Announcement
To Nasdaq Copenhagen A/S and the press
Nørresundby, Denmark, 2 May 2019
Announcement no. 23/2019
Interim report for Q2 2018/19
(the period 01.01.2019 - 31.03.2019)
The financial performance in both Q2 2018/19 and H1 2018/19 was according to plan with revenue growth of 29.2 % and 22.5 % respectively and with EBITDA of DKK 23.1 million in Q2. Revenue growth has been driven by increasing activity in all business areas including the strategic focus areas. RTX A/S maintains the outlook for the full year 2018/19.
SUMMARY FOR THE SECOND QUARTER OF 2018/19 FOR THE RTX GROUP
- Net revenue increased by 29.2 % to DKK 137.9 million in Q2 2018/19 (Q2 2017/18: DKK 106.8 million). FX corrected revenue growth amounted to 21.1 % as revenue compared to last year was positively impacted by the USD/EUR exchange rate development. In addition, the revenue was positively impacted by implementation of IFRS 15 regarding timing of revenue recognition.
- Both Business Communications and Design Services achieved revenue growth. Business Communications: Revenue growth of 33.4 % to DKK 91.8 million (23.4 % FX corrected revenue growth). Both the handset related product ranges as well as the new strategic focus area within the headset product range contributed to the growth. Design Services: Revenue growth of 21.5 % to DKK 46.2 million (17.1 % FX corrected revenue growth) with growth in product sales (customized modules) as one of the strategic focus areas and with continued high activity within customer financed projects.
- Gross profit increased by 20.8 % to DKK 78.3 million in Q2 2018/19 (Q2 2017/18: DKK 64.8 million). The gross margin decreased by 3.9 %-points to 56.8 % (Q2 2017/18: 60.7 %) due to changes in the product mix.
- Operating performance improved with EBITDA increasing by 7.8 % to DKK 23.1 million in Q2 2018/19 (Q2 2017/18: DKK 21.4 million). EBIT was at a similar level as last year with a decrease of 0.2 % to DKK 19.6 million in Q2 2018/19 (Q2 2017/18: DKK 19.6 million). EBITDA and EBIT are impacted by the revenue and gross profit growth and by a planned increase in capacity costs both for ramping-up capacity in order to execute the two major framework agreements announced during 2017/18 and for continuing to build the organization and infrastructure necessary for further growth. Thus, the average number of FTEs reached 272 in Q2 2018/19 compared to 243 in Q2 2017/18.
- Cash flows from operating activities (CFFO) amounted to DKK 15.0 million in Q2 2018/19 compared to DKK 17.9 million in Q2 2017/18 and were impacted by increased working capital due to the revenue growth and by the ramping-up of the two major framework agreements announced in Q1 and Q3 2017/18.
SUMMARY FOR THE FIRST SIX MONTHS OF 2018/19 FOR THE RTX GROUP
- Net revenue increased by 22.5 % to DKK 254.4 million in H1 2018/19 (H1 2017/18: DKK 207.7 million). FX corrected revenue growth amounted to 16.9 % as revenue compared to last year was positively impacted by the USD/EUR exchange rate development. In addition, the revenue was positively impacted by implementation of IFRS 15 regarding timing of revenue recognition.
- Both Business Communications and Design Services achieved revenue growth. Business Communications: Revenue growth of 25.6 % to DKK 169.0 million (18.6 % FX corrected revenue growth). Both the handset related product ranges as well as the new strategic focus area within the headset product range contributed to the growth. Design Services: Revenue growth of 16.8 % to DKK 85.3 million (13.7 % FX corrected revenue growth) with growth in product sales (customized modules) as one of the strategic focus areas and with continued high activity within customer financed projects.
- Gross profit increased by 19.1 % to DKK 145.1 million in H1 2018/19 (H1 2017/18: DKK 121.8 million). The gross margin decreased by 1.6 %-points to 57.0 % (H1 2017/18: 58.6 %) due to changes in the product mix.
- Operating performance development was impacted by a planned increase in capacity costs both for ramping-up capacity in order to execute the two major framework agreements announced during 2017/18 and for continuing to build the organization and infrastructure necessary for further growth. The average number of FTEs reached 270 in H1 2018/19 compared to 239 in H1 2017/18. Thus, EBITDA decreased by 3.6 % to DKK 33.7 million in H1 2018/19 (H1 2017/18: DKK 34.9 million). Also, EBIT decreased by 13.7 % to DKK 27.4 million in H1 2018/19 (H1 2017/18: DKK 31.7 million).
- Cash flows from operating activities (CFFO) amounted to DKK 28.0 million in H1 18/19 compared to DKK 38.1 million in H1 2017/18. RTX A/S has initiated a share buy-back programme for an amount up to DKK 20 million (cf. company announcement 03/2019) and will continue to execute on this programme.
OUTLOOK FOR 2018/19
- Management maintains the expectations for revenue between DKK 520-550 million, EBITDA between DKK 85-100 million and EBIT between DKK 65-80 million for the financial year 2018/19.
RTX A/S
PETER THOSTRUP PETER RØPKE
Chairman CEO
Investor and analysts meeting
On Friday, 3 May 2019 at 11.45 am, RTX will hold a meeting for investors and analysts at ABG Sundal Collier, Forbindelsesvej 12, 2100 Copenhagen. At this meeting, the Company’s management will comment on the interim report for the second quarter of 2018/19. To register for the meeting, please e-mail ABGSCEvents-Copenhagen@abgsc.dk.
Enquiries and further information:
CEO Peter Røpke, tel +45 96 32 23 00
RTX’s homepage: www.rtx.dk
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