STRATEC Biomedical AG / Key word(s): Quarter Results/Interim Report
STRATEC reports consistent growth in first nine months of 2014
STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its results for the period January 1, 2014 to September 30, 2014 upon the publication of its Interim Report as of September 30, 2014.
* The accounting methods used in the consolidated financial statements were amended in line with IAS 8 in the 2013 financial year. Reference is made in this respect to the information in the Annual Report 2013 in Section A of the notes to the consolidated financial statements.
These earnings figures have been adjusted to exclude a one-off negative item resulting from recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management and a positive non-operating item due to recognition of income for a development project discontinued in 2013. On an adjusted basis, EBIT amounted to EUR 17.0 million, the corresponding EBIT margin to 16.2%, consolidated net income to EUR 14.2 million and earnings per share to EUR 1.20.
Due to the expiry of a tax concession, the positive impact of lower taxes payable on revenues generated in Switzerland will be slightly less marked from the coming year onwards.
Development in personnel
Project development, outlook and financial forecast
The recovery in the service parts division has continued. This is due primarily to a slight recovery in test volumes at diagnostic laboratories in the US in particular and to initial stocking for newly delivered systems also.
Furthermore, the expansion in the company's production and development capacities is set to play a major role in the coming quarters. One example here is the planned construction of a proprietary development complex at STRATEC's location in Romania, where construction work is expected to start at the beginning of 2015. The company also plans to extend production areas at its Beringen location in Switzerland. This measure, also scheduled for 2015, will boost the STRATEC Group's production capacity by around 20%.
To optimize structures, the key focus at the US location in Newbury Park going forward will be on developing opto-mechanical components and associated prototype construction.
Our partners, who generally market our systems together with their own reagents, have currently reported only a very low level of impact related to events in connection with the Ukraine crisis and sanctions on Russia. To date, the only implications are a slight reduction in analyzer system call-up volumes at one partner.
Based on budgets that account for acceptance volume forecasts from our customers and market launches expected in the coming years, STRATEC continues to expect average annual sales growth of 8% to 12% for the years through to 2017 (based on the volume of sales generated in the 2013 financial year). Growth rates are expected to fluctuate between individual years. For 2014, STRATEC continues to expect substantial sales growth compared with the 2013 financial year; accompanied by a significant rise in its EBIT margin.
Conversion in accounting methods
Among other factors, these voluntary amendments also involved converting the accounting method used to recognize projects, a measure resulting from a recommendation made by the German Financial Reporting Enforcement Panel (DPR) and whose implementation was completed at the end of 2013.
Interim Report as of September 30, 2014
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|Company:||STRATEC Biomedical AG|
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart|
|End of News||DGAP News-Service|