Nanogate posts record sales and exceeds its earnings target – EBITDA forecast to grow by at least 30 % in 20122011 financial year: sales increase to EUR 33.2 million, adjusted EBITDA to EUR 4.2 million – Target EBITDA margin of 10 % exceeded – Strong operating cash flow from continuing activities – Growth in all business areas, negative impact from Holmenkol – Group aims to be in a position to pay a dividend in 2012 and generate considerably stronger growth in earnings than sales
Göttelborn, Germany, 3 May 2012. Nanogate AG (ISIN DE000A0JKHC9), the leading international integrated systems provider for high-performance surfaces, finished the 2011 financial year with record sales of EUR 33.2 million (previous year: EUR 15.4 million). Adjusted EBITDA came in at EUR 4.2 million, far exceeding the target margin of 10 %. Strong new business contributed to this success, as did the two new equity holdings GfO AG and Eurogard B.V. This year, Nanogate aims to generate stronger growth in earnings than sales. In the medium term, the company hopes to post sales of EUR 50 million and an adjusted EBITDA margin of 20 %.
Ralf Zastrau, CEO of Nanogate AG, said: “Our past growth initiatives are paying off. The pleasing development in our operating business proves that Nanogate is well positioned strategically.” Nanogate achieved a number of major strategic and operational milestones in the 2011 financial year. At the strategic level, the new subsidiary, the Dutch company Eurogard B.V., was integrated smoothly and quickly. Together with GfO AG, which was acquired in summer 2010, the Group now covers the entire value chain from the selection of raw materials and the preparation of materials, via process integration, through to mass production. The Group’s capital base was also improved by a successful capital increase. As regards operations, Nanogate heightened its sales potential in all four target sectors: Automotive/Mechanical Engineering, Buildings/Interiors, Sport/Leisure and Functional Textiles. The company made the greatest progress in the application areas of energy efficiency and plastics.
However, the Holmenkol AG equity holding had a negative impact on the Group’s good operating result. Considering the difficult situation at the equity holding, Nanogate has decide to reduce the Group’s risk exposure. Firstly, this means that the minority stake will no longer be viewed as strategic business and will therefore be listed as a discontinued operation. As a result, it is no longer included in the 2011 and 2010 sales or the adjusted earnings figures. Secondly, the balance sheet was adjusted to completely remove Holmenkol as at 31 December 2011. The equity holding, receivables and loans to the company were written down in full. Holmenkol’s deconsolidation also eliminated considerable liabilities, meaning that the adjustment had very little effect on the balance sheet.
Sales more than doubled in 2011
Group sales set a new record of EUR 33.2 million (previous year: EUR 15.4 million). Earnings also came in higher than the company expected. The adjusted consolidated EBITDA amounted to EUR 4.2 million. The margin of 12.7 % was significantly higher than the target of 10 %. Depreciation and amortisation totalled EUR 2.5 million (previous year: EUR 4.3 million), prompting the adjusted consolidated EBIT to improve to EUR 1.7 million. Adjusted earnings before taxes stood at EUR 0.8 million.
Before adjustments, consolidated EBITDA came in at EUR 3.5 million (previous year: EUR 5.1 million), consolidated EBIT totalled EUR 1.0 million (previous year:
EUR 0.8 million) and earnings before taxes were EUR -0.3 million (previous year: EUR 0.3 million).
The result from discontinued operations – due to writing down the equity holding in Holmenkol – came to EUR -2.9 million (previous year: EUR -1.0 million). As a result of the expenses associated with discontinued operations, Nanogate AG posted a consolidated net loss of EUR 3.6 million (previous year: income of EUR 1.5 million).
Financial position improved significantly – high cash flow from operating activities
Nanogate radically improved its assets and financial position in 2011. The Group profited from high cash flow of EUR 3.0 million from operating activities (previous year: EUR -0.6 million) and a successful capital increase of around EUR 8 million. The Group’s financial position improved again: the equity ratio went up to 49.8 % (previous year: 44.5 %) and cash balances rose to EUR 9.0 million (previous year: EUR 4.1 million).
Further strong profitable growth anticipated in 2012
Everything points towards further profitable growth this year, supported by the good order base in segments such as the automotive industry. Demand for energy-efficiency coatings is also growing. Furthermore, the company’s growth initiatives focusing on its sales base, product/technology portfolio and the opening-up of new markets are delivering additional orders. Sales are thus expected to grow by at least 10 % as a result, with an increase in adjusted EBITDA of 30 % or more. Cash flow from operating activities should also improve again. With this forecast performance and improved profitability the Group should be in a position to pay a dividend from the current year. The Group remains dedicated to its medium-term target of generating sales of EUR 50 million and an EBITDA margin of 20 %. CEO Ralf Zastrau added: “As the leading international integrated systems provider for high-performance surfaces Nanogate has a better position than virtually any other supplier on this attractive market.”