- Strong increase in order intake and order book
Highlights second quarter 2021
All Solutions contributed to strong turnover growth (up 18.5%, organic growth 16.8%) and an increase in EBITA before one-off income and expenses of 52.8%.
High demand and innovations lead to strong increase in order intake and order book in all Solutions.
Financial highlights first half 2021
Turnover up 6.9% at € 726 million, organic growth 5.8%.
Strong turnover growth at Telecom and Building Solutions offsets decline at Industrial Solutions.
EBITA before one-off income and expenses 22.3% higher at € 84.4 million.
ROS up at 11.6% (H1 2020: 10.2%), with strong recovery in Q2.
Net profit before amortization and one-off income and expenses attributable to shareholders increased by 37.5% to € 49.4 million.
Order book increased by 49% (€ 211 million) to € 639 million per 30 June 2021.
Strategic highlights first half 2021
Demand further increased with high level of activity in almost all markets.
Impact of supply chain challenges well managed, resulting in an only limited effect on activities.
Solid progress strategic development, driven by ‘Simplify & Accelerate’ program:
- Focus on margin improvement well on track.
- Divestment program on track to be finalized within 12 months.
Increased order intake with good contribution from innovations, such as subsea connectivity systems, 3D confocal vision technology, tire building systems and Indivion.
The improved market circumstances, combined with the increasing demand and strong order book, leads to a positive outlook for the full year. Supply chain challenges can have an impact on some of TKH’s operations in the second half of 2021. Forecast full year 2021: net profit from continued operations before amortization and one-off income and expenses attributable to shareholders to increase significantly to between € 106 million and € 112 million, compared to € 70.3 million over 2020.
Alexander van der Lof, CEO of technology company TKH: “In this first half year we have seen a strong increase in demand for almost all of our activities, resulting in a very high order intake of € 937 million (H1 2020: € 668 million) and an increase in order book of 49%. Order intake grew especially in tire building, machine vision, energy connectivity systems (including subsea) and specialized connectivity systems.
With the more focused strategic direction, our strong innovative power and a large number of new contracts signed, we are well positioned to boost our performance amidst the post-COVID-19 recovery. The ‘Simplify & Accelerate’ program, as introduced in 2019, is on track, and we expect to finalize our divestment program within the next twelve months. The share buyback program of the first quarter of this year underlines our strong financial position.
The realization of a ROS of 13.4% in the second quarter shows that TKH makes good progress towards the ROS-target of 15%. Our business fundamentals provide a strong basis for organic growth and value creation.”