- * Revenues up 11.4% year-on-year to EUR 333.5 million; EBIT rose to EUR 29.0 million
* Order intake rose 5.9% to EUR 333.2 million; orders on hand rose 9.4% to EUR 467.9 million
* Product portfolio broadened by acquisitions in Australia, Germany and Canada
* Proposal to increase the dividend by one third to EUR 0.20 per share
As the leading global provider of information and communication solutions for safety-critical applications, Frequentis navigated the second year of the COVID-19 pandemic well thanks to its consistently resilient business model. Frequentis' products are part of the safety-critical infrastructure or, in other words, the essential national infrastructure. This infrastructure must always be available and ready for operation - irrespective of the number of flights or how often the police, fire service, and emergency rescue services are deployed. Consequently, there is continued demand for Frequentis' solutions.
"The high level of trust placed in us by our customers enabled us to complete many projects despite lockdowns and travel restrictions. As well as growing our established business, we extended our product portfolio in the Air Traffic Management segment by acquiring business units from L3Harris in Australia, Germany, and Canada," reports CEO Norbert Haslacher.
The acquisition of business units from the listed US company L3Harris Technologies comprised voice communication product lines for civil and military air traffic control. In addition, Frequentis' product portfolio now includes software and cloud solutions for air traffic synchronisation for en-route, approach, and airport air traffic control centres. The air traffic synchronisation solutions marketed by the German company Frequentis Orthogon are designed, among other things, to reduce air traffic emissions. The Australian company C4i extends Frequentis' portfolio for military air traffic control in the very important Australian, US, and UK markets for encrypted and non-encrypted, cybersecure communications.
At the start of 2022, Frequentis continued its growth strategy in the public safety domain by acquiring a 51% interest in the Italian company Regola. This company offers innovative software solutions such as an integrated control room solution to improve the emergency response of teams in public safety. Regola's command and control system complements Frequentis' portfolio. The aim is to step up international marketing.
Development of revenues and earnings
The good business performance of the companies acquired from L3Harris in 2021 and the profitable project business enabled Frequentis to report a respectable earnings performance despite the restrictions on travel. Revenues rose 11.4% to EUR 333.5 million and EBIT increased to EUR 29.0 million. The EBIT margin for 2021 (based on revenues) remained high at 8.7%. The profit for the period was EUR 20.8 million and earnings per share were EUR 1.50.
Asset and capital structure
The equity ratio improved by one percentage point to 41.1%. Despite the expenditure for the L3Harris transaction, the net cash position increased by 18.9% to EUR 101.1 million.
Sustainable corporate governance
The Frequentis Group is committed to corporate social responsibility and sustainability. In its first EcoVadis CSR evaluation, the company achieved a bronze medal. An interdisciplinary ESG (Environment, Social, Governance) organisation established at the end of 2021 will be working continuously to drive forward and implement established and new ESG concepts. The focal areas of the materiality analysis performed in November 2021 form the basis for professional sustainability reporting for all stakeholders.
Despite global measures to contain the pandemic and good availability of vaccines, Frequentis faces a number of uncertainties in 2022. It is not possible to make a reliable estimate of the exact effect of the ongoing pandemic on costs (e.g. travel expenses), revenues (e.g. due to the deferral of project acceptances), supply chains, the budgets available, and the potential postponement of investments.
Depending on the aspects outlined above, Frequentis aims to increase revenues and order intake in 2022 compared with 2021. Some of the increase will be attributable to the L3Harris transaction because in 2022 the entities acquired will make a contribution to revenues and order intake from the beginning of the year. Around EUR 7 million has been earmarked for capital expenditure (capex). Frequentis expects to report an EBIT margin of around 6-8% in 2022 - depending on how the pandemic develops, the macro-economic situation and the outstanding post-merger integration costs for the L3Harris units.
The current financial publications can be found at http://www.frequentis.com/publications
Frequentis is a global supplier of communication and information systems for control centres with safety-critical tasks. The listed family-run company develops and markets its "control centre solutions" in the Air Traffic Management segment (civil and military air traffic control, air defence) and the Public Safety & Transport segment (police, fire brigades, emergency rescue services, shipping, railways).
With a market share of 30%, Frequentis is the world market leader in voice communication systems for air traffic control. Frequentis is also the global leader in aeronautical information management and aeronautical message handling systems.
As a global player with about 2,150 employees, Frequentis has a global network of companies in more than 50 countries. Its head office is in Vienna, Austria. Frequentis' products, services, and solutions are used at more than 40,000 operator working positions in around 150 countries.
Shares in Frequentis are traded on the Vienna and Frankfurt stock exchanges; ISIN: ATFREQUENT09, WKN: A2PHG5. In 2021, revenues were EUR 333.5 million and EBIT was EUR 29.0 million.
Wherever Frequentis' systems are used, people bear responsibility for the safety of other people and goods. The company also works towards a more sustainable future through its air traffic optimisation solutions.
Barbara Fürchtegott, Head of Communications
email@example.com, +43 1 81150-4631
Stefan Marin, Head of Investor Relations
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