DGAP-News: STRATEC announces record sales and consolidated

DGAP-News: STRATEC Biomedical AG / Key word(s): Final Results STRATEC announces record sales and consolidated net income in 2013 29.04.2014 / 07:44 --------------------------------------------------------------------- STRATEC announces record sales and consolidated net income in 2013 - Sales at EUR 128.0 million (+4.3%; previous year: EUR 122.7m) - EBIT at EUR 19.5 million (+25.1%; previous year: EUR 15.6m) - EBIT margin at 15.2% (+250 basis points; previous year: 12.7%) - Consolidated net income at EUR 15.5 million (+24.3%; previous year: EUR 12.4m) - Earnings per share at EUR 1.32 (+24.5%; previous year: EUR 1.06) - Proposed dividend of EUR 0.60 per share (distribution in previous year: EUR 0.56) - Financial forecast reaffirmed Birkenfeld, April 29, 2014 STRATEC Biomedical AG, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard, TecDAX) today announced the final audited results of the STRATEC Group for the financial year ending on December 31, 2013 with the publication of its 2013 Annual Report. These figures, prepared in line with International Financial Reporting Standards (IFRS), have been granted an unqualified audit opinion. <pre> Key figures (EUR 000s) 01.01.- 01.01.- 12.31.2013 12.31.2012 (1) Change Sales 127,950 122,667 +4.3% EBIT 19,493 15,578 +25.1% Consolidated net income 15,478 12,449 +24.3% Earnings per share (EUR) 1.32 1.06 +24.5% EBIT margin (%) 15.2 12.7 +250 BPS </pre> (1) The accounting methods used in the consolidated financial statements were amended pursuant to IAS 8 in the 2013 financial year. The comparative figures for the previous year have been adjusted accordingly. Reference is made in this respect to the information in Section A, "General disclosures" in the notes to the consolidated financial statements in the 2013 Annual Report published today. The comparative figures for the previous year were not adjusted in the preliminary, unaudited figures of the STRATEC Group for the 2013 financial year published on March 28, 2014. Business performance The 2013 financial year was characterized by disparate developments at STRATEC. On the one hand, the Group can point to very pleasing results, such as several market launches, significant progress with major development projects, several substantial contract agreements, and the advanced stage of negotiations for various new orders. On the other hand, STRATEC also witnessed less pleasing events outside its control. These included the flood damage suffered at the Birkenfeld location in June and the termination by a customer of a contract for the development and supply of an analyzer system announced in July. This latter event caused STRATEC to revise its sales budgets for 2013 and the following years. Despite some uncertainties within the diagnostics industry concerning spending cuts in healthcare systems worldwide, STRATEC's business performance with its partners performed positively in 2013. The volatilities in service parts sales in the second half of 2012 in particular were no longer seen to the same extent in the 2013 financial year. The company's growth in 2013 was driven by systems already established on the market and the renewed strength of the service parts business. By contrast, the systems launched recently onto the market have not yet made a significant contribution to our sales growth. Ongoing validity of financial forecast issued in July 2013 and outlook STRATEC met its targets for the 2013 financial year as set out in the adjusted financial forecast issued in July 2013. This forecast provided for sales of EUR 127 million to EUR 138 million in 2013 accompanied by 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 level of sales generated in the 2013 financial year. The trend seen in the diagnostics industry in recent years, in which due to economic, technical and timing (time-to-market) considerations our existing and potential customers are increasingly focusing on their core businesses - reagents development and marketing tests and processes - has continued in the recent past. Due not least to the large number of projects in development or negotiation, we can confirm the increasing need to outsource instrumentation development and production to external partners such as STRATEC. We view the contract termination in 2013 as a one-off event that, based on the statements made by the customer in question, is unrelated to STRATEC or to market developments. Despite larger-scale investments in further development projects, our company in Romania, and the development of our company in China, rising earnings and optimizations in our working capital management mean that our liquidity level will slightly exceed the level seen in 2013. STRATEC expects to generate substantial sales growth in 2014 compared with 2013. This should be accompanied by a slight increase in the EBIT margin. Dividend proposal Given STRATEC's positive business performance in 2013, a strong first quarter of 2014, and ongoing good prospects for the future, the Board of Management and Supervisory Board of STRATEC Biomedical AG will propose the distribution of a dividend of EUR 0.60 per share with dividend rights for approval by the Annual General Meeting on June 18, 2014 (distribution in previous year: EUR 0.56). Subject to approval by the Annual General Meeting, shareholders can thus expect to benefit from the tenth dividend increase in succession since payment of the first dividend in 2004. Development in personnel The STRATEC Group had a total of 546 employees, including temporary personnel and trainees, as of December 31, 2013 (previous year: 533). Ongoing demand for STRATEC's analyzer systems and, on that basis, for its development work will make it necessary to increase the workforce in future, particularly in the development division. Conversion in accounting methods The business results presented here represent the final consolidated figures following the amendment to accounting methods pursuant to IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors). These figures have been audited and granted an unqualified audit opinion. The comparative figures for the previous year have been adjusted accordingly. The amendments to accounting methods are explained in detail in the 2013 Annual Report from Page 48 onwards, including a summary of the overall implications for the net asset, financial, and earnings position of the company. Among other factors, the voluntary amendments also account for the conversion of the accounting method used to recognize projects, a measure whose implementation resulted from a recommendation made by the German Financial Reporting Enforcement Panel (DPR) and was concluded at the end of 2013. A separate presentation of the most important key figures for the 2013 financial year and for the previous year excluding the effects of this conversion can be found on our website at www.stratec.com/financial_reports. 2013 Annual Report The 2013 Annual Report of STRATEC Biomedical AG can be found on the company's website at www.stratec.com/financial_reports. Forthcoming dates The interim report as of March 31, 2014 will be published on May 14, 2014. The Annual General Meeting of STRATEC Biomedical AG will be held in Pforzheim on June 18, 2014. The invitation to the Annual General Meeting will be forwarded to STRATEC shareholders via their depositing banks in good time ahead of the Annual General Meeting. About STRATEC STRATEC Biomedical AG (www.stratec.com) 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 Germany Tel: +49 7082 7916-190 Fax: +49 7082 7916-999 ir@stratec.com www.stratec.com End of Corporate News --------------------------------------------------------------------- 29.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany Phone: +49 (0)7082 7916 0 Fax: +49 (0)7082 7916 999 E-mail: info@stratec.com Internet: www.stratec.com ISIN: DE0007289001 WKN: 728900 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 265183 29.04.2014