DGAP-News: paragon AG / Key word(s): Half Year Results

2015-08-20 / 08:45


paragon Group with jump in revenue and earnings in first half of 2015 

  - Half-year revenue rises year-on-year by 18.2% to EUR 44.6 million

  - EBIT margin more than doubles to 8.6%

  - Substantial increase in operating cash flow to EUR 8.0 million
    (previous year: EUR 0.1 million)

  - Large-scale serial order worth EUR 72 million acquired for starter

  - Impressive confirmation of revenue and earnings forecast for 2015 

Delbrück, August 20, 2015 - Following a strong start to the year, the
revenue and earnings performance of paragon Group gained further momentum
in the second quarter of 2015 impressively underpinning the company's
full-year performance expectations. At EUR 44.6 million consolidated
revenue for the first half of 2015 exceeded the previous year's figure of
EUR 37.8 million by 18.2%. Key earnings figures showed even stronger
growth. EBIT improved by 155.7% to EUR 3.8 million (previous year: EUR 1.5
million) and the EBIT margin more than doubled from 4.0% to 8.6%.
Indications for the further course of the year are also very positive. As
of June 30, 2015, paragon had already received customer orders for more
than 97% of the total revenue planned for the current fiscal year. The
Managing Board therefore confirms its forecast for the fiscal year 2015
expecting consolidated revenue of up to EUR 100 million and an EBIT margin
of around 10%.

"The high investments made in recent years are now paying off even more
clearly. We achieved substantial growth in nearly all business divisions -
and especially in our new Body Kinematics and Electromobility divsions
whose half-year revenue share is now almost 9% and keeps growing. That is
also reflected in our excellent earnings figures," commented Klaus Dieter
Frers, CEO of paragon AG, with regard to the company's half-year results.

Products for premium manufacturers still going extremely strong 
Alongside the pleasing development in the new Body Kinematics and
Electromobility divisions, the existing business with products for premium
manufacturers was also running at full swing in the first half of 2015. The
Sensors business division continued to benefit from strong demand for air
quality management (AQS, AQI) products and thus posted a 14.5% revenue
growth. The Acoustics business division maintained the high previous year's
level while the Cockpit business division grew by 12%. Rapid progress is
also being made with the integration of SphereDesign GmbH - the company
acquired at the beginning of the year - where notable synergies have
already been realised. With capital expenditure of EUR 13.6 million,
paragon Group maintained a high level of investment in the first half of
the year (previous year: EUR 4.5 million). In addition to the SphereDesign
GmbH acquisition, investments related above all to the construction of the
production building in the US as well as to replacement and new investments
in machinery. The Managing Board expects investment activities in 2016 to
return to the level seen prior to 2015. The period of increased investment
in the new business divisions is now coming to an end and has already
started to pay off.

The positive business performance has also left its mark on the company's
earnings development. EBIT thus increased year-on-year by 155.7% from EUR
1.5 million to EUR 3.8 million and the EBIT margin more than doubled from
4.0% to 8.6%. Consolidated net income calculated in line with IFRS rose to
EUR 1.9 million as of June 30, 2015 - five times the previous year's figure
(EUR 0.4 million). Correspondingly, earnings per share increased to EUR
0.46 (previous year: EUR 0.09).

Seizing growth potential

In the further course of the year paragon will be exploiting the
significant growth potential resulting - among other factors - from its
diversification and internationalization strategy. paragon's two
subsidiaries Voltabox Deutschland GmbH and Voltabox of Texas, Inc. not only
celebrated the opening of the newly constructed production building in the
US but also acquired their first large-scale serial order from a well-known
German carmaker for starter batteries for conventionally powered vehicles
(order volume: approx. EUR 72 million) and thus accessed an additional
business field. This is further evidence of the enormous range of possible
uses and the strong growth potential harboured by paragon's Electromobility
business division.

The company is also pressing further ahead with its plans for the Chinese
market. The sales subsidiary operating in Shanghai since 2012 is currently
being expanded into a production company and is due to move to a new
building offering ideal conditions - located in Kunshan not far from
Shanghai - in September. In the future, the new plant will manufacture air
quality sensors, air quality improvement systems, and stepper motors for
display instruments. It is planned to expand the product range in a second

Not only that, at the IAA fair due to be held in Frankfurt in September
2015 paragon will be presenting further world novelties - such as the new
modular sound system or the new connectivity platform, new steering wheel
control elements and interior components, innovative aerodynamic systems,
and a substantially extended Electromobility product range.

The order situation and outlook for the various business divisions remain
highly positive. The innovative products offered by paragon Group are
meeting with ever greater interest from customers and in some cases even
exceed the company's own expectations. Thus, paragon Group is not only able
to tie its existing customers more closely to the company but also to
increasingly acquire new customers. Against this backdrop, the Managing
Board reiterates its forecast for the fiscal year 2015, targeting
consolidated revenue of up to EUR 100 million and an EBIT margin of around

Company profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt am Main, paragon AG develops, produces, and sells advanced
automotive electronics solutions. The portfolio of this direct supplier to
the automotive industry includes products in the following business
divisions: Sensors, Acoustics, Cockpit, Electromobility, and Body
Kinematics. Headquartered in Delbrück (North Rhine-Westphalia), paragon AG
has branches in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen
(Baden-Württemberg) and Shanghai (China), as well as its subsidiary
SphereDesign in Bexbach (Saarland) and a subsidiary in Austin (Texas, USA).


paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon.ag
E-mail: info@paragon.ag

Financial press and investor relations contact 
Instinctif Deutschland GmbH
Michael Müller
Tel.:  +49 (0) 221/42075-0
E-mail: michael.mueller@instinctif.com


2015-08-20 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de


Language:    English                                                    
Company:     paragon AG                                                 
             Schwalbenweg 29                                            
             33129 Delbrück                                             
Phone:       +49 (0)5250 97 62 - 0                                      
Fax:         +49 (0)5250 97 62 - 60                                     
E-mail:      investor@paragon.ag                                        
Internet:    www.paragon.ag                                             
ISIN:        DE0005558696, DE000A1TND93                                 
WKN:         555869, A1TND9                                             
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
End of News    DGAP News-Service  
387965 2015-08-20