Funkwerk AG strengthens business in core areas

Kölleda, 26 August 2016 - The Funkwerk Group was able to further expand its market position in the first half of 2016, strengthen its business volume in its core areas as planned and thus sustainably improve its profitability. Consolidated sales after six months totalled €25.6 million compared to €28.2 million in the same period of the previous year.

The consolidated result improved significantly in the reporting period. Thanks to the more favourable product mix, in particular the higher proportion of software and maintenance in sales, the operating result, which is usually still negative in the first half of the year, increased from EUR -2.5 million to EUR -0.5 million. The result from ordinary activities totalled -0.6 million euros (previous year: -2.7 million euros) and the consolidated net result was also -0.6 million euros (previous year: -2.8 million euros).

After six months, the Funkwerk Group's incoming orders totalled 35.2 million euros. The previous year's very high figure of €42.3 million included a major order from the Netherlands for the delivery of train radio systems. These systems, totalling 1,400 units with integrated interference-resistant radio modules, have been delivered since April 2016. With this system, Funkwerk AG can further expand its leading technological position in the field of GSM-R train radio systems and expects further follow-up orders. In addition, orders for an innovative system for the radio-based transmission of data and initial orders for the new CURA public address system in the area of passenger information have been received so far this year. In the area of video systems, Funkwerk will be supplying several embassies in Germany with integrated video management systems in future, thereby tapping into a new customer base with Europe-wide growth potential. In addition, Funkwerk was able to significantly expand the volume of service framework agreements with existing clients. The Group-wide order backlog stood at EUR 55.7 million on 30 June 2016 (30 June 2015: EUR 56.4 million).

The development of the financial position and net assets remained in line with expectations in the first six months of 2016. The cash outflow from operating activities totalled EUR 0.5 million by the end of June, which was due in particular to the repayment of external financing (previous year: EUR +0.4 million). The equity ratio rose to EUR 36.8 1TP9 thousand as at the reporting date (31 December 2015: EUR 35.2 1TP9 thousand).

At the end of June 2016, the Funkwerk Group employed 415 people (31 December 2015: 439).

Funkwerk AG is sticking to its forecast for 2016 as a whole and expects consolidated revenue to stabilise at the previous year's level (2015: EUR 75.7 million). Consolidated operating earnings for 2016 are still expected to be at least €4 million.