27.03.2017
paragon AG DE0005558696
DGAP-News: paragon AG once again grows faster than the market in 2016 and targets further acceleration
DGAP-News: paragon AG / Key word(s): Final Results
paragon AG once again grows faster than the market in 2016 and targets
further acceleration
27.03.2017 / 08:00
The issuer is solely responsible for the content of this announcement.
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paragon AG once again grows faster than the market in 2016 and targets
further acceleration
- Consolidated revenue up 8.2% to EUR 102.8 million (prior year: EUR 95.0
million)
- Electromobility grows 92.7 percent to EUR 14.3 million (prior year: EUR
7.4 million) - share of consolidated revenue increases to 13.9 percent
(prior year: 7.8 percent)
- EBITDA rises particularly strongly to EUR 16.1 million (prior year: EUR
14.2 million)
- EBIT margin now at 8.7 percent (prior year: 8.2 percent)
- Forecast for 2017: Revenue of EUR 120 to 125 million - with an EBIT margin
of 9.0 to 9.5 percent and EUR 27 million in investments
Delbrück, Germany, March 27, 2017 - Today, paragon AG [ISIN DE0005558696]
published its results for fiscal year 2016 and its forecast for the current
fiscal year.
In fiscal year 2016, the company generated consolidated revenue of EUR 102.8
million (prior year: EUR 95.0 million). Business performance in the
Electronics operating segment, which dominated Group activities with third
parties with a revenue share of 83.0%, was mainly characterized by an
increase in the take-rate for air quality sensors, an increase in the output
volume of the latest generation of hands-free microphones and several
production starts for modern display instruments. The Group's customer
structure broadened as planned due to the significant growth in the
Electromobility operating segment, which accounted for 13.9% of revenue with
third parties. The segment benefited particularly from the dynamic
development of demand in the intralogistics market. The Mechanics operating
segment was characterized by several parallel series developments of
adaptively extendable spoilers and contributed to the Group's activities
with third parties with a revenue share of 3.1%.
"With the reorganization into the three operating segments, we will be able
to steer our R&D activities more efficiently in the future," says Klaus
Dieter Frers, founder and CEO of paragon AG. "The Electronics operating
segment is comprised of the three business units Sensors, Cockpit and
Acoustics while the Mechanics operating segment is home to the Body
Kinematics unit and production. This is not only directly related to our
decision to convert Voltabox Deutschland GmbH into a stock corporation,
which was made to expedite the expansion of business activities in the
Electromobility operating segment," says Klaus Dieter Frers. "It also allows
us to focus more closely on the enormous market opportunities created by
connectivity, autonomous driving and improvements in the aerodynamics of
vehicles."
Project-related development costs for product innovations and the production
costs for test equipment used in serial production rose 20.1% to EUR 15.3
million (prior year: EUR 12.8 million).
The cost of materials developed more slowly, increasing only 4.0% to EUR
57.7 million (prior year: EUR 55.5 million). This is primarily due to a
modified product mix stemming from business expansion and various
cost-cutting measures. The material input ratio decreased accordingly to
56.2 percent (prior year: 58.4%). Gross profit rose to EUR 60.5 million
(prior year: EUR 56.9 million), which corresponds to a gross profit margin
of 58.9% (prior year: 59.8%).
"The cross-site optimization of process control with agile development
methods enables us to be even better adapted to the shortening innovation
cycles of automotive manufacturers," says Dr. Stefan Schwehr, Chief
Technology Officer (Electronics). "All processes, from sample phase
management to the transfer to production are affected by this, as is our
innovation management. This is particularly important for our latest
innovations in air quality and autonomous driving."
Personnel costs increased particularly strongly by 11.2% to EUR 29.2 million
(prior year: EUR 26.3 million) mainly as a result of recent hires in
connection with operational growth in the new Electromobility and Mechanics
operating segments as well as in central Group functions. The personnel
expense ratio was accordingly slightly higher at 28.5% (prior year: 27.7%).
At EUR 15.2 million, other operating expenses remained well below the prior
year's figure of EUR 16.3 million, which was predominantly due to the
absence of rental costs for the building at Artegastrasse as a result of its
acquisition. Earnings before interest, taxes, depreciation and amortization
(EBITDA) therefore rose 13.2% to EUR 16.1 million (prior year: EUR 14.2
million), which corresponds to an EBITDA margin of 15.7% (prior year:
15.0%).
After a slight increase in depreciation and amortization to EUR 7.1 million
(prior year: EUR 6.3 million), earnings before interest and taxes (EBIT)
increased 14.4% to EUR 8.9 million (prior year: EUR 7.8 million) thanks
largely to the drop in other operating expenses. As a result, the EBIT
margin rose to 8.7% (prior year: 8.2%).
