Komax Holding AG / Media release - Half-year results of Komax Group . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.
Very good result:
Significant increase in revenues and profit
The Komax Group delivered a very good result in the first half of 2016. It managed to significantly increase both consolidated revenues (+20.4% to CHF 177.5 million) and the operating profit (EBIT; +15.3% to CHF 27.0 million) as well as Group profit after taxes (EAT; +72.1% to CHF 20.4 million) compared to the successful first half of 2015. In addition, it completed the sale of Komax Medtech, which now gives the Group greater entrepreneurial freedom to expand its core business (Wire). For the second half of 2016, the Komax Group is anticipating a result broadly in line with the first half of the year.
In the first half of 2016, the Komax Group generated order intake of CHF 174.4 million, thereby surpassing the previous year's result of CHF 165.5 million by 5.3%. Consolidated revenues increased by 20.4% to CHF 177.5 million (previous year: CHF 147.5 million). Internal growth amounted to 11.8%, while the book-to-bill ratio stood at 0.98. Operating profit (EBIT) came to CHF 27.0 million (previous year: CHF 23.4 million). This figure includes restructuring costs of CHF 1.7 million. At its Porta Westfalica location in Germany, Komax will in future focus on harness testing, and is exiting the module testing business. The associated headcount reduction gave rise to restructuring costs in the first half of 2016. Excluding these extraordinary charges, the EBIT margin came to 16.2% (previous year: 15.9%). The currency impact amounted to +1.7% at revenues level and +0.9 percentage points at EBIT level.
Successfully completed refocusing
Following the sale of Komax Medtech to GIMA - a subsidiary of the Italian IMA Group - in the first half of 2016, the previous year's figures have been restated accordingly. In accordance with IFRS 5, Komax Medtech is reported in summary form under "Result from discontinued operations". The "Result from discontinued operations" in the first half of 2016 amounted to CHF -2.0 million (previous year: CHF -3.8 million). The aim of the Komax Group was always to find a suitable strategic purchaser for Komax Medtech, and this was achieved with GIMA. The timing of the sale was optimal: Komax Medtech's record order intake was one of the reasons why it was possible to sell the former business unit at book value (including the goodwill acquired at point of purchase). The "Result from discontinued operations" primarily comprises taxes, transaction costs and foreign currency losses, which fed through into the income statement as a result of the sale.
Compared to the previous year, when the removal of the cap on the minimum euro-franc exchange rate left a significant mark on the financial result, financial expenses have now fallen back to the much lower level of CHF 0.6 million (previous year: CHF 5.4 million). This also had a positive impact on Group profit after taxes (EAT), which increased by 72.1% to CHF 20.4 million (previous year: CHF 11.8 million).
Number of cables continues to rise
In the first half of 2016, the Komax Group benefited not only from the robust health of the automotive industry, but also from the fact that the volume of wires to be processed for vehicles continues to rise generally. At the same time, its customers are increasingly coming under pressure to drive forward the automation of wire processing and invest in the automation solutions of providers such as the Komax Group. The Komax Group was able to increase net sales in all regions - Europe, Asia/Pacific, Africa and North/South America. Sales growth was strongest in Europe and North/South America.
Investment in innovation
Not only is the Komax Group highly profitable, it also has an extremely solid financial base: As at 30 June 2016, shareholders' equity totalled CHF 286.9 million (31 December 2015: CHF 283.1 million) while the equity ratio stood at a high 70.0%. "This means the Komax Group can continue to allocate significant resources to research and development, while at the same time being able to seize opportunities to drive forward the development of the company on an ongoing basis," explains Matijas Meyer, CEO of the Komax Group. Free cash flow prior to acquisitions and the divestment of holdings amounted to CHF 14.9 million (previous year: CHF 10.6 million), while net cash stood at CHF 16.1 million (31 December 2015: CHF 34.4 million).
Greater entrepreneurial freedom
"The current situation of the Komax Group is highly promising," reports Matijas Meyer. "The sale of Komax Medtech has increased our entrepreneurial freedom to expand the Group's core business (Wire)." In order to consolidate its leading global position in the automation of wire processing and offer its customers the entire service spectrum along the value creation chain, the Komax Group has made a number of targeted acquisitions over the last six months (Thonauer Group, SLE Electronics USA, Ondal Tape Processing, Kabatec). For example, Thonauer's presence in seven countries in the fast-growing central and eastern European market makes it an ideal fit for Komax's service and distribution network. Thanks to the takeovers of Ondal Tape Processing and Kabatec, the Komax Group has become the global market leader in taping technology. With the exception of Kabatec, which was only acquired with effect from 1 July 2016, all newly acquired companies have been consolidated into the 2016 half-year result.
