Brilon, March 29, 2011 – CENTROTEC Sustainable AG ended the 2010 financial year with the highest revenue (EUR 479.7 million) and the best earnings figures (EUR 36.2 million EBIT) in the history of the group. Earnings in particular rose overproportionally at all levels and were well up on both the previous year and the previous record-best figures from 2008. These results, achieved in a market environment that remained difficult, meant that the forecasts upgraded on multiple occasions during the year were comprehensively met. This profitable growth was achieved in particular thanks to the even stronger market position for the CENTROTEC companies in the Climate Systems segment in 2010. As well as the further improvement in its position in the German heating market, there was substantial growth in export business particularly in Southern and Eastern Europe. Based on the renewed rise in earnings and the further substantial reduction in net borrowings (EUR 71.1 million, previous year EUR 86.5 million), the group is planning to distribute its first ever dividend of EUR 0.10.
CENTROTEC posted consolidated revenue of EUR 479.7 million in the 2010 financial year (previous year EUR 466.6 million), representing organic revenue growth of 2.8 %. Consolidated revenue was therefore likewise up on the previous record revenue total from 2008. There were substantial increases in revenue in the largest segment Climate Systems and also in the Medical Technology & Engineering Plastics segment. On the other hand the Gas Flue Systems segment was not quite able to match the previous year’s revenue figure, which had marked a new record thanks to non-recurring effects. In the core segment Climate Systems, revenue of EUR 331.8 million was 7.2 % up on the prior-year figure of EUR 309.5 million and equally bettered the previous record from 2008. As already forecast during the year the second core segment Gas Flue Systems, which had grown particularly strongly, was not quite able to match those figures in the second half and its revenue was down 11.9 % on the previous year’s record level at EUR 112.8 million (EUR 128.1 million). 2010 saw the smallest segment, Medical Technology & Engineering Plastics, recover well from the previous year’s cyclically induced slump with revenue growing by 20.9 % to EUR 35.0 million. At group level the forecast for 2010 made at the start of the year proved accurate, with revenue coming in at EUR 480 million.
The earnings forecast for 2010 was upgraded on two occasions in the course of the year following the positive performance of business operations and the investment result. With EBIT climbing to EUR 36.2 million (previous year EUR 29.0 million), the most recent bandwidth forecast of EUR 36 to 37 million was achieved in full. Earnings before tax of EUR 34.5 million (previous year EUR 12.7 million) were likewise increased substantially – among other things thanks to a substantial improvement in the investment result of EUR +4.4 million (previous year EUR -9.8 million), mainly from the 26.2 % investment in the listed company CENTROSOLAR – and produced earnings after tax of EUR 25.6 million (previous year EUR 5.2 million). On that basis, EPS of EUR 1.54 (previous year EUR 0.33, previous year adjusted EUR 0.93) was clearly within the bandwidth of EUR 1.50 to 1.60 that had been upgraded during the year.
2011 forecast by segment
In view of the fundamentally positive general situation and the group companies’ good position, CENTROTEC expects revenue to grow to EUR 520 to 535 million for the 2011 financial year, with the operating result (EBIT) increasing to EUR 40 to 42 million. Earnings per share (EPS) of EUR 1.70 to 1.80 are forecast for 2011. In a departure from previous years, the Supervisory Board and Management Board of CENTROTEC Sustainable AG will propose to the Shareholders’ Meeting that, as an initial step, a dividend of EUR 0.10 per dividend-bearing no par value share be distributed for the 2010 financial year. They nevertheless still plan to plough back the greater part of profit and invest it in the further organic and external growth of the company. This approach will however continue to be reviewed on a regular basis in the future and a separate decision taken each year, though at least a basic dividend is likely to be paid. CENTROTEC equally expects the organic revenue and earnings growth that is taking shape for 2011 to continue in subsequent years. CENTROTEC fundamentally sets itself the long-term target of approximately 10 % annual organic revenue growth at group level, coupled with an EBIT margin exhibiting an upward tendency in the high single figures.
Revenue of EUR 350 to 360 million is planned for the Climate Systems segment for 2011. The operating result is expected to rise in proportion to revenue because of higher materials prices and the likelihood of increased personnel expenses. The medium-term target for organic revenue growth remains 8 to 10 %, with a target EBIT margin of 8 to 9 %. In the Gas Flue Systems segment, revenue is expected to reach EUR 135 to 140 million, coupled with an increased operating result. In the medium term, average organic revenue growth is expected to be around 10 to 12 % with double-digit EBIT margins. The aim for 2011 for the Medical Technology and Engineering Plastics segment is organic revenue growth to EUR 35 to 37 million and a substantial increase in the EBIT margin. An EBIT margin in high single figures or low double figures, coupled with average annual revenue growth of 10 %, are the medium-term objectives.
CENTROTEC Sustainable AG
CENTROTEC Sustainable AG and its subsidiaries enjoy a presence in over 50 different countries. The principal group companies are Wolf Heiztechnik, Brink Climate Systems and Ned Air in the Climate Systems segment, which have specialised in heating, climate control and ventilation technology e.g. in the form of solar thermal systems, heat pumps, CHP units, climate control and ventilation systems with heat recovery for residential and commercial buildings, as well as Ubbink and Centrotherm, which have focused on plastic gas flue and air ducting systems and solar system components in the Gas Flue Systems segment. CENTROTEC is consequently Europe’s only listed full-service provider of solar thermal systems and energy-saving solutions for buildings.