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DGAP-News: STS Group AG / Key word(s): Quarterly / Interim Statement
STS Group AG Continues Sustained Growth - Revenue Up 53.5% in the First Nine Months of 2018
- Revenue rises 53.5% to 309.2 mEUR (9M/2017: 201.5 mEUR)
- Adjusted EBITDA climbs significantly by around 157.0% to 21.1 mEUR (9M/2017: 8.2 mEUR)
- 2018 guidance confirmed
Hallbergmoos/Munich, November 21, 2018. STS Group AG (ISIN: DE000A1TNU68), the global system supplier for the automotive industry, focusing on the commercial vehicle industry and listed in the Prime Standard of the Frankfurt Stock Exchange, is continuing its positive business performance. Consolidated revenue continued to perform dynamically in the nine month period from January to September 2018, with STS Group AG generating revenue of 309.2 mEUR after 201.5 mEUR in the same period in 2017. This represents year-on-year growth of 53.5%, essentially stemming from acquisitions carried out in the 2017 financial year and the associated expansion of business. Consolidated EBITDA amounted to 10.2 mEUR (9M/2017: 49.9 mEUR). This decline can be attributed to a positive non-recurring effect (bargain purchase gain) of 47.0 mEUR in the prior period. Adjusted for the special effect, EBITDA in fact climbed considerably by 12.9 mEUR to 21.1 mEUR (9M/2017: 8.2 mEUR). The figure was adjusted primarily for integration costs and expenses for the IPO and the conversion of Group accounting to International Financial Reporting Standards (IFRS) that this required.
Strategic New Orders in Key Markets
In the third quarter, the STS Group secured new orders in the commercial vehicle market from two renowned truck producers. One of these orders will see the STS Group manufacturing and supplying front modules for a major European commercial vehicle manufacturer as part of a high-volume order to the tune of 150 mEUR. The Group also secured an order of major strategic importance involving the supply of driver's cab parts to a major North American commercial vehicle manufacturer. This agreement marks the Group's entry into the North American commercial vehicles market, significantly boosts its global presence and also allows it to reach one of its key targets in the context of its international expansion strategy.
In September 2018, the Group also successfully gained a foothold in the promising electric mobility market. STS Group will supply a battery cover for an electric SUV in China. This order highlights the company's innovative drive. The Group is continuing to expand its market presence in a fiercely competitive market environment, qualifying as a tier 1 supplier for an electric vehicle manufacturer thanks to the order, also bolstering its position as a systems supplier for the commercial vehicle industry. For this purpose, the Group began construction of a third production plant in China during the reporting period, with production expected to begin in the first quarter of 2019. Furthermore, the Group will relocate its China headquarters along with the research and development activities to Wuxi, increasing its appeal as an employer for young and talented graduates.
High Flexibility - Positive Outlook
The STS Group continues to enjoy a solid financial base and sufficient cash. Unrestricted cash amounted to 28.9 mEUR as of September 30, 2018 (December 31, 2017: 15.8 mEUR). The equity ratio rose by eight percentage points to 30% in the reporting period (December 31, 2017: 22%). In absolute figures, equity increased by 22.8 mEUR to 83.5 mEUR. This development primarily reflects cash inflows as part of the STS Group's IPO.
"We are still well on track to increase our market share with our technologically sophisticated and high-performance products. At an early stage we established a good starting point in key commercial vehicle markets and we will work to consolidate this. Our products are innovative and provide important features for weight reduction and comfort. All these factors put together mean that we are looking into the future with optimism," said Andreas Becker, CEO of the STS Group AG.
In light of the sustained positive business performance in the first nine months, the STS Group AG Executive Board is confirming its 2018 whole-year guidance. This sets out an increase in revenues of at least 30% in comparison to the prior year figure of 310 mEUR. The Executive Board anticipates adjusted EBITDA to rise significantly in comparison to adjusted EBITDA of 14.2 mEUR for the 2017 financial year.
The interim statement for the 9 month period 2018 can be downloaded at www.sts.group.
Conference call today at 10 a.m.
STS Group AG will hold a conference call in English for interested investors and press representatives today, 21 November 2018, at 10 a.m. (CET). To register, please send an e-mail to firstname.lastname@example.org.
STS Group AG
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|Company:||STS Group AG|
|Phone:||+49 (0)811 124494 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|