Preliminary revenue up 5.5 percent to EUR 216.3 million / Preliminary EBIT slightly lower than forecast at EUR 17.4 million / Board of Management forecasts further steady growth for 2019
Preliminary business figures for 2018
Based on provisional figures, technotrans SE can look back on a successful 2018 financial year. Both reporting segments “Technology” and “Services” contributed to the growth in consolidated revenue. The growth markets performed especially well, with high double-digit growth rates. Despite a weaker development in the fourth quarter and the effects of higher expenditure as previously reported, the provisional operating result (EBIT) is just 3.6 percent short of the forecast figure. Based on the anticipated economic environment, the Board of Management expects consolidated revenue for the 2019 financial year to be within the range of EUR 224 to 232 million, with EBIT reaching EUR 17.5 to 19 million.
“2018 was a challenging year for us, but we handled it well despite the external factors,” commented Dirk Engel, Chief Executive Officer of technotrans SE. The provisional consolidated revenue for the 2018 financial year is EUR 216.3 million, which is therefore in the upper half of the forecast range of EUR 212 to 220 million. The group expects an operating profit (EBIT) of EUR 17.4 million for the period under review. This figure is moderately (3.6 percent) below the forecast of EUR 18 to 20 million. The management had recently anticipated that it would come in at the lower end of this range.
“This earnings performance is attributable to a slightly weaker revenue contribution in the past fourth quarter as well as the higher expenditure for performance that was already becoming apparent in the course of the year,” explained Engel. The changing product mix resulted especially in rising expenditure for materials and logistics. In addition, the growth of the technotrans Group and the wide array of new, forward-looking projects started in the business areas of the laser and machine tool industry, plastics engineering and electric mobility call for increased engineering and therefore the recruitment of more personnel at the production plants.
All in all, the Board of Management considers that the 2018 financial year progressed as expected: technotrans increased its revenue in the two reporting segments “Technology” (+6.0 percent) and “Services” (+4.0 percent). The integration of the acquisitions transacted in 2018 equally progressed according to plan. The growth markets (such as electric mobility) performed especially well, with high double-digit growth rates.
Dirk Engel: “The strategy components “diversification” and “growth” that are of significance for technotrans have continued to bear fruit and remain fully applicable in the current financial year.”
Based on the economic environment and despite continuing political uncertainties, technotrans expects to see further steady growth. In light of this, the Board of Management forecasts consolidated revenue in the range of EUR 224 to 232 million for the 2019 financial year, and an operating result (EBIT) of between EUR 17.5 and 19 million.
Estimates of how revenue and margins might perform are dependent on whether the productivity-boosting measures adopted in the past financial year filter through into an improved gross margin in the second half of the year.
The actual future business performance will remain dependent on the development of the global economy and the progress of projects under way for existing and new customers.
The medium-term targets remain unchanged and valid.