Annual report 2023 published

Kölleda, 25 April - Funkwerk AG, one of the leading technology providers of innovative communication, information and security systems as well as technical services, once again grew in 2023 and exceeded expectations in some business areas. In addition, the Group-wide strategy was driven forward in a targeted manner and focused even more strongly on important megatrends such as digitalisation. Among other things, important steps were taken in the Security Solutions division, which is gradually being developed into a holistic solution provider and integrator of complex systems in all security technology sectors.

Group sales increased by 18.3 % to 156.3 million euros in 2023 (previous year: 132.1 million euros). The higher-than-expected increase is partly due to the larger scope of consolidation: Since 1 June 2023, Radionika Sp. z o.o. in Krakow, which operates in the train radio business unit, has been included in the consolidated financial statements, in which Funkwerk has acquired a 60 % stake. In addition, HÖRMANN Kommunikation & Netze GmbH (KN), which was acquired in 2022 and covers the area of technical services, was consolidated for the full year for the first time in the reporting year; only five months were included in the previous year's financial statements. Elektrotechnik und Elektronik Oltmann GmbH, Berlin, which was acquired in December 2023, will be consolidated from March 2024.

As announced, the operating result (EBIT) of €26.8 million was below the previous year's figure of €28.3 million, but also above the forecast. In 2023, the price level in the energy sector and in many areas of the procurement market remained at a high level, and the fluctuations that occurred in some segments were largely compensated for. Supply bottlenecks were significantly reduced compared to the previous year, ensuring a reliable supply to customers. The Group's gross profit margin improved from 61.1 % in 2022 to 61.5 %, while net profit for the year totalled 17.9 million euros (previous year: 19.5 million euros).

The Executive Board and Supervisory Board will propose a regular dividend of EUR 0.75 (previous year: EUR 1.50) per dividend-bearing share at the Annual General Meeting on 2 July 2024. Subject to the approval of the Annual General Meeting, this will result in a total dividend payout of EUR 6.0 million (previous year: EUR 12.1 million).

The financial position and net assets of the Funkwerk Group remained very positive in 2023. The equity ratio improved to a very solid 57.8 % at the end of the year (31/12/2022: 56.4 %), while cash and cash equivalents stood at € 40.7 million (31/12/2022: € 50.7 million). Cash flow from operating activities increased to 15.6 million euros (previous year: 8.4 million euros).

In order to adapt its spatial and technical capacities to the business volume that has been growing for years and to improve processes, Funkwerk has built a new office building and an additional production hall on the company's own site in Kölleda, which were inaugurated in November 2023 after several years of work. At the same time, the existing production facilities were modernised.

For the 2024 financial year, Funkwerk is forecasting consolidated revenue in the range of €158 million to €165 million and EBIT of between €18 million and €20 million. The persistently difficult geopolitical situation poses significant risks to business development, meaning that the forecast is subject to a high degree of uncertainty.