26. Mar 2013

WashTec AG: WashTec plans to pay a EUR 0.58 per share dividend


WashTec AG / Key word(s): Final Results

26.03.2013 / 12:00


Press Release

WashTec plans to pay a EUR 0.58 per share dividend

- Revenues increase by 2.8% to EUR 301.5m in fiscal year 2012

- Significant EBIT increase to EUR 19.2m after non-recurring charges taken in the previous year

- Balance sheet quality continues to improve: equity ratio of 46.0%, gearing at 0.10

- Recommended dividend of EUR 0.58 per share after no dividend declared in the prior year

- 2013, a year of transition:

- New management board focuses on strategic development towards future growth primarily in the emerging markets

- Stable revenue and earnings with up to 2% growth rates expected

Augsburg, March 26, 2013 - The revenues of the WashTec Group - the leading supplier of innovative solutions for the carwash business worldwide - rose by 2.8% in fiscal year 2012 to EUR 301.5m (prior year: EUR 293.3m). Revenues in all segments and product groups were higher than they were in the prior year. The EBIT rose clearly to EUR 19.2m after the results in the previous year were down massively due to losses in North America and the ensuing write-downs of overall goodwill and other assets in this region and due to the non-recurring effects related to restructuring measures. As a consequence, the EBIT in the previous year had fallen to EUR -10.4m. After adjusting for non-recurring effects, the EBIT was reported at EUR 18.5m and was therefore 5.1% higher than the previous year figure of EUR 17.6m. Consolidated net income rose by EUR 24.7m to EUR 10.1m (prior year: EUR -14.6m). Earnings per share therefore climbed to EUR 0.72 (prior year: EUR -1.04), given that there was hardly any change in the actual number of shares (almost 14 million). WashTec considers itself a value-oriented company with an attractive return policy. The management board and supervisory board therefore decided to recommend to the general meeting of shareholders on May 15, 2013 that a dividend in the amount of EUR 0.29 per share plus a one-time special dividend of EUR 0.29 per share be paid for fiscal year 2012. This represents a dividend yield of approximately 5%. This distribution shall be made from the capital contributions account (as defined by the Tax Code) [steuerliches Einlagekonto].

The new fiscal year 2013 will be a year of transition at WashTec, inasmuch the newly established Group Management Board, in place since January 1, will launch and implement the necessary measures for the Company's strategic development towards future profit growth primarily in the emerging countries of Asia. In light of an economic environment that remains difficult especially in Europe, WashTec's operations are targeting stable revenues and earnings with growth rates of up to 2%.

In describing Washtec's prospects, the Spokesman of the Management Board, Jürgen Rautert, explained 'As members of the new Management Board, we shall focus completely on WashTec's strategic development in 2013 and will thereby strive to efficiently elevate the growth potential in emerging markets and set a course for sustainable profit growth. We shall continue to stabilize our core business. In view of the difficult overall conditions, 2013 will tend to be more of a transitional year for our operations, but thereafter we hope to step it up again greatly'.

Balance sheet remains strong
Thanks to efficient working capital management, WashTec was able to improve its net cash flow in 2012 to EUR 23.1 m (2011: EUR 17.2m). The net finance debt (net bank debt plus long-term and short-term finance leasing debt) declined significantly, by EUR 16.1m to EUR 8.3m. The equity ratio rose from 38.6% to 46.0%, while the gearing fell commensurately from 0.32 to 0.10. WashTec therefore continues to have a very good balance sheet structure, which will help it in the future to fund the targeted growth with its own resources.

New management board set to focus on strategic development towards profit growth
As had been planned, the new Management Board members, Dr. Rautert and Dr. Vieweg, commenced their work at the start of 2013. The strategic course of action planned for 2013 involves primarily the stabilization of the core business and the committed expansion of business activity in emerging markets. At the same time, WashTec will continue to fix its focus on core competencies, innovation, sales, service and internationalization. This means specifically: greater investments in structure and efficiency measures in all segments and divisions, optimization of sales and organizational structures, capacity adjustments mostly in Europe, which includes the option of relocating production components and rounding-out previous, successfully established restructuring measures in North America.

Stefan Vieweg, CFO of WashTec AG: 'The solid balance sheet structure and the long-term financing of WashTec afford us the necessary flexibility to pilot the Company along a sustainable path towards profit growth, above all in the emerging markets.'

Outlook 2013: Growth rates of up to 2% targeted for revenue and earnings in 2013
Given the unclear overall developments in the submarkets of WashTec, a detailed forecast for 2013 would be marked by considerable uncertainty. Above all in core Europe, the continuing financial and economic crisis as well as increasing competition and ongoing price pressure will also impact future revenue and margin development. In North America as well, despite a stabilization of the market, a general market recovery is not yet in sight. Accordingly, WashTec is also examining in 2013 all work and activities conducted by the Group in terms of earnings contribution and optimization potential. The Company will in this regard pursue a conservative policy for expenditures and investments and will place its focus on projects, segments and regions that promise the best growth prospects in the mid-term. In this context, the focus in Core Europe will be on replacement investments, whereas in Emerging Europe and Asia/Pacific - in this case, above all, in China - greater investment volumes are expected. In these markets, the successive expansion of sales structures and the continued strengthening of the local organization should help create new market opportunities. For this purpose, WashTec sees itself well-positioned thanks to a solid balance sheet structure, its long-term financing and a continued focus on the optimization of working capital. Based on the foregoing, WashTec expects for the upcoming fiscal year up to 2% revenue growth and proportionate earnings development.

The annual report for fiscal year 2012 and additional information about the Company can be found on its website: www.washtec.de.

Contact:
Karoline Kalb
Tel.: +49 821 5584-1134
E-mail: kkalb@washtec.de

Information on WashTec:
The WashTec Group has its registered offices in Augsburg, Germany, and is the leading supplier of innovative solutions for the car wash business worldwide. WashTec employs more than 1,600 persons and has its own subsidiaries in all key markets in core Europe, the United States and Canada as well as in China and Australia. WashTec also has a broad network of independent sales partners and is thereby represented in a total of roughly 60 countries.
Key financial information for the Group:

EURm, IFRS 2012 20115) Change
Revenues 301.5 293.3 2.8 %
EBITDA 29.2 19.2 52.1 %
EBIT 19.2 -10.4 -
EBIT (adjusted) 18.5 17.6 5.1 %
EBIT margin (adjusted) 6.1 % 6.0 % -
EBT 16.5 -11.9 -
Net income 10.1 -14.6 -
Earnings per share1) (in EUR) 0.72 -1.04 -
Dividends per share 0.582) 0.00 -
Net cash flow 23.1 17.2 34.3 %
Free cash flow 19.6 8.4 133.3 %

 

EURm, IFRS Dec 31, 2012 Dec 31, 20115) Change
Balance sheet total 183.6 195.0 -5.8 %
Equity 84.4 75.3 12.1 %
Equity ratio 46.0 % 38.6 % -
Net finance debt (as of Dec 31) 8.3 24.4 -66.0 %
Gearing3) 0.10 0.32 -
Net current assets4) 73.1 75.5 -3.2 %
Employees 1,674 1,651 1.4 %

 

1) Basis: 13,962,989 shares
2) Planned recommendation to annual general meeting and includes a special dividend of EUR 0.29 per share
3) Net finance debt divided by equity
4) Current trade receivables + inventories - current trade payables
5) Comparative figures adjusted pursuant to IAS 8




Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135



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204878  26.03.2013