29.03.2018
Masterflex SE DE0005492938
DGAP-News: Masterflex Group with clear growth in revenues and earnings in 2017
DGAP-News: Masterflex SE / Key word(s): Final Results
Masterflex Group with clear growth in revenues and earnings in 2017
29.03.2018 / 10:00
The issuer is solely responsible for the content of this announcement.
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Masterflex Group with clear growth in revenues and earnings in 2017
* Revenues up 12.3% to EUR 74.7 million; operating Ebit up 16.1% to EUR
7.1 million
* Earnings per share up from EUR 0.34 to EUR 0.45
* Dividend to be raised to 7 cents per share
* Further growth targets for 2018
Gelsenkirchen/Düsseldorf, 29 March 2018 - Masterflex Group was able to
largely meet its targets in 2017 and actually exceeded them in some cases.
Consolidated revenues were up 12.3% in 2017, from EUR 66.5 million to EUR
74.7 million, exceeding the target of 6-10% growth. Masterflex Group expects
continued growth in 2018, with revenue growth in the 4-8% range.
The company's strong performance is reflected in earnings growth as well, as
adjusted operating Ebit climbed from EUR 6.1 million to EUR 7.1 million, for
a gain of 16.1%. While this growth conformed to the company's forecast, the
Ebit margin of 9.5% fell somewhat short of the 10% target (year before:
9.2%). This shortfall was due to unexpected one-off effects such as
inventory differences and an end-of-year revenue shift in the US which was
worked out only during the finalization of the financial statements.
Masterflex Group expects further earnings growth in 2018, in line with
revenue growth, as well as confirmation of the margin. Masterflex Group
expects to once again post strong double-digit Ebit margins in the medium
term.
Driven by the strong improvement in operating results, as well as one-off
factors in net financial income and tax effects, net income after taxes
increased at a significantly faster pace in 2017, from EUR 2.9 million to
EUR 4.3 million, for a gain of 50.3%. Earnings per share improved from EUR
0.34 to EUR 0.45. The Management Board and Supervisory Board plan to propose
to shareholders at the Annual General Meeting on 26 June 2018 to raise the
dividend from 5 to 7 cents per share. In doing so, Masterflex Group will be
continuing its active dividend payout policy, proposing a dividend each year
which is at least as high as the year before.
From a strategic viewpoint as well, the Group's performance in 2017 was
highly satisfactory. With the acquisition of all shares in APT, the Group
was able to acquire a company which strategically complements its existing
product portfolio, which contributes high technological expertise of its own
and which was rapidly integrated into the Group's structures. In terms of
financial strategy, the framework for this acquisition and for potential
future M&A transactions was provided by the syndicated loan agreement, newly
concluded in 2016, which makes available funds for inorganic growth in
targeted fashion through an M&A tranche. The Group was also able to further
strengthen its equity capital base in 2017 by executing a successful 10%
cash capital increase. Thanks to this capital increase and to the growth in
earnings, the equity ratio climbed to 51.2% as of 31 December 2017 (year
before: 47.5%).
By adding APT's unique expertise in the processing of fluoropolymers, the
Group was able to extend its product portfolio with no overlaps. Masterflex
Group expects strong potential particularly in the medical technology
segment, a strategic target market which has been a focus of sales
activities for some years and which can now be addressed even more
intensively, with additional products which are virtually predestined for
the market because of their technical specifications. Another strategic
extension to the product portfolio will come through newly developed smart
hoses and connection systems. In the words of Dr. Andreas Bastin, CEO of
Masterflex Group: "In the past 24 months, there have been a number of points
which have suggested the advantages of upgrading our hose systems digitally
in the future so that they can be integrated into customers' systems and
therefore provide more information about the condition of materials and the
transported media. Our development activities in this regard are based on
specific customer requirements. Thanks to our position as a technology
leader, I see us as a preferred development partner. We expect great
potential from digitization, both in terms of the technological features of
our hoses and from the emergence of entirely new fields for smart services,
which may develop into additional sources of revenue in the mid- and
long-term alongside the production and service-focused distribution of
specialty hoses and connection systems."
In order to effectively take advantage of the additional opportunities while
at the same time meeting the growing challenges of digitization, especially
for mid-sized companies, Masterflex Group expanded its growth strategy in
2017 and is already in the process of implementing it. After successfully
completing its two-year reorganization phase, a process which has generated
results, Masterflex is transitioning seamlessly into the next future
project. To the existing strategic initiatives, "Innovation" and
"Internationalization", whose implementation has allowed the company to post
stable growth in recent years, it will now be adding two more strategic
pillars: "Operational Excellence" and "Digital Transformation." Dr. Bastin
stated that "with this expanded strategy, we are seeking to anticipate
external factors which are expected to affect our environment in the coming
years. At the same time, we will be adapting our strategy to our growing
size and internal needs. As our revenues cross the EUR 75 million mark and
as we approach our next revenue target, EUR 100 million, we believe that we
have reached a decisive milestone. We must and will dedicate more thought to
the question of how we intend to leverage our new size to generate
advantages in terms of efficiency and profitability. This will be a highly
important challenge if we are to continue to grow while at the same time
posting satisfactory earnings."
Selected figures 31 Dec. 2017 31 Dec. 2016 Change
in TEUR
Consolidated revenues 74,675 66,486 12.3 %
Ebitda 10,263 8,811 16.5 %
Ebit (operative) 7,081 6,097 16.1 %
Ebit (adjusted) 6,601 5,897 11.9 %
Net financial income -1,181 -1,323 10.7 %
Ebt 5,420 4,574 18.5 %
Consolidated net income 4,303 2,863 50.3 %
Consolidated equity 37,396 28,701 30.3 %
Consolidated equity ratio 51.2 % 47.5 % 3.7 %
Consolidated total assets 72,967 60,412 20.8 %
Employees 621 601 3.3 %
Ebit margin (operative) 9.5 % 9.2 % 0.3 %
Consolidated earnings per share (EUR) 0.45 0.34 32.4 %
Masterflex Group specializes in the development and production of
high-quality hose and connection systems. With 14 operating units in Europe,
America and Asia, the Group maintains a nearly global presence. Its growth
drivers are internationalization, innovation, operational excellence and
digitization. Masterflex shares (German Securities ID: 549293) have been
admitted for trading in Deutsche Börse's Prime Standard segment since 2000.
Contact: Frank Ostermair/Linh Chung, Better Orange IR & HV AG, Phone: 49 89
8896 90614, E-mail: [email protected]
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29.03.2018 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: Masterflex SE
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Germany
Phone: +49 (0)209 970770
Fax: +49 (0)209 9707733
E-mail: [email protected]
Internet: www.MasterflexGroup.com
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
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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669995 29.03.2018
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