DGAP-News SMT Scharf AG publishes annual report for FY 2020
DGAP-News: SMT Scharf AG / Key word(s): Annual Report
SMT Scharf AG publishes annual report for FY 2020
- Consolidated revenue of EUR 50.2 million in 2020 well below previous year
- Operating result (EBIT) negative at EUR -8.1 million after impairment charges and delayed China-III approval
- Positive impetus expected from final China-III approval in H1 2021
- Guidance for FY 2021: Consolidated revenue of EUR 65 million to EUR 70 million, EBIT in the range EUR 2.5 million to EUR 3.0 million
Hamm, March 31, 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 (2019: EUR 75.4 million). The 33.4 % decrease in revenue primarily reflected government-imposed restrictions in connection with the coronavirus pandemic and associated economic effects for SMT Scharf's business activities worldwide. Moreover, the approval of China-III machines in the Chinese market was delayed, so that the first machines delivered to Chinese mining companies could not yet be recognised as revenue in accordance with IAS 18. This significant impact on business activities was also evident in the final quarter of 2020. Group revenue reached EUR 13.3 million in this period, 48.3 % lower than in the prior-year quarter (Q4 / 2019: EUR 25.7 million).
The operating result (EBIT) reflected a loss amounting to EUR -8.1 million (2019: EUR 6.8 million). This change is mainly due to the impairment charges of EUR 6.6 million recognised in the third quarter. As part of the business policy realignment of the Canadian subsidiary RDH Mining Equipment Ltd