Twintec AG announces preliminary results for 2015
DGAP-News: TWINTEC AG / Key word(s): Final Results
2016-06-30 / 20:14
Twintec AG announces preliminary results for 2015
– EUR 26.8 million in revenue achieved in financial year 2015
– EBITDA adjusted for special effects of EUR -2.2 million
– Strategic realignment successfully continued by acquiring Kontec
– Forecast for 2016: consolidated revenues of approximately EUR 48 million to EUR 52 million; EBITDA of between EUR 0.0 million and EUR 0.5 million
Königswinter, 30 June 2016 – Twintec AG (Securities Identification Number A0LSAT), a leading provider of exhaust gas after-treatment products and engine developer and part of TwintecBaumot Group, released its preliminary financial results for 2015 today. Extensive organisational consolidation work was incurred due to the Kontec GmbH acquisition. The Group’s complete, audited financial report will be published in end of July 2016. More information about the Group and its financial figures are available on its redesigned corporate website: http://www.twintec.de/.
Last year, the company saw itself confronted with challenging market conditions as expected, yet managed to lay important stepping stones for a successful business development in the future as part of its strategic realignment. The successful acquisition of Kontec GmbH, one of the leading German OEM development service providers for engines and exhaust after-treatment, in October 2015 was an important milestone in the last financial year.
In financial year 2015, the company generated revenues of EUR 26.8 million (previous year: EUR 29.2 million), which were thus within the forecast issued by its management. One main reason for the decline in sales was the postponed introduction of the emissions standard Stage IIIB / FAZ IIIB until 2018. This meant that millions in planned revenues in Turkey could no longer be realized. In addition, the approval of TwintecBaumot Group’s technology in the United States also experienced delays. This is currently in the final stage and is expected to be completed in September 2016, however. In addition, the after-sales market in Europe was on the decline as expected, but could not yet be compensated for by ambitious new markets (Turkey, USA) or the Italian operations in the past financial year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to around EUR -4.0 million in financial year 2015 (previous year: EUR 1.8 million) and resulted in an EBITDA margin of -15.0% (PY: 6.4%). This is mainly due to the acquisition of Kontec GmbH and the related costs in addition to the lower sales base. Special effects of around EUR 1.8 million resulted from the transaction involving Kontec GmbH and restructuring expenses in 2015. EBITDA adjusted for these effects thus amounted to around – EUR 2.2 million in financial year 2015.
“We can’t be satisfied with our annual results for 2015, which were burdened by several special effects. At the same time, we were able to make significant progress in implementing our strategic realignment, not least through the acquisition of Kontec GmbH. In addition, we were able to continue optimising TwintecBaumot Group’s cost and financing structure. The capital increase that we successfully completed gives us more leeway in financing,” noted Roger Kavena, COO and CFO of the Group. Due to the improvement in the Group’s financing structure, the Group’s total assets increased by EUR 15.7 million to EUR 37.7 million (PY: EUR 22.0 million) as of 31 December 2015. This is due to the acquisition of Kontec GmbH in October 2015 and the capital increase that was carried out that brought in gross proceeds in the amount of EUR 6.8 million. Equity increased by EUR 5.9 million to EUR 18.2 million as of 31 December 2015 (previous year: EUR 12.3 million) due to the acquisition of Kontec GmbH, whereby the equity base was further strengthened. The equity ratio was 48.2%.
Following the successful acquisition of Kontec, the Group started major projects aimed at integration in the fourth quarter of 2015. “The acquisition of Kontec can be considered a strategic and economic milestone for us. Through this acquisition, we intend to significantly expand the OEM business, which will continue to grow in the coming years. The integration of Kontec is in full swing. We currently have a development team of around 380 employees. Thanks to its product and service portfolio, Kontec represents an ideal complement to our OEM business. This results in many advantages for us, including additional sales channels for our BNOx SCR system.
TwintecBaumot Group expects revenues in the amount of EUR 80 million to EUR 100 million and an EBITDA margin of approximately 8% by 2018. The company plans to promote its strategic further development through the Kontec acquisition and to benefit from the expected growth spurt for original equipment, in particular, as a result of the expected legal tightening of emission standards from 2018 on.
“Financial year 2016 was devoted to integrating Kontec into TwintecBaumot Group. Our main focus is on the smooth implementation of our clearly defined integration projects. We also want to benefit from the more stringent regulatory framework with our technological expertise and innovative capacity. Overall, we expect to achieve consolidated sales of approximately EUR 48 million to EUR 52 million in financial year 2016 and EBITDA of between 0.0 and EUR 0.5 million. This means we will nearly double our sales and improve our operational performance quite significantly,” Marcus Hausser concludes.
About TwintecBaumot Group:
TwintecBaumot Group has been comprised of Twintec AG as the parent company and its four direct subsidiaries since 2015 and is a leading provider of integrated solutions along the entire value chain in the field of exhaust after-treatment and engine development.
The Group offers its customers high-quality products and services in the areas of Design & Engineering, Products & Solutions and Testing & Validation Services. These are put to use across all sectors in the business segments OEM (Original Equipment Manufacturers), Retrofit, Aftermarket (repairs, replacement parts) and Catalytic Coatings. The main target industries include, in particular, on-road (cars, trucks and other commercial vehicles, for example), off-road (agricultural machines and stationary equipment, for example) and others industries such as maritime and medical technology. TwintecBaumot Group thus addresses a broad range of customers ranging from vehicle and engine manufacturers to leading OEMs, Tier 1 suppliers and highly specialised manufacturers in niche markets.
The Group now has around 380 employees since it acquired Kontec GmbH and decades of experience in the area of exhaust gas after-treatment. Kontec GmbH, the company acquired in 2015, together with its subsidiary DIF Die Ideenfabrik GmbH, serve as the Group’s OEM development arm and provide renowned original equipment manufacturers with low-emission engines and exhaust after-treatment systems. Baumot AG, the company acquired in 2013, is one of the leading solution providers of SCR systems, as well as active and passive particulate filters in the divisions OEM and Retrofit. In addition, Twintec Technologie GmbH specialises in developing emission technology and enables its customers to develop innovative solutions for reducing exhaust emissions, particularly in the areas Retrofit and Aftermarket. With Interkat Katalysatoren GmbH, TwintecBaumot Group also has expertise in the area of catalytic coating services that can be offered across all sectors.
You’ll find further information about the company on its website by clicking on this link: http://www.twintec.de/
Twintec AG’s shares are listed in the Entry Standard segment of the Frankfurt Stock Exchange.
Phone: +49 (0)611 – 20 585 5 – 28
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