CENTROTEC SE: Suspension of dividend payment in view of the Corona-Pandemic; annual expectations for 2020 put under reservation
Brilon, Germany, March 23, 2020 – In view of the recent developments of the world-wide Corona-Pandemic, the management board and the supervisory board of CENTROTEC SE, have decided today to propose to the Annual General Meeting that the dividend payment for the financial year 2019 shall be suspended.
The impact of the world-wide Corona-Pandemic on CENTROTEC and its individual group companies is very difficult to judge at present. The management board and the supervisory board do expect that the sales market will develop positively in the long run, but the increased number of uncertainties caused by economic crisis - which are particularly due to the Corona-Pandemic - present a risk for the overall economic development that is very difficult to judge and hence presents a risk for CENTROTEC. The proposal to suspend the dividend payment for the 2019 financial year is aimed to secure a continuously strong financial and cash position.
As already reported in early February a revenue of EUR 651 million (previous year EUR 614.7 million) and an operating result (EBIT) of around EUR 33.1 million (approved, previous year EUR 30.4 million) has been generated in the 2019 financial year. In this context an organic growth to a consolidated revenue of EUR 670 to 690 million with an operating result (EBIT) of EUR 34 to 36 million had been forecasted for the 2020 financial year. Since then the Corona-virus has developed into a pandemic in Europe and it becomes more and more likely that the coming weeks will show nationwide deteriorations of sales markets, sourcing problems or public restrictions of production that might lead to substantial decline in the business activities of CENTROTEC. Some markets, such as Italy and France are already in steep decline since the beginning of March. Against this background the above mentioned forecast is now subject to serious uncertainties. The financial impact of the crisis, however, cannot be estimated properly at present.
CENTROTEC SE enjoys a presence in around 50 different countries through subsidiaries and sales partners. The principal group companies are Wolf, Brink Climate Systems and Ned Air in the Climate Systems segment, specialising in heating, climate control and ventilation technology e.g. in the form of solar thermal systems, CHP units and home ventilation systems with heat recovery, as well as Ubbink and Centrotherm in the Gas Flue Systems segment, with their focus on gas flue and air piping systems. CENTROTEC is consequently Europe's only listed full-service provider of heating and climate control technology, solar thermal systems and energy-saving solutions for buildings.