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DGAP-News: technotrans AG: Growth for technotrans through applications outside printing industry

May 12, 2014

DGAP-News: technotrans AG / Key word(s): Interim Report technotrans AG: Growth for technotrans through applications outside printing industry 13.05.2014 / 06:50 --------------------------------------------------------------------- Revenue up 3.1 percent to EUR 27.1 million in Q1 2014 / EBIT improves by 29.8 percent to EUR 1.4 million / free cash flow positive again / outlook for 2014 confirmed Sassenberg, May 13, 2014 The business performance of the technotrans Group in the first three months of the 2014 financial year is in line with the targets for the full year. Overall, revenue increased from EUR 26.3 million in the previous year to EUR 27.1 million in the current financial year (up 3.1 percent). Revenue shares from outside the printing industry were again the primary contributors to this growth. Earnings before interest and taxes (EBIT) improved by around 30 percent in the first quarter of 2014 to EUR 1.4 million (previous year: EUR 1.1 million). With an EBIT margin of 5.2 percent (previous year: 4.1 percent), the rate of return is within the target corridor of 4 to 6 percent for 2014 overall. The net income for the first three months was EUR 0.9 million (previous year: EUR 0.6 million), equivalent to earnings per share of EUR 0.14 (previous year: EUR 0.10). "The implementation of our strategy is increasingly bearing fruit, not just through the acquisitions but also through the internal and external projects that seek to open up applications for our own core skills outside the printing press industry," explained Henry Brickenkamp, Spokesman of the Board of Management of technotrans AG. "While revenue in the printing industry was slightly down overall, for the first time activities outside the print area more than compensated for the decrease and made a satisfying contribution to growth." The number of employees in the technotrans Group remained virtually unchanged at 770 at March 31, 2014. On average, the group employed 773 employees over the past twelve months. The segments Of the total revenue for the first three months of the 2014 financial year, the Technology segment brought in EUR 17.7 million (previous year: EUR 16.9 million). The segment benefited both from accelerating business in the laser industry and from a rising revenue share for the self-developed technologies for temperature control, filtration and coolant lubrication preparation, as well as spray lubrication. In the offset and flexographic printing area, increased market shares and launches of new production versions served to stabilise the revenue performance. Business with customers from the printing industry continues to be dominated by the general economic fortunes of that sector; judging by the current announcements by clients in the offset printing area, no rise in the market volume can be expected any time soon. The result for the Technology segment showed an improvement on the prior-year quarter from EUR -0.5 million to EUR -0.1 million. This rate of return for the segment on the one hand reflects the improved operating profitability thanks to the higher revenue volume. On the other hand - as expected - it was possible to realise further positive effects from the integration of the new business areas, especially in the laser industry and in the new markets. The Services segment achieved revenue of EUR 9.4 million in the period under review (previous year: EUR 9.4 million) and was therefore overall on a par with the prior-year period. Earnings for the Services segment were maintained at the healthy level of recent quarters, reaching EUR 1.5 million (previous year: EUR 1.6 million). The margin was thus 16.3 percent (previous year: 16.9 percent). Financial Position technotrans is able to present a strong balance sheet at the reporting date: Equity rose by 2.1 % in the period under review, to EUR 44.7 million. The group's equity ratio reached 59.2 percent, cash and cash equivalents came to EUR 17.5 million and net liquidity for the group, in other words interest-bearing liabilities less cash and cash equivalents, stayed positive at EUR 2.4 million. Cash and cash equivalents generated by operating activities in the first quarter of 2014 came to EUR 3.0 million (previous year: EUR 0.0 million). The change in working capital since the end of December 2013 produced a cash inflow of EUR 1.3 million (cash outflow of EUR 1.8 million). In absolute terms the cash flow from investing activities of EUR -1.5 million was well down than the previous year's total of EUR -4.5 million, which had been higher than usual because of the takeover of KLH. Investing activities in 2014 comprised the usual maintenance investment, as well as the final conditional purchase price component for the acquisition of Termotek AG (EUR -0.9 million). The free cash flow after the first three months of the current financial year developed according to plan and was once again in positive territory at EUR 1.5 million (previous year: EUR -4.5 million). Outlook The overall economic and industry-specific environment has on the whole provided a positive impetus to the business development of the technotrans Group and supported a good start to the 2014 financial year. According