- Consolidated sales increase by 13% to €203.6 million
- Consolidated EBITDA grows by 24% to around €25 million (previous year: €19.9 million)
- Order books rise to €91.1 million (previous year: €69.8 million)
- Total shareholder return is 32.9%
200 / 20 / 20 targets achieved sustainably:
The euromicron Group has achieved its growth objectives in fiscal 2010 and confirms its forward strategy for the past and coming fiscal years.
Following recovery in Germany’s economy, euromicron was able to leverage its long-term strategy of careful spending and ensuring that all technologies at its German locations are available to customers as part of the build and integrate phase and so further expand its operational business. Under the slogan “Expansion”, the focus in the past fiscal year was on operational efficiency, innovation and customer orientation.
“On the way to the markets of tomorrow”: In line with tomorrow’s market requirements, we constantly review our portfolio of products and services. Development expenditure was increased significantly in both the North and South segments so as to develop individual components into complete solutions for national and international use. “On the basis of growth, innovation and specialization, we are developing cutting-edge integrated solutions with our own and third-party products. We are proud to be able to do that on our own by means of acquisitions, through licenses or by cooperating with partner companies. As a result, we are able to be at the vanguard of market trends,” says Executive Board member Thomas Hoffmann.
Consolidated sales
In fiscal 2010, the euromicron Group generated sales of €203.6 million, an increase of 13% over the previous year’s figure of €179.6 million. Sales outside the German market were €29.6 million (previous year: €25.1 million), a share of 14.5% in relation to total sales.
Consolidated income
In the period under review, consolidated EBIT rose from €16.4 million in the previous year to €20.1 million or by around 23%. EBITDA increased by to €24.7 million (previous year: €19.9 million).
The improvement in operating performance, coupled with strict cost and interest management, meant that net income for the year was approximately €11.5 million, compared with €9.8 million the year before. Despite the issue of new shares and sale of treasury shares, undiluted earnings per share rose from €2.17 to €2.38. “As a result, we have clearly achieved our 2010 goals, with the distinctive targets of 200 million in sales (= €203,6 million), EBIT of 20 million (= €20.1 million) and a share price of 20 (= price at the end of the year €21.6),” says Dr. Späth, Chairman of the Executive Board.
Order situation at the Group
New orders in fiscal 2010 were €205.6 million, around 10.3% up on the previous year (€186.5 million).
New orders were €91.1 million, well above the figure of €69.8 million in 2009). euromicron, in particular the system houses of the euromicron Group, entered fiscal 2011 with well-filled order books.
Balance sheet structure
Total assets of the euromicron Group at December 31, 2010, rose to €196.0 million or by 8.0% year-on-year.
Personnel
In fiscal 2010, the euromicron Group employed 1,081 people (including 70 trainees), a reduction of around 6.0% over the previous year’s figure of 1,149. The ongoing qualification drive is creating a professional body of permanent staff.
Stockholders’ equity
Stockholders’ equity at December 31, 2010, was €89.3 million (previous year: €71.4 million), a year-on-year increase of 25%. Key contributing factors to this were not only the net income for 2010, but also the issue of new shares and sale of treasury shares, which had previously been deducted from shareholders’ equity. Despite the higher total assets, the equity ratio at December 31, 2010, rose to 45.5%.
Finances / liquidity
euromicron’s banks again regarded it as a strong and dependable partner in fiscal year 2010. Its solid business results are reflected in an excellent rating. “The good working relationship with our banks gives us new opportunities to improve our financing structures, and we are proud of the statement by our financing partners that euromicron AG as a whole is rated as a ‘risk-free exposure’,” states Dr. Späth.
Share and investor relations
euromicron’s share began fiscal 2010 at a price of €15.60, sharply up on the previous year (€9.98). Following a moderate showing in the first quarter, the share performed strongly as of the second quarter and in particular after announcement of the change in shareholder structure, and this was also not impaired by the capital increase in 2010. The share grew in stability over the year, was constantly above €20.00 as of the fourth quarter and closed the year at €21.60 (previous year: €15.60). As a result, euromicron AG’s market capitalization was more than €110 million (previous year: €73 million).
In May 2010, euromicron conducted a capital increase to strengthen its equity ratio and so remain economically flexible and ready to invest. 465,999 new shares at a price of €16.50 were placed on the market. As a result, the number of share increased to 5,125,999. The company obtained liquid funds of around €7.7 million and its capital stock rose by just under €1.2 million to €13.1 million.
The share’s attractiveness was also reflected in the increase in trading volume in 2010 to 6.2 million at a total turnover of €115.8 million (volume of shares traded in 2009: 1.9 million).
At the end of 2010, 157,234 treasury shares were sold smoothly on the stock market at an average price of €21.00, resulting in gross proceeds for euromicron AG of around €3.3 million, which were used to enable further growth, bolster the capital structure, strengthen the equity ratio and reduce borrowings. The reason for the sale at that time was the large demand for shares in euromicron as a result of its good business performance and the fact that the company did not need to use its own shares as currency in the acquisitions it has made in the past years.
The capital market gave particularly strong backing to the new shareholder structure. 30% of the traded shares, held by Wysser Pratte (5%), AvW (5%) and Nord LB (20%), were replaced inconspicuously and beneficially to the share price.
The large demand for euromicron shares displayed at roadshows and investor conferences rounded out a successful year on the capital market.
In view of the good business performance, the Executive Board and Supervisory Board will propose to the General Meeting on June 9, 2011, to distribute €1.10 per share in line with the company’s continuous dividend policy, i.e. around 50% of operating profit and an increase of 10% on the previous year.
Outlook
“We have set ourselves the objective of securing and expanding the Group’s sustainable success as part of a value-oriented growth strategy. Fiscal 2010 was dominated by the build and integrate phase. For the years after 2011, we aim to achieve sales of €300 million as a result of a large acquisition,” said Dr. Späth. euromicron has used a number of opportunities in the past to gear the group to a secure future and so skillfully master the challenges in the market ahead. An extensive regional footprint and an outstanding portfolio of products and services are the cornerstones of our success. The Executive Board is optimistic that euromicron AG will again achieve its ambitious targets for 2011.
Note: The difference in individual figures for the previous year 2009 is due to correction of them in accordance with IAS 8.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, data and security networks. Its network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is now a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.