Annual report 2022 published

Kölleda, 26 April 2023 - Funkwerk AG, one of the leading technology providers of innovative communication, information and security systems as well as technical services, continued its positive business development in 2022. As the first-time inclusion of Hörmann Kommunikation & Netze GmbH (KN for short), Kirchseeon, which has been fully consolidated since 1 August 2022, had a noticeable impact on the Funkwerk Group's earnings, financial and asset position, an as-if statement (excluding KN) was prepared, which enables a meaningful comparison with the previous year.

In the expanded Funkwerk Group (including KN), sales increased by 7.8 % compared to the previous year to € 132.1 million (previous year: € 122.5 million) and thus reached the forecast range of € 130 to 135 million. Adjusted for CN, comparable Group sales totalled EUR 109.9 million. The previous year's figure was characterised by exceptionally high special sales in the train radio business unit as a result of the government subsidy programme to convert train radio terminals to interference-resistant GSM-R systems.

In addition to the resulting orders to upgrade existing systems at Funkwerk, several larger orders were received in the areas of traveller information and video systems. In addition, the Group-wide order intake for 2022, which increased from € 118.0 million in the previous year to € 138.9 million, included orders from KN. The as-if order intake (excluding KN) totalled 124.5 million euros. The Group's order backlog rose to 152.7 million euros at the end of 2022 (adjusted for CN: 86.4 million euros, 31 December 2021: 71.9 million euros).

In addition to the expansion of the scope of consolidation, the earnings situation in the reporting year was characterised by the increased disruption on the global procurement markets. In addition to price increases, particularly in the energy sector and for individual purchased products, which were further exacerbated by the war in Ukraine, there were significant supply problems, particularly on the market for electronic components. Despite the additional burdens, the Funkwerk Group's operating result (EBIT) of EUR 28.3 million exceeded the planned range of EUR 22 to 25 million (previous year: EUR 35.0 million). In the as-if calculation, adjusted for all effects associated with the KN acquisition, the operating result totalled EUR 27.3 million.

The Executive Board and Supervisory Board will propose a regular dividend of EUR 0.50 (previous year: EUR 0.30) and a special dividend of EUR 1.00 (previous year: EUR 0.70) per dividend-bearing share at the Annual General Meeting on 4 July 2023. Subject to the approval of the Annual General Meeting, this will result in a total dividend payout of EUR 12.1 million (previous year: EUR 8.1 million).

The Funkwerk Group's financial position and net assets remained very positive. The equity ratio at the end of 2022 was a very solid EUR 56.4 thousand (31 December 2021: EUR 58.4 thousand), while cash and cash equivalents amounted to EUR 50.7 million (previous year: EUR 76.0 million). Cash flow from operating activities totalled EUR 8.4 million (previous year: EUR 26.5 million).

In view of the numerous external influencing factors such as the war in Ukraine, the risks of inflation and recession and the ongoing smouldering international trade conflicts, which could have a negative impact on the Funkwerk Group's business development, any statement on the further course of business is fraught with great uncertainty. At the same time, the supply situation, the ongoing energy crisis and price developments on the procurement markets continue to pose high risks. Against this backdrop, Funkwerk is forecasting consolidated revenue in the range of €140 million to €145 million and EBIT of between €17 million and €19 million for the 2023 financial year.