUR 6.1 million in 2013. This includes cash outflows of EUR 3.3 million for the acquisition of the interest in KLH Kältetechnik GmbH and its sister companies, and EUR 0.8 million for a conditional purchase price component (earn-out) for Termotek AG. The free cash flow was therefore negative at EUR -3.4 million (previous year EUR 13.2 million). The net cash employed for financing activities came to EUR 1.6 million (previous year EUR -7.2 million). Cash and cash equivalents at year-end came to EUR 16.7 million, only EUR 2.0 million down on the prior-year level (previous year EUR 18.7 million).

New markets

technotrans’ activities in new markets will again contribute to its organic growth in the 2014 financial year. In many areas, laser technology is redefining the benchmark for industrial production. Through its corporate alliance, technotrans has now successfully established itself as a full-line supplier in the market for laser cooling. Thanks to its global corporate structure, including its international service locations, the technotrans Group is able to offer a comprehensive range of products and services.

In 2013 technotrans was again able to demonstrate how successfully it accomplishes the technological transfer of core skills from the printing industry to other sectors. New applications include the cooling of battery systems and the self-developed “spray.xact” spray lubrication system for stamping and forming technology. This product is based on mechatronic valve technology that technotrans already uses very effectively for performing spraying functions in the printing press industry. By refining it for this specific application, it has succeeded in developing a new, market-ready generation that achieves precise, economical oil coatings for forming technology.

Project activities in other interesting areas of application such as scanner and medical technology are also being stepped up. Medical technology is fundamentally seen as offering huge potential for growth, especially in China; technotrans has made a concerted effort to become involved in new project activities there.

Outlook

At the start of 2014 the indications are that there will be a moderate economic development. technotrans has good prospects of making the new financial year a success through its own efforts. The technotrans Group is likely to achieve a further slight increase in revenue in 2014.

“Our goal is for the technotrans Group to achieve revenue of EUR 110 million in the 2014 financial year (plus/minus 5 percent). Having already envisaged that level for the past financial year, given the underlying situation we consider this goal to be realistic”, said Henry Brickenkamp. “An improvement in the business climate would prompt us to review our targets.”

By continuing to implement its growth strategy systematically, technotrans will be in a position to develop much more independently of the wider economic environment. In future, too, technotrans intends to continue seizing appropriate opportunities to accelerate the company’s growth through further acquisitions.

“We are planning to achieve an EBIT margin of between 4 and 6 percent for the group on the basis of the anticipated revenue volume, assuming business progresses as expected,” commented Dirk Engel. “We expect to see a further improvement in the group companies’ profitability. Synergy potential identified in the course of KLH’s integration will continue to have a positive impact on the profit performance. Earnings will ultimately be determined to a great extent by the volume of revenue.”

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 Annual Report can be downloaded from the internet on www.technotrans .com , under Investor Relations – Reports.

Dates: The Interim Report 1-3/2014 is scheduled for publication on May 13, 2014. The Annual Shareholder Meeting will take place on May 15, 2014 in Münster (Westphalia).

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

Contact : technotrans AG

Henry Brickenkamp / Dirk Engel

Coordination by Mrs. Martina Assenmacher

Tel. +49 (0) 2583 / 301-1895

only via mobile on March 11: +49 160 150 94 65

e-mail martina.assenmacher@technotrans .de

technotrans Group

Key figures acc. to IFRS

		FY-Change	2013	2012	2011
		2013 – 2012

Earnings
Revenue	EUR’000	16.0%	105,207	90,662	97,265
Technology	EUR’000	22.8%	65,988	53,733	61,673
Services	EUR’000	6.2%	39,219	36,929	35,592
Gross profit	EUR’000	4.7%	33,124	31,652	30,779
EBITDA 1	EUR’000	-6.1%	7,815	8,319	7,980
Earnings before interest and taxes (EBIT)	EUR’000	-13.6%	4,626	5,357	4,787
Net profit for the period 2	EUR’000	-2.5%	3,016	3,094	3,019
as % of revenue	%		2,9%	3.4%	3.1%
Net profit per share (IFRS)	EUR	-3.0%	0.47	0.48	0.47
Dividend per share	EUR		0.20*	0.12	0
Balance sheet
Issued capital	EUR’000	0.0%	6,908	6,908	6,908
Equity	EUR’000	7.0%	43,743	40,865	37,291
Equity ratio	%		59.9%	63.2%	55.5%
Return on equity	%		7.1%	7.9%	8.5%
Balance sheet total	EUR’000	12.8%	73,019	64,705	67,215
Net debt 3	EUR’000		-887	-8,462	4,890
Working capital 4	EUR’000	4.3%	28,254	27,087	18,527
ROCE 5	%		8.4	10.1	8.9
Employees
Number of Employees (average)		18.1%	763	646	659
Personnel expenses	EUR’000	13.4%	37,022	32,651	33,224
as % of revenue	%		35.2%	36.0%	34.2%
Revenue per employee	EUR’000	-1.8%	138	140	148
Cashflow
Cashflow 6	EUR’000		2,693	10,979	5,868
Free Cashflow 7	EUR’000		-3,433	13,172	3,606
Shares
Number of shares at end of period	0.6%	6,493,474	6,455,404	6,432,775
Share price (max)	EUR	43.8%	10.35	7.20	7.51
Share price (min)	EUR	68.3%	6.90	4.10	4.01

1 EBITDA = EBIT + depreciation on intangible and tangible assets

2 Net profit for the period = profit attributable to technotrans AG shareholders

3 Net debt = financial liabilities + non-current provisions – cash and cash equivalents

4 Working capital = current assets – current liabilities

5 ROCE = EBIT / Capital employed

6 Cashflow = cash from operating activities acc. to Cashflow Statement

7 Free Cashflow = cash from operating activities + cash used for investments

acc. to Cash flow Statement

*Proposal to the Shareholders meeting

End of Corporate News

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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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256798  11.03.2014