DGAP-News: technotrans significantly increases consolidated revenue and doubles EBIT in a tight procurement situation

technotrans significantly increases consolidated revenue and doubles EBIT in a tight procurement situation

• Group revenue of € 156.6 million is 10.7 % above previous year
• EBIT achieved € 8.2 million and was increased by around 111 %
• Book-to-bill ratio of 1.2 signals further growth
• Revenue forecast increased to € 207 million
• Expected EBIT margin between 4.5 % and 5.5 % confirmed

Sassenberg, November 9, 2021 - The technotrans group continues to successfully implement its strategy of profitable growth despite increasing tension in the procurement markets. In the first nine months of the financial year, the group's revenue increased in 2021 by 10.7 % to € 156.6 million (previous year € 141.5 million). Consolidated EBIT reached € 8.2 million (previous year: € 3.9 million) and is more than twice as high. The EBIT margin improved to 5.3 % (previous year: 2.8 %). Main drivers of growth were the strategic focus markets. The book-to-bill ratio of 1.2 signals further growth. Free cash flow reached € 4.5 million (previous year € 3.5 million). The asset and financial situation remains orderly. Provided that the procurement situation does not worsen further, the Board of Management expects group revenue of around € 207 million for the 2021 financial year. Due to the existing supply bottlenecks, it is sticking to achieve an EBIT margin of between 4.5 % and 5.5 %.

"We are very satisfied with the business development in the first nine months. With procurement markets becoming increasingly tight, we achieved double-digit growth in group revenue compared to the previous year and more than doubled EBIT. The Future Ready 2025 strategy, which we are consistently implementing, is having its expected effect. Main growth drivers are the strategic focus markets," says Michael Finger, Spokesman of the Board of Management of technotrans SE.

Revenue and EBIT significantly above the previous year
In the first nine months of the financial year 2021, the technotrans group posted consolidated revenue of € 156.6 million. It was 10.7 % above the previous year (€ 141.5 million). Consolidated EBIT increased by 110.9 % to € 8.2 million. Compared to the previous year's value of € 3.9 million it has more than doubled.

The return on capital employed (ROCE) in September reached 12.2 % (previous year: 6.5 %). Consolidated net profit for the period in the amount of € 5.4 million exceeded the previous year by 122.4 %. Earnings per share improved to € 0.79 and after nine months is already above the amount of € 0.72 generated in the full year 2020.

Asset and financial situation remains orderly
The group's net assets and financial position remains in order. The equity ratio rose to 55.6 % (31 December 2020: 53.6 %). As at the reporting date, the group had cash and cash equivalents amounting to € 16.4 million. Free cash flow increased by 28.6 % compared to the previous year to € 4.5 million.

Segments with profitable growth
Revenue and EBIT of the Technology and Services segments increased compared to the previous year. Revenue in the Technology segment reached € 116.4 million and was 10.2 % above the previous year. Especially due to increased modularisation and a higher volume of series business, a segment EBIT of € 2.1 million (previous year: € ‑1.0 million) with a margin of 1.8% (previous year: ‑1.0%) was achieved. In the Services segment, it was possible to carry out more on-site assignments again after Corona-related travel restrictions were largely lifted. Revenue increased by 12.0 % and reached € 40.2 million (previous year: € 35.9 million). Segment EBIT increased to € 6.1 million (previous year: € 4.9 million) and generated a margin of 15.1 % (previous year: 13.7 %).

Strategic focus markets as growth drivers
The strategic focus markets generated about 73 % of the group's revenue. Healthcare & Analytics developed the highest revenue momentum with growth of 29.1 %. Cooling systems for analytic systems and baggage scanners and the growing healthcare business in the field of blood cooling generated positive impulses. The focus market Plastics followed with a plus of 19.0%. Here technotrans scored particularly well with individual, energy-efficient high-end cooling solutions in compact form as well as with low temperature cooling. In the Energy Management focus market, technotrans further extended its leading position in Europe for battery thermal management systems (BTMS) for rail vehicles. Revenue here has shifted in particular due to supply bottlenecks of core components and is therefore at the previous year's level. As expected, the focus market Print continued to develop stably with a growth in revenue of around 6 % compared to the previous year.

In addition, technotrans achieved a pleasing increase of 13.7 % in the Lasers & Machine Tools segment thanks to its clear strategic focus on individual special solutions. The Technical Documentation division developed as expected with a 3.7% increase in revenue.

Strategy implementation partly faster than planned
technotrans continues to systematically implement its Future Ready 2025 strategy. Central projects currently on the agenda are the mergers of group companies and the umbrella brand strategy. The preparations for the mergers of technotrans solutions (previously: gwk) with Reisner and technotrans with klh reached the milestones set in the period under review ahead of schedule in some cases. The legal closing can therefore take place as planned in the first quarter of the 2022 financial year. gwk and Reisner made their first joint appearances under the "technotrans" umbrella brand at the KUTENO and Fakuma trade shows for the plastics processing industry. The customer response to the new competence, which is unique on the market, and to the branding concept has been gratifyingly positive.

Sustainability further developed
The_{carbon footprint was identified for all production sites worldwide. From now on, the improvement of the CO2 balance will be tackled even more actively via the newly formed Sustainability Management department. As a concrete step, the installation of a photovoltaic system was commissioned at the Baden-Baden KfW-55 site. The system is to cover around 34 % of the site's own electricity requirements from the beginning of 2022.}

Revenue forecast adjusted upwards
Subject to the condition that the procurement markets does not deteriorate further, the Board of Management expects group revenue of around €207 million for the 2021 financial year (previously: at the upper end between €195 and €205 million). Due to the existing supply bottlenecks, it is sticking to achieving an EBIT margin in a range between 4.5 % and 5.5 %.

In addition, it confirms the medium-term targets of organically achieving a revenue in a range of € 265 to 285 million with an EBIT margin between 9.0 % and 12.0 % in the financial year 2025.

"The technotrans group performed very well in the first nine months despite a tight procurement situation. We owe this in particular to our motivated employees and our clear Future Ready 2025 strategy. We want to continue this trend on the basis of the good order backlog. However, the prerequisite for this is that the supply bottlenecks do not worsen and that we receive the required components on time," Michael Finger emphasises.

For further information, visit: www.technotrans.com

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Note

This communication contains statements on the future development of the technotrans group. These reflect the present views of the management of technotrans SE and are based on the corresponding plans, estimates and expectations. We point out that the statements are subject to certain risks and uncertainties which could mean that the actual results differ considerably from those expected