DGAP-News: INDUS Holding AG
/ Key word(s): Annual Results
Financial strength provides stability
Bergisch Gladbach, 30 March 2020 - INDUS Holding AG reached its revenue targets in the fiscal year 2019: the portfolio companies of the leading specialist for long-term investment in, and sustainable development of, German mid-sized companies increased their sales revenues to EUR 1.74 billion (previous year EUR 1.71 billion). In spite of the significant decline in sales revenues in the Automotive Technology segment, consolidated revenues are within the projected range of EUR 1.72 to 1.77 billion.
At EUR 135.2 million, the operating result (EBIT) before impairment losses came in slightly above the adjusted forecast of EUR 129 to 135 million. This was due in particular to the record result in the Construction/Infrastructure segment and good results in the Engineering and Medical Engineering/Life Science segments. Due to the well-known decline in sales revenues in the automotive industry, however, the result fell short of the previous year's EUR 150.5 million. The INDUS Group achieved an EBIT margin before impairment losses of 7.8% (previous year 8.8%).
For the year as a whole, non-cash impairment losses on goodwill and property, plant and equipment in the total amount of EUR 17.3 million were recognized in the Automotive Technology segment. At EUR 117.9 million, the operating result (EBIT) after impairment losses is within the projected range of EUR 116 to 122 million. The EBIT margin after impairment losses was 6.8% (previous year 7.9%).
Earnings per share stood at EUR 2.43 (previous year EUR 2.90). The Board of Management and the Supervisory Board will propose a dividend of EUR 0.80 per share to the Annual Shareholders' Meeting, which will probably be postponed from 20 May 2020 to August of this year. This is equivalent to a payout ratio of 24.6% of the distributable profit. "For understandable reasons, our proposal remains below the previous year's EUR 1.50 because we want to strengthen our reserves in this difficult global situation," says Dr. Johannes Schmidt, Chairman of the Board of Management of the INDUS Group. "The Board of Management will continue to critically assess the further development of the coronavirus crisis and its consequences for the INDUS Group on an ongoing basis and reserves the right to make any necessary adjustments to this dividend proposal until publication of the invitation to the Annual Shareholders' Meeting."
Record result in the Construction/Infrastructure segment
Strong operating cash flow ensures stable balance sheet ratios
Net liabilities amounted to EUR 546.2 million (previous year EUR 482.8 million). The 13.1% increase is due to the first-time application of IFRS 16 "Leases", which resulted in the recognition of lease liabilities in the amount of EUR 77.8 million. Equity increased by 2.5% to EUR 727.7 million (previous year EUR 709.8 million). At 40.2% (previous year 41.3%), the equity ratio was above the defined lower target ratio of 40%. At 2.4 years (previous year 2.2 years), the debt repayment period (net liabilities/EBITDA) was within the target range of 2 to 2.5 years. Gearing (net liabilities/equity ratio) stood at 75% (previous year 68%).
Operating cash flow developed very positively. It rose by EUR 71.7 million to EUR 167.7 million (previous year EUR 96.0 million). Thanks to the improved working capital management in the context of promoting operational excellence, a significant cash inflow was achieved in the area of inventories and receivables.
Investments amounted to EUR 107.5 million in the past fiscal year (previous year EUR 102.4 million). Of this amount, EUR 67.3 million was invested in property, plant and equipment (previous year EUR 78.9 million) and EUR 11.0 million in intangible assets (previous year EUR 12.0 million) to strengthen the portfolio companies. Investments in acquisitions totaled EUR 29.2 million (previous year EUR 11.5 million). Depreciation and amortization rose to EUR 107.8 million (previous year EUR 83.7 million). Depreciation and amortization due to the new lease accounting in accordance with IFRS 16 contributed EUR 16.3 million to this figure, and impairment losses on goodwill EUR 17.3 million.
2020 will be marked by the coronavirus crisis
Although the forecast for the fiscal year 2020 takes into account the currently foreseeable consequences of the coronavirus pandemic, it is subject to a high degree of uncertainty: after a solid start to the year in January and February, the Board of Management expects sales revenues of EUR 1.5 to 1.65 billion and an operating result (EBIT) of EUR 85 to 95 million for the full year 2020, considering the current challenges posed by the coronavirus pandemic. This forecast does not take into account the targeted new acquisitions at the first and second tier. The focus will be on acquisitions in the industries of the future, i.e. automation, measurement and control technology, construction and security technology, medical engineering and life science, infrastructure and logistics technology as well as energy and environmental engineering.
Click here to download the full annual report of INDUS Holding AG.
Jana Külschbach, Julia Pschribülla & Dafne Sanac
Public Relations & Investor Relations
INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Tel +49 (0) 022 04 / 40 00-35
Tel +49 (0) 022 04 / 40 00-66/-32
30.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||INDUS Holding AG|
|Kölner Straße 32|
|51429 Bergisch Gladbach|
|Phone:||+49 (0)2204 40 00-0|
|Fax:||+49 (0)2204 40 00-20|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange|
|EQS News ID:||1010001|
|End of News||DGAP News Service|