Cavotec SA - Interim report January - December 2021
Strong order book and increasing revenues in
New Cavotec
On 5 March 2021, Cavotec communicated a decision
to focus resources and make investments in the ports & maritime
and industrial markets. As a consequence, a process was initiated
to divest the Airports business. On February 22, 2022, we
signed an agreement to divest 100% of our Airports business to US
based investment company Fernweh Group. The transaction is expected
to close in the summer of 2022. As a result of the sale,
Airports is reported as a discontinued entity. The publication of
this report was therefore postponed to today, 30 March, to make the
necessary adaptations under IFRS to the annual accounts and the
year-end report.
OCTOBER–DECEMBER 2021 NEW CAVOTEC
- Order backlog increased 6.5% compared to Q321
to EUR 98.9 million
- Revenues increased 5.4% to EUR 31.4 million (29.8)
- EBIT amounted to EUR -1.7 million (-2.2), corresponding
to a margin of -5.4% (-7.4%).
- EBIT adjusted for growth investments amounted to EUR -0.0
million, corresponding to a margin of -0.1%
OCTOBER–DECEMBER 2021 TOTAL (INCL.
DISCONTINUED)
- Net result for the group was EUR -36.4 million (-4.7), of
which EUR -32.8 million attributable to the discontinued
operations
JANUARY–DECEMBER 2021 NEW CAVOTEC
- Order backlog of EUR 98.9 million increased 71.2%
compared to FY2020.
- Revenues increased 0.4% to EUR 115.8 million (115.3)
- EBIT decreased to EUR -0.7 million (0.0), corresponding
to a margin of -0.6% (0.0%)
- EBIT adjusted for growth investments amounted to EUR 6.4
million, corresponding to a margin of 5.5%
JANUARY– DECEMBER 2021 TOTAL (INCL.
DISCONTINUED)
- Net result for the group was EUR -37.1 million (-4.0), of
which EUR -35.9 million attributable to the discontinued
operations
- The Board proposes to the Annual General Meeting that no
dividend be paid to shareholders for the 2021 financial year
Key events during the
quarter
- Cavotec won repeat cleantech orders worth EUR 3 million to
equip container ships with shore power connections to global marine
equipment manufacturer Samsung Heavy Industries
- Cavotec won two key orders for motorized cable reel
electrification systems for container cranes at major ports in
China and the US from leading crane manufacturer ZPMC
Subsequent events
- On 28 January 2022, Cavotec announced that Mikael Norin has
decided to leave his position as Group CEO of Cavotec. Norin will
leave later in the year when a successor has been
identified
- Due to the lockdown of Shanghai to contain surging COVID-19
cases in the latter part of March, Cavotec’s production facility
there has not been able to deliver and invoice a substantial part
of booked orders at the end of the first quarter. Planned invoicing
in March is delayed until further notice, despite production being
completed. We anticipate that approximately EUR 4 million of
revenue will be delayed until the following quarter. Orders are not
cancelled, but deliveries will resume as soon as the situation is
normalized
- Due to the temporary impact on our ability to deliver and
invoice according to plan, we have initiated a discussion with our
banks in the event we are not be able to meet all the conditions of
our existing bank agreement in the first quarter
- The date for publication of Cavotec’s annual report has been
moved from March 31 to April 27
Comment from the CEO
Sale of Airports lays foundation for full
focus on New Cavotec
It has been almost a year since we launched our
strategy to focus on cleantech for ports and industrial
applications and to divest the airports business. We have since
seen continued increase in demand for our sustainability solutions
in what we call New Cavotec, i.e., excluding Airports.
In the fourth quarter, New Cavotec’s order backlog
increased 6.5% compared to the previous quarter and 71.2% compared
to a year ago to EUR 98.9 million. We especially saw continued
strong growth in orders for on-ship Shore Power for both new
vessels and for retrofits. We also saw an increase in orders for
Motorized Reels, including two key orders for reel electrification
systems for container cranes at major ports in China and the US
from leading crane manufacturer ZPMC. Furthermore, Industry showed
a strong increase in the order backlog, driven by an increase in
orders from heavy equipment OEMs. It is truly encouraging to see
the continued increase in demand for our cleantech solutions and
the effects of our new strategy.
