- Sales increase by around 7.7% to €244.0 million
- Operating EBITDA improves sharply to €7.2 million
- New orders from continuing operations were €265.3 million,
around €18.9 million up on the previous year - Working capital ratio reduced by 3.5 percentage points to 16.6%
euromicron AG, a medium-sized technology group and specialist for the Internet of Things (IoT), is today publishing its report on the third quarter of 2017.
Sales at September 30, 2017, were €244.0 million, a year-on-year increase of around 7.7% (previous year: €226.6 million). There is even double-digit sales growth of 10.0% from continuing operations after adjustment for sales effects from discontinued or sold operations. There was also a positive performance in terms of operating EBITDA, which increased from €1.4 million to €7.2 million. The consolidated net loss for the period at September 30, 2017, was € -3.8 million and so was reduced by €6.0 million compared to the previous year (net loss of € -9.8 million).
Bettina Meyer, Spokeswoman of the Executive Board, comments: “The transformation strategy of euromicron AG also reaped positive results in the third quarter of 2017. Just about all key figures were able to be improved compared to the first nine months of fiscal 2016. That confirms we’re on the right track and the strategic measures are having an impact.”
“Companies in all industries are increasingly driving digitization of their business models – and implementation of that offers far-reaching development opportunities for the euromicron Group. We’re well-positioned in the SME sector and a preferred partner for enterprises when it comes to digitization. Apart from our bread-and-butter business, we’re therefore focusing on innovative orders with a large share of services. That’s reflected in the Group’s new projects, which include predictive maintenance models, smart security and building technology, and cybersecurity solutions. That means we can leverage potential in the IoT market to the full and develop scalable solutions,” adds Jürgen Hansjosten from euromicron’s Executive Board.
That is also evidenced in the euromicron Group’s new orders from continuing operations, which totaled €265.3 million in the first nine months of fiscal 2017 or €18.9 million above the comparative figure for the previous year (€246.4 million). Order books were €139.5 million, likewise a sharp increase – of €17.1 million – on the previous year’s €122.4 million.
Moreover, the company has made further progress in optimizing its working capital. The working capital ratio was reduced by 3.5 percentage points to 16.6% compared to 20.1% at September 30, 2016. After adjustment for the effects of factoring, working capital at September 30, 2017, was €84.4 million and so € -3.1 million below the figure at September 30, 2016 (€87.5 million) despite the sharp increase in sales volume.
The cash flow from operating activities (after adjustment for the effects of factoring) at September 30, 2017, was € -15.6 million, an improvement of €2.1 million (previous year: € -17.7 million). The euromicron Group’s net debt totaled € -103.7 million (previous year: € -100.9 million). This slight increase is due in particular to the increased volume of investment.
With regard to the group’s further business performance, Bettina Meyer states: “New business models require investment and advance work and outlays, which result in an improvement in competitiveness in the medium term. We feel sure that, with the measures we’re implementing, we’re creating a forward-looking setup in the market for the euromicron Group with its strategic core fields. We aim to complete the group’s transformation in 2018.”
The full report for the third quarter of 2017 is available as of today on the company’s website at www.euromicron.de in the section “Investor Relations/Publications/ Financial Reports”.
euromicron AG (www.euromicron.de) unites medium-sized technology companies from the fields of Digital Buildings, Smart Industry and Critical Infrastructures. As a German specialist for the Internet of Things, euromicron enables its customers to network business and production processes and successfully move to a digital future. From design and implementation, operation, to related services – euromicron implements customized solutions and creates the IT, network and security infrastructures required for them. As a result, euromicron lets its customers migrate existing infrastructures gradually to the digital age. euromicron’s expertise helps the company’s customers increase their agility and efficiency, as well as develop new business models that lay the foundation for commercial success down the road.
The technology group is headquartered in Frankfurt/Main, has been listed on the stock exchange since 1998 and employs around 1,800 people at 32 locations. The euromicron Group comprises a total of 17 subsidiaries, including the brand names Elabo, LWL-Sachsenkabel, MICROSENS and telent. euromicron AG generated total sales of €325.3 million in fiscal year 2016.