Annual Financial Report
HansaMatrix audited consolidated and parent company audited Financial and Corporate Governance report for financial year 2019
Revenue from contracts with customers of HansaMatrix Group in the financial year 2019 was EUR 24.61 million, which is 14.00% more than in the previous financial year 2018.The Group reported operational cash flow EBITDA in amount of EUR 3.719 million, which is 14.12% increase and net profit EUR 0.208 million, which is 73.38% decrease in comparison with EBITDA and net profit of year 2018.
Rīga, 2020-04-22 20:36 CEST --
HansaMatrix Group completed the 2019 reporting period with revenue from contracts with customers (hereinafter – the turnover) of EUR 24.61 million, which is 14.00% greater than the EUR 21.59 million reported during the previous period. During the reporting period, the Group reported EBITDA result of EUR 3.719 million, compared to EUR 3.259 million in 2018; the net profit was EUR 0.208 million, compared to EUR 0.781 million net profit in 2018.
In 2019, the R&D turnover reached EUR 2.278 million which exceeded the turnover of 2018 by EUR 0.732 million or by 47%. In 2019, the R&D turnover represented 9.3% of the total consolidated sales. The considerable growth in the R&D sales in 2019 resulted from the increase in the R&D services provided in optics and photonics and from the increase in manufacturing volume of high-tech optics and photonics products and represent strategic development of business model in direction of knowledge intensive manufacturing.
HansaMatrix Parent Company closed the year 2019 with a turnover of EUR 23.06 million, which by 8.79% exceeded the EUR 21.20 million reported in the previous period. During the reporting period, the Parent Company reported EBITDA of EUR 1.560 million, compared to EUR 1.645 million in 2018; the net profit was EUR 0.324 million, compared to EUR 0.660 million net profit in 2018.
In 2019 net profit margin exhibited decreasing trend, explained by the increased depreciation of property plant and equipment, interest expense, where interest payment provisions for European Investment Bank financing is included. Additionaly decrease is and explained by the increased share of losses included in the consolidated financial statements from the associate company due to increased ownership. Both EBITDA and net profit margins in 2019 were also influenced by significant direct manufacturing labor wage increases.
The majority of HansaMatrix business clients are in the Baltic and Nordic countries. In 2019 the highest growth was achieved in outside European Union countries, followed by other EU countries and the Baltic countries.
In 2019, the net turnover in outside EU countries grew by 213% in comparison to 2018. This is explained by growth in business with new clients, mostly in the developed countries outside EU. In 2019 compared to 2018 the achieved revenue growth in the other EU, the Baltic and in the Nordic countries amounted respectively to 8%, 6% and 2%.
HansaMatrix sales focus on five major market sectors: data network infrastructure products, the Internet of Things, industrial products, optics and photonics and other.
The two largest market sector in 2019 was constituted by the data network infrastructure and industrial clients both accounting for 40% of sales. Data networks sector revenue exhibited a slight 2% decrease, while industrial sector sales increased by 25% compared to previous year. Optics and photonics, internet of things and other product sectors respectively constituted 9%, 7% and 5% of the total sales, with optics and photonics segment growing by 39%, internet of things growing by 27% and other product segment contracting by 34% compared to 2018.
During the 12-months of 2019, the Parent Company invested approximately EUR 3.3 million in increasing the production capacity, research instruments, testing systems and development of new products.
The definitions of alternative performance indicators (APIs) used in the news release can be found on page 92 of the Audited Consolidated and Parent Company’s financial reports for the financial year 2019.
HansaMatrix Audited Consolidated and Parent Company’s financial reports for the financial year 2019.
Corporate Governance report for financial year 2019.
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HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments, optics and photonics and other services to high added value business segments. In addition to complete manufacturing services of OEM products, the company offers an ODM business model to both start-up and established companies that seek product development partnerships.