Corporate News from 02.09.2016
CeoTronics AG Ad-Hoc Notice September 2, 2016
Group key figures according to IFRS as of May 31, 2016
Group sales €17,522K (Previous year €17,903K) // Group result -€598K (Previous year €509K) // Order volume €5,235K (previous year 6,500) // Project delays and postponed
orders characterized the second half of the fiscal year.
In the report period between June 1, 2015, and May 31, 2016, (fiscal year 2015/2016), CeoTronics AG achieved Group sales of €17,522K (previous year €17,903K). This corresponds
to a drop in sales of 2.1% compared with the previous year.
Consolidated order volume as of May 31, 2016 was €5,235K and above the average for the last three years. Compared with the very high order volume in the previous year, which
was characterized in particular by high incoming orders in the second third of the fiscal year 2014/2015, there was a reduction of 19.5%. Incoming orders of €16,256K in the fiscal year
2015/2016 was 22.0% below the figure in the previous year. However, incoming orders in Q4 of the fiscal year 2015/2016 exceeded the previous year‘s figure significantly by €809K or
EBITDA for the fiscal year 2015/2016 was -€106K (previous year €1,090K), EBIT -€678K (previous year €497K).
The Group result for the 2015/2016 fiscal year was -€598K (previous year €509K). The previous year was characterized in particular by one-off positive exchange rate effects of
€566K, whilst in the past fiscal year, the corresponding effects were negligible at -€4K. The result for the fiscal year 2015/2016 was also adversely affected by significantly higher research
and development costs (+ €389K).
The profit to sales ratio based on the Group result is therefore -3.4% (previous year 2.8%).
The Group result per share is -€0.09 compared with €0.08 in the previous year.
Equity capital fell as of May 31, 2016, to €10,438K (previous year €11,046K). Due to the lower balance sheet total, the equity ratio increased to 57.1% (previous year 55.4%). As previously,
the distinguishing feature of the CeoTronics Group is its extremely good total amount of capital and reserves.
Gross cash flow for the fiscal year 2015/2016 fell compared with the previous year by €965K from €837K to -€128K.
The workforce in the CeoTronics Group as of 31 May 2016 was below the level of the previous year (150 employees) by a total of seven members of staff, at 143 employees. Full-time
equivalents (FTEs, not including apprentices) produce a value of 136 (previous year 141). Group sales per employee (FTE) come to €126K (previous year €129K).
CeoTronics AG Audio Video Data Communication (ISIN: DE0005407407), Adam-Opel-Straße 6, 63322 Rödermark, Germany, is listed in the Entry Standard.
Information and explanatory notes from the issuer on this Ad-Hoc Notice:
The fiscal year 2015/2016 got off to a promising start. CeoTronics was able to carry high order volume into the new year and larger procurement projects involving German public safety and
emergency services (German:BOS) promise an increase in sales compared with the previous year. CeoTronics ended the first six months of the fiscal year 2015/2016 with Group sales of
€8,494K representing an increase of 20.0% compared with the previous year (€7,081K).
However, during the course of the fiscal year, a large audio accessories contract for the police in Northern Germany was canceled. In central Germany, another large tender for police audio/
communication systems was initially suspended, subsequently reformulated and republished. These two contracts alone had a total volume of approx. €2.0 million. In addition, the German
Armed Forces did not begin to increase their investment activities in CeoTronics products until very late in the fiscal year 2015/2016. Consequently, CeoTronics did not win a budgeted major
contract of over approx. €1.6 million early enough before the end of the fiscal year due to a temporary lock on budget funds. This major order has now arrived and will impact sales fully
by the end of the first half of the fiscal year 2016/2017. Overall, unlike in the previous year, the second half of the year was characterized by project delays and postponed orders.
International business increased to 41.8% (previous year 38.7%). Domestic business fell accordingly from 61.3% to 58.2%.
CeoTronics increased sales significantly in several European countries. There were pleasing positive trends particularly in the markets in Spain (+€865K), Switzerland (+€ 560K) and
In the USA, sales fell compared with the previous year (€688K) by €36K (5.2%) to €652.
CeoTronics has invested heavily in new product development over the last three years, at the expense of results, and, in terms of design, has taken account of the need to be able to produce
more quickly in order to reduce manufacturing costs on a sustainable basis. Many of these new products (including the new generation of CT-DECT systems and new multifunctional
operating unit for various media) will be available for distribution from spring 2017 and will support the competitiveness of CeoTronics as well as increase its profitability.
Even though the threat to our democracy and our societal values in Europe has increased greatly as a result of terrorism, and not least entered public awareness on account of the dreadful attacks in Paris and Brussels, we did not anticipate immediate additional financial resources to increase internal and external security in Germany and in Europe. CeoTronics had expected other political priorities to be set at least in the near-term. Undoubtedly, additional police forces need to be trained first, however the existing security forces also need more and better communication systems in order to be even more successful.
The lack of positive trends for the time being in the investment capabilities of government security and law enforcement agencies, the negative impact of the Russian sanctions on German industry, the weak investment performance of the oil industry suffering from the low price of oil as well as the tense financial situation of the energy providers, not least due to the turnaround in energy policy, resulted in a significant drop in incoming orders in the second half of the fiscal year 2015/2016.
Development of the contribution margin must be regarded as positive. The sales to manufacturing costs ratio improved by 1.5 percentage points compared with the previous year. There has been a large investment backlog on the part of government security and law enforcement agencies across Europe for many years. This relates to increasing the number of staff and also
better technical equipment of the operatives in the police and military. CeoTronics is expecting that a willingness and capacity to invest more will increase among government security and law
enforcement agencies across Europe.
The increased interest shown by government security and law enforcement agencies in our products and services since November/December 2015, as well as the huge increase in announcements by the federal states and the federal government regarding the increase in internal and external security, justify the higher inquiry index and our optimistic outlook.
„For the second half of the fiscal year 2016/2017, successful marketing of the newly developed CeoTronics products and the comprehensive service portfolio as well as an increase in sales
with the military and the defense industry can be expected. Domestically, particularly interesting orders as part of the BOS digital radio call for tenders (police and fire service) as well as in
connection with the increased investment to boost internal security are expected. In the foreign markets, sales should also increase across all customer groups.
Consequently, an increase in sales and a strong positive Group result should be achievable in the fiscal year 2016/2017. CeoTronics is fit for the future“, says CEO and Board spokesperson,
Thomas H. Günther.