Despite a reduced financial result of EUR -3.2 million (prior year: EUR -2.8
million), earnings before taxes (EBT) managed to increase to EUR 5.8 million
(prior year: EUR 5.0 million). Taking into account higher income taxes of
EUR 2.2 million (prior year: EUR 1.6 million), the paragon Group generated a
consolidated net income of EUR 3.6 million (prior year: EUR 3.4 million) in
the year under review. Against the backdrop of the 10% increase in the
subscribed capital on October 5, 2016, this corresponds to earnings per
share of EUR 0.84 (prior year: EUR 0.83).
The assets of paragon AG increased significantly to EUR 115.6 million
(December 31, 2015: EUR 92.6 million) mainly as a result of the
capitalization of development costs, the cash capital increase from
authorized capital, the expansion of the Artegastrasse building and the
expansion of the production facilities at the Delbrück site as well as
higher inventories as a result of the expansion of business activities.
paragon AG's equity increased 78.7% to EUR 34.7 million (December 31, 2015:
EUR 19.4 million). In addition to the increase in profit carried forward to
EUR 12.9 million (December 31, 2015: EUR 10.5 million), this is due in large
part to the increase in capital reserves to EUR 15.2 million (December 31,
2015: EUR 2.5 million) in connection with the cash capital raised. Given the
sharp rise in total assets, the equity ratio increased, as expected, to
30.0% (December 31, 2015: 21.0%).
Cash flow from operating activities increased in the period under review to
EUR 16.8 million (prior year: EUR 12.9 million). In addition to the higher
earnings before tax (EBT), this is largely due to a smaller increase in
inventories, an increase in trade payables and higher depreciation on
noncurrent assets.
Cash flow from investment activity decreased in the period under review by
28.4% to EUR 23.2 million (prior year: EUR 32.3 million). This development
is the result of the sharp decrease of 60.7% in payments for investments in
property, plant and equipment, which amounted to EUR 7.7 million (prior
year: EUR 19.6 million), while payments for investments in intangible assets
were up 16.7% to EUR 14.4 million (prior year: EUR 12.3 million).
Cash and cash equivalents increased to EUR 14.3 million (prior year: EUR 8.5
million) as of the balance sheet date, mainly as a result of the cash
capital increase.
Based on the current competitive position of the paragon Group and the
extensive investments made in recent years, particularly in the development
of production sites in Germany, the U.S. and, most recently, in China, the
Management Board continues to expect paragon to grow more quickly than the
global automotive industry in fiscal year 2017. Group sales are expected to
grow to between EUR 120 million and EUR 125 million in the current fiscal
year. An EBIT margin of around 9.0% to 9.5% is expected.
The Electromobility operating segment is expected to contribute about half
of the revenue growth, while the remaining revenue growth is predominantly
generated by the Electronics operating segment. As of fiscal year 2018, the
Electronics operating segment and, to a lesser extent, the Mechanics
operating segment are also expected to increasingly contribute to the
Group's growth.
The Management Board expects to see an investment volume of around EUR 27
million in the current year. Capitalized development costs are planned to
amount to around 45% of the investment total for the current year.
The further significant expansion planned in the Electromobility operating
segment is intended to make paragon more independent of macroeconomic
factors in the automotive industry and broaden the customer structure.
The annual report and consolidated financial statements from December 31,
2016, are available for download at http://www.paragon.ag/investoren.html.
Company Profile
paragon AG (ISIN DE0005558696), which is listed in the regulated market
(Prime Standard) of the Frankfurt Stock Exchange, develops, produces and
distributes forward-looking solutions in the field of automotive
electronics, e-mobility and body kinematics. As a direct supplier of the
automotive industry, the company's portfolio includes the Electronics
operating segment's innovative air-quality sensors, high-end acoustic
systems and state-of-the-art display instruments. With the Voltabox
subsidiaries, the Group is also active in the rapidly growing
Electromobility operating segment with its own lithium-ion battery systems
developed in-house. In the Mechanics operating segment, paragon develops and
produces adjustable body components such as adaptively extendable spoilers.
In addition to the company headquarters in Delbrück (North Rhine-Westphalia,
Germany), paragon AG and its subsidiaries operate sites in Suhl (Thuringia,
Germany), Nuremberg (Bavaria, Germany), St. Georgen (Baden-Württemberg,
Germany) and Bexbach (Saarland, Germany) as well as in Kunshan (China) and
Austin, Texas (USA).
Financial Press Contact & Investor Relations
paragon AG
Dr. Kai Holtmann
Artegastrasse 1
33129 Delbrück, Germany
Phone: +49 (0) 52 50 - 97 62-140
Fax: +49 (0) 52 50 - 97 62-63
E-mail: [email protected]
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27.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: paragon AG
Schwalbenweg 29
33129 Delbrück
Germany
Phone: +49 (0)5250 97 62 - 0
Fax: +49 (0)5250 97 62 - 60
E-mail: [email protected]
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A1TND93
WKN: 555869, A1TND9
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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