2017 annual financial statements published

Kölleda, 16 April 2018 - The Funkwerk Group, one of the leading technology providers of innovative communication, information and security systems, was able to further strengthen its market position as planned in the 2017 financial year and, in particular, noticeably improve its earnings situation. Group sales increased by 0.2 % year-on-year to 77.6 (previous year: 77.4) million euros, while total operating performance rose by 4.7 % to 80.8 (previous year: 77.2) million euros. The operating result rose significantly faster than the business volume: it totalled EUR 7.2 million, an increase of EUR 31.5 % on the previous year's figure of EUR 5.4 million. Consolidated net profit for the year climbed by 9.1 % to 4.4 (previous year: 4.0) million euros.

As previously announced, the Executive Board and Supervisory Board will propose to the Annual General Meeting that a dividend of €0.25 per share be paid from the net retained profits of the parent company Funkwerk AG, which amount to €2.1 million. This would correspond to a total dividend payout of EUR 2.0 million.

As a result of the good earnings performance, the Funkwerk Group's net assets and financial position also became even more solid, which is reflected in particular in the good equity ratio of 43.4 (previous year: 39.2) % and the significant improvement in liquidity. Cash and cash equivalents increased to € 16.6 million at the end of 2017 (31 December 2016: € 10.1 million). Cash flow from operating activities rose to EUR 8.0 million in the reporting year (previous year: EUR 5.2 million). The basis for 2018 is also positive: incoming orders in the Group increased by EUR 5.8 thousand year-on-year to EUR 85.2 million (previous year: EUR 80.5 million) and the order backlog as at 31 December 2017 rose by EUR 16.4 thousand to EUR 58.1 million (31 December 2016: EUR 49.9 million).

In the 2018 financial year, Funkwerk anticipates a Group-wide increase in turnover of a good 4 % to around 81 million euros, to which all three divisions will make a positive contribution. The Group is focussing even more strongly on the profitable software and service business for train radio systems, which, like all Funkwerk activities, are consistently aligned with customer requirements. In the area of traveller information, the focus is primarily on improving the market position for complex management software. Further applications, such as IoT features, are to be integrated into the systems and individual customer requirements are to be realised. In the Video Systems division, Funkwerk intends to drive forward the internationalisation of its activities in 2018, particularly via the existing partner network. The service portfolio will focus on innovative IT infrastructures and security systems. Maintenance and service activities are also to be expanded.

The Funkwerk Group's operating result in 2018 is expected to be on a par with the previous year, as higher transformation costs are expected in the current year to establish the company as a leading provider of IoT solutions.