DGAP-News SMT Scharf AG: Revenue and earnings in 2020 significantly impacted by coronavirus and one-off effects
DGAP-News: SMT Scharf AG / Key word(s): Preliminary Results
SMT Scharf AG: Revenue and earnings in 2020 significantly impacted by coronavirus and one-off effects
- Group revenue of EUR 50.2 million in FY 2020
- Operating result (EBIT) negative at prospectively EUR -8.1 million due to impairment charges and China III
Hamm, March 1, 2021 - SMT Scharf AG (WKN 575198, ISIN DE0005751986), one of the world's leading suppliers of customised transport solutions and logistics systems for underground mining, reports revenue of EUR 50.2 million for the 2020 fiscal year on the basis of preliminary figures (2019: EUR 75.4 million). The significant decrease in revenue of 33.4% is mainly due to the considerably negative impact on business activities of the coronavirus pandemic and its economic consequences. At the same time, the approval of China III machines in the Chinese market was delayed, so that machines delivered to Chinese mining companies could not yet be recognised as revenue in accordance with IAS 18.
Based on preliminary figures, the operating result (EBIT) dropped into negative territory and is expected to amount to EUR -8.1 million (2019: EUR 6.8 million). This is mainly due to the impairment charges of EUR 6.6 million recognised in the third quarter. As part of the repositioning of the Canadian subsidiary RDH Mining Equipment Ltd., inventories were also reviewed and, in some cases, classified as impaired in terms of their value. The revaluation of assets leads to an impairment charge of some EUR 5.1 million. In addition, impairment charges totalling EUR 1.5 million were recognised in relation to internally generated intangible assets for a total of three development projects. Furthermore, due to the still outstanding China III approval of machines delivered to Chinese mining companies, these could not yet be recognised as revenue in accordance with IAS 18. This also had a negative effect on the earnings trend and will lead to a further deterioration in EBIT compared with the most recently forecast EBIT in the range between EUR -6.0 million and EUR -6.5 million.