SFC Energy AG: Sales momentum continues in Q2 2017
DGAP-News: SFC Energy AG / Key word(s): Half Year Results
SFC Energy AG - Corporate News
SFC Energy AG: Sales momentum continues in Q2 2017
- Consolidated sales climb to EUR 26.31 million (HY/2016: EUR 20.80 million)
- EBITDA improves to EUR -0.55 million (HY/2016: EUR -1.76 million)
- Significant growth in the defense business in the second quarter
- Order backlog up 46.1% to EUR 16.25 million (June 30, 2016: EUR 11.12 million)
- 2017 guidance: Management confirms sales guidance of EUR 50 to 55 million with significantly improved profitability over 2016
Brunnthal/Munich, Germany, August 17, 2017 - SFC Energy AG (ISIN: DE0007568578), a leading international supplier of stationary and mobile hybrid power generation plants based on fuel cells, published financial figures for the first half year of 2017 today.
SFC Energy AG can look back on a successful first half of 2017. From January to June 2017 the Group achieved consolidated sales of EUR 26.31 million, up 26.5% over the same period in 2016 (HY/2016: EUR 20.80 million). This increase is mainly due to a strong growth in the company's Oil & Gas and Security & Industry segments. Compared to the first six months of 2016, Oil & Gas sales were up 32.2% (HY/2017: EUR 11.69 million / HY/2016: EUR 8.84 million). The sales momentum in Q1 2017 continued in the second quarter, despite a temporary slump in the price of oil, with sales increasing by 22.3% over Q2 2016. During the period when oil prices fell to USD 40, SFC Energy's customers reacted by keeping a tight rein on their pocketbooks. This makes the growth in the Oil & Gas segment all the more impressive. In addition to spending on replacements and maintenance, new projects were a major driver of growth in this segment. The market also saw a marked increase in the number of new oil and gas drillings. This trend is expected to have a positive effect, especially on SFC Energy's upstream product sales.
The Security & Industry segment, which remains SFC Energy's largest business unit, posted robust growth in the first half of 2017, with sales up 28.1%, from EUR 9.87 in the first half of 2016 to EUR 12.64 million in the first half of 2017. Growth here was mainly driven by steady demand from existing and new customers of SFC Energy's PBF subsidiary and by the fast-growing demand for civil surveillance systems. In the second quarter of 2017, SFC Energy's defense business grew by over 143% over the same quarter in 2016. Here, the strategic focus on international expansion with less dependence on German defense customers is beginning to pay off. Excellent examples of this are SFC Energy's successful entrance into the UK market with a first serial order for Emily products as on-board power supplies for military vehicles, and a follow-up order from India for powering off-grid border protection equipment.
With a 9% increase in sales, the Consumer segment exceeded our expectations. Even though half-year sales of 1.98 million were 5% below the same period in 2016 (EUR 2.09 million), efforts to further expand the business internationally and grow existing markets have been starting to produce results.
In the first six months of 2017, the SFC Energy Group's profitability improved significantly over the same period in 2016. Gross profit grew by 29.3%, from EUR 6.14 million in the first half of 2016 to EUR 7.94 million in the first half of 2017.
EBITDA improved in the reporting period to minus EUR 0.55 million, as compared to minus EUR 1.76 million in the same period in 2016. EBITDA adjusted for non-recurring effects was minus EUR 0.37 million (prior year: minus EUR 1.85 million).
In the first six months of 2017, EBIT improved to minus EUR 1.52 million, following minus EUR 2.89 million in the first half of 2016. EBIT adjusted for non-recurring effects was minus EUR 0.99 million in the reporting period (HY/2016: minus EUR 2.47 million).
Earnings after taxes in the first half of 2017 improved to minus EUR 1.82 million, as compared to minus EUR 3.01 million in the first half of 2016. Earnings per share under IFRS (undiluted) amounted to minus EUR 0.20 in the reporting period 2017, whereas in the same period in 2016, earnings per share (undiluted) had been minus EUR 0.35.
Available cash and cash equivalents fell to EUR 1.02 million at June 30, 2017 (December 31, 2016: EUR 1.76 million). The equity ratio at the end of the first half of 2017 was at 34.6% (December 31, 2016: 39.5%).
After the end of the reporting period, on August 3, 2017, the Management Board of SFC Energy, with the approval of the Supervisory Board, agreed on a financing package with Harbert European Growth Capital Fund (Harbert), consisting of
- the issuance of a secured fixed-interest bond with a nominal amount of EUR 4,997,500
- entry into related security agreements, and
- the issuance of an option bond.
This transaction provided the Company with gross issue proceeds of EUR5 million. The cash inflow is to be used to repay loans, strengthen the Company's liquidity base and promote the further international expansion of the business.
Given the continued increasing momentum in the second quarter and an order backlog of EUR 16.25 million at the end of June - up 46.1% over the previous year amount of EUR 11.12 million - the SFC Management Board remains optimistic and reconfirms its sales forecast published in the 2016 Annual Report, of EUR 50 to 55 million in consolidated sales. For the operating result, the Management Board reaffirms its expectations that profitability will improve significantly compared to 2016.
Dr. Peter Podesser, CEO of SFC Energy AG, commented: "SFC Energy's business in the first half of 2017 developed in the upper range of our expectations. We are confident for the full 2017 business year, as our Defense & Security and Oil & Gas customers step up their spending. As planned, we expanded our team to 250 full-time employees in the reporting period, in order to further strengthen our position in both markets in the medium term. With the financing package closed with Harbert on August 3, we have now secured our plans to move full speed ahead with our expansion, especially in the domestic and international industry and defense markets."
Key Figures HY/2017
Detailed financial information
SFC Energy AG's full half year report can be downloaded from: www.sfc.com/de/investoren/finanzberichte.
SFC Energy AG will hold a telephone conference in English at 9 am today, August 17, 2017, for interested investors and journalists. To register, please send an email to [email protected].
About SFC Energy Group
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17.08.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.