Annual report 2024 published

Kölleda, 29 April - Funkwerk AG, one of the leading technology providers of innovative communication, information and security systems as well as technical services, can look back on an extremely successful financial year 2024. Despite persistent macroeconomic challenges, the Group not only met but slightly exceeded the targets it had set itself, thereby further consolidating its stable market position. The company benefited from a dynamic business environment, targeted acquisitions and a robust operating performance overall.

Group sales rose by 14.2 % year-on-year to EUR 178.4 million (previous year: EUR 156.3 million) as a result of the positive business development, exceeding the forecast of EUR 168 to 175 million. Consolidation effects also contributed to the growth: Elektrotechnik und Elektronik Oltmann GmbH - which specialises in LED display devices for regional rail transport and public transport - has been part of the Funkwerk Group since 1 March 2024. The Polish company Radionika Sp.z o.o. has also been part of the group of consolidated companies since 1 June 2023; it was only included in the previous year's figure on a pro rata basis.

Incoming orders increased significantly compared to the previous year from EUR 177.0 million to EUR 280.9 million. In addition to the extended consolidation, the strong growth was primarily due to several large framework agreements that are expected to impact sales over the next two years. Accordingly, the order backlog at the end of 2024 amounted to EUR 278.2 million (31 December 2023: EUR 173.3 million).

At EUR 23.5 million, the operating result was within the forecast range of EUR 20 to 23 million, although it did not reach the previous year's figure of EUR 26.8 million as planned. The decline is mainly due to a change in the product mix, as the sales growth resulted primarily from lower-margin business areas. In addition, extraordinary expenses incurred as part of the reorganisation of the Security Solutions division had a negative impact on earnings. Consolidated net profit fell accordingly from 17.9 million euros in the previous year to 15.3 million euros.

The Executive Board and Supervisory Board intend to propose to the Annual General Meeting on 8 July 2025 a dividend of EUR 0.75 per dividend-bearing share, unchanged from the previous year. This corresponds to a total dividend payout of around EUR 6.0 million - subject to approval by the Annual General Meeting.

Funkwerk AG's financial position and net assets remained stable throughout 2024. As in the previous year, the equity ratio was 57.8 %, while cash and cash equivalents increased from €40.7 million to €48.9 million. Cash flow from operating activities improved to €20.6 million (previous year: €15.6 million) and thus forms a solid basis for further growth.

Despite an increasingly challenging economic and geopolitical environment, the Funkwerk Group is optimistic about the future. For the current financial year 2025, the Executive Board expects an increase in turnover to between EUR 190 and 200 million and an operating result in the range of EUR 20 to 25 million. The long-term corporate strategy, supported by a strong order backlog and a healthy financial base, underpin this positive outlook.