(the period 01.04.2018 - 30.06.2018)
FULL YEAR GUIDANCE MAINTAINED DESPITE INCREASING LEAD TIME ON KEY COMPONENTS AND
UNFAVOURABLE US DOLLAR EFFECT IN Q3
The Board of Directors of RTX A/S has today considered and approved the Group’s interim report for the third quarter of 2017/18 (covering the period 01.04.2018 – 30.06.2018)
SUMMARY OF THE THIRD QUARTER OF 2017/18 FOR THE RTX GROUP
- Net revenue amounted to DKK 114.2 million in Q3 of 2017/18, corresponding to a decline of 8.1% or DKK 10.1 million less than last year’s revenue of DKK 124.3 million. Corrected for the USD exchange rate effect, net revenue in Q3 2017/18 decreased by 1.7% compared to Q3 2016/17.
- Revenue apportioned across RTX’s business units as follows:
- Business Communications revenue amounted to DKK 77.8 million in Q3 2017/18 compared to DKK 87.1 million in Q3 2016/17 corresponding to a decline of 10.7% or DKK 9.3 million (corrected for exchange rate effect the decline was 3.8%).
- Design Services revenue declined by DKK 0.8 million amounting to DKK 36.4 million in Q3 2017/18 corresponding to a revenue decline of 2.2% compared to Q3 of 2016/17 (corrected for exchange rate effect revenue increased by 3.1%).
- Gross profit amounted to DKK 63.3 million in Q3 2017/18 declining by DKK 4.1 million or 6.1% following the effects of the declining revenue. Due to the revenue mix the gross margin increased by 1.2 %-points to 55.4% in Q3 2017/18 compared to 54.2% in Q3 2016/17.
- Capacity cost increased by 11.7% in Q3 2017/18 driven by continued investments in own financed development projects combined with the fact that RTX increased the number of employees from 228 at the end of Q3 last year to 247 at the end of Q3 2017/18 due to the continued activity increase. The increased number of own financed development projects has resulted in capitalization of DKK 4.8 million in Q3 of 2017/18 compared to DKK 4.6 million in the same period last year.
- Operating profit (EBIT) declined by DKK 10.3 million amounting to DKK 13.5 million in Q3 2017/18 compared to DKK 23.8 million in the same period last year. The decline in operating profit (EBIT) must be seen in the light of the disruptions in the supply chain last year.
- Cash flows from operations amounted to DKK 18.1 million in Q3 of 2017/18 compared to DKK 9.0 million in Q3 of 2016/17.
SUMMARY OF THE FIRST NINE MONTHS OF 2017/18 FOR THE RTX GROUP
- In the first nine months of 2017/18 RTX realized a growth in revenue by 0.7% reaching DKK 321.8 million corresponding to an increase in revenue of DKK 2.2 million compared to the same period last year. Corrected for exchange rate effects the growth in revenue corresponds to 9.9%.
- Revenue apportioned across RTX’s business units as follows:
- Business Communications experienced a decline of 0.6% in revenue corresponding to DKK 1.3 million, reaching DKK 212.3 million for the first nine months of 2017/18 compared to DKK 213.6 million in the same period last year. Corrected for exchange rate effect the growth was 9.9%.
- Design Services increased revenue by 3.3% corresponding to DKK 3.5 million reaching DKK 109.5 million for the first nine months of 2017/18. Corrected for exchange rate effect the increase was 9.8%.
- Gross profit increased by 6.2% reaching DKK 185.1 million corresponding to an increase of DKK 10.8 million compared to the same period last year. Due to the positive development in the revenue mix the gross margin increased by 3.0% points reaching 57.5% compared to 54.5% in the same period last year.
- Capacity costs have increased by 7.7% in the first nine months of 2017/18 as compared to the same period last year. The increased capacity cost is driven by increased staff to meet the higher level of activity. The increased number of own financed development projects has resulted in capitalization of DKK 14.5 million in 2017/18 compared to DKK 11.1 million in the same period last year.
- Operating profit (EBIT) amounted to DKK 45.2 million after the first nine months of 2017/18, increasing by 3.8% as compared to DKK 43.6 million in the same period last year.
- Cash flows from operations in the first nine months of 2017/18 amounted to DKK 56.3 million compared to DKK 23.0 million in 2016/17.
OUTLOOK FOR 2017/18
- With a satisfactory underlying growth, but challenged by the depreciation of US Dollars in the first nine months of 2017/18 compared to the same period last year, Management maintains the expectations for revenue to be in the range of DKK 460-490 million, EBITDA in the range of DKK 72-87 million and EBIT in the range of DKK 58-73 million.
RTX A/S
PETER THOSTRUP PETER RØPKE
Chairman CEO
Investor and analysts meeting
On Friday, 31 August 2018 at 9 am, RTX will hold a meeting for investors and analysts at ABG Sundal Collier, Forbindelsesvej 12, 2100 Copenhagen. At this meeting, the Company’s management will comment on the interim report for the third quarter of 2017/18. To register for the meeting, please e-mail
ABGSCEvents-Copenhagen@abgsc.dk.
Enquiries and further information:
CEO Peter Røpke, tel +45 96 32 23 00
RTX’s homepage: www.rtx.dk
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