Annual report 2021 published

Kölleda, 28 April 2022 - Funkwerk AG, one of the leading technology providers of innovative communication, information and security systems, closed the 2021 financial year with significant growth, as previously announced in March: Group sales increased by 24.0 % to €122.5 million (previous year: €98.8 million), which was largely due to a time-limited government subsidised project to improve radio reception along German railway lines. As one of the leading suppliers of interference-resistant GSM-R components, Funkwerk was able to benefit considerably from the resulting orders to upgrade existing radio systems. „Investment in the railway infrastructure,“ says Kerstin Schreiber, CEO of Funkwerk AG, „means that rail transport in Germany is becoming even more important. We welcome these initiatives, particularly in terms of sustainability, and are pleased that we can support the modernisation of the railways with suitable Funkwerk solutions.“

Based on the increase in sales, the Funkwerk Group's earnings situation also improved significantly in 2021. At € 35.0 million, the operating result (EBIT) was € 71.8 % above the previous year's figure (previous year: € 20.4 million), while the consolidated net profit for 2021 totalled € 23.8 million (previous year: € 13.6 million).

The Executive Board and Supervisory Board will propose to the Annual General Meeting on 6 July 2022 that an unchanged regular dividend of €0.30 and a special dividend of €0.70 per dividend-bearing share be paid from the net retained profits of the parent company Funkwerk AG in the amount of €10.1 million (previous year: €3.1 million). Subject to the approval of the Annual General Meeting, this will result in a total dividend payout of EUR 8.1 million.

The financial and asset situation of the Funkwerk Group remained very positive. The equity ratio improved from 50.0 % to 58.4 % and cash and cash equivalents increased from EUR 52.5 million to EUR 76.0 million. Cash flow from operating activities totalled EUR 26.5 million (previous year: EUR 22.0 million).

Due to the war in Ukraine, which entails substantial risks and whose effects are currently unforeseeable, any statement on the further course of business is fraught with great uncertainty. Added to this are the ongoing supply bottlenecks on the global markets, significant increases in procurement and energy prices and the continuing restrictions due to the Covid-19 pandemic. Assuming that the aforementioned risks do not have a significant negative impact on the Group's business performance, Funkwerk forecasts consolidated revenue of between €108 million and €115 million and an operating result in the range of €20.0 million to €25 million for 2022 as a whole.