DGAP-News: SFC Energy AG / Key word(s): Preliminary Results/Strategic Company Decision
07.02.2019 / 07:30
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SFC Energy AG - Corporate News
SFC Energy AG publishes preliminary consolidated figures for 2018 - Significant increase in sales and more than doubling of adjusted EBITDA / Company considering its strategic options for future development and growth
- Q4/2018 best quarter in company history: Sales at EUR 17.44 million (Q4/2017: EUR 14.93 million), adjusted EBITDA clearly positive at EUR 1.69 million (Q4/2017: EUR 1.48 million)
- Targets for 2018 as a whole achieved:
- Preliminary consolidated sales for 2018 rise by around 14% to EUR 61.70 million (previous year: EUR 54.29 million)
- Preliminary adjusted EBITDA for the full year 2018 more than doubled to EUR 3.71 million (previous year: EUR 1.45 million)
- Forecast for 2019: Consolidated sales of EUR 67 million to 74 million, adjusted EBITDA of EUR 4.5 million to 7 million and adjusted EBIT of EUR 3.5 million to 6 million.
- SFC Energy AG has initiated a process to consider and prepare strategic options for the future development and growth of the Company. These options also expressly include exploring the markets to attract new, medium-term strategically oriented investors and a potential capital increase. Major large shareholders of the Company are involved in these considerations.
Brunnthal/Munich, February 7, 2019 - SFC Energy AG (ISIN: DE0007568578), a leading international supplier of stationary and mobile hybrid power supply systems based on fuel cells, has achieved its targets for the full year 2018, both in terms of targeted sales growth and increased profitability. For the full year 2018, the Company achieved consolidated sales of EUR 61.70 million according to preliminary calculations, which corresponds to an increase of around 14% over the previous year's figure of EUR 54.29 million (annual forecast 2018: EUR 60 million to 64 million). The positive development of preliminary adjusted EBITDA in 2018 was even more pronounced: At EUR 3.71 million, EBITDA for 2018 as a whole was approximately 155% higher than in the previous year (2017: EUR 1.45 million). According to preliminary calculations, adjusted EBIT in 2018 amounted to EUR 2,55 million compared to EUR 0,18 million in the previous year. Thus, the annual forecast of a significant improvement in adjusted EBITDA and EBIT was achieved.
In the final quarter of 2018, the Company achieved the best quarter in the Company's history with consolidated sales of EUR 17.44 million (Q4/2017: TEUR 14.93 million) and a clearly positive adjusted EBITDA of EUR 1.69 million (Q4/2017: EUR 1.48 million).
"The overall very pleasing business development in 2018 as a whole is supported by robust growth in all core markets. The strategy adopted to expand the fuel cell business both nationally and internationally is thus clearly bearing fruit. In the fourth quarter of 2018 and also for the full year 2018, we succeeded in generating the highest sales and earnings in the history of the Company. This strong performance confirms our strategy and we look forward with confidence to the fiscal year 2019, in which we expect a consistent continuation of our profitable growth path," says Dr. Peter Podesser, CEO of SFC Energy AG.
In the Oil & Gas segment, SFC Energy recorded record order intake in the first nine months of 2018 - especially in the traditionally calmer summer months - which led to the best fourth quarter since the start of this segment. This growth was driven in particular by strong sales of fuel cells as well as SCADA systems and combinations of SCADA products and EFOY Pro fuel cells. As a pioneer, the Simark subsidiary has gained a strong competitive edge in fuel cells.
In the Defense & Security segment, SFC Energy more than doubled sales in 2018, with new national programs and several follow-up orders in particular, as well as new international orders. The new and follow-up orders demonstrate the high level of trust placed in SFC Energy solutions and consolidate the Group's leading position as a supplier of reliable, off-grid energy solutions in the international defense sector.