Ambitious targets, attractive dividend policy
The Komax Group is looking to consolidate its market and technology leadership further over the coming years. With this in mind, it has set ambitious medium-term targets (2017-2021) as part of its annual strategy process, whereby these targets cover growth, profitability, and return on capital:
- Revenues: CHF 500-600 million
- EBIT: CHF 80-100 million
- RONCE: Avg. 25%
"We have geared our business strategy around long-term success to create sustainable value for the benefit of investors," says Beat Kälin, Chairman of the Board of Directors of the Komax Group. "Over the next five years, we are planning to distribute 50-60% of Group profit after taxes (EAT) to our shareholders every year."
Changeover from IFRS to Swiss GAAP FER
The scope of IFRS accounting standards is continually expanding, and involves increasingly formal and ever more complex detailed rules. As these do not tend to result in a better understanding of the financial position or income situation of the company, the Board of Directors of the Komax Group has decided to switch to the Swiss GAAP FER standard instead. This standard is particularly suited to the needs of medium-sized international companies like the Komax Group. The Komax Group intends to switch to Swiss GAAP FER with effect from 1 January 2017. By choosing Swiss GAAP FER, the Komax Group has opted for a standard that continues to give shareholders transparent reporting in keeping with the "true and fair view" principle.
Outlook
The competitive situation remains challenging. However, thanks to its unique global presence and associated proximity to its customers, as well as its impressive innovative strength, the Komax Group is well positioned. From the current standpoint, the Komax Group expects its second-half result for 2016 to be of similar magnitude to its first-half result.
Contact
| Roger Müller | Phone +41 41 455 06 16 |
| Head Investor Relations / Corporate Communications | roger.mueller@komaxgroup.com (mailto:roger.mueller@komaxgroup.com) |
Financial calendar
| First information on the year 2016 | 17 January 2017 |
| Annual media conference / analysts' presentation of 2016 financial statements | 21 March 2017 |
| Annual General Meeting | 12 May 2017 |
| Half-year results 2017 | 24 August 2017 |
Komax is a globally active technology company that focuses on markets in the automation sector. As a leading manufacturer of innovative and high-quality solutions for the wire processing industry, the Komax Group helps its customers implement economical and safe manufacturing processes, especially in the automotive supply sector. The Komax Group employs around 1 500 people worldwide and provides sales and service support via subsidiaries and independent agents in around 60 countries.
Key figures of the Komax Group
| in TCHF | First half 2016 | First half 20151 | +/- in % | ||
| Order intake | 174,361 | 165,508 | 5.3 | ||
| Revenues2 | 177,471 | 147,459 | 20.4 | ||
| EBITD | 31,976 | 27,962 | 14.4 | ||
| in % of revenues | 18.0 | 19.0 | |||
| Operating profit (EBIT) | 27,036 | 23,445 | 15.3 | ||
| in % of revenues | 15.2 | 15.9 | |||
| Group profit after tax from continuing operations | 22,353 | 15,590 | 43.4 | ||
| in % of revenues | 12.6 | 10.6 | |||
| Result from discontinued operations | -1,979 | -3,751 | -47.2 | ||
| Group profit after taxes (EAT) | 20,374 | 11,839 | 72.1 | ||
| in % of revenues | 11.5 | 8.0 | |||
| 30.06.2016 | 31.12.2015 | ||||
| Total assets | 409,999 | 398,967 | 2.8 | ||
| Shareholders' equity3 | 286,866 | 283,134 | 1.3 | ||
| as % of total assets | 70.0 | 71.0 | |||
| Net cash | 16,138 | 34,365 | -53.0 | ||
| Headcount | 1,536 | 1,346 | 14.1 | ||
1 Prior-year figures restated in accordance to IFRS 5 as a result of the sale of Komax Medtech.
2 Revenues: Net sales + other operating income.
3 Share of shareholders' equity attributable to the shareholders of the parent company.
Further information can be found at www.komaxgroup.com (http://www.komaxgroup.com).
The 2016 half-year results can be found at:
http://www.komaxgroup.com/en/Investors/Reports-and-presentations/Financial-reports/ (http://www.komaxgroup.com/en/Investors/Reports-and-presentations/Financial-reports/)
The media release can be downloaded from the following link:
Short report (PDF) (http://hugin.info/100418/R/2036550/758674.pdf)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Komax Holding AG via Globenewswire
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Komax Holding AG
Industriestrasse 6 Dierikon Switzerland
WKN: 1070215 ;ISIN: CH0010702154;
