This year's Annual General Meeting of the euromicron AG was held in Frankfurt on 05/14/2014. An intensive general debate confirmed the roadmap for the company’s further development, confirmed the measures of the "Agenda 500" and approves all items on the agenda.
euromicron AG is aiming to achieve sales of €500 million in 2016 as part of completing its company strategy, which has a time frame of 15 years. As part of that, the company also intends to achieve a strategic mix between manufacturers and service providers and, on the basis of this portfolio, once again attain the earnings strength it has demonstrated over the past 12 years, namely an EBIT margin of 8 to 11 percent. To create the conditions for that, an extensive and cost-intensive 2- to 3-year modernization program was launched in 2012 – the Agenda 500.
“All in all, the extensive investments in the Agenda 500 are aimed at preparing the company to achieve the next stage in its growth by acquisition of a largish company on a solid footing”, stated the Chairman of the Executive Board. As a result, the company offers its shareholders interesting, long-term prospects for growth.
The euromicron Group’s total operating performance in 2013 rose slightly to €328.7 million or by 1.4 percent over the previous year. Earnings before interest and taxes were €5.5 million following integration costs of around €5.5 million, special effects from project valuation of approximately €4.9 million and a loss of EBIT in all business segments totaling around €7.9 million due to postponed orders and projects. EBITDA was €14.4 million.
euromicron embarked on 2014 with record order books totaling some €145 million. The Group obtained new orders totaling some €100 million in the first quarter of 2014, around 20% above the previous year’s figure and so a stable platform for achieving the targets.
Given the highly promising order situation at the beginning of 2014 and with the expectation that the integration phase will be concluded successfully, the General Meeting on May 14, 2014, gave its strong backing to the policy and strategy of euromicron AG and its management bodies and confirmed all items on the agenda with majority. They also confirmed their approval of the company’s strategy and planned development in talks and discussions on the fringes of the event.
euromicron on the capital market
In the stock market year 2013, euromicron’s share price fluctuated in a range from around €20 to €13.86 and was little affected by the main company releases over the course of the year.
euromicron’s market capitalization at the end of the year was 102.9 million. The trading volume was around 7.4 million shares and is testimony of the greater awareness of euromicron’s share.
Interest in euromicron AG and its development among financial analysts remained keen in 2013. The majority of analysts have constantly rated euromicron’s share a “buy”.
The General Meeting decided to endorse the proposal by the Executive Board and Supervisory Board and refrain from paying out a dividend for 2013 to reflect the high costs of the current integration phase and ensure that euromicron AG has the capital and liquidity to restructure and expand the Group into a €500 million company. The Chairman of the Executive Board explained that this did not mean a renunciation of the company’s longstanding dividend policy, but that the aim was, after completion of the integration phase and as in the years of building the Group, to distribute 50% of the company’s profits to all shareholders.
Outlook: Further development of euromicron AG
A major focus in 2014 will be to further professionalize Group-wide sales activities and to strengthen them in the international markets.
In the service arena, further structuring and optimization of the solution portfolio has been initiated so as to transition to a consistent marketing concept for it in the course of 2014 and 2015. “That also includes a new service concept,” says Chairman of the Executive Board Dr. Willibald Späth.
The activities are rounded out by constant examination of smallish companies that are leaders in their special markets and would complement the euromicron’s Group portfolio with their skills.
“With these long-planned strategic steps in the company’s development and the associated integration phases, we will create the basis for our Group’s further organic growth, the planned smooth acquisition and integration of a largish company, achievement of sustained and good earnings strength and so also greater attention on the stock market,” added Dr. Späth in his speech to the General Meeting.
On the market side, the Chairman of the Executive Board does not at the moment see any restraining factors on the company's planned development. “On the contrary, we assume that if a successful roadmap for network expansion is adopted, that will produce a favorable climate for expansion of the ICT infrastructure, which euromicron AG can also benefit from with its products and solutions.”
On the basis of that, the Chairman of the Executive Board expects sales in fiscal 2014 to grow to €340 to €360 million, coupled with an improvement in the quality of EBIT and EBITDA. “We believe that, with its corporate strategy geared to sustainable growth, solid business model and a still secure basis for financing, our company has the stability and strength required to achieve that,” said Dr. Späth to conclude his speech.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security. euromicron’s network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.