Key figures of the technotrans Group (IFRS)
01/01 | 01/01 | ||||
previous year | 31/03/2024 | 31/03/2023 | 2023 | ||
Revenue | |||||
-18.0 % | 56,041 | 68,312 | 262,116 | ||
Technology | -21.4 % | 41,477 | 52,759 | 199,590 | |
Services | -6.4 % | 14,564 | 15,553 | 62,526 | |
EBIT | -88.9 % | 392 | 3,533 | 14,175 | |
EBIT margin | % | 0.7 | 5.2 | 5.4 | |
Net profit for the period1 | -97.3 % | 59 | 2,203 | 8,532 | |
as percent of revenue | % | 0.1 | 3.2 | 3.3 | |
ROCE | % | 10,29 | 13 | 13,3 | |
Earnings per share | -98.1 % | 0,01 | 0,32 | 1,24 | |
Balance sheet total assets | -1.7 % | 167,605 | 172,686 | 170,568 | |
Equity* | 0.0 % | 95,441 | 93,184 | 95,433 | |
Equity ratio | % | 56.9 | 54.0 | 56.0 | |
Net debt*2 | 18.0 % | 24,407 | 28,959 | 20,690 | |
Free cash flow3 | -3,007 | -1,678 | -3,738 | ||
Employees (balance sheet date)* | -2.4 % | 1,560 | 1,536 | 1,598 | |
*Change compared to December 31, 2022 | |
1 Result for the period: | Profit attributable to shareholders of technotrans SE |
2 Net debt: | Interest-bearing financial liabilities including lease liabilities |
according to IFRS 16 ./. cash and cash equivalents | |
3 Free cash flow: | Net cash from operating activities + |
Net cash used for investments according to cash flow statement |
Presentation of significant events and business performance in the first 3 months 2024
Revenue performance
The technotrans Group generated consolidated revenues | |||||||||
achieved revenues of | |||||||||
41.5 million in the three- | , the Services segment realized | ||||||||
Technology | Services | technotrans Group | |||||||
3M 2024 | 3M 2023 | 3M 2024 | 3M 2023 | 3M 2024 | 3M 2023 | ||||
Revenue | 41.5 | 52.8 | 14.6 | 15.6 | 56.0 | 68.3 | |||
EBIT | -0.9 | 1.5 | 1.3 | 2.0 | 0.4 | 3.5 | |||
EBIT margin | % | -2.2 | 2.9 | 9.0 | 12.8 | 0.7 | 5.2 | ||
The main reason for this development was the persistently weak economic environment, particularly in Germany, coupled with high interest rates. This resulted in subdued demand in almost all relevant markets for the technotrans Group.
In the focus market Plastics, the reluctance by customers to invest continued, particularly in large
of Group revenue reached 22%.
The focus market Healthcare & Analytics recorded a decline in revenue compared to the previous
. However, Q1-2023 was extraordinarily strong following high demand during Corona pandemic.
, a 14% decrease versus previous year. In addition to the weak economy, this reflected a potential reluctance to place orders in the run-up to the drupa - the world's leading trade fair for the printing industry - which will take place in Düsseldorf in May/June 2024.
The new focus market Laser was particularly sensitive to the economy and characterized by cyclical-
Decoupled from economic developments, the focus market Energy Management continued its strong growth based on the successful positioning in the areas of electromobility and data centers.
Group revenue amounted to around 14%.
Quarterly Communication Q1/2024 | 3 |
The focus on the core business was further expanded through continued portfolio optimization. The focus markets, which contain the Laser business since the beginning of the financial year, generated
-
to-bill ratio was 1.1.
Earnings situation
As expected, the lower revenues in the first quarter of 2024, combined with less favourable cost degression and first expenses related to the reorganisation of the technotrans Group, had an impact on consolidated EBIT and the return on capital employed (ROCE).
Gross margin fell by 20% year-on-The respective margin reached 25.5% (previous year: 26.3%). The group reacted to the weak order situation by short- time work at selected German locations.
costs over-compensated the increased trade fair costs due to drupa. The increase in administrative expenses was mainly due to restructuring expenses.
The development outlined above had a particular impact on the earnings situation of the Technology -0.9 million as a result of the weaker revenue. The segment EBIT margin amounted to -2.2%. The Services segment was more resilient to
economic fluctuations, but also here the segment EBIT declined million), which corresponds to a segment EBIT margin of 9.0%.
