STRATEC reports preliminary figures for 2013; substantial margin growth

STRATEC Biomedical AG / Key word(s): Preliminary Results

28.03.2014 / 07:26

STRATEC reports preliminary figures for 2013; substantial margin growth

- Sales at EUR 128 million (+4.6%; 2012: EUR 122.4m)

- EBIT at EUR 19.5 million (+10.8%; 2012: EUR 17.6m)

- EBIT margin improved to 15.2%, and to 15.9% on an adjusted basis (2012: 14.4%)

- 2013 Company financial guidance met

- Dividend increase planned

Birkenfeld, March 28, 2014

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announces preliminary unaudited figures of the STRATEC Group for the 2013 financial year as per IFRS (International Financial Reporting Standards).

The STRATEC Group generated sales of EUR 128 million in the 2013 financial year, thus exceeding the previous year's figure by 4.6% (2012: EUR 122.4 million). EBIT grew disproportionately by 10.8% to EUR 19.5 million (2012: EUR 17.6 million). The EBIT margin therefore improved by 80 basis points to 15.2% (2012: 14.4%).

The company met its targets for the 2013 financial year as communicated in the adjusted financial guidance issued in July 2013. This guidance predicted that sales for 2013 would rise to between EUR 127 million and EUR 138 million with an EBIT margin of 14.0% to 15.5%.

For subsequent years through to 2017, STRATEC continues to expect annual average sales growth of 8% to 12% based on the sales generated in the 2013 financial year. STRATEC also expects to see a slight increase in its profitability in proportion with the number and scale of its new development projects and the corresponding investments.
Comments Marcus Wolfinger, Chairman of the Board of Management of STRATEC Biomedical AG: "The budgeted growth is underpinned in particular by the development contracts agreed in December 2013 and January 2014, as well as by the market approvals and market launches anticipated in this time frame. This offers us the opportunity to noticeably accelerate the company's growth once again from 2016 onwards."

Given STRATEC's positive business performance in 2013, a strong first quarter in 2014, and further good prospects for the future, the Board of Management intends to propose an increase in the dividend for approval by the Supervisory Board. Subject to approval by the Supervisory Board at its meeting to approve the financial statements in April 2014, as well as approval by shareholders at the Annual General Meeting on June 18, 2014, the distribution paid to shareholders will thus be increased for the tenth consecutive year since the first dividend was paid in 2004.

The major share of sales growth in 2013 was attributable to systems with market launches between 2010 and 2012. Systems newly launched onto the market in 2013 still played a minor role, but will increasingly contribute to future growth. The company managed to boost its EBIT margin compared with 2012, despite the recognition of impairments of EUR 0.9 million for one technology in 2013 (2012: EUR 0 million). Adjusted for this impairment, the EBIT margin amounted to 15.9%, 150 basis points ahead of the previous year's figure of 14.4%. This margin growth was driven in particular by slight improvements in the service parts business, as well as by the gross margin on major systems. Overall, volatility in the service parts business fell sharply in 2013 compared with 2012, while nevertheless remaining at a heightened level.

The delays to supplies and services resulting from the flood damage suffered in June 2013 were fully rectified in the second half of 2013. The damages to buildings and materials have been remedied and full insurance settlement has been assured. Furthermore, the figures presented do not include any potential compensation payment for the contract discontinuation announced in July 2013.

The business results presented here represent preliminary unaudited Group figures following conversion of the accounting method used for project accounting. As already announced, STRATEC will publish its final audited Group figures for the 2013 financial year on Tuesday, April 29, 2014. STRATEC will host a teleconference in English on the same day to review the final results.

The later than usual publication of the final audited Group figures for the 2013 financial year is due to the implementation of new methods for project accounting. These changes have been reported previously and are described in detail starting on page 45 of the 2012 annual report. In order to enhance comparability with previous years, key figures for the 2013 financial year will be reported according to both the new and the previous accounting methods. The accounting conversion took place as of the end of 2013. As a result, the publication of future quarterly reports and financial statements for the 2014 financial year will return to a standard reporting schedule.

STRATEC Biomedical AG ( designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.

Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.

Further information can be obtained from:
STRATEC Biomedical AG
André Loy, Investor Relations
Gewerbestr. 37, 75217 Birkenfeld
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999

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