paragon AG once again grows faster than the market in 2016 and targets further acceleration - Seite 2

Project-related development costs for product innovations and the production costs for test equipment used in serial production rose 20% to EUR 15 million (prior year: EUR 13 million). The cost of materials developed more slowly primarily due to a modified product mix stemming from the business expansion and various cost-cutting measures. Gross profit rose as a result to EUR 61 million (prior year: EUR 57 million).

"The cross-site optimization of process control with agile development methods enables us to be even better adapted to the shortening innovation cycles of automotive manufacturers," says Dr. Stefan Schwehr, Chief Technology Officer (Electronics). "All processes, from sample phase management to the transfer to production are affected by this, as is our innovation management. This is particularly important for our latest innovations in air quality and autonomous driving."

Personnel costs increased significantly mainly as a result of recent hires in connection with operational growth in the new Electromobility and Mechanics operating segments as well as in central Group functions, while other operating expenses remained notably below the prior year's level. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13% to EUR 16 million (prior year: EUR 14 million), which corresponds to an EBITDA margin of 16% (prior year: 15%).

After a slight increase in depreciation and amortization, earnings before interest and taxes (EBIT) increased 14% to EUR 9 million (prior year: EUR 8 million) thanks largely to the drop in other operating expenses. As a result, the EBIT margin rose to 9% (prior year: 8%).

Taking into account a lower financial result and higher income taxes, the paragon Group generated a consolidated net income of approximately EUR 4 million (prior year: EUR 3 million) in the year under review. Against the backdrop of the 10% increase in the subscribed capital on October 5, 2016, this corresponds to earnings per share of EUR 0.84 (prior year: EUR 0.83).

The assets of paragon AG increased significantly to EUR 116 million (December 31, 2015: EUR 93 million) as of the end of the year mainly as a result of the capitalization of development costs, the cash capital increase from authorized capital, the expansion of the Artegastrasse building and the expansion of the production facilities at the Delbrück site as well as higher inventories as a result of the expansion of business activities.