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Posted: April 25, 2008
Nanogate AG Exceeds Annual Forecast and Predicts Significant Growth in 2008
(Nanowerk News) Nanogate AG (ISIN DE000A0JKHC9) has exceeded its annual forecast for the completed 2007 financial year. Nanogate has moved forward more quickly than originally expected in the opening up of international markets and the development of new technology platforms.
Group sales increased in the 2007 financial year by 32.8% to EUR 10.4m, while overall performance grew by 39.9% to around EUR 12.4m. The company profited here from high growth in the Multifunctional Surfaces core business, which increased by around 40%. International sales increased by 136% from EUR 1.1m to around EUR 2.6m. Earnings before taxes (EBT, according to IFRS) climbed in the reporting period by 32.8% to EUR 1.5m, meaning this growth company exceeded its forecast by around 50%. In the Multifunctional Surfaces core business the segment result doubled; the earnings margin of 21.8% confirmed the high profitability and strong performance.
The adjusted earnings per share improved by 9.7% to EUR 0.68. Cash flow from operating activities reflected the positive operational development and increased by 32% to around EUR 1.6m. The majority of all investments were thus financed directly from the operating result. The high equity ratio of 84% and available cash funds of around EUR 12.4m thus remained almost unchanged.
Important milestones reached in 2007
During the reporting period Nanogate expanded its good market position both operationally and strategically. The milestones included market entry in the US, the first cooperation agreement on the groundbreaking optics technology and the initiated expansion of the equity holding in the subsidiary Holmenkol. Furthermore, pioneering technology platforms, including Dotfarm® optics und NanoPlating™, were further developed for high margin and high volume applications. With around 30 additional solutions operationally implemented for customers, the number of applications rose overall to more than 150. For example, in the exhaust gas recirculation valve segment two new models were put into mass production and already more than 300.000 diesel vehicles have been fitted with them.
Looking ahead in 2008: significant growth planned
Nanogate started the 2008 financial year well. The consistently high demand confirms the strategic direction of the Group. Moreover, the US partner began the marketing of jointly refined premium products in the bathroom segment. The new NanoGuard® product line of innovative surface sealing for buildings has been marketed since the start of the year – cooperation with Dow Corning in the US is thus running according to plan. The opening up of new markets in the optics segment is making good progress: in April Nanogate concluded a second cooperation agreement in the LCD segment and thus managed to enter the Japanese market. Initial conversations were begun in the LED segment regarding commercial marketing.
In the course of this year, the company wants to further increase its market permeation. Further applications are intended to win additional customers in new regions. The focus is in particular on markets with a long-term sales potential of at least EUR 10m and good chances for growth. The investment programme in the Advanced Applications segment in particular is thus being strongly expanded in order to exploit the medium- and long-term opportunities even better. In the Multifunctional Surfaces core business, attractive results are expected. In total, Nanogate is reckoning with a sales increase of EUR 12.5m to 14.5m. Despite the planned substantial deployment of funds and investments for new technologies and the opening of new markets, the earnings before taxes (EBT) is expected to be EUR 0.7m to 1m.
Ralf Zastrau, Chairman of the Management Board of Nanogate AG: “Nanogate has created key conditions for sustained growth and exceeded the operating targets. Now we will lead the company systematically into a new corporate phase and realise sales potential with the new technology platforms in the high eight figure range and attractive margins in the medium term.”