Vectron Systems AG: Reduced losses due to positive final quarter

Vectron Systems AG (Vectron), a leading provider of intelligent, digitised POS systems comprising hardware, software and cloud services, specialising in the hospitality and bakery sector, generated a year-on-year increase in sales and profit in financial year 2019. 

The past reporting period 2019 was a transition year for Vectron leading toward the next level of fiscalisation and the introduction of digital solutions. In 2019, the entire sector was faced with great uncertainty about the question if the legal and technical specifications for the protection of POS against manipulation would be implemented as planned. As already reported by the company, the result was considerable reluctance in the target group, the hospitality and bakery sector, to invest in purchases.

Eventually, assurance only came in November 2019, when the Federal Ministry of Finance introduced a period of grace ending on 30 September 2020 during which the POS could be modified. Sales increased considerably in the fourth quarter after the law had been passed in November. 

As already reported, Vectron increased sales in 2019 slightly to EUR 25.2 million (2018: EUR 24.8 million) on a full-year basis particularly due the positive final quarter. This means that sales are EUR 0.2 million lower than the preliminary figures reported in January. At the same time, earnings after taxes rose in 2019 considerably from around EUR -3.9 million in 2018 to around EUR -1.4 million due to consistent cost management. 

Keeping in mind the poor general conditions in the past reporting period, management is satisfied with the result. "Despite the lull in the core business, we managed to both develop and launch the digital portfolio," comments Thomas Stümmler, CEO of Vectron. 

Vectron invested around EUR 3.4 million in developing digital products and expanding the digital products Sales unit in 2019. "Without these costs, profit in our core business would have been significantly higher, despite low demand. We were fully aware of, and accepted, the ramp-up and development costs as we must prepare Vectron for the major digital changes in the hospitality sector." 

The current events caused by the COVID-19 pandemic have created an increased trend in the hospitality sector toward digitisation. Many restaurant owners are finally becoming aware of the importance of having a digital presence. It is therefore crucial for Vectron to develop a comprehensive digital service portfolio so as to maintain and expand its position as market leader.


About Vectron:
With more than 200,000 installations, the listed Vectron Systems AG is one of the leading European manufacturers of POS systems. Stable hardware combined with flexible, reliable software has made Vectron a market leader within the hospitality and bakery industries in German-speaking countries and in Benelux. Several hundred specialist trade partners distribute the products internationally. Digitale Cloud Services are offered under the brand names myVectron and bonVito. The spectrum ranges from loyalty and payment functions to online reservations and online reporting. All the services are directly connected to the POS system. More information available at www.vectron.de.




Contact:
Vectron Systems AG
Tobias Meister
Willy-Brandt-Weg 41
48155 Münster, Germany
phone +49 (0) 2983 908121
mobile +49 (0) 170 2939080
fax +49 (0)251 2856-560
tobias.meister@vectron.de