technotrans AG has maintained its rate of growth over the first nine months of the current financial year: revenue including the recently acquired businesses was up 12.7 percent at EUR 103.3 million. In organic terms the company achieved solid growth of 6.1 percent. The reported earnings before interest and taxes (EBIT) fell by 3.8 percent to EUR 6.5 million due to non-recurring, acquisition-related effects. Disregarding these one-off additional costs, EBIT rose by 8.0 percent to EUR 7.3 million and was therefore within the forecast range for the full year. technotrans also confirmed the organic growth targets.

“The dominant event in the third quarter was the takeover of gwk Gesellschaft Wärme Kältetechnik GmbH in August,” remarked Henry Brickenkamp, Chief Executive Officer of technotrans AG. Through the acquisition, this supplier of liquid technology applications has widened its range of activities to include plastics engineering, and at the same time bolstered its worldwide position in the market for cooling and temperature control solutions.

The acquisition of gwk, consolidated with effect from September 1, had a significant impact on the result for the first nine months. For example reported revenue including the acquired business was up 12.7 percent at EUR 103.3 million. The adjusted figures showed 6.1 percent revenue growth to EUR 97.2 million. Among other factors, the difference is attributable to the revenue contribution of around five million euros which gwk generated in September. EBIT for the group dipped slightly to EUR 6.5 million, representing a margin of 6.3 percent. Excluding non-recurring effects, the figure was EUR 7.3 million (7.5 percent margin). The net income for the period climbed 2.8 percent to EUR 4.6 million, and the return on sales reached 4.5 percent (previous year: 4.9 percent).

The non-recurring effects largely result from the costs for the acquisitions completed in 2016, the integration of the companies acquired, as well as expenditure associated with the consolidation process. “After elimination of these effects, technotrans AG is fully on track to meet expectations for the 2016 financial year at the nine-month mark,” emphasised Brickenkamp.

This positive development is also reflected in the individual segments. The Technology segment benefited on the one hand from pleasingly steady demand from the printing industry, and on the other hand technotrans gradually increased its business in the other technology areas. In this case revenue rose by 12.5 percent to EUR 68.7 million, with gwk contributing EUR 3.6 million. The business performance in the Services segment was equally positive; the segment benefited both from follow-on business in the technology markets and from substantial revenue growth in Technical Documentation. The extra revenue from the takeover of gwk and the acquisition of a 51 percent stake in Ovidius GmbH in the spring added up to EUR 2.5 million in this segment in the period under review.

In light of the acquisitions completed and the associated costs, technotrans adjusts its expectations for the full year. From the present perspective the company anticipates that revenue for 2016 will reach around EUR 150 million, representing a clear increase on the original guidance of EUR 126 to 132 million. As before, EBIT is expected to lie within a corridor of EUR 9.5 to 10.5 million. The adjusted revenue and profit expectations yield an EBIT margin in the order of 6.3 to 7.0 percent. The range had previously been expected to be 7.5 to 8.0 percent.

“We anticipate that from 2017 the EBIT margin will stabilise and develop at a higher level thanks to realising synergy effects,” remarked Brickenkamp. The Board of Management also confirms the medium term goal of increasing revenue to over EUR 200 million. technotrans will provide guidance on firm revenue and earnings targets for the coming year with the publication of the 2016 Annual Report on March 14, 2017.