DGAP-News: va-Q-tec AG / Key word(s): Preliminary Results
va-Q-tec AG publishes preliminary FY 2018 results
- Adjusted FY 2018 revenue and earnings guidance hit
- 2018 revenue: EUR 50.7 million compared with EUR 46.9 million in 2017 (+8%)
- 2018 EBITDA: EUR 3.0 million compared with EUR 7.2 million in 2017
- Services business reports intra-year upturn and strong Q4 after unusually weak start to 2018; +32% growth in Q4
- Major investments for next growth steps completed in 2018
- At year-end, available liquidity of EUR 16.7 million at a comfortable level for the company's further development and growth
- "Power 20+" performance program launched
Stefan Döhmen, CFO of va-Q-tec AG: "Even though business trends in 2018 fell short of our expectations, the outlook at the end of the year brightened considerably. We have completed all of our major growth investments, we have achieved important progress with projects for major customers, and our high-margin Services business - the company's main value driver - is picking up again. Together with our Power 20+ performance program, we see ourselves back on track for further growth and rising profitability after a challenging 2018."
Earnings before interest, tax, depreciation and amortisation (EBITDA) reported a marked reduction to EUR 3.0 million (previous year EUR 7.2 million, -58%). The EBITDA margin measured in terms of total income consequently stood at 5% in the reporting period, compared with 13% in the previous year. In addition to the high share of revenue accounted for by the lower-margin Products business, EBITDA was also negatively impacted by advance investments in additional personnel and internationalisation as well as one-time relocation and double costs incurred in connection with the expansion of locations.
In the strategically important Services business, va-Q-tec recorded a significant upswing during the course of 2018 after an unusually weak start and achieved its highest quarterly revenue to date in the fourth quarter at EUR 5.6 million. A significantly broadened customer base is the reason for this recovery. While service revenues generated with a major pharmaceutical customer decreased by almost one half year-on-year due to the customer's own reduction in business, the revenue contribution generated by all other customers grew significantly by 32% in 2018.
The Group largely completed the most important investments for its further growth towards revenue of EUR 100 million already in 2018. Given this, va-Q-tec had comfortable liquidity as of 31 December 2018 with bank balances plus open credit lines totalling EUR 16.7 million.
With its Power 20+ program, va-Q-tec is combining a forward-looking attitude in order to implement its growth strategy over the coming years, based on the investments it has realised and its technology platform. The Power 20+ program has two clear strategic priorities:
1. Focus on profitable revenue growth, e.g. by optimising sales processes in the Services business, inter alia with a new CRM system
2. Focus on continuous cost efficiency, e.g. in purchasing, network management and production
"For each of the two strategic priorities, we already have numerous specific projects. Not all of the projects will prove to be great successes in equal measure. We are aware of this. Our focus for 2019 is quite clearly on improving our EBITDA margin and on dynamic revenue growth. The Power 20+ program will help us achieve this," comments Dr. Joachim Kuhn, CEO and founder of va-Q-tec AG.
|Phone:||+49 (0)931 35 942 0|
|Fax:||+49 (0)931 35 942 10|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|