Thursday 22 July 2021, 08:00
Good half-year results, Hydratec Industries to distribute dividend
AMERSFOORT – Hydratec Industries NV started 2021 well. Revenue was 19% higher in the first half of the year than in the same period in 2020, leading to a substantial improvement in the operating result and net profit at both Industrial Systems and Plastic Components.
Key figures for first six months of 2021
- Consolidated revenue totalled €120 million (+19% compared to 2020).
- The gross margin was higher (€65.0 million versus €55.9 million).
- The operating result (EBIT) was considerably higher, totalling €9.6 million (8.0%) (€3.3 million (3.2%) in 2020).
- Net result attributable to shareholders came to €6.7 million (2020: €550 thousand negative).
- Investments in tangible and intangible fixed assets totalled €2.9 million, comparable to the first half of 2020.
- As at 30 June 2021, the solvency ratio had risen to 35.3% compared to 31.8% as at 31 December 2020.
Bart Aangenendt, CEO of Hydratec: “We started the year well. The various markets have found ways of dealing with the global outbreak of Covid-19. The pandemic has obviously led to additional uncertainties, but we are also expecting the second half of 2021 to be good.”
In the first half of 2021, the world was still contending with Covid-19 and the uncertainties accompanying the pandemic. Nonetheless, Hydratec was able to continue the upward trend visible at the end of 2020. For one thing, the various markets in which we operate showed resilience and the Hydratec Industries companies were able to benefit from this. For another, various measures were put in place in 2020 to improve the result and their impact continued to be seen in the first half of 2021.
Plastic Components’ revenue, totalling €66.6 million, was 21% higher than in the same period last year. The gross margin rose slightly. The operating result worked out at €4.6 million (7.0% of revenue), a considerable increase compared to the first six months of 2020 and 2019. The various markets recovered well, although there were occasionally some fluctuations in prices and availability of raw materials. Given the results at Polmer, a decision has been made to investigate the long-term perspective for these injection moulding activities in Poland. No conclusions can yet be drawn.
Revenue at Industrial Systems totalled €54.5 million. This 18% increase in revenue resulted in a considerable increase in the operating result to €6.2 million (11.4% of revenue). Although revenue at Industrial Systems was visibly lower in the first quarter, the second quarter compensated for this. The project-based nature of the activities can lead to significant fluctuations in revenue. Despite the measures taken worldwide to combat Covid-19, the order intake at all the companies remained at a respectable level.
Given the strong financial position, improved liquidity, the good result for the first half-year and the outlook, the company has decided to distribute an interim dividend. A cash dividend worth €2.7 million will be distributed to shareholders in August 2021, which works out at €2.10 per share. This is in line with the dividend policy to distribute at least 40% of revenue.
Expectations for the 2021 financial year
On the basis of the good results for the first half of the year and the well-filled order book at Industrial Systems, we also expect good results for the second half of 2021. Plastic Components is still facing uncertainty in the market for out-of-home food, mainly due to the Covid-19 pandemic.
2021 HALF-YEAR REPORT
The half-year report is available on the website.Semi-annual report
The figures contained in the half-year report have not been audited.
Hydratec Industries is listed on the Euronext Amsterdam NV stock exchange (ISIN NL0009391242, ticker: HYDRA.)