Both of Hydratec’s core activities – Industrial Systems and Plastic Components – contributed almost equally to positive EBITDA, at 8.9% and 9.1% respectively.

Industrial Systems

Revenue at Industrial Systems increased by 3.6% due to the acquisition of Rollepaal. Autonomously, revenue at Industrial Systems decreased by 14.6%, due to customers’ reluctance to make major replacement investments. Although the gross margin increased, the acquisition of Rollepaal and the reorganisation which followed meant that, on balance, costs increased considerably. The Systems segment saw a substantial drop in its operating profit, partly due to losses at Rollepaal. However, the reorganisation has laid the foundation for structurally sound operations at Rollepaal.

Plastic Components

Plastic Components saw a slight fall in revenue (5.2%) as a result of the Covid-19 pandemic. The segment had to contend with disappointing revenue from automotive customers and out-of-home-food customers, particularly in the second quarter. After that, revenue recovered. The gross margin increased due to a better product mix and procurement benefits. Despite cost savings, a non-recurring reorganisation provision caused operating results for Plastic Components in 2020 to be substantially lower compared to 2019.

Bart Aangenendt (CEO) on last year:

“2020 was a bizarre year. A portion of demand dropped very suddenly and we were forced to terminate operations. All this affected our financial results for 2020, but we were able to generate a modestly positive result nonetheless.  By making decisive choices, we will emerge from the crisis stronger. Operational and strategic agility is crucial in this hectic period. Our organisational set-up with independent operating companies close to the market has proved itself to be well suited for these dynamics.”

Key figures 2020 vs 2019

(x €1 million)	2020	2019
Net revenue	217.6	219.6
Gross margin	114.4	108.5
Operating result (EBIT)	3.3	10.2
Operating result before depreciation (EBITDA)	17.6	18.8
Net result from continuing operations	3.5	6.6
Net result per share (in euros)	1.01	5.16
Solvency ratio	31.8%	29.5%

2020 Annual Report

Hydratec Industries will publish its full 2020 Annual Report on Friday 26 March 2021. The audit has not yet been fully completed.

Proposed dividend

In connection with the NOW subsidy for a number of companies, no dividend will be paid over 2020. We will decide whether there is scope for an interim dividend in the autumn of 2021.

Expectations for the 2021 financial year

Hydratec enjoyed a good start to 2021 and, partly due to cost savings, intensified focus and the effect of reorganisations, it expects a better result in 2021. Industrial Systems has a well-filled order book. There are however major differences between companies. The Covid-19 pandemic has caused uncertainty, especially in the food and mobility markets at Plastic Components, but the recovery in the second half of 2020 gives confidence for 2021.

Due to the exceptional circumstances caused by the coronavirus crisis, we feel unable to make more specific statements about 2021. As always, macroeconomic developments such as volatile exchange rates, trade barriers, and now the coronavirus pandemic, have an effect on our customers’ willingness to invest. The companies’ market position remains strong, however, each in its own niche.

Hydratec Industries is listed on Euronext Amsterdam NV (ISIN NL0009391242, ticker: HYDRA).