Funkwerk AG publishes preliminary figures for the 2021 financial year

Kölleda, 30 March 2022 - The Funkwerk Group, one of the leading technology providers of innovative communication, information and security systems, closed the 2021 financial year very successfully despite the continuing effects of the Covid-19 pandemic and increasing supply bottlenecks on the procurement markets. Based on preliminary figures, Group-wide sales rose to around 122 million euros (previous year: 98.8 million euros) and the operating result (EBIT) increased from 20.4 million euros to around 35 million euros. The forecast, which had assumed sales of between EUR 115 million and EUR 120 million and an increase in earnings with at least a stable margin, was therefore exceeded.

The basis for the strong growth was an exceptional economic situation in Germany, which led to high sales in the train radio division: As part of the future package, the German government is supporting the improvement of radio reception along the railways in Germany, which requires modernisation and conversion of the systems to interference-resistant GSM-R components and systems. The resulting orders from numerous railway companies not only led to considerable pull-forward effects and a strong increase in business volume, but also to very high capacity utilisation at Funkwerk, which benefited the operating result in particular.

The negative effects of the Covid-19 pandemic also weakened in the first half of the year, before the rapid spread of the Omikron variant caused renewed disruption in the final months of 2021. The situation on the global procurement markets worsened significantly over the course of the year. In addition to rising purchase prices, there were increasing supply difficulties, which are expected to continue in 2022. Nevertheless, the Funkwerk Group, which employed a total of 467 people at the end of 2021 (previous year: 450), was largely able to maintain supplies to customers throughout the year.

Funkwerk AG's audited consolidated financial statements for 2021 and the forecast for 2022 will be published on 28 April 2022.