. Adjusted for personnel-relatedone-off expenses
from restructuring
sulted in an EBIT margin of 0.7% and an adjusted EBIT margin of 2,0% (previous year: 5.2%). EBITDA
fell from 5.2 million | , ROCE reached 10.3% (previous year: 13.0%). |
-month period (previous year: |
2.2 million). Earnings per share therefore
year.
Net worth
The balance sheet total on March 31, 2024 amounted | and decreased compared to |
the end of the year 2023 |
€ 30.2 million. The subdued business development and scheduled loan repayments led to a decrease in cash
compared to December 31, 2023. The equity ratio rose by 0.9 percentage points to 56.9%. Trade pay-
Quarterly Communication Q1/2024 | 4 |
Financial position
Based on the subdued business development in the reporting period, cash flow from operating activ-
the higher order backlog and higher receivables led to a net change in cash flow from operating ac-
---0.4 million, cash flow from investing activ- -1.0 million). This resulted in a free cash flow
- | - 1.7 million). |
million were repaid. Cash flow from financing activities | |
- | -0.2 million). The technotrans Group had unused credit |
Strategy
Based on the strategy review carried out in the 2023 financial year, a program to increase efficiency was initiated under the name ttSprint. This covers 4 components: Portfolio and markets, efficiencies, innovation and organization. At its core, ttSprint involves strengthening entrepreneurship within the Group. The transformation is intended to improve customer focus, increase the speed of response and boost profitability. The program is expected to generate initial improvements in earnings as early as 2024 and also to ensure that the medium-term targets for 2025 are achieved. In the first quarter of 2024, the future organizational structure of the 4 divisions Plastics, Healthcare & Analytics, Energy Management & Laser and Print was communicated as a significant step forward in the project. In addition, the division heads were appointed, each of whom will bear full responsibility for sales and earnings. The target structures will be developed in the first half of 2024. The transformation will start at the beginning of the second half of the year. It should be completed by December 31, 2024. Implementation is fully proceeding according to plan.
Change in the Board of Management
On March 11, 2024, the company and Peter Hirsch reached a mutual agreement on the termination of his employment contract with effect from April 30, 2024 (original term until December 31, 2025). The appointment of Peter Hirsch to the Board of Management ended on March 11, 2024.
Quarterly Communication Q1/2024 | 5 |
Overall statement by the Board of Management on the business performance
"The German economy got off to a weak start to the new year. As expected, revenue and earnings performance in the first quarter of 2024 was down on the previous year in all markets with the exception of Energy Management. technotrans already began to set the course for increasing profitability in the 2023 financial year. As part of the ttSprint project, the transformation of the Group into an entrepreneurial organization has begun. Initial one-off expenses already incurred for this were also recognized in the result.
Irrespective of economic developments and the transformation, technotrans has already achieved significant sales successes in the 2024 financial year. Of particular note here is the follow-up order for the cooling of fast-charging stations from ADS-TEC Energy and the major order for liquid cooling systems for existing data centers (retrofit).
The Board of Management anticipated the weak revenue and earnings performance realized in the first quarter of 2024 and initiated measures to safeguard profitability at an early stage. These include the instrument of short-time working, but also cost savings and the postponement of investments. Nevertheless, the results are not satisfactory and encourage us to consistently drive forward the transformation of the Group as part of the ttSprint project."
Report on post-balance sheet date events and risk report
No events with a significant impact on the net worth, financial position and results of operations of the technotrans Group occurred after March 31, 2024.
The relevant opportunities and risks for the future development of the technotrans Group and the risk management system implemented were explained in detail in the 2023 Annual Report. The opportunity and risk situation of the Group has not changed compared with the presentation in the Annual Report as of December 31, 2023.
Quarterly Communication Q1/2024 | 6 |
Outlook
Expected framework conditions
Low growth rates are expected for the German economy in 2024. According to the World Economic Outlook published in April 2024, the IMF expects Germany's gross domestic product to grow by 0.2% in 2024. The German government's growth forecast, which was increased by 0.1 percentage points to 0.3% in April 2024, is at a comparable level. The IMF is forecasting growth of 0.8% for the eurozone in 2024. The background to the expected improvement is essentially a moderate upturn in private consumption due to rising real incomes.
Expected business development of the Group
The growth forecasts indicate a generally subdued economic development in the 2024 financial year. The Future Ready 2025 strategy and the ttSprint project initiated at the start of the financial year will accelerate the company's transformation into a market-oriented organization. The structures are currently being developed and should come into effect at the start of the second half of 2024. The focus is on the formation of 4 divisions with full responsibility for revenue and earnings.
