28. Apr 2020

WashTec AG: Effects of COVID-19 pandemic clearly noticeable at the end of the first quarter

DGAP-News: WashTec AG / Key word(s): Quarterly / Interim Statement
28.04.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

  • Revenue at €87.3m (prior year: €92.3m) significantly down on prior year, due to impact of COVID-19 pandemic in EU countries
  • Costs reduced by 3.8% in first-quarter 2020 relative to prior year excl. currency effects
  • EBIT at €1.7m (prior year: €2.6m) despite cost reductions, down on prior year due to lower revenue
  • Order backlog still above prior year
  • Free cash flow up €10.8m to €1.4m (prior year: €-9.4m)
  • Guidance for 2020 retracted due to unforeseeable business impact of COVID-19 pandemic

Augsburg, April 28, 2020 - Revenue of WashTec Group - the leading supplier of innovative solutions for the carwash business worldwide - through to the end of March 2019, at €87.3m (prior year: €92.3m), was 5.4% or €5.0m down on prior year level. Adjusted for exchange rate effects, revenue was down 5.6% on prior year.
Revenue performance in the first quarter was affected by the spreading COVID-19 pandemic. While performance on the Chinese market was hit particularly hard from the end of January, the effects spread to Europe as the quarter progressed. In particular as a result of the very weak March in the European countries most severely affected by the crisis - Italy, Spain, France and Austria - first-quarter revenue was down 24% on the prior year.

EBIT fell by €0.9m to €1.7m in the first three months of 2020 (prior year: €2.6m) due to the negative revenue trend. Despite a reduction in costs, including i.a. personnel expenses and other operating expenses before currency effects, of 3.8% compared with the prior year, it was not possible to offset the lost earnings contribution because of the lower revenue.

The order backlog at the end of the first quarter showed an increase on the prior year. The processing of the order backlog in the current situation is influenced by the situation-related restrictions in the individual countries and the consequently the ability to deliver and install carwashes.

Free cash flow (net cash flow - cash outflow from investing activities) increased significantly, rising by €10.8m to €1.4m (prior year: €-9.4m). This was due to lower trade receivables resulting from payments received for the strong fourth quarter of 2019 and due to the Group-wide capital expenditure freeze due to uncertainty about the future development of the business because of the COVID-19 pandemic. At present, capital expenditure is restricted to the absolute necessary strategic projects and essential maintenance of production equipment.

On April 3, 2020, the Company retracted the guidance for the 2020 fiscal year. In the current rapidly changing situation, it is impossible to provide an updated forecast. Compared to the prior year, the Company presumably anticipates an unforeseeable decline in revenue and EBIT.
"We respond to the crisis with extensive measures in addition to the existing cost reduction program. These include establishing contingency plans and forward-looking measures to safeguard the Company's liquidity.
We are also pushing ahead our operational excellence program to strengthen the efficiency of the overall company and are working intensively on the implementation of product innovations such as digitalization" says Dr. Ralf Koeppe, CEO/CTO of WashTec AG.

The Q1 financial statement and further information about WashTec can be found on: www.washtec.de.

About WashTec:
WashTec Group with its registered office in Augsburg, Germany, is the leading provider of innovative car wash solutions worldwide. The company has more than 1,800 employees and is represented with subsidiaries in the major markets of Europe, North America and Asia/Pacific. Moreover, WashTec has an extensive network of independent marketing partners through which it is present in around 80 countries worldwide.

Key figures:
€m, IFRS Q1 2020 Q1 2019 Change in %
Revenue 87.3 92.3 -5.4
EBIT 1.7 2.6 -34.6
EBIT margin in % 1.9 2.8 -
EBT 1.6 2.5 -36.0
Consolidated net income -0.2 0.5 -140.0
Earnings per share 1) (in €) -0.02 0.04 -140.0
Net cash flow 2.0 -6.7 129,9
Free cash flow 1.4 -9.4 114.9
ROCE in % 17.6 26.4 -
€m, IFRS 31. Mar 20 31. Dec 19 Change abs.
Balance sheet total 269.3 274.9 -5.6
Equity 83.4 84.5 -1.1
Equity ratio2) 31.0 30.7 -
Net operating working capital3) 86.1 96.2 -10.1
Employees 1,856 1,874 -18

1) Basis: on average 13,382,324 shares; Basic = diluted
2) Equity /balance sheet total
3) Trade receivables + inventories -trade payables - prepayments on orders

WashTec AG
Argonstrasse 7
86153 Augsburg

Phone: +49 (0)821 - 5584 - 0
E-Mail: ir@washtec.de

28.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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