Operating result almost doubled / Board of Management reaffirms forecast / Chief Technology Officer to leave company at end of 2017
technotrans AG seamlessly maintained its business performance in the first nine months of the current financial year. The operating result (EBIT) for the group climbed 96.7 percent in the period under review to around EUR 12.8 million, representing an EBIT margin of 8.3 percent (previous year 6.3 percent). Revenue went up by 50.5 percent to EUR 155.5 million. Meanwhile the company reaffirmed the forecast for the full year. Board of Management member Dr Christof Soest is to leave technotrans AG after seven years. The Supervisory Board voices its thanks to Dr Soest for his work on the Board of Management.
“The financial year to date has passed off highly successfully for almost every area of the company,” commented Henry Brickenkamp, Chief Executive Officer of technotrans AG. “Supported by the continuing positive economic environment, we have impressively improved our revenue and earnings performance.” The latest acquisitions accelerated this development. Organically, revenue for the first nine months rose by EUR 13.7 million or 14.0 percent. Of the overall revenue of EUR 155.5 million, around EUR 91 million came from the high-growth prospect markets outside the printing industry, representing a share of 58.5 percent.
Operating business likewise put in a healthy performance. Earnings before interest and taxes (EBIT) of EUR 12.8 million were 96.7 percent up on the level of the prior-year period. “We shouldn’t forget that the reference figures for the previous year were determined to a great extent by the acquisition of GWK,” added Brickenkamp. Net income for the period doubled to EUR 9.4 million (plus 103 percent). The return on sales climbed from 4.5 percent to 6.0 percent.
The Technology segment proved to be the key growth driver in the period under review. Revenue climbed 63.7 percent to EUR 112.4 million. EUR 35.9 million of this amount was contributed by GWK, which has been consolidated since September 1, 2016. While revenue in the printing industry showed a welcome degree of stability, the other technology markets once again demonstrated their growth potential (up 34 percent). At EBIT level the Technology segment turned a profit of EUR 6.0 million (previous year EUR 4.3 million), equivalent to a margin of 5.3 percent compared with 2.4 percent previously.
The Services segment, too, put in a positive business performance. Revenue for the segment rose by 24.4 percent to EUR 43.0 million. Growth was driven both by follow-on business in the technology markets and by the activities in the Technical Documentation area. The growth rate from organic business, in other words excluding the acquisitions GWK and Ovidius, was 6.8 percent. The Services segment again confirmed its healthy financial performance with an EBIT profit of EUR 6.8 million (previous year: EUR 4.8 million). This margin improved from 14.0 percent to 15.9 percent.
“The operating business performance of recent months gives us the confidence to believe we will achieve our targets for the 2017 financial year,” explained Brickenkamp. He assessed the likelihood of achieving the upper end of the range as much higher. The Board of Management of technotrans AG has increased the revenue forecast for 2017 to consolidated revenue in the order of EUR 203 to 208 million, and the earnings target to a range of EUR 16.0 to 17.0 million. The planning for 2017 does not reflect new acquisitions.
Dr Christof Soest is to surrender office as a member of the Board of Management and leave the company with effect from December 31, 2017 at his own request. The Supervisory Board of technotrans AG has complied with his request for an early exit in the best spirit of mutual agreement, to enable Dr Soest to take up a fresh challenge. Dr Soest has been a member of the Board of Management of technotrans AG since 2011, in the capacity of CTO and COO. The Supervisory Board voices its thanks to Dr Soest for his work on the Board of Management, through which he has made a dedicated and effective contribution to the company’s successful development in recent years. The recruitment process for a new Chief Technology Officer is under way.
The full 9-month report 2017 is available to download from Investor Relations/Financial Reports section of the company website.