to the latest findings of the leading research institutes, the further improvement in the mood indicators is reflected in an upward revision in the economic forecast for 2014 overall (up 1.9 percent in Germany). Economic development is broadly in line with the original expectations for the current financial year. technotrans has good prospects of making the current financial year a success through its own efforts. "The recent business results have confirmed our resolve to press ahead with addressing new customers in different markets. We intend to see technotrans grow both organically through actively developing new products, and non-organically through further targeted acquisitions," remarked Henry Brickenkamp. Overall, the Board of Management stands by its forecast that the technotrans Group will achieve consolidated revenue of EUR 110 million (plus/minus 5 percent) in the 2014 financial year. In the Technology segment, the Board of Management expects the share of revenue from customers in the printing industry to remain more or less stable. On a conservative scenario it assumes that demand for offset presses worldwide in the 2014 financial year will remain roughly in a par with 2013. On the other hand it expects robust demand for digital and flexographic printing presses. technotrans has successfully expanded its activities in these growth areas. As well as its most recent acquisitions - KLH and Termotek - technotrans' own development projects for the new markets will produce a substantial revenue contribution in this financial year. "The integration of KLH into the technotrans Group is progressing entirely according to schedule. In the opening months of the financial year our products for the laser industry, for stamping and forming technology and for the machine tool industry in particular made a notable contribution to growth. We also increasingly expect to see a further rise in revenue from other markets and new applications, such as scanner and medical technology, and energy storage technology," added Brickenkamp. In the 2014 financial year the anticipated revenue growth and the continuing optimisation processes should contribute to a further improvement in the financial performance and deliver an EBIT margin of between 4 and 6 percent. The Board of Management stands by its assessment that such a goal is realistic. The revenue volume and the time required to get the new customer projects off the ground will in turn materially influence the earnings position. 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 1-3/2014 can be downloaded from the Internet at www.technotrans.de, under Investor Relations - Reports. Dates: The 2014 Shareholders' Meeting will take place on May 15, 2014 in MÜnster. The Interim Financial Report 1-6/2014 is scheduled for publication on August 22, 2014. Securities: technotrans AG - ISIN DE000A0XYGA7 - German Securities Identification No. WKN A0XYGA Contact: technotrans AG Henry Brickenkamp / Dirk Engel Coordination: Katharina Arens Tel. +49 (0)2583 301-1890 e-mail katharina.arens@technotrans.de technotrans Group Key data acc. to IFRS comp- 01/01- 01/01- FY FY arison 31/03/14 31/03/13 2013 2012 2014- 2013 Earnings EUR 105,2 Revenue '000 3.1% 27,081 26,274 07 90,662 EUR Technology '000 4.7% 17,679 16,887 65,988 53,733 EUR Services '000 0.2% 9,402 9,387 39,219 36,929 EUR Gross profit '000 14.6% 9,093 7,937 33,124 31,652 EUR EBITDA 1 '000 5.8% 2,111 1,995 7,815 8,319 Earnings before interest EUR and tax (EBIT) '000 29.8% 1,403 1,081 4,626 5,357 EUR Net income for the period 2 '000 43.9% 898 624 3,016 3,094 as % of revenue % 3.3 2.6 2.9 3.4 Earnings per share (basic, IFRS) EUR 43.3% 0,14 0,10 0,47 0,48 Balance sheet EUR Issued capital '000 0.0% 6,908 6,908 6,908 6,908 EUR Equity '000 4.0% 44,668 42,932 43,743 40,865 Equity ratio % 59.2 53.7 59.9 63.2 Return on equity % 2.0 1.6 7.1 7.9 EUR Total equity and liabilities '000 -5.6% 75,492 79,982 73,019 64,705 EUR Net debt 3 '000 62.0% -2,364 -1,459 -887 -8,462 EUR Working capital 4 '000 -3.3% 28,633 29,620 28,254 27,087 ROCE 5 % 2.3 1.9 8.4 10.1 Employees Average employees over the period 0.1% 773 772 763 646 EUR Personnel expenses '000 1.1% 9,604 9,502 37,022 32,651 as % of revenue % 35.5 36.2 35.2 36.0 EUR Revenue per employee '000 2.9% 35,0 34,0 138 140 Cash flow EUR Cash flow 6 '000 2,990 1 2,693 10,979 EUR Free cash flow 7 '000 1,532 -4,529 -3,433 13,172 Shares Number of shares outstanding 6,493 6,455 at end of period 0.5% 6,493,426 6,464,309 ,474 ,404 Share price (max) EUR -7.9% 8,65 9,39 10,35 7,20 Share price (min) EUR 8.1% 7,46 6,90 6,90 4,10 1 EBITDA = EBIT + depreciation, amortisation and impairment of tangible and intangible assets 2 Net profit for the period = profit attributable to technotrans AG shareholders. 3 Net debt = borrowings + non-current provisions - cash and cash equivalents 4 Working capital = current assets - current liabilities 5 ROCE = EBIT / capital employed 6 Cash flow = net cash from operating activities acc. to cash flow statement 7 Free cash flow = net cash from operating activities + net cash used for investments acc. to cash flow statement End of Corporate News --------------------------------------------------------------------- 13.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 267965 13.05.2014


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