Group sales of € 95.1 million are only 7.3 % below the previous year / Positive EBIT of € 2.8 million realized with an EBIT margin of 3.0 % / The adjusted operating EBIT margin was increased from 4.0 % to 4.2 % compared to the previous year / Board of Management consistently continues strategic reorientation and achieves significant sales successes even in COVID-19 times
The COVID-19 pandemic was a major factor in determining the economic environment in the first half of 2020. In this challenging environment, the technotrans Group posted consolidated revenue of € 95.1 million in the first six months of the 2020 financial year (previous year: € 102.6 million), which was only 7.3 % below the previous year's figure. Consolidated EBIT remained positive at € 2.8 million (previous year: € 4.1 million) with an EBIT margin of 3.0 % (previous year: 4.0 %) despite one-off charges totalling € 1.2 million. The adjusted operating EBIT margin was increased from 4.0 % to 4.2 % compared to the previous year. The Board of Management is systematically pursuing the strategic reorientation of the technotrans Group on the basis of a sound net worth and financial position.
"We are satisfied with the course of business in the current environment. Overall, however, it is not in line with our set targets. I take a positive view of the sales successes achieved in railway technology despite COVID-19. We have thus further extended our leading position in this area," says Michael Finger, Spokesman of the Board of Management of technotrans SE.
COVID-19 had an extensive impact on the business performance of the technotrans Group in the first six months, in particular through reluctance to conclude contracts and delays in the acceptance of completed systems. However, the diversification of sales markets and the immediate adjustment of the cost structure by the Board of Management reduced the adverse effects.
In addition, the Board of Management has taken effective measures to ensure unrestricted business operations. Protection against infection for all employees of the technotrans Group is and remains a key element. Production at the German plants was uninterrupted in the period under review.
Positive half-year result realised
The technotrans Group posted consolidated revenue of € 95.1 million in the first six months of the financial year (previous year: € 102.6 million). Compared to the previous year, this was down 7.3 %. Despite the adverse effects of COVID-19, technotrans posted positive consolidated EBIT of € 2.8 million in the period under review (previous year: € 4.1 million) with an EBIT margin of 3.0 % (previous year: 4.0 %). In the EBIT, COVID-19 independent one-off charges from structural and personnel adjustments in the amount of € 1.8 million and an extraordinary income from the release of a provision for a terminated BaFin fine proceeding in the amount of € 0.6 million were processed. Adjusted for these effects, EBIT amounted to € 4.0 million despite the decline in revenue. The adjusted operating EBIT was increased from 4.0 % to 4.2 %.
Following a good start to the year, COVID-19 had a sensitive effect on the Technology segment in the second quarter. The sales of € 69.4 million generated in the reporting period were 5.3 % below the previous year's figure of € 73.3 million. The segment EBIT amounted to € -0.7 million after € -0.1 million in the previous year. The EBIT margin fell from -0.2 % to -1.0 %. COVID-19 also had a massive negative impact on the Services segment due to government-imposed, worldwide travel restrictions. Compared to the previous year, segment revenue decreased to € 25.7 million (previous year: € 29.3 million) by 12.1 %. The EBIT of the segment reached € 3.5 million (previous year: € 4.2 million) with an EBIT margin of 13.6 % (previous year 14,5 %).
Sales successes achieved outside the printing industry
COVID-19 resulted in particular in lower revenue and order volumes with machine manufacturers and end customers in the printing industry in the first half of 2020. The share of Group sales comprising equipment and services fell noticeably to 35 % (previous year: 40 %). Contrary to the general market trend, business in the laser and machine tool sector was generally gratifying, remaining at the previous year's level. The successful acquisition of new customers and a continuously growing EUV business ("Extreme Ultra Violet" process of semiconductor manufacturing) had a stabilizing effect. The plastics sector developed in line with expectations. The technotrans Group companies achieved revenue growth compared with the previous year. In the growth markets, technotrans has secured serial production orders in the mid-single-digit million euro range in the area of electromobility and thus further extended its leading position in railway technology. In medical and scanner technology, the pre-series order for the new blood cooling system was signed. The first units are scheduled for delivery from the fourth quarter of 2020. Sales of cooling systems for baggage scanners used at airports also developed well.
The strategy of technotrans SE remains focused on strengthening its worldwide market position on a lasting basis through product innovations while simultaneously boosting efficiency.
In addition, the earnings base is to be increased in the medium term through strict cost management and working capital optimization. The Board of Management has taken comprehensive measures to reduce the Corona-related effects on the Group and to further optimise liquidity and cash flow on the basis of the Group's continuing solid asset and financial position.
"technotrans is setting itself ambitious targets, even in a politically and economically challenging environment. However, the uncertainty regarding the global spread and consequences of COVID-19 makes it difficult to provide an accurate forecast of business performance for 2020," says Michael Finger.
In line with the general market expectation for the second half of the year, the Board of Management anticipates a noticeable year-on-year decline in consolidated sales for the 2020 financial year. Provided that there is no second lockdown due to the COVID-19 pandemic in the further course of business, a positive consolidated EBIT is expected. An adequate liquidity position is ensured. A positive free cash flow should be achieved by the end of the year.
The Board of Management also remains committed to achieving consolidated sales of € 250 to 300 million in the medium term through organic growth and by seizing M&A opportunities.
"We are continuing to drive forward our strategic reorientation under the motto 'Shaping the future through development!' In terms of content, we will further sharpen the strategy process in the coming months. We continue to meet the daily challenges of the pandemic with effective measures. We are continuing to expand our market positions through a high level of sales activities. Recent successes prove us right," says Michael Finger.
The full interim financial report 2020 is available to download from Investor Relations/Financial Reports section of the company website.