Half-year report 2022 published

Kölleda, 30 August 2022 - Funkwerk AG, one of the leading technology providers of innovative communication, information and security systems, was able to continue its positive business development in the first half of 2022 and achieved a Group sales of 47.9 million euros. The previous year's high figure of EUR 58.0 million was clearly characterised by the government subsidy for the conversion of train radio terminals to interference-resistant GSM-R systems, which led to special sales in the Train Radio business unit. As the subsidy programme, which was originally limited until the end of 2021, was extended by one year, further orders were received in the reporting period. Funkwerk also received several major orders in the areas of passenger information and video systems, which meant that the Group-wide Incoming orders from € 63.4 million to € 66.9 million compared to the first half of 2021. The Order backlog amounted to € 91.0 million as at 30 June 2022 (previous year: € 81.4 million).

The Operating result (EBIT) decreased by 29.0 % to 9.1 million euros (previous year: 12.8 million euros) compared to the first half of the previous year. The cost of materials ratio in relation to sales fell from 42.1 % to 40.5 %, while the gross profit margin improved from 60.3 % to 65.7 %, which was primarily due to the product mix. After taxes, a profit of Net income for the period amounting to around 6.2 million euros (previous year: 9.0 million euros).

The Net assets and financial position of the Funkwerk Group, which had a total of 449 employees (including trainees) at the end of June 2022 (30/06/2021: 448; 31/12/2021: 463), was further strengthened: The equity ratio at mid-year 2022 was 60.4 % (31 Dec. 2021: 58.4 %), while cash and cash equivalents increased from EUR 76.0 million to EUR 81.0 million.

On 25 July 2022, Funkwerk acquired HÖRMANN Kommunikation & Netze GmbH (Hörmann KN), Kirchseeon. The company will be included in the consolidated financial statements of Funkwerk AG from 1 August 2022, meaning that the revenue and earnings forecast of the expanded Funkwerk Group for the Full year 2022 was adjusted accordingly. Accordingly, the forecast for Group sales is in the range of EUR 130 million to EUR 135 million and for the operating result (EBIT) between EUR 22 million and EUR 25 million. In the current very risky environment, the forecast is subject to exceptionally high uncertainties. The greatest challenges include the consequences of the Covid-19 pandemic and, in particular, the ongoing supply bottlenecks, supply chain disruptions and price increases, which are being significantly exacerbated by the war in Ukraine. Added to this is the massive rise in energy prices, which is particularly reflected in transport costs.