- Consolidated revenue of € 104.4 million around 10 % up on previous year
- Consolidated operating result (EBIT) rises sharply by 86.8 % to € 5.3 million
- Book-to-bill ratio of 1.2 signals further growth
- Board of Management confirms forecast for 2021 financial year
technotrans SE remains on course for growth and increases consolidated revenue in the first six months of the 2021 financial year by around 10 % to € 104.4 million (previous year: € 95.1 million). The operating result (EBIT) of the specialist for thermal management solutions increased significantly by 86.8 % to € 5.3 million (previous year: € 2.8 million). The EBIT margin improved to 5.0 % (previous year: 3.0 %). The main growth drivers are the strategic focus markets. A book-to-bill ratio of 1.2 forms the foundation for continuing the growth trend. The Executive Board therefore expects Group revenue for the 2021 financial year to be at the upper end of the range of € 195 to 205 million, with an EBIT margin of between 4.5 and 5.5 %. The group continues to systematically implement its Future Ready 2025 strategy: the focus in the current financial year remains on the creation of the technotrans umbrella brand and the merger of selected group companies.
"technotrans has performed very well in the first six months. The group has made further strategic and operational progress and is systematically pursuing the goals it has set itself. In particular, the focus markets defined in the Future Ready 2025 strategy contributed to revenue growth. The Plastics and Healthcare & Analytics markets showed particularly high sales momentum in the reporting period. The Energy Management area will gain considerable momentum in the second half of the year on the basis of large-volume battery cooling system orders won in the Rail segment," says Michael Finger, Spokesman of the Board of Management of technotrans SE.
Revenue and EBIT well up on previous year
The technotrans Group generated consolidated revenue of € 104.4 million in the first six months of the 2021 financial year. This was therefore around 10 % up on the previous year (€ 95.1 million). The consolidated operating result (EBIT) reached € 5.3 million and exceeded the previous year's value of € 2.8 million by 86.8 %. Adjusted for one-off effects from supplementary structural measures amounting to € 0.4 million, the adjusted EBIT margin was 5.4 %. "The Future Ready 2025 strategy with its concentration on the four focus markets Plastics, Healthcare & Analytics, Energy Management, as well as Print is increasingly having an effect," says Michael Finger. Turnover and profitability are developing positively, as expected. The return on capital employed (ROCE) as of June is again in the double-digit range at 10.5 % (previous year: 7.8 %). The profit for the period of € 3.5 million has almost doubled compared to the previous year (€ 1.8 million). Earnings per share improved accordingly from € 0.26 to € 0.50.
Asset and financial position remains orderly and comfortable
The net worth and financial position of the technotrans Group remain sound and comfortable. The equity ratio rose to 54.6 % (December 31, 2020: 53.6 %). The operating cash flow of € 9.0 million exceeded the previous year's figure by 45.5 %. The positive free cash flow also recorded a significant increase of around € 5.0 million to € 3.7 million (previous year:
€ -1.3 million). The group had a comfortable level of cash and cash equivalents of € 17.8 million at the end of the period. This already includes the dividend payment of € 2.5 million and high scheduled loan repayments of € 8.2 million (of which € 5.0 million for short-term loans for Corona provisioning).
Increase in turnover and profitability in the reporting segments
Turnover and profitability increased in both segments compared to the previous year. Revenue in the Technology segment, which has already been rising for four quarters, reached € 77.7 million and exceeded the previous year by 8.6 %. The significantly increased segment EBIT reached € 1.4 million (previous year: € -0.5 million) with a segment margin of 1.8 % (previous year: -0.7 %). The Services segment benefited, among other things, from the withdrawal of the corona-related travel restrictions. Turnover increased by a double-digit 13.2 % compared to the previous year to € 26.7 million. The segment EBIT increased by € 0.5 million to € 3.9 million. The segment margin rose moderately to 14.6 % (previous year: 14.4 %).