Market development will be differentiated: The Energy Management focus market is expected to remain highly dynamic, irrespective of economic developments. This expectation is already underpinned by corresponding major orders of a serial nature in the areas of charging infrastructure and liquid cooling for data centers. The Board of Management expects the other markets to pick up over the course of the year.
With existing production capacity, qualified personnel and stable procurement markets, the tech- notrans Group is concentrating on achieving the set targets.
In view of the increasing importance of intelligent thermal management based on the megatrends of decarbonization, digitalization and electrification as well as the consistent strategic focus, the Management Board is confident about the future despite the difficult conditions and is convinced that it will achieve the revenue and EBIT targets set for 2024 and 2025.
and 16.0% in the 2024 financial year.
The mid- gin between 9.0% and 12.0% and a ROCE of over 15% in the 2025 financial year remain unchanged. M&A transactions are not included in this figure.
Quarterly Communication Q1/2024 | 7 |
Consolidated Balance Sheet
Assets | ||
31/12/2023 | ||
31/03/2024 | ||
Non-current assets | ||
Property, plant and equipment | 35,821 | 36,253 |
Right-of-use assets | 4,532 | 4,479 |
Goodwill | 23,513 | 23,513 |
Intangible assets | 3,831 | 4,028 |
Other financial assets | 211 | 210 |
Deferred taxes | 632 | 631 |
68,540 | 69,114 | |
Current assets | ||
Inventories | 46,359 | 44,990 |
Trade receivables | 30,240 | 30,212 |
Income tax receivable | 143 | 233 |
Other financial assets | 1,600 | 859 |
Other assets | 3,278 | 2,390 |
Cash and cash equivalents | 17,445 | 22,770 |
99,065 | 101,454 | |
Total assets | 167,605 | 170,568 |
Quarterly Communication Q1/2024 | 8 |
Equity and Liabilities | ||
31/12/2023 | ||
31/03/2024 | ||
Equity | ||
Issued capital | 6,908 | 6,908 |
Capital reserve | 19,097 | 19,097 |
Retained earnings | 74,513 | 65,982 |
Other reserves | -5,137 | -5,086 |
Net profit for the period | 59 | 8,532 |
Total equity attributable to technotrans SE shareholders | 95,440 | 95,433 |
Non-controlling interests in equity | 1 | 0 |
95,441 | 95,433 | |
Non-current liabilities | ||
Borrowings | 27,434 | 29,668 |
Employee benefits | 1,100 | 1,092 |
Other financial liabilities | 2,503 | 2,504 |
Deferred taxes | 703 | 726 |
31,740 | 33,990 | |
Current liabilities | ||
Borrowings | 9,801 | 9,240 |
Trade payables | 7,459 | 7,165 |
Prepayments received | 6,058 | 6,066 |
Employee benefits | 5,180 | 5,607 |
Provisions | 3,302 | 3,200 |
Income tax payable | 2,200 | 3,259 |
Other financial liabilities | 3,120 | 3,004 |
Other liabilities | 3,304 | 3,604 |
40,424 | 41,145 | |
Total equity and liabilities | 167,605 | 170,568 |
Quarterly Communication Q1/2024 | 9 |
Consolidated Income Statement
01/01/ - | 01/01/ - | |
31/03/2024 | 31/03/2023 | |
Revenue | 56,041 | 68,312 |
of which Technology | 41,477 | 52,759 |
of which Services | 14,564 | 15,553 |
Cost of Sales | -41,739 | -50,372 |
Gross profit | 14,302 | 17,940 |
Distribution costs | -6,634 | -7,018 |
Administrative expenses | -6,025 | -5,639 |
Development costs | -942 | -1,362 |
Income/expenses from impairment losses on financial assets | ||
and contract assets | 4 | -193 |
Other operating income | 341 | 320 |
Other operating expenses | -654 | -515 |
Earnings before interest and taxes (EBIT) | 392 | 3,533 |
Financial income | 46 | 2 |
Financial expenses | -352 | -319 |
Financial result | -306 | -317 |
Profit before tax | 86 | 3,216 |
Income tax expense | -27 | -1,013 |
Net profit for the period | 59 | 2,203 |
of which: | ||
Profit attributable to technotrans SE shareholders | 59 | 2,203 |
Profit attributable to non-controlling interests | 0 | 0 |
basic / diluted | 0.01 | 0.32 |
Overall result for the financial year | 168 | 2,303 |
Quarterly Communication Q1/2024 | 10 |
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technotrans SE published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 08:05:07 UTC.