Corporate | 4 May 2006 18:48

WashTec AG – Dynamic revenues growth in the first quarter

WashTec AG / Key word(s): Quarter Results

04.05.2006 / 18:48

WashTec AG – Dynamic revenues growth in the first quarter:

– Revenue up EUR 9.7m to EUR 59.5m, representing growth of 19.5% – EBT at EUR 0.2m in the first quarter (prior year: EUR 1.2m) due to high non-recurring expenses
– Scheduled start of the integration of Mark VII, USA

Augsburg, 04 May 2006 – WashTec AG continued to expand its position as the world leading provider of solutions for carwash systems in the first quarter of 2006.
The successful product and marketing campaign was continued. WashTec Group revenues increased by 19.5% to EUR 59.5m in the first quarter of the current fiscal year. Revenues from the SoftCare family in Europe continued to develop well. Rollover machine SoftCare Bravo which was launched for the basic segment in the third quarter of the prior year also contributed to the increase in revenues. Positive effects were also attributed to a framework agreement concluded with Shell at the end of 2005, in which WashTec is listed as a preferred supplier of a comprehensive service package ranging from the financing, supply and maintenance of car wash systems, including chemicals, to ‘light category management’, i.e. on-site advertising activities. The listing as ‘category captain’ highlights the leading position of WashTec as a ‘full service provider’. According to Thorsten Krüger, speaker of the management board of WashTec AG, the program has been well received in the countries in which it has already been implemented.
The acquisition of Mark VII at the beginning of the fiscal year means that its revenues have now been included the WashTec Group’s revenues for the first time. Due to market developments, Mark VII’s revenues were lower than expected.

At EUR 2.7m, EBITDA is down EUR 1.6m on the prior year. This is mainly attributable to extraordinary expenses of EUR 4.2m (prior year: EUR 0.7m) for phantom stocks recognized under personnel expenses. The phantom stock program for 2003 to 2005 has been completed with the release of the 2005 results. Disbursement will take place during the current fiscal year. Financial expenses decreased by EUR 0.6m to EUR 0.9m due to improved conditions following the refinancing of its credit lines. EBT stood at EUR 0.2m, compared with EUR 1.2m in the prior year.

As a result of the financing of the acquisition of Mark VII by the banking syndicate of the WashTec Group, liabilities to banks climbed to EUR 62.2m in comparison to December 31, 2005. The equity ratio stood at 24.5% as of March 31, 2006.

Scheduled Start of Integration

The integration of Mark VII is on track. The team responsible for product development has commenced activities led by a strategic product committee. Relocation of the production of Softwash to Denver will be completed in the third quarter. The cost reduction project groups for Finance & Controlling, Development and Supply Chain confirmed the findings of the due diligence review and began implementing the measures. Production processes at Mark VII have been examined and will be optimized in accordance with the WashTec benchmark. In the second integration phase, focus will be placed on optimizing sales activities in the US.

The Company is continuing its product and marketing campaign. The Company is to present innovations in all product areas at automechanika, the world’s largest trade fair for the industry, in September 2006. These will include a basic rollover system that is being developed especially for lower requirements in terms of options and numbers of washes. This system has been designed especially for the southern and eastern European markets.

We will continue to actively sound out individual markets in order to ensure an optimal marketing approach. In this context, acquisitions on a small scale may be made.

WashTec aims to build on its position as market, innovation and return on investment leader in the carwash industry. As the most dynamic company in the industry, we target another significant increase in earnings in 2006.

Key performance indicators:

EUR m        Q1/2006     Q1/2005
Revenues       59.5        49.8
EBITDA          2.7         4.3
EBIT            1.1         2.7
EBT             0.2         1.2

The complete quarterly report may be downloaded from our website at www.washtec.de.

Contact:
WashTec AG (Tel.: +49 (0) 821-5584-1134) Karoline Kalb E-mail: kkalb@washtec.de

Contact:
Karoline Kalb, Investor Relations

WashTec AG
Argonstraße 7
86153 Augsburg

Tel.: +49 (0)821 – 55 84 – 0
Fax: +49 (0)821 – 55 84 – 12 06
Mobile: +49 175 – 4302025

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Language:	English
Company:	WashTec AG
	Argonstraße 7
	86153 Augsburg
	Germany
Phone:	+49 (0)821 55 84-0
Fax:	+49 (0)821 55 84-1135
E-mail:	washtec@washtec.de
Internet:	www.washtec.de
ISIN:	DE0007507501
WKN:	750750
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

3630  04.05.2006