EQS-News: STEMMER IMAGING: Positive development in order intake and revenue in the second quarter – Investment agreement concluded with MiddleGround Capital

Puchheim, August 13, 2024

STEMMER IMAGING: Positive development in order intake and revenue in the second quarter – Investment agreement concluded with MiddleGround Capital

• Order intake in Q2 2024 up on the previous quarter for the second time in a row at EUR 35.2 million
• At EUR 30.8 million, revenue improved in the second quarter compared to the previous quarter (+12.1%) - the half-year figure of EUR 58.3 million is below the strong H1 2023 (EUR 78.4 million)
• Stable gross margin in the first half year 2024 at a high level of 40.0% (H1 2023: 39.6%)
• EBITDA margin at 15.6% (H1 2023: 18.1%): EBITDA of EUR 9.1 million (H1 2023: EUR 14.2 million)
• Operating cash flow improves by 86.7% to EUR 15.5 million (H1 2023: EUR 8.3 million)
• Investment agreement concluded with MiddleGround Capital

Puchheim, August 13, 2024 – Today, STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) publishes the results for the first half year 2024.

As expected, STEMMER IMAGING continued to face a challenging market environment in the second quarter of 2024. The improvement in order intake for the second quarter in a row sends positive signals for further business development. The increase in revenue compared to the previous quarter (H1 2023: EUR 78.4 million) is also a positive indicator. At 40.0%, the gross margin in the first half-year 2024 once again improved slightly at a high level (H1 2023: 39.6%). EBITDA decreased to EUR 9.1 million compared to the same period of the previous year (H1 2023: EUR 14.2 million). Operating cash flow again developed strongly at EUR 15.5 million (H1 2023: EUR 8.3 million).  For the first time, these figures also include the revenue and earnings contributions of Phase 1 Technology Corp., New York, USA, which was acquired in Q2 and consolidated since May 2024.

Despite a persistently challenging market environment, STEMMER IMAGING achieved an order intake of EUR 67.9 million in the first half of the year (H1 2023: EUR 76.1 million) and increased this to EUR 35.2 million in the second quarter of 2024.  This was the second consecutive quarter where order intake improved (Q4 2023: EUR 25.0 million, Q1 2024: EUR 32.8 million). At the same time, there were still project delays due to the uncertain overall economic situation.

The revenue development benefited from the recovery in order intake already reported in the first quarter of 2024. Revenue of EUR 58.3 million was generated in the first half of 2024, which corresponds to a decrease of 25.6% compared to the strong prior-year figure (EUR 78.4 million). In the second quarter, revenue amounted to EUR 30.8 million (Q2 2023: EUR 38.0 million). This decline, both in Q2 and in relation to the first half of the year, was the result of a slowdown across all regions and end markets. The book-to-bill ratio in the first half of the year is 1.2 and indicates a positive revenue trend for the following quarters.

The gross profit ratio in the first half-year 2024 improved slightly to a strong 40.0% compared to 39.6% in the same period of the previous year. The gross margin in the second quarter amounted to 40.0% (Q2 2023: 40.0%). The company reported EBITDA of EUR 9.1 million (H1 2023: EUR 14.2 million), which already fully reflects the acquisition costs of Phase 1 Technology Corp., New York. EBITDA profitability amounted to 15.6% (H1 2023: 18.1%) and is therefore temporarily below the medium-term target corridor of between 17% and 21%.  EBIT amounted to EUR 7.2 million (H1 2023: EUR 12.2 million). Earnings per share amounted to EUR 0.79 (H1 2023: EUR 1.35). In the second quarter, STEMMER IMAGING generated EBITDA of EUR 5.0 million (Q2 2023: EUR 6.9 million) and EBIT of EUR 4.1 million (Q2 2023: EUR 5.9 million). The EBITDA margin was 16.2% (Q2 2023: 18.0%).

STEMMER IMAGING's operating cash flow again developed very positively in the first half-year 2024 at EUR 15.5 million (H1 2023: EUR 8.3 million). Operating cash flow for the second quarter amounted to EUR 6.1 million (Q2 2023: EUR 2.8 million). This development was mainly influenced by the solid operating result and the positive working capital trend.

Due to the completion of the acquisition of Phase 1 Technology Corp., New York, at the beginning of May, two months of the acquired company's business activities are included in these quarterly figures.

Regarding the forecast for the 2024 financial year, the Executive Board continues to see a challenging market environment characterized by a temporary reluctance to invest in key end markets. Based on the continued positive development of the order situation, the Executive Board upholds the revenue range from March of EUR 140 to EUR 157 million forecast for the current financial year and confirms the earnings forecast (EBITDA) of EUR 24 to EUR 31 million. This does not include any potential special charges recorded in profit or loss related to the investment agreement with MiddleGround Capital. This forecast assumes that demand in the second half of the year will develop in line with the business performance so far, that the order backlog can be processed and that there will be an improvement in economic development in the late third quarter at the latest. It is currently impossible to predict how the ongoing distortion in international Capital markets will impact the continued economic recovery.

On July 22, 2024, STEMMER IMAGING entered into an investment agreement with MiddleGround Capital to unlock long-term growth opportunities for the company. The Executive Board of STEMMER IMAGING is to remain in its current composition and continue to manage the company. MiddleGround Capital has also announced that it will make a voluntary public takeover offer to acquire all outstanding shares of STEMMER IMAGING AG. The Executive Board and Supervisory Board of STEMMER IMAGING welcome the planned investment and support the announced takeover offer, subject to the review of the offer document yet to be published by MiddleGround Capital. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the fourth quarter of 2024.

Arne Dehn, CEO of STEMMER IMAGING, explains: "Embarking on a future partnership with MiddleGround Capital, STEMMER IMAGING is entering a new era. We are convinced that this collaboration will open up new opportunities and enhance our market position for the benefit of our customers, suppliers and business partners. We are excited to seize the promising market opportunities ahead!”

The half-year report of STEMMER IMAGING AG as of June 30, 2024, is available for download at www.stemmer-imaging.com in the Investors section.

About STEMMER IMAGING

STEMMER IMAGING is the leading international systems house for machine vision technology. 

With a background of all-round engineering expertise, STEMMER IMAGING delivers the entire spectrum of machine vision services for both, industrial and non-industrial applications – from value-added services to the development of subsystems and its own products, based on an extensive commercial range of products.

Important Note

This press release is neither an offer to purchase nor a solicitation of an offer to sell shares in STEMMER IMAGING. This press release also does not constitute a statement by the Executive Board or the Supervisory Board on the announced offer. Solely binding for the offer is only the offer document of the Bidder.

Kontakt:

STEMMER IMAGING AG
Michael Bülter
Chief Financial Officer
Gutenbergstr. 9-13
82178 Puchheim
Deutschland
Telefon +49 89 80902-196
[email protected]
www.stemmer-imaging.com