S&T AG: growth in first six months of 2016 according to plans - accelerated growth expected for 2017 due to strong order situation

Wednesday, 3rd August 2016

Austria

4% rise in sales to EUR 196.4 million (PY: EUR 188.2 million)
EBITDA up 21% to EUR 13.1 million (PY: EUR 10.8 million)
Order backlog: further growth to EUR 198.6 million (01.01.2016: EUR 181.0 million)

S&T AG (www.snt.at) was able to increase its sales in the first half of 2016 to EUR 196.4 million, up from the first half of 2015's EUR 188.2 million. Gross earnings remained nearly unchanged at EUR 68.4 million (PY: EUR 69.0 million). EBITDA increased substantially to EUR 13.1 million (PY: EUR 10.8 million). This, in turn, yielded a 10% rise in consolidated income, which came to EUR 6.6 million (PY: EUR 6.0 million).

Sales rose from EUR 95.4 million in the period of comparison of 2015 to EUR 100.0 million in the second quarter of 2016. The EBITDA came to EUR 6.8 million (PY: EUR 5.0 million). Consolidated income amounted to EUR 3.4 million, up from EUR 3.3 million in 2015.

The strategy being implemented of proceeding upon the development of the technology segments was purposefully pursued during the first six months of 2016. The strategy caused increases in the sales and profits realized by these segments. They achieved sales of EUR 58.9 million (PY: EUR 54.6 million). Their EBITDA outpaced this rise, climbing to EUR 7.4 million (PY: EUR 6.0 million).

The sales achieved by the „Services“ segments rose to EUR 137.5 million in the first six months of 2016, up from EUR 133.6 million in the first half of 2015. Efficiency increasing programs caused profitability to increase. This, in turn, yield an EBITDA of EUR 5.6 million (PY: EUR 4.8 million).

The company's liquid funds remained largely unchanged at EUR 34.0 million (PY: 36.9 million). The equity rate came to 34.8% (PY: 35.8%).

S&T's management expects financial year 2016 to see a successful setting forth of the course of expansion the Group has launched. The management is maintaining its forecast that sales will reach EUR 500 million. The rise in profits is set to exceed that of sales. Drivers of this growth will be the „Security“ and „Smart Energy“ technology segments. These turned in strong rates of growth in previous years. The order backlog grew strongly in the first six months of 2016, coming to EUR 198.6 million as of June 30, 2016 (January 1, 2016: EUR 181.0 million). Growing even more impressively was the project pipeline, which came to EUR 866.9 million (January 2016: EUR 701 million) as of the end of period. These figures make plans for a further acceleration of growth and an increase in sales of more than 15% in 2017 seem realistic.