Half-year report 2019 published

Kölleda, 26 August 2019 - The Funkwerk Group was once again able to develop very positively in the first half of 2019: Compared to the same period of the previous year, consolidated sales increased by 19.3 % to €40.9 million (previous year: €34.3 million). Due primarily to the higher business volume, the operating result (EBIT) improved by EUR 79.8 1TP9 thousand to EUR 5.4 million, resulting in an EBIT margin of EUR 13.2 1TP9 thousand (previous year: EUR 8.8 1TP9 thousand). After taxes, the Group's net profit for the period totalled 4.8 million euros (previous year: 2.6 million euros). In addition to the pleasing demand, particularly in the train radio segment, the significant increase in sales and earnings also resulted from the cyclical project business, which causes fluctuations.

Incoming orders amounted to EUR 53.5 million in the first six months of 2019 (previous year: EUR 44.5 million), which corresponds to an increase of a good 20 % compared to the same period in 2018. The order backlog increased to EUR 82.9 million as at 30 June 2019 (30 June 2018: EUR 68.6 million). This gives the Group a good basis for development in the second half of 2019 and beyond.

Funkwerk's net assets and financial position were further strengthened by the once again pleasing result: As at 30 June 2019, the Group, which had 420 employees (including trainees) as at the previous year's reporting date, had an equity ratio of EUR 49.6 1TP9k (31/12/2018: EUR 46.8 1TP9k) and cash and cash equivalents of EUR 29.7 million (31/12/2018: EUR 28.2 million).

For 2019 as a whole, Funkwerk anticipates an increase in Group sales of around €6 % (2018: €82.7 million). The EBIT forecast has been raised to at least €11 million (2018: €11.4 million), supported by the better-than-planned results for the first half of the year and the assumption that the expenses required for market entry into new business fields and technologies can be borne by the positive business development.