Revenue and profit remain stable in first quarter / Positive development in service business / Forecast for full year confirmed

Sassenberg, May 4, 2016 – technotrans AG has made a good start to 2016 in the face of growing global challenges. The company posted a slight fall of 0.5 percent in revenue to EUR 30.4 million due to the weaker performance in the mechanical and plant engineering sector. The net profit for the period matched the prior-year figure at EUR 1.5 million, and the return on sales held steady at 4.8 percent. The Board of Management of technotrans AG has reaffirmed the growth targets for the current financial year.

“Despite the many global economic and geopolitical challenges, we have made a satisfactory start to the new financial year,” declared Henry Brickenkamp, Chief Executive Officer of technotrans AG. The group remains on a steady course of growth, underpinned by its various market areas. Admittedly negative exchange rate movements amounting to EUR 0.2 million ate into the operating result (EBIT), which was some 10.2 percent down on the comparative figure for the strong prior-year quarter at EUR 2.1 million. The reported EBIT margin was 6.8 percent, compared with 7.5 percent in the previous year.

However the figures after adjustment for exchange rate differences yielded a better financial performance that was in line with expectations for the financial year. “The subdued revenue and earnings performance in the first quarter is attributable to the weak economic environment but chimes with our expectations regarding what the financial year holds in store,” stressed Brickenkamp.

For the first time, activities outside the printing industry were unable to contribute towards revenue growth; meanwhile print business continued to develop healthily. All in all, revenue for the Technology segment dropped 3.5 percent to EUR 20.0 million. The operating profit (EBIT) of EUR 0.4 million was slightly below the level for the same period of the previous year.

Service business remains on growth trajectory
The positive trend in service business continued in the first quarter: revenue from this area of business grew 5.7 percent to EUR 10.4 million. Growth was driven both by follow-on business in the technology markets and by a pleasing rate of revenue growth in the technical documentation area. The financial performance in EBIT terms remained stable at EUR 1.7 million, on a par with the prior-year period. This figure already includes the elevated costs of consultancy services in connection with the acquisition of 51 percent of Ovidius GmbH announced at the start of April.

Ovidius GmbH and its subsidiary develop XML-based content management and editorial systems, and as such complement the product portfolio of gds GmbH. Last year, their revenue came to EUR 2.5 million and they are operating profitably. First-time consolidation takes place in the second quarter of 2016.

Management reaffirms forecast for 2016
The Board of Management is cautiously optimistic in its outlook for the current financial year: “We are confident of achieving our targets for 2016 overall, assuming the economic climate remains on an even keel,” explained Brickenkamp. It envisages revenue for the current financial year coming in at between EUR 126 and 132 million, and the EBIT margin lying within a range of 7.5 to 8.0 percent. For planning purposes EBIT will therefore need to be between EUR 9.5 and EUR 10.5 million.

At the Annual General Meeting of technotrans AG on May 12, 2016 the Board of Management and Supervisory Board will propose the distribution of a dividend of EUR 0.48 per no par value share on the share capital bearing dividend entitlements.

The full 3-Month Report 2016 is available to download from Investor Relations/Financial Reports section of the company website.