Slight rise in revenues and earnings increase in the first half year of 2014 compared to same period last year; cumulative order intake at same level as prior year
* Revenues at EUR 141.9m (prior year: EUR 139.9m); EBIT at EUR 5.9m (prior year: EUR 2.8m)
* Positive business development across all product areas in Core Europe
* Free cash flow increases to EUR 5.4m (prior year: EUR 4.9m)
Augsburg, August 5, 2014 - Revenues of WashTec Group - the leading supplier of innovative solutions for the car wash business worldwide - were with EUR 141.9m EUR 2.0m above prior year in the first half of 2014. While in Core Europe, revenues increased in all product areas and developed positively in particular with regard to chemicals and services, revenues in other segments were below prior year. In North America and Asia/Pacific, this is attributable to the to a negative exchange rate development. EBIT (earnings before interest and taxes) rose to EUR 5.9m compared to EUR 2.8m prior year.
In Core Europe, based primarily on the revenue growth achieved (H1 2014: EUR 117.7m; H1 2013: EUR 113.3m), EBIT increased significantly (H1 2014: EUR 5.9m; H1 2013: EUR 2,7m). In Eastern Europe, the declining revenues (H1 2014: EUR 4.7m; H1 2013: EUR 7.6m) together with investments into sales structures made 2013 affected the EBIT (H1 2014: EUR -0,2m; H1 2013: EUR 0,3m). In North America, the successful implementation of the restructuring resulted in a slightly higher EBIT (H1 2014: EUR 0.6m; H1 2013: EUR 0,1m) despite a drop in revenues (H1 2014: EUR 20.8m; H1 2014: EUR 22.2m). In Asia/Pacific, despite lower revenues (H1 2014: 5.1m; H1 2013: EUR 5,4m) EBIT increased (H1 2014: EUR -0,3m; H1 2013: EUR -0,5m) because of efficiency improvements, particularly in the Australian market.
Order backlog has recovered since beginning of the year but still remained behind last year's level at the end of the first half of the year.
Good balance sheet quality and strong cash flow
WashTec is characterized by a very solid balance sheet. Net financial debt (net bank debt + long-term and short-term finance leasing) was at EUR 6.9m (end of 2013: EUR 2.9m) due to the dividend payment as of June 30, 2014. The equity ratio decreased to 45.5% (end of 2013: 50.4%) essentially due to the increased total assets and the lower equity as a result of the dividend payment. Free cash flow (net cash flow - cash outflow from investing activities) in the first half amounted to EUR 5.4m (prior year: EUR 4.9m).
Changes in the supervisory board
Dr. Günter Blaschke, former CEO of Rational AG, and Mr. Ulrich Bellgardt, business consultant with ubc GmbH, were elected to the supervisory board by the Annual General Meeting. Dr. Blaschke has assumed the position of supervisory board chairman, Mr. Bellgardt the position of supervisory board deputy chairman.
Efficiency program
The efficiency program is being implemented. If revenues develop as expected, the Group aims to reach an 8% EBIT margin beginning in 2016. The one-time expense for this program is estimated to be up to EUR 3.0m. The efficiency program negatively affected current results by 0.3m.
Outlook for 2014: stable revenues and slight increase in earnings and EBIT margin before restructuring costs
Following the completion of the first half year and based on the current political and economic developments, the Company is aiming for stable revenues and a slight increase in earnings and EBIT margin in 2014, before accounting for the restructuring costs of the announced efficiency program.
In this respect, the following development is expected in the segments:
* Core Europe: slight increase in revenues, earnings and EBIT margin
* Eastern Europe: slight decline in revenues and significant reduction in earnings and EBIT margin due to capital expenditures made in structures
* North America: slightly declining revenues and earnings as well as stable EBIT margin
* Asia/Pacific: stable development of revenues, earnings and EBIT margin
A forecast for 2014 is marked by uncertainties based on the currently unclear overall development in the market segments.
The full half-year report, which PWC certified following its audit review, and more information about the company can be found at: www.washtec.de.
Key Financial Figures for the first half of the year:
| in EURm, IFRS |
H1-2014 |
H1-2013 |
| Revenues |
141.9 |
139.9 |
| EBITDA |
11.0 |
7.7 |
| EBIT |
5.9 |
2.8 |
| EBI margin (in %) |
4.2 |
2.0 |
| EBT |
5.6 |
2.2 |
| Earnings per share* (in EUR) |
0.27 |
0.06 |
| Free cash flow** |
5.4 |
4.9 |
| Employees at the reporting date |
1.679 |
1.657 |
| in EURm, IFRS |
June 30, 2014 |
Dec. 31, 2013 |
| Total assets |
181.8 |
174.2 |
| Equity |
82.7 |
87.8 |
| Equity ratio*** |
45.5 % |
50.4 % |
| Net financial debt**** |
6.9 |
2.9 |
| Net current assets***** |
70.2 |
65.2 |
*Diluted = undiluted; average number of shares as of June 30, 2014: 13,932,312 shares, as of June 30, 2013: 13,935,914
**Net cash flow - cash outflow from investing activities
***Equity/total assets
****Net bank debt + long-term and short-term finance leasing
*****Current trade receivables + inventories - short-term trade payables
About WashTec:
The WashTec Group, has its registered office in Augsburg, Germany, and is the leading supplier of innovative solutions for the car wash business worldwide. WashTec employs more than 1,600 persons worldwide and is represented by its subsidiaries in the core markets of Europe, the United States and Canada, as well as in China and Australia. WashTec also has independent sales partners in roughly 60 countries.
Contact:
Corporate Communications
WashTec
Argonstraße 7
86153 Augsburg
Tel: +49 (0) 821-55 84-0
