Technotrans : meets all growth targets in 2016

14.03.2017
Category: technotrans, 2017, Investor Relations

technotrans AG can look back on the 2016 financial year as a huge success: in the period under review the group accomplished a significant leap in revenue of 23.6 percent to EUR 151.8 million. Profit at EBIT level of EUR 9.7 million (up 8.7 percent) is the company's best result for nine years. technotrans consequently achieved all of its objectives despite the non-recurring effects arising from the acquisitions completed in the course of the year. A marked increase in the dividend to EUR 0.55 is planned.

'The past financial year proved highly successful,' commented Henry Brickenkamp, Chief Executive Officer of technotrans AG. He singled out the group's continuing organic growth in all market areas. Among the landmark developments was the biggest takeover in the history of the company: the acquisition of GWK Gesellschaft Wärme Kältetechnik mbH (Meinerzhagen) means technotrans has gained a foothold in the market for the plastics processing industry. GWK already played a major part in the revenue growth of the technotrans Group in 2016 with consolidated revenue of EUR 18.0 million. technotrans also boosted the Technical Documentation business area through the acquisition of 51 percent of Ovidius GmbH (Berlin) and its subsidiary EasyBrowse GmbH (Schwerin).

'Despite the challenges presented by the takeovers and their integration, we maintained our pace of growth and achieved our goals,' stressed Brickenkamp. For example revenue disregarding the acquired businesses was up 7.8 percent at EUR 132.5 million, while operating profit at EBIT level grew 11.3 percent to EUR 10.0 million. This represents a margin of 7.5 percent (previous year: 7.3 percent). As a result, both the adjusted forecast following the GWK acquisition and the original forecast from one year ago were achieved. Below the line, net income came to EUR 7.3 million (up 16.8 percent).

Growth in all areas of business
The Technology segment benefited from a revival in economic activity in the period under review, as well as from renewed organic growth in the non-print area. This took shape in the laser industry, in stamping and forming technology and also what we refer to as our growth markets. In the printing industry, the increased market shares in offset, flexographic and digital printing were turned to our profit. Revenue for the Technology segment rose by 27.2 percent to EUR 103.6 million and thus went back up above the EUR 100 million threshold for the first time since 2008. In all, Technology accounted for over 68 percent of total revenue. Earnings before interest and taxes (EBIT) went up from EUR 2.1 million to EUR 2.9 million, equivalent to a margin of 2.8 percent (previous year: 2.6 percent).

In the Services segment, revenue grew by 16.4 percent to EUR 48.2 million. This growth is substantially attributable to the acquisitions completed in the period under review. Adjusted growth came to 3.5 percent. As in the previous year, the result for the segment was EUR 6.8 million. This figure includes additional costs and charges related to the acquisitions, with the effect that the EBIT margin fell to 14.2 (previous year: 16.5 percent). The adjusted rate of return for the segment is, however, in line with expectations.

Positive outlook
'We are concentrating on improving our performance in the financial year in progress. We again aim to grow faster than the individual market segments,' declared Brickenkamp. He described the Board of Management view as 'cautiously optimistic'. As well as economic uncertainty, success will depend on progress with the integration of the new subsidiaries, for which technotrans is targeting a substantial improvement in earnings quality.

For the financial year in progress, the Board of Management expects revenue in the range of EUR 185 - 195 million, assuming stable global economic conditions. The operating result at EBIT level is forecast to lie within a range of EUR 12.0 - 14.0 million. This would represent an EBIT margin of between 6.5 and 7.2 percent. This target does not take account of new acquisitions.

On May 12, 2017 at the Annual General Meeting of technotrans AG, the Board of Management and Supervisory Board will propose the distribution of a dividend of EUR 0.55 per no par value share on the share capital bearing dividend entitlements. This compares with a profit participation of EUR 0.48 in the previous year.

The full 2016 Annual Report is available both online and as a download under Investor Relations, in the Financial Reports section.

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