Corporate | 27 March 2014 15:22
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init innovation in traffic systems AG / Key word(s): Final Results/Final Results
Following record revenues in 2013: init gears up for further growth – Revenues in 2014 expected to be between EUR 103m and EUR 107m – Return on equity has risen to above 19 per cent – Dividend expected to be EUR 0.80 per share again Karlsruhe/Frankfurt, 27 March 2014. init innovation in traffic systems AG (ISIN DE 0005759807) is gearing up for further growth following its record revenues of over EUR 100m in 2013. “The Asian markets are now opening up for international invitations to tender and at the same time tougher technology requirements are creating new growth opportunities in public transport. As a leading provider of integrated solutions for transport telematics we want to participate in this. We expect revenues in a range of EUR 103m-107m for 2014”, said init founder and Board Chairman Dr. Gottfried Greschner. The provider of integrated telematics, planning and electronic fare collection systems for buses and trains posted revenues of EUR 100.1m in 2013 (previous year: EUR 97.3m). In the fourth quarter alone the init group generated earnings before interest and taxes of EUR 10.2m (previous year: EUR 6.6m) and revenues of EUR 39m (2012: EUR 32.8m). Nevertheless, revenues were slightly below plan for the year as a whole. “This is for the most part due to the Telematics and Electronic Fare Collection Systems segment and in particular weaker foreign exchange rates combined with project delays in major foreign projects which were not caused by init. However, the causes of the delays were remedied, which will have a positive impact on the revenues and earnings situation in the 2014 and 2015 financial years”, said Greschner. Double-digit earnings growth In terms of earnings, by contrast, init was able to achieve its targeted double-digit growth rate for 2013. Gross profit from revenues increased by EUR 3.5m to EUR 37.5m (previous year: EUR 34.0m). init also managed to reduce its production costs from 65.0 per cent to 62.6 per cent of revenues by means of spending cuts. While EBIT, at EUR 17.7m, was only slightly above the figure for the previous year (EUR 17.3m), net profit rose by an overproportionate factor from EUR 10.9m in the previous year to EUR 12.1m. Earnings per share are thus EUR 1.21 (previous year: EUR 1.11). init again increased both its return on equity (19.4 per cent compared to 18.8 per cent in the previous year) and its return on total capital ratio (10.2 per cent compared to 9.8 per cent in the previous year). “Our target is to maintain the margin at this level in 2014, too. In terms of EBIT this would correspond to a figure of EUR 17m-19m”, said Greschner. init generates a quarter of its revenues with follow-up, maintenance and service contracts The Managing Board of init was not satisfied with the incoming orders achieved in 2013, which at about EUR 65m was significantly below the record high of the previous year (EUR 152.2m). “However, in 2014 we anticipate a significantly higher figure of about EUR 105m, because we will also be able to make up for delays in tender processes”, Greschner explained. With an order backlog of about EUR 143m year-end 2013 init’s order coverage continues to be about 1.4 years. Greschner considered it a success that with projects in Turku and Avignon the market entry in the previously closed markets of Finland and France had been achieved in 2013. “However, init lives not only from new projects and markets, but also from long-term relationship with customers of all sizes and from follow-up, maintenance and service contracts. In 2013, we were able to generate more than a quarter of revenues from such”, said Greschner. The Managing Board of init sees opportunities for further growth over the next few years due to its need to make up lost ground in new technologies in public transport and in the Asian region. Dividend expected to be EUR 0.80 per share again In view of these prospects the Board wishes to continue with its current dividend policy and allow shareholders to participate appropriately in the year’s performance. For the financial year ended, the Managing Board and the Supervisory Board of init innovation in traffic systems AG will propose to the Annual General Meeting on 15 May that the distribution of EUR 0.80 per dividend-bearing share be maintained. Changes in the Supervisory Board After 13 very successful years of service the Chairman of the Supervisory Board Prof. Dr. Günter Girnau is retiring from his position on 30 June 2014 of his own volition. Dipl. Ing. Ulrich Sieg, until 30 June 2014 a member of the Managing Board of Hamburger Hochbahn AG, will become a member of the Supervisory Board of init innovation in traffic systems AG on 1 July 2014 subject to appointment by the Annual General Meeting. You will find the Annual Report of init innovation in traffic systems AG on the Internet at www.initag.com and on the website of Deutsche Börse. End of Corporate News 27.03.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | init innovation in traffic systems AG | |
| Käppelestraße 4-6 | ||
| 76131 Karlsruhe | ||
| Germany | ||
| Phone: | +49 (0)721 6100 0 | |
| Fax: | +49 (0)721 6100 399 | |
| E-mail: | ir@initag.de | |
| Internet: | www.initag.de | |
| ISIN: | DE0005759807 | |
| WKN: | 575980 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart | |
| End of News | DGAP News-Service |
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| 260108 27.03.2014 |