PARAGON GMBH & CO. KGAA GROUP INTERIM REPORT AS OF JUNE 30, 2023 FIRST HALF YEAR
PA R A G O N G M B H & C O . K G A A G R O U P I N T E R I M R E P O R T A S O F J U N E 3 0 , 2 0 2 3 - F I R S T H A L F Y E A R
Key Figures paragon Group 1
€ '000 / as indicated | Jan. 1 to | Jan. 1 to | Change | Apr. 1 to | |
Jun. 30, 2023 | Jun. 30, 2022 | June 30, 2023 | |||
Revenue (continuing operations) | 86,637 | 80,741 | 7.3% | 41,942 | |
EBITDA 2 (continuing operations) | 8,090 | 6,419 | 26.0% | 4,248 | |
EBITDA margin in % | 9.3% | 8.0% | 17.5% | 10.1% | |
EBITDA paragon semvox GmbH | |||||
(non-continuing operations) | 7,569 | 2,471 | 206.3% | 6,339 | |
EBITDA (continuing and | |||||
non-continuing operations) | 15,659 | 8,890 | 76.1% | 10,587 | |
EBIT (continuing operations) | 1,180 | 81 | 1,356.2% | 671 | |
EBIT margin in % | 1.4% | 0.1% | 1,257.1% | 1.6% | |
Earnings from continuing operations | -5,617 | -3,676 | -52.8% | -3,301 | |
Earnings from discontinued | |||||
operations | 6,999 | 949 | 637.5% | 6,413 | |
Consolidated net income | 1,383 | -2,727 | 150.7% | 3,114 | |
Earnings per share in € (basic and | |||||
diluted) from continuing operations | -1.24 | -0.81 | -53.2% | -0.73 | |
Earnings per share in € | |||||
(basic and diluted) from | |||||
discontinued operations | 1.55 | 0.21 | 636.4% | 1.42 | |
Earnings per share in € | |||||
(basic and diluted) from continued | |||||
and discontinued operations | 0.31 | -0.60 | 150.9% | 0.69 | |
Investments (CAPEX) 3 | |||||
(continuing operations) | 486 | 3,481 | -86.0% | -1,212 | |
Operating cash flow | |||||
(continuing operations) | -5,428 | 10,197 | -153.2% | -4,794 | |
Free cash flow 4 | |||||
(continuing operations) | -5,914 | 6,716 | -188.1% | 3,582 | |
€ '000 / as indicated | June 30, 2023 | Dec. 31, 2022 | Change | June 30, 2023 | |
Total assets | 122,216 | 172,542 | -29.2% | 122,216 | |
Equity | 2,094 | 661 | 216.9% | 2,094 | |
Equity ratio in % | 1.7% | 0.4% | 347.4% | 1.7% | |
Cash and cash equivalents | 563 | 18,106 | -96.9% | 563 | |
Interest-bearing liabilities 5 | 74,302 | 120,128 | -38.1% | 74,302 | |
Net debt 6 | 73,739 | 102,022 | -27.7% | 73,739 | |
Bank and bond liabilities less cash | |||||
and cash equivalents | 59,920 | 86,041 | -30.4% | 59,920 | |
Net debt-equity ratio 7 | 2.60 | 5.28 | -50.8% | 2.60 | |
Employees 8 | 761 | 729 | 4.4% | 761 |
Apr. 1 to June 30, 2022
41,725
2,605
6.2%
1,332
3,937
-319
-0.8%
-2,789
614
-2,175
-0.61
0.14
-0.47
1,211
4,245
3,034
June 30, 2022
160,270
544
0.3%
1,582
105,305
103,723
91,104
4.67
731
Change
0.5%
63.1%
62.2%
375.9%
168.9%
310.2%
309.1%
-18.3%
844.5%
-343.2%
-80.2%
811.7%
245.8%
-200.1%
-212.9%
-318.1%
Change
-23.7%
284.9%
404.8%
-64.4%
-29.4%
-28.9%
-34.2%
-44.3%
4.1%
Share
June 30, 2023 | Dec. 31, 2022 | Change | June 30, 2023 | |
Closing price on Xetra in € | 5.90 | 4.31 | 36.9% | 5.90 |
Number of shares issued | 4,526,266 | 4,526,266 | 0% | 4,526,266 |
Market capitalization in € millions | 26.7 | 19.5 | 7.2 | 26.7 |
June 30, 2022
4.61
4,526,266
20.9
Change
28.0%
0%
5.8
G R O U P I N T E R I M R E P O R T A S O F J U N E 3 0 , 2 0 2 3 - F I R S T H A L F Y E A R PA R A G O N G M B H & C O . K G A A | 1
Highlights From the First Half of 2023
- Revenue in continuing operations increased by 7.3% to € 86.6 million (prior year: € 80.7 million)
- Loss of revenue already compensated by the sale of the Digital Assistance operating segment (for comparison: revenue 1st HY 2022 incl. Digital Assistance € 86.4 million)
- Sale of the Digital Assistance operating segment to CARIAD SE the software company of the VW Group completed in July 2023
- Proceeds from the sale were consistently used for debt reduction of the paragon Group: CHF bond repaid in full, EUR bond reduced to € 45.2 million
- Bank and bond liabilities (less cash and cash equivalents) fall to below € 60 million
- EBITDA from continuing operations up 26.0% in first 6 months to €8 .1 million (prior year: € 6.4 million)
- EBITDA - increase in continuing and discontinued operations, taking into account the deconsolidation effect of the Digital Assistance operating segment, by 76.1% to € 15.7 million (prior year: € 8.9 million)
- Forecast for current fiscal year confirmed € 170 million in revenue with EBITDA between € 20 and € 25 million at Group level
- The paragon Group comprises the Electronics and Mechanics segments. Due to the sale of paragon semvox GmbH, the Digital Assistance operating segment is presented as a discontinued operation as of June 30, 2023. The prior-year figures have been adjusted accordingly.
- For information on the calculation of EBITDA, please refer to the explanations in the combined management report in the Annual Report.
- CAPEX = investments in property, plant and equipment + investment in intangible assets
- Free cash flow = operating cash flow − investments (CAPEX)
- Interest-bearingliabilities = liabilities from lease contracts plus loans plus bonds
- Net debt = interest-bearing liabilities - cash and cash equivalents
7 | According to definition § 3 bond term WKN A2GSB8 (loans plus bonds less cash and cash equivalents divided by EBITDA) |
8 | Plus 88 temporary employees (December 31, 2022: 110) |
2 | PA R A G O N G M B H & C O . K G A A G R O U P I N T E R I M R E P O R T A S O F J U N E 3 0 , 2 0 2 3 - F I R S T H A L F Y E A R
Foreword by the Management
Dear Shareholders,
Customers, Business Partners
and Employees,
In the first half of 2023, paragon increased revenues in continuing operations, excluding the Digital Assistance operating segment, to € 86.6 million (prior year € 80.7 mil- lion). With this revenue increase of 7.3% compared to the same period of the prior year, we were able to more than compensate for the revenue loss due to the exclusion of the discontinued Digital Assistance operating segment in the first half of the year. In terms of revenue, 2023 is the strongest first half-year in the history of paragon Auto- motive. paragon's positioning as a technology provider is once again paying off.
In May 2023, we successfully completed the sale of paragon semvox GmbH (Digital Assistance operating segment) to CARIAD SE, the software company of the Volkswagen Group. The earnings contribution of paragon semvox GmbH and the effect of deconsolidation are reported in the income statement under the item "Result from discontinued operations" and amount to € 7.0 million.
As already communicated on several occasions, we used the proceeds from the sale to further reduce the debt of the paragon Group. As a result, the CHF bond issued in 2019 was repaid in full in April 2023. The EUR bond extended in 2022 was reduced by € 4.8 million to € 45.2 million. This means that the total bank liabilities and bond liabilities (less cash and cash equivalents) at the end of the first half of 2023 is less than € 60 million. Just before the outbreak of the COVID- 19 pandemic in December 2019, at € 121.3 million, this figure was still more than double. We are proud of this reduction in what is certainly a difficult market environment. As a result, our net debt-equity ratio fell to 2.6.
paragon generated EBITDA from continuing operations of € 8.1 million in the first half of 2023. This is an increase of 26.0% compared with the first half of 2022 (€6 .4 million). EBITDA from discontinued operations (including the effect from the deconsolidation of paragon semvox GmbH) is € 7.6 million, so that the total EBITDA of the paragon Group in the first half of 2023 totals €15 .7 million.
For fiscal year 2023, we communicated a revenue forecast of € 170 million and EBITDA of between € 20 and € 25 million. Taking into consideration current revenue development and high customer orders for the coming months, we are now able to confirm the revenue forecast for 2023.
An essential pillar of our success story is the high motivation of the paragon Group workforce. We would like to express our sincere thanks for their commitment and contribution to the success of the company. We are confident that the progress already made in the operating business will be reflected in the development of the share price. We would also like to thank our existing shareholders for their trust.
Delbrück in August 2023
Klaus Dieter Frers | Dr. Martin Esser |
Chief Executive Officer | Chief Financial Officer |
G R O U P I N T E R I M R E P O R T A S O F J U N E 3 0 , 2 0 2 3 - F I R S T H A L F Y E A R PA R A G O N G M B H & C O . K G A A | 3
paragon in the Capital Market
Performance of the paragon Share
The paragon share gained in value during the first half of 2023. After being priced at € 4.31 at the end of 2022, the share reached € 5.20 at the end of the first quarter. At the end of the first half of the year, the share price was € 5.90. This represents an increase of 36.9% in the first six months. par- agon's stock market value thus increased from € 19.5 million to € 26.7 million.
partial repayments of € 25 million were arranged for 2023 to 2025 or upon sale of the operating segments or subsidiaries with consideration of repayments made in the meantime. In the first half of 2023, the nominal value of the bond was reduced from € 50.0 million to € 45.2 million.
The interest on the bond depends on the net debt-equity ratio of the paragon Group. The interest rate is currently 9.25%. Based on the reduced leverage ratio forecast as of December 31, 2023, paragon expects an interest rate on the bond of 7.5% in fiscal year 2024.
Corporate Bond 2017/27
The corporate bond placed in June 2017 (ISIN DE000A2GSB86; WKN A2GSB8) with a total volume of € 50 million is listed on the open market (free trade) of the Frankfurt Stock Exchange in Deutsche Börse AG's Scale segment for corporate bonds.
In March 2022, a decision was reached at a creditors' meeting to adjust the bond conditions. In addition to a now semi-annual interest payment and a higher interest coupon, the final maturity was postponed by five years to July 5, 2027. Furthermore,
At the end of the half-year, the bond closed at 64.6%.
Corporate Bond 2019/23
On April 4, 2019, paragon issued a bond under the leadership of Helvetische Bank AG for CHF 35 million with a coupon of 4.00% and a fixed term of originally five years. The bond was listed on the SIX Swiss Exchange under ISIN CH0419041105 since April 23, 2019, and was interest-bearing since that date,
Performance of paragon Share
in %
150
140
130
120
110
100
90 | 31.12. | 01.02 | 01.03 | 01.04 | 01.05 | 30.06. |
2022 | 2023 |
PGN | TecDAX | SDAX | DAX | SXAP | ||||
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Disclaimer
paragon GmbH & Co. KGaA published this content on 21 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2023 05:26:03 UTC.