Revenues increased 5.4% to EUR 31.4 million in the
fourth quarter, which is a reflection of the strong orderbook in
previous quarters and it was also rewarding to see that services
share of revenues in New Cavotec increased to 23.9%, in line with
our strategy. During the quarter we continued to make investments
in sales, marketing, engineering, and technology to meet future
demand. Adjusted for those growth investments we recorded a break
even EBIT for the quarter.
Looking at the whole of 2021, while order intake
has been the highlight of our performance, the majority of revenue
from the maritime orders will not materialize until 2022 and
onwards since the planning cycle in the industry is long. As a
result, annual revenue was flat compared to the previous year at
EUR 115 million. Adjusted for growth investments we recorded an
EBIT for the year of EUR 6.4 million, corresponding to a margin of
5.5%.
On February 22, 2022, we signed an agreement to
divest 100% of our Airports business to US based investment company
Fernweh Group. The transaction is expected to close in the summer
of 2022. As a result of the spin off, a non-cash impairment charge
of EUR 32.8 M was taken. Although it is bittersweet to see our
Airports colleagues leave, we believe that they, as well as
customers and partners, will substantially benefit from the focus
that the new owners will bring.
The sale of our Airports business is an important
step to allow us to fully focus on New Cavotec, which accounted for
75 per cent of our revenues in 2021 and operates in the fast
growing ports & maritime and heavy duty industrial applications
markets with products such as shore power, automated mooring,
reels, electrical charging systems as well as a wide service
portfolio.
We are well positioned to create unmatched
environmental and financial benefits for our customers through our
technology solutions. 2021 has been a year of confirmation for this
strategy and the growing demand for our solutions is a strong sign
of our expectations for the future of Cavotec.
On 28 January 2022, I informed the Board of
Directors that I have decided to leave my position as Group CEO of
Cavotec later in the year when a successor has been identified.
After having been based in Switzerland for the last five years my
family have a desire to return home to the US. It has been the
privilege of a lifetime to lead the transformation of Cavotec from
a traditional product manufacturing company to a focused cleantech
solution provider. As this journey is almost complete, it is the
right time to hand over to someone else to continue developing this
great company.
As I write this, the unjust war in Ukraine rages
on with unfathomable suffering for the brave people of that
country. As a company we have limited exposure to Russia and thus
see little impact on our 2022 financial performance.
Due to the lockdown of Shanghai to contain surging
COVID-19 cases in the latter part of March, Cavotec’s production
facility there has not been able to deliver and invoice a
substantial part of booked orders at the end of the first quarter.
The impact is temporary, and deliveries are not cancelled but will
resume as soon as the situation is normalized. Nevertheless, we
have initiated a discussion with our banks in the event we are not
be able to meet all the conditions of our existing bank agreement
in the quarter, due to our inability to deliver and invoice
according to plan.
Lugano, 30 March 2022
Mikael NorinChief Executive
Officer
ENDS
Conference call in connection with publication
of the quarterly reportA conference call for shareholders,
analysts and media will be held on 30 March 2022 at 10:00 CEST.
Participating on the conference call from Cavotec will be Mikael
Norin, CEO, and Glenn Withers, CFO.
Conference call Dial-in numbers:SE:
+46850558366 UK: +443333009271 US: +16467224903
Weblink: https://tv.streamfabriken.com/cavotec-q4-2021
Quarterly Reports on www.cavotec.comThe
full report for the period January-December 2021 and previous
quarterly and full year reports are available
at: http://ir.cavotec.com/financial-reports
Analysts & MediaJohan Hähnel – Investor
Relations ManagerMobile: +46 70 605 63 34 – Email:
investor@cavotec.com
This is information that Cavotec SA is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out above, at 07:00 CEST on 30 March
2022
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