According to preliminary calculations, the Industry segment's subsidiary PBF's sales also rose by around 7% in the fiscal year 2018. Not only the growth with existing customers is clearly positive, but also the implementation of the first substantial projects with the new modular product platform developed by PBF, which is becoming increasingly established on the market. This platform enables fast, cost-effective and extremely efficient highly dynamic power supply solutions for demanding applications such as laser technologies and other high-tech industrial sectors. In 2018, PBF was able to win three new prototype first series orders for laser tool applications in the amount of EUR 0.7 million to EUR 1.0 million each. A portion of these sales was realized in 2018; the largest portion will be delivered in the fiscal year 2019. After successful qualification of the prototypes, series sales are expected from the follow-up orders from 2020 onwards. This lays the foundation for further growth in the Industry segment.
As expected, the civil fuel cell business in the Clean Energy & Mobility segment was down year-on-year in 2018. This was due to a major order for monitoring systems from Singapore, which was booked as sales in the first quarter of 2017. Taking this one-off effect into account, robust double-digit growth is evident in all other core markets. SFC Energy AG's entry into hydrogen technology through its partnership with adKor at the end of the year improved its technological position further, thus opening up additional growth opportunities in this dynamic market as well as new fields of application.
As of the 2018 balance sheet date, SFC Energy AG had freely available cash and cash equivalents of EUR 7.52 million, compared with EUR 4.41 million in the previous year. Cash flow from operating activities increased in the 2018 financial year to EUR 2.01 million (2017: EUR 1.70 million).
The Management Board expects further significant organic growth for the current fiscal year 2019 and plans consolidated sales of EUR 67 million to 74 million. In addition, a further significant increase in profitability is planned for 2019 with adjusted EBITDA in the range of EUR 4.5 million to 7 million and adjusted EBIT of EUR 3.5 million to 6 million.
"The momentum of the past year continues unabated at the beginning of the current financial year. On the one hand, the fuel cell is beginning to assert itself worldwide as a clean, efficient and sustainable source of energy. In recent years, SFC Energy has also established a leading international market position for off-grid power supplies in fast-growing markets such as defense and security, industrial emergency power supplies in markets such as oil and gas, civil security and surveillance, and the wind power industry. We expect the civilian and defense businesses to generate equally positive momentum for business development in 2019 and also for the company's medium-term development. In the medium term, we also expect above-average growth impulses from the entry into hydrogen technology and it's addressable markets," said Dr. Peter Podesser.
Against the background of these results in 2018, the perceived increased market and investor interest in the Company and its business segments, and in order to be able to optimally exploit the enormous market and growth potential worldwide, the Management Board of SFC Energy AG, in coordination with its major shareholders and with the approval of the Supervisory Board, have initiated a process to consider and prepare possible strategic options for the further growth of the Company. This process is supported by external advisors. The Management's objectives are a consistent regional expansion of business activities with a particular focus on the USA and China as well as the rapid development of the hydrogen fuel cell business. Add-on acquisitions are also to be evaluated. Strategic options also expressly include exploring the markets to attract new, medium-term strategically oriented investors and capital measures. "The options can range from the involvement of long-term strategic investors to a possible capital increase by issuing new shares on the equity capital markets. For the latter option, SFC Energy AG has appointed ABN AMRO Bank N.V. and COMMERZBANK Aktiengesellschaft. From today's perspective, we are confident that we will be able to find and present a long-term sustainable solution for the company and shareholders in the foreseeable future," adds Dr. Peter Podesser.
The figures announced in this release are preliminary and unaudited. SFC Energy AG will publish final figures for the fiscal year 2018 in its Annual Report 2018 on March 25, 2019.
SFC Energy AG will hold a telephone conference today, February 7, 2019, at 09:00 am in English for interested investors, analysts and press representatives. To register, please send an e-mail to [email protected].
About SFC Energy AG
SFC Energy AG is a leading provider of hybrid solutions to the stationary and portable power generation markets. SFC is the number one supplier of fuel cells, with over 41,000 fuel cells sold to date. The Company has award-winning products and serves a range of applications in the Oil and Gas, Security and Industry, and Consumer markets. The Company is headquartered in Brunnthal/Munich, Germany and operates production facilities in the Netherlands, Romania and Canada and sales offices in the United States and Canada. SFC Energy AG is listed on the Deutsche Boerse Prime Standard (GSIN: 756857 ISIN: DE0007568578).
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This release may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of the Company ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms "expects," "plans," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of SFC Energy AG and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.
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