Report on the first half of the 2018/2019 financial year (June 01 to November 30, 2018)

Group sales € 7,569 thousand / Group earnings € 192 thousand / Extremely high order backlog € 21,858 thousand

In the reporting period from June 01 to November 30, 2018, CeoTronics AG recorded consolidated revenues of € 7,569 thousand (previous year: € 9,601 thousand).

The sales trend in the first six months of the financial year is in line with expectations, given the reasons for the almost four-month short-time period, which has now ended. In the second half of the 2018/2019 financial year, it should be possible to more than make up for the temporary decline in sales and thus achieve the targeted improvement in sales and earnings compared with the previous year. At +90.5 %, the sales performance (sales and orders on hand at the reporting date) compared with the previous year is extremely positive.

The domestic share of group sales rose to 67.3 % (previous year 48.6 %). The share of foreign sales fell accordingly to 32.7% (previous year 51.4 %). CeoTronics increased revenues in the United Kingdom by € 284 thousand, while revenues in Austria fell by € 1,384 thousand from € 1,764 thousand in the previous year to a normal value of € 380 thousand following the calculation of a major order.

The EBIT for the first half of the fiscal year amounted to € 103 thousand (prior year: € 416 thousand), earnings before taxes were € 8 thousand (prior year: € 336 thousand) and consolidated net income was € 192 thousand (prior year: € 306 thousand).

The group‘s equity decreased to € 10,895 thousand as of November 30, 2018 (prior year: € 11,319 thousand). The equity ratio fell from 53.9 % to 50.7 %.

The consolidated order backlog as of November 30, 2018 increased by 273.6 % to € 21,858 thousand compared to the previous year (€ 5,850 thousand). The order intake in the first six months of the 2018 / 2019 financial year amounted to € 22,134 thousand and was 129.4 % up compared to the prior-year figure.

The order structure has changed very positively compared to previous years. The current order backlog is characterized not only by an extremely high value, but also by a higher number of larger projects and above all the fact that many orders are processed over a longer period of time in several delivery lots and/or with several performance milestones (partly including upstream development, certification/authorization, etc.). CeoTronics AG has used this so-called ‚sustainable order backlog‘ to achieve a long-term basic capacity utilization and to create the conditions for a positive business development that is as continuous as possible - from the 2019 / 2020 financial year.

At 145, the group‘s headcount (including trainees) as of November 30, 2018 was three employees down on the prior-year figure. After full-time equivalents (FTE), the figure was 132.

„Never before had CeoTronics recorded such a high order backlog as of November 30. With the current order backlog, a large part of the sales and contribution margins forecast for the following years are hedged. In view of this and in the knowledge of the promising order forecast, we are sticking to our targets of achieving up to € 25.0 million in sales, clearly positive results and a sustainable ability to pay dividends within the next four financial years,“ CEO and spokesman of the management board Thomas H. Günther announced.

CeoTronics AG Audio Video Data Communication (ISIN: DE0005407407), Adam-Opel- Straße 6, 63322 Rödermark, Germany, is listed on the Basic Board.

More information:
CeoTronics AG
Audio Video Data Communication
Investor Relations, Adam-Opel-Straße 6, 63322 Rödermark, Germany
E-mail: investor.relations@ceotronics.com, Internet: www.ceotronics.com