Quarterly report Q1 2023 published

Kölleda, 30 May 2023 - Funkwerk AG, one of the leading technology providers of professional communication, information and security systems as well as technical services, was well utilised across the Group in the first three months of 2023 and achieved the planned sales volume. Due to the first-time inclusion of Hörmann Kommunikation & Netze GmbH (KN for short), Kirchseeon, which has been fully consolidated since 1 August 2022, a direct comparison of the earnings, financial and asset situation with the same quarter of the previous year is only meaningful to a limited extent.

In the expanded Funkwerk Group (including KN), the Turnover 28.0 million by the end of March 2023; excluding CN, the volume amounts to € 19.6 million (previous year: € 22.9 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.

The Incoming orders at EUR 39.4 million in the reporting period (excluding CN: EUR 25.7 million) exceeded planning, but remained below the previous year's figure (previous year: EUR 40.9 million). In the comparative quarter of 2022, a large framework agreement in the Video Systems division was recorded in addition to the orders resulting from the funding programme in the Train Radio division. The Group-wide Order backlog increased from EUR 89.9 million to EUR 164.1 million (including CN) and EUR 92.6 million (excluding CN) respectively.

The Funkwerk Group's earnings situation in the first three months of 2023 was characterised by a changed product mix, individual supply bottlenecks and partial price increases, particularly in the energy sector. In a quarter-on-quarter comparison, the Operating result (EBIT) to EUR 4.0 million (excluding CN: EUR 3.9 million; previous year: EUR 4.7 million) and was therefore in line with planning.

The net assets and financial position remained solid as at the reporting date of 31 March 2023: the Group has a Equity ratio of 57.9 % (31.12.2022: 56.4 %) and has a total of Cash and cash equivalents in the amount of € 51.0 million (31 December 2022: € 50.7 million). The development of individual balance sheet items compared to the end of 2022 was within the usual range and reflected the typical course of business in the first quarter.

At the end of March, the Funkwerk Group had 640 Employees (previous year: 430) excluding trainees. The increase was mainly due to the integration of KN, which employed 198 people on the reporting date.

In the current Financial year 2023 Funkwerk, including the new subsidiary Radionika Sp.z.o.o., in which a majority stake was acquired in April, expects consolidated sales in the range of € 142 million to € 148 million (2022: € 132.1 million) and EBIT of between € 17 million and € 20 million (2022: € 28.3 million). However, in view of the numerous external factors such as the war in Ukraine, inflation and recession risks and the international trade conflicts that continue to smoulder, any forecast for the future course of business is subject to uncertainty. At the same time, the supply situation, the ongoing energy crisis and price trends on the procurement markets continue to pose risks.