Half-year report 2021 published

Kölleda, 30 August 2021 - The Funkwerk Group recorded significant growth in sales and earnings in the first half of 2021, with the domestic train radio business benefiting noticeably from a one-off federal funding project. Among other things, this supports the improvement of mobile radio reception along railway lines, in which Funkwerk, as one of the leading providers of interference-resistant radio modules, is participating significantly and has received numerous orders from various railway companies. In the Passenger Information and Video Systems divisions, too, the Thuringian company is consistently utilising existing opportunities, actively supporting change and is prepared for various scenarios with its innovative service portfolio.

Overall, Group sales in the first half of 2021 increased by EUR 25.3 1TP9 thousand to EUR 58.0 million compared to the same period of the previous year (previous year: EUR 46.3 million). Incoming orders totalled 63.4 million euros by the end of June (previous year: 48.1 million euros) and were therefore around 32 % above the previous year's level. The order backlog as at 30 June 2021 amounted to EUR 81.4 million compared to EUR 78.2 million on the previous year's reporting date (31 December 2020: EUR 75.7 million).

Due to the significantly higher sales, the operating result (EBIT) also increased: it improved across the Group from 7.5 million euros to 12.8 million euros, resulting in an EBIT margin of 22.0 % (previous year: 16.1 %). After taxes, net profit for the period totalled 9.0 million euros (previous year: 5.7 million euros).

As a result of the positive earnings performance, the net assets and financial position of the Funkwerk Group, which employed a total of 452 people at the end of June 2021 (30 June 2020: 423; 31 December 2020: 450), was further strengthened: The equity ratio at mid-year 2021 was 52.3 % after 50.0 % at the end of 2020. Cash and cash equivalents increased in the first six months from EUR 52.5 million to EUR 64.6 million

In the further course of the year, Funkwerk faces a number of challenges against the backdrop of the ongoing Covid-19 pandemic with its unpredictable influencing factors and other uncertainties such as the unclear macroeconomic development and industry risks. Nevertheless, the Executive Board anticipates a Group-wide increase in sales to a volume in the range of € 115 million to € 120 million for 2021 as a whole (2020: € 98.8 million). This is primarily due to higher domestic sales in the train radio segment resulting from the German government's subsidy programme. The Funkwerk Group's operating result should also exceed the previous year's high level due to the increase in sales (2020: €20.4 million), with the EBIT margin remaining at least stable from today's perspective.

As Funkwerk AG is reaching the limits of its capacity at its production site in Kölleda, the company is currently building an additional production hall and a new administration building on the company's own property. Planning permission was granted at the beginning of July 2021 and construction work began immediately. The current schedule envisages completion at the end of 2022. The extent to which this forecast remains realistic in light of the current challenges in the construction industry with enormous delivery time extensions and rising procurement prices will be assessed on an ongoing basis.