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

2016-08-16 / 07:30
The issuer is solely responsible for the content of this announcement.

paragon AG grows significantly faster than the market in the first six months thanks to electromobility

- Consolidated revenue up by 9.4% to EUR 48.8 million (prior year: EUR 44.6 million).

- With a contribution of EUR 4.5 million, electromobility subsidiary Voltabox now accounts for 9.3% of consolidated revenue (prior year: EUR 1.3 million with a 3.0% share of revenue)

- EBITDA increases slightly to EUR 6.8 million (prior year: EUR 6.7 million).

- EBIT margin of 7.2% (prior year: 8.6%)

- Investments down by 19.9% to EUR 10.9 million (prior year: EUR 13.6 million).

- Revenue and earnings forecast for the current fiscal year confirmed

Delbrück, Germany, August 16, 2016 - paragon AG [ISIN DE0005558696] has published its interim report as of June 30, 2016 - six months - today and confirmed its own forecast for the current fiscal year.

The company generated consolidated revenue of EUR 48.8 million in the first six months (prior year: EUR 44.6 million). This growth was based not only on the buoyant condition of the global sales market for automobiles in the second quarter, but also, and in particular, on the dynamic development of business at the two Voltabox subsidiaries that represent the Electromobility division. Due to the associated increase in the proportion of development work and to the transition made by a number of products from pre-series production to series production, the material usage ratio decreased to 54.3% (prior year: 55.3%). Gross profit rose to EUR 29.1 million (prior year: EUR 26.6 million), which corresponds to a gross profit margin of 52.3% at present (prior year: 51.9%).

"The first fruits of our early and systematic positioning as a specialist supplier of efficient, intelligent battery systems in the market for electromobility are slowly becoming visible," says Klaus Dieter Frers, founder and Chief Executive Officer of paragon AG. "Revenue from this division was doubled according to plan in the second quarter," added Mr. Frers.

Production at the Voltabox subsidiaries in Delbrück, Germany, and Austin, Texas (USA), was dominated by large-scale battery systems for use in trolley buses as well as by modules for forklift trucks. The Acoustics division's growth to EUR 8.9 million (prior year: EUR 7.6 million) was driven in particular by the increased output quantity of the current version of the premium hands-free microphone vario-mic(c) and the start of series production for the belt microphone belt-mic(c) for a further platform. The growth in revenue to EUR 17.5 million in the Sensors division (prior year: EUR 16.8 million) resulted primarily from increased take-rates of optional extras that include paragon sensors in current vehicle models. The Cockpit division remained at its prior-year level with a revenue contribution of EUR 16.2 million. In the second quarter, series production was started for the world's first smartphone cradle to feature a wireless charging function for motorcycles. At the same time, pre-series production commenced for a new generation of clocks. The Body Kinematics division was characterized largely by several series developments of freely adjustable rear spoilers for the optimization of aerodynamics that ran in parallel to each other; revenue declined to EUR 1.7 million due to the product lifecycle (prior year: EUR 2.7 million).

"We are using the current mood of change within the automotive industry in a targeted way in order to make our innovations available for upcoming vehicle models," says Dr. Stefan Schwehr, Chief Technology Officer, adding that "the increasing dynamics in the automobile manufacturers' innovation departments is benefiting us in this respect."

Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) showed a slight upward trend to EUR 6.8 million in the first six months, despite an increase in personnel expenses resulting from the expansion of the business (prior year: EUR 6.7 million), which corresponds to an EBITDA margin of 13.9% (prior year: 15.0%).

Due to increased depreciation and amortization and to other operating expenses, consolidated EBIT (earnings before interest and taxes) declined to EUR 3.5 million (prior year: EUR 3.8 million). This corresponds to an EBIT margin of 7.2% (prior year: 8.6%).

Taking into account reduced net finance income of EUR -1.6 million (prior year: EUR -1.0 million) and a higher income tax burden of EUR 1.3 million (prior year: EUR 0.9 million), the result for the period fell to EUR 0.7 million (prior year: EUR 1.9 million). This corresponds to earnings per share of EUR 0.16 (prior year: EUR 0.46).

Total assets increased to EUR 97.1 million as a result of the prior year's substantial investments in property, plant, and equipment and of capitalized development costs (prior year: EUR 78.4 million).

Equity increased to EUR 19.1 million (prior year: EUR 17.9 million), which constitutes a current equity ratio of 19.7% (prior year: 22.9%).

Cash flow from operating activities decreased in the period under review to EUR 4.7 million (prior year: EUR 8.0 million), which was largely due to a reduction in trade payables following a significant increase in the previous year resulting from higher inventories in the new divisions. Cash flow from investment activity decreased as planned to EUR 10.9 million (prior year: EUR 13.6 million).

Cash and cash equivalents fell to EUR 5.7 million as of the end of the reporting period (prior year: EUR 11.2 million). This development resulted essentially from the ongoing renovation work, the reduction in trade payables and the increased level of inventories in the Electromobility division. Free liquidity decreased slightly to EUR 8.9 million (prior year: EUR 9.2 million).

Based on the results for the first half-year, the Managing Board confirms its earlier revenue and earnings forecast for the current fiscal year. This states that consolidated revenue is expected to grow by approximately 8% in the current fiscal year and thus to exceed the EUR 100 million mark. This is expected to be accompanied by above-average earnings growth with an EBIT margin of approximately 9%. The main growth drivers in the current fiscal year are likely to be the Electromobility division (Voltabox) as well as the Sensors and Acoustics divisions in the medium term.

The interim report with the condensed interim consolidated financial statements as of June 30, 2016, can be downloaded from www.paragon.ag/en/investors.

Company Profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and sells innovative automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the business segments of Sensors, Acoustics, Cockpit, E-mobility and Body Kinematics. In addition to its headquarters in Delbrück (North Rhine-Westphalia), paragon AG and its subsidiaries have locations in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Württemberg), and Bexbach (Saarland), as well as in Kunshan (China) and Austin (Texas, USA).

2016-08-16 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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