WashTec AG
WashTec AG: Business development in the first half-year 2019

• Half-year revenue of EUR199.1m (prior year: EUR200.1m); direct business double-digit year-on-year – restraint in key account business
• Half-year EBIT at EUR9.3m (prior year: EUR18.3m)

• Cost adjustment and EBIT improvement program implemented and further targeted activities for sustainable improvement in progress
• Guidance for the full year 2019: Stable revenue performance with an EBIT margin of at least 10%

 
Augsburg, July 26, 2019 – Revenue of WashTec Group – the leading supplier of innovative solutions for the carwash business worldwide – in the second quarter of 2019 was with EUR106.7m slightly (1.7%) down year-on-year (prior year: EUR108.6m). On an exchange rate adjusted basis, revenue in the second quarter decreased by 2.4% to EUR106.0m.
 
Revenue for the half-year ending June 2019 was EUR199.1m, EUR1.0m or 0.5% down on the prior-year period (EUR200.1m). Adjusted for exchange rate effects, revenue decreased by 1.3%. The revenue development is mainly attributable to the development of the key account business. Their second quarter revenue was down year-on-year while direct sales business grew double-digit. The investment budgets of key accounts have now been released, which has already led to a noticeable increase in order intake in this area.
 
Performance in Chemicals was also slightly below expectations. The expected growth in this area could not be achieved despite a further expansion of the customer base, which is mainly attributable to significantly lower wash figures due to the weather. The loss of the chemicals business with a major customer in North America in the middle of last year also contributed to this development. This key account has since been regained, but the effects will not become apparent until the course of the second half of the year.
 
Half-year EBIT was EUR9.3m (prior year: EUR18.3m). As with the development in the first quarter, the disproportionate increase in costs in anticipation of a significantly better business development was the decisive factor. The EBIT margin for the half-year was 4.7% (prior year: 9.2%).
 
“The Company has defined specific cost measures, particularly in the area of other operating expenses, for fiscal 2019 and is already in the process of implementing the first packages. In addition, we are working on targeted activities to increase efficiency on a sustained basis. This, together with an increasing order intake from key accounts in the second half of the year, and the targeted additional sales activities in the global direct sales, makes us confident that we will achieve our adjusted targets for 2019 and at the same time create positive conditions for 2020“, said Dr. Günter Blaschke, CEO of WashTec AG.
 
The Company revised the full-year guidance for 2019 on July 5, 2019 on the basis of preliminary figures and targets stable revenue performance with an EBIT margin of at least 10%. To ensure this, the Company has already implemented a short-term cost reduction program. In addition, concrete measures for sustained improvements in efficiency are being developed. These activities may require one-time additional expenditure in 2019. More detailed information on that expenditure will be provided in the Q3 report.
 
General risk information
Any outlook is subject to uncertainties that could have a material effect on forecast revenue and earnings performance.
 
The extensive H1 financial report and further information about WashTec can be found on: www.washtec.de.
 
About WashTec:
WashTec Group with its registered office in Augsburg, Germany, is the leading provider of innovative car wash solutions worldwide. The company has more than 1,800 employees and is represented with subsidiaries in the major markets of Europe, North America and Asia/Pacific. Moreover, WashTec has an extensive network of independent marketing partners through which it is present in around 80 countries worldwide.

Key figures:

EURm, IFRS	H1 2019	H1 2018	Change in %
Revenue	199.1	200.1		-0.5
EBIT	9.3	18.3		-49.2
EBIT margin in %	4.7	9.2		–
EBT	9.0	18.0		-50.0
Consolidated net income	4.4	11.4		-61.4
Earnings per share 1) (in EUR)	0.33	0.85		-61.4
Dividend per share (in EUR)	2.45	2.45		–
Net cash flow2)	-10.9	-0.4		–
Free cash flow2)	-15.7	-4.4		-256.8
ROCE in %	22.3	25.2		–

 

EURm, IFRS	June 30, 19	Dec 31, 18	Change abs.
Balance sheet total2)	262.6	237.2	25.4
Equity	66.5	95.4	-28.9
Equity ratio in %	25.33)	40.2	–
Net operating working capital4)	94.4	82.6	11.8
Employees	1,882	1,870	12

 
1) Basis: on average 13,382,324 shares
2) Effects in 2019 due to accounting in accordance with IFRS 16
3) In 2019 effect of transition to IFRS 16 of 1,9%-points.
4) Trade receivables + inventories -trade payables – prepayments on orders



Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 – 55 84 – 0
Fax: +49 (0)821 – 55 84 – 1135