DGAP-News

paragon Exceeds Revenue Forecast for 2020 and Wants to Surpass Pre-Pandemic Levels in the Current Year - Seite 2

According to preliminary figures, paragon Automotive had sales in continuing operations of € 127.2 million, which exceeded not only the revenue forecast of € 110-120 million, but also the prospective mark of € 125 million. This was due to the second half of the year, the best half-year in paragon's history of more than 30 years. According to preliminary figures, paragon recorded a decline in revenues of 21.8% to € 50.0 million (prior year: € 64.0 million) in the first six months as a result of closing the plants for six weeks. In the second half of the year, preliminary calculations show revenues of € 77.1 million (prior year: € 71.9 million), which is an increase of 7.3% compared to the prior year's period. Preliminary EBITDA for the year as a whole amounts to € 13.8 million. The corresponding margin of 10.8% (prior year: 6.7%) is in the upper end of the forecast corridor of 8-12%. In the fourth quarter alone, paragon achieved an EBITDA margin of 14.5%, after a value of 12.2% in the third quarter of 2020. Preliminary calculations show a margin of 13.5% for the entire second half of the year.

"Our improved income and earnings situation is the result of our resolute measures to optimize performance in the various operating segments and shows where we stand," emphasizes Klaus Dieter Frers.

Dr. Matthias Schöllmann, Managing Director Automotive at paragon, adds: "We have seen a highly satisfactory development in sales due to numerous new orders, especially in the Sensors business unit with the innovative particle sensor Dustdetect(R). Our AI-based solutions for digital assistance systems also demonstrate continually increasing market penetration. These effects will continue in 2021."

The operating cash flow of continuing operations in the 2020 fiscal year was more than € 13 million according to preliminary figures. The free cash flow of over € 6 million was mostly generated in the second half of the year.

The positive trends in paragon's automotive business became apparent in the first months of this year. The company started the fiscal year very well, with an 18% increase in revenues to the end of February compared the same period last year. The EBITDA margin target of 14.8% for this period is based on the upper end of the forecast for the year as a whole. The driver of growth in the current year will once again be the business units Sensors, due to further series launches, and Digital Assistance with the positive development of the licensing model. The paragon Group's flourishing business in China supports this development.