2019 annual financial statements published

Kölleda, 29 April 2020 - The Funkwerk Group, one of the leading technology providers of innovative communication, information and security systems, closed the 2019 financial year with an increase in operating revenue and earnings that exceeded expectations. Group sales increased by 14.7 % to 94.8 million euros (previous year: 82.7 million euros), significantly exceeding the forecast of growth of around 6 %. The operating result increased to 16.3 million euros (previous year: 11.4 million euros). The main reasons for the improvement in earnings were the increased volume of business, which resulted in economies of scale across the Group, a larger proportion of software and consistent cost control.

Consolidated net income for the year of €8.2 million (previous year: €7.4 million) was burdened by the write-down of the shares in euromicron AG, in which Funkwerk AG had acquired a stake of 15.36 %. Following the unexpected insolvency of this company in December 2019, the investment was written down in full, which reduced the Group's financial result by €5.8 million. The insolvency had no impact on Funkwerk AG's operating business.

The parent company Funkwerk AG reported a balance sheet profit of €3.1 million at the end of 2019. In accordance with the resolution passed at yesterday's meeting, the Supervisory Board agrees with the Executive Board's proposal to pay a dividend of €0.30 per dividend-bearing share for the 2019 financial year (previous year: €0.30). Subject to the approval of the Annual General Meeting, this will result in a total dividend payout of EUR 2.4 million, as in the previous year.

The basis for 2020 is also positive: the Funkwerk Group's order intake increased to €100.4 million in 2019 (previous year: €94.0 million). The order backlog stood at EUR 76.1 million on 31 December 2019 (31/12/2018: EUR 70.0 million).

Based on the planning prepared at the end of 2019, the Executive Board assumed that the Funkwerk Group would be able to maintain its high level of sales and achieve a clearly positive operating result again in the 2020 financial year. However, due to the very dynamic development in connection with the spread of the Covid-19 virus, it is currently not possible to provide a sufficiently reliable forecast for the 2020 financial year.