SFC Energy AG publishes audited consolidated figures for 2014; Highest annual sales in company's history


SFC Energy AG / Key word(s): Final Results

2015-03-26 / 07:30


SFC Energy AG - Corporate News - ISIN DE0007568578

SFC Energy AG publishes audited consolidated figures for 2014;
Highest annual sales in company's history

2014 Annual Highlights

- Revenues increased 65.5% to EUR 53.63 million (prior year: EUR 32.41 million)

- Break-even threshold crossed on underlying EBITDA basis: EUR 0.38 million (prior year: minus EUR 2.20 million).

2014 Unaudited Fourth Quarter Highlights

- Highest quarterly revenues in company history: revenues increased 37.9% to EUR 16.31 million (prior year: EUR 11.83 million)

- Underlying EBITDA increased to EUR 1.64 million (prior year: minus EUR 0.34 million)

Outlook for 2015

- Outlook for 2015: Sales expected to be in a range from EUR 55 to 65 million, largely due to expected increases in revenues from industry and defense markets

- Expects year-over-year improvement in EBITDA and improved profitability

Brunnthal/Munich, 26 March 2015 - SFC Energy AG (ISIN: DE0007568578), a leading international supplier of stationary and mobile hybrid-power supply solutions on the basis of fuel cells, today announced its audited financial results for the year ended December 31, 2014.

Financial Review

Revenues

The company's sales increased 65.5% in 2014, rising to EUR 53.63 million. Consolidated sales at constant exchange rates amounted to EUR 55.02 million.

Sales by segment

Segment in million EUR 2014 2013
Oil & Gas 29.34 8.45
Security & Industry 20.19 19.16
Consumer 4.11 4.80
Total 53.63 32.41

The primary drivers behind this significant sales growth were the successful integration of Canada-based Simark Controls Ltd. and the related significant expansion of SFC Energy's commitment in the Oil & Gas segment.

Despite the decline in oil prices in the second half of 2014 and the negative effects of the exchange rate for the Canadian dollar, Simark generated organic growth that exceeded the company's expected 20% growth targets. The comprehensive restructuring and streamlining in the fuel cell field began to steadily drive sales growth throughout the year.

Segment Performance

In fiscal year 2014 SFC Energy AG continued to execute on its strategic goal of becoming a system supplier of power supply and power management solutions.

Oil & Gas

Sales in the Oil & Gas segment grew significantly, rising from EUR 8.45 million in the prior year to EUR 29.34 million in 2014. When comparing the two years, it is important to note that Simark Controls was not consolidated until September 1, 2013. Sales came exclusively from the sale and integration of products for the North American Oil & Gas market, which is now the company's most important market.

Security & Industry

The Security & Industry segment reported sales growth from EUR 19.16 million to EUR 20.19 million. The civilian business in this segment continued to grow, increasing by 7.8% from the previous year. The field of fuel cells showed a significant organic growth of 18.2%. On the other hand, money was tight in the defense market. Year-on-year the sales in this area fell by EUR 0.31 million. Particularly gratifying was a large order for EFOY fuel cells in the field of traffic engineering, which generated sales of EUR 1.06 million at year end.

Sales in the power electronics business remained at the prior year's level, but the positive growth in the second half and particularly the last quarter are worthy of note.

Consumer

Sales in the Consumer segment of EUR 4.11 million were below the prior year's level of EUR 4.80 million. Increased sales in Scandinavia were not able to make up for the economy-based downward trend of the Consumer markets in France and Southern Europe as well as lower sales in Germany.

Gross Profit

In addition to sales growth, the company reported improved gross margins in 2014 of:

Gross profits by segment

Segment in million EUR 2014 2013
Oil & Gas 7.64 1.98
Security & Industry 7.09 6.43
Consumer 0.93 1.51
Total 15.66 9.92

EBITDA / EPS

SFC Energy also significantly improved its profitability in fiscal year 2014, as planned.

EBITDA rose from minus EUR 4.47 million in the prior year to minus EUR 1.18 million in 2014. Adjusted for one-off effects, underlying EBITDA amounted to EUR 0.38 million (prior year: minus EUR 2.20 million).

EBIT improved considerably, climbing from minus EUR 8.84 million in 2013 to minus EUR 4.27 million in 2014. Adjusted for one-off effects, underlying EBIT in 2014 amounted to minus EUR 1.22 million (prior year: minus EUR 4.22 million), with the underlying EBIT margin improving to minus 2.3% (prior year: minus 13.0%).

Earnings per share under IFRS (basic and diluted) improved from minus EUR 1.16 to minus EUR 0.60.

Balance Sheet

SFC Energy AG's freely available cash at December 31, 2014 stood at EUR 6.12 million (December 31, 2013: EUR 7.14 million). The decrease in the amount of EUR 1.02 million is primarily due to the acquisition of Simark. At December 31, 2014, SFC Energy had 246 permanent employees (December 31, 2013: 256).

Outlook for 2015

Dr. Peter Podesser, CEO of SFC Energy AG, commented: "In 2014 the SFC Energy Group had the best year in its history. By successfully integrating the Oil & Gas business into our company, we increased our sales significantly, which also boosted our earnings power. In addition, the acquisition of Simark Controls has also generated the synergy for further growth in the key market of North America.

In the first few months of 2015, we have already adjusted our cost structure to the new economic conditions and slower growth resulting from the existing oil prices level. After an initial period of uncertainty of our customers we have noticed again activity, particularly in the area of production optimization (de-bottlenecking). Hence, we see among others, clear opportunities for a countercyclical expansion of our market position in this sector. At the same time we sense a considerable shift in thinking in the Defense market due to the changed geopolitical situation and expect that to provide significant growth potentials."

The SFC Energy AG Management Board is cautiously optimistic about 2015 despite the increased challenges in the Oil & Gas sector. While certain projects have been delayed in light of lower fuel prices, the company's added value of off-grid energy solutions remains sound and the medium to long term indicators are positive for above-average growth potential.

Due to its strong, highly-diversified product portfolio the economic stability of the SFC Energy Group has increased significantly. Based on our current planning, the Management Board is projecting revenues for the current 2015 year to be in a range from EUR 55 to 65 million.

This range is a result of the limited visibility in the Oil & Gas market and the project-based nature of the Defense market. The Management Board believes that the measures to increase sales in the Industry and Defense sectors and the streamlining of cost structures in Canada will result in continued improvement of operating results versus 2014.

Key figures 2014

In million EUR 1.1. - 31.12.2014 1.1. - 31.12.2013
Sales 53.63 32.41
Gross profit 15.66 9.92
Gross margin 29.2 % 30.6 %
EBITDA -1.18 -4.47
underlying EBITDA 0.38 -2.20
underlying EBITDA-margin 0.7 % -6.8 %
EBIT -4.27 -8.84
underlying EBIT -1.22 -4.22
underlying EBIT margin -2.3 % -13.0 %
Net result -4.83 -8.91
Order backlog 10.63 17.64

Detailed financial information

The complete 2014 annual report of SFC Energy AG can be downloaded from the Company's website at http://www.sfc.com/de/investoren/finanzberichte.

SFC Energy will hold a telephone conference in English for interested investors and journalists today, 26 March 2015, at 10:00 a.m. To register please send an e-mail to [email protected]

SFC Investor Relations

SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592-378
Fax. +49 89 673 592-169
Email: [email protected]
Web: www.sfc.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel. +49 89 89827227
Email: [email protected]rossalliance.de





2015-03-26 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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337527  2015-03-26 

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