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Margins Squeezed: Order Intake Soars Amidst Flat Revenue
16 Sep
Summary
- Order intake surged 43% year-over-year, showing strong demand.
- Gross profit margin dropped to 30% due to pricing pressure.
- Net debt remains 43 million despite a recent business sale.
Order intake experienced a substantial 43% year-over-year rise, reaching 78 million and signaling a robust recovery in demand. The order book is stable at 80.5 million, up 6% from the prior year, covering 78% of expected revenue for the second half of the year. Service revenues contributed 23% to total revenue, an increase from 21%, with a strategic goal to reach 30% to enhance business resilience. Cost-saving measures successfully reduced administration costs by 2 million.
However, the company faced significant margin erosion, with gross profit margins falling to 30% from 37% because of pricing pressures and underutilized facilities. Underlying operating profits also decreased, reporting 2.1 million in underlying profit before tax. Revenue was flat at 71 million, reflecting difficult market conditions and delayed customer decisions. Despite proceeds from the sale of the Lambert business for 16 million, which strengthened the balance sheet and reduced net debt to 43 million, free cash flow generation remains absent.