Momentum continues in the strategic focus markets
The growth in turnover was mainly generated in the strategic focus markets Plastics, Healthcare & Analytics, Energy Management and Print, which accounted for about 74 % of Group turnover. The highest dynamics were seen in the Healthcare & Analytics focus market with an increase in turnover of around 36 %. The decisive factors for this were a continuing high demand for cooling systems for analysis technology as well as sales impulses from the areas of blood cooling and baggage scanners. The Plastics focus market also posted double-digit growth, with revenue up by around 24 %. technotrans maintained its stable growth trend here with energy-efficient temperature control units, chillers and large-volume cooling systems. This also applies to the focus market of Energy Management. Here the technology group again won large-volume orders for battery thermal management systems (BTMS) in the rail sector and further expanded its leading position in Europe. Sales growth of 5.3 % in the first half of the year was fully in line with expectations, as successful series start-ups suggest a higher sales momentum in the coming six months.
In the focus market of print, the mood brightened as expected in the course of the half-year.
brightened as expected. The slowly dissolving reluctance to invest and the associated upturn in demand from
and the resulting revival in demand from OEM and end customers led to a noticeable increase in sales in the second quarter. Thus, a turnover level slightly above that of the previous year was achieved in the reporting period. The main drivers remained the offset and flexo printing applications for packaging, especially for food and medicine. The Laser & Machine Tools market also made gains. In this area, technotrans has for the most part successfully supported existing customers in challenging projects. The Technical Documentation area likewise performed in line with expectations.
Strategy Future Ready 2025 is consistently implemented
The implementation of the strategy is proceeding according to plan. The mergers of the of the group companies gwk Gesellschaft Wärmekältetechnik mbH with Reisner Cooling Solutions GmbH and technotrans SE with klh Kältetechnik GmbH are in preparation and will be completed at the start of 2022. The umbrella brand strategy has also been further specified: gwk/Reisner will in future trade as technotrans solutions GmbH. termotek GmbH will become technotrans systems GmbH.
Sustainability further developed
With the commissioning of the new location in Holzwickede, two of the five domestic plants will meet the KfW-55 energy efficiency standard from the first quarter of 2021. technotrans is drawing up a CO2 footprint for all locations as a basis for continuing to reduce CO2 emissions. In addition, a new position of ESG manager has been created.
Forecast for the 2021 financial year confirmed and concretised
The recently published sentiment indicators and growth forecasts paint a positive economic picture. At the same time, however, they also signal the first uncertainties among companies due to setbacks in the fight against corona and current supply chain problems. Procuring materials in line with demand is also proving increasingly challenging for technotrans. In the first half of 2021, however, the supply of materials for production was ensured at all times. With a view to achieving the planned revenue and earnings volume in the second half of the year, the Board of Management is keeping a critical eye on the current supply chain situation. It has therefore taken extensive measures to secure the supply of materials. It expects the availability of most materials to improve again in the fourth quarter.
Based on the current forecasts and in view of the solid business performance in the first half of 2021, the Board of Management assumes that the technotrans focus markets will continue to develop positively. The structural measures already implemented in the previous year began to bear fruit in the period under review, both in terms of revenue and earnings. A book-to-bill ratio of 1.2 at the end of June underpins this expectation.
Provided that the general conditions do not change significantly
the Executive Board expects a continuation of stable revenue generation, especially in the strategic focus markets.
focus markets. In Plastics and Healthcare & Analytics, it expects continued high growth. "In the focus market Energy Management, momentum will increase in the second half of the year, and we also expect the print market to continue to brighten," emphasises Michael Finger. "The position in the Laser & Machine Tools market will be further stabilised through the expansion of existing business relationships. In Technical Documentation, the development will continue to normalise."
The Executive Board confirms the existing forecast in the form that it now expects Group turnover at the upper end of the range between € 195 and 205 million. The EBIT margin is
margin is still expected to be in a range between 4.5 and 5.5 %.
It also confirms the medium-term goals of achieving turnover in a range of € 265 to 285 million with an EBIT margin of between 9.0 and 12.0 % in the 2025 financial year. Acquisitions are not included in these forecasts.
"Due to the pleasing development in the first half of the year, we are looking positively to the second half of the year. In view of the excellent order situation, we expect to be able to continue the positive turnover and earnings trend. Here it will be particularly important to ensure the supply of materials and to continue to optimise the Group. Thanks to the strategy we have adopted, Future Ready 2025, we feel that we are well equipped to meet these challenges," Michael Finger sums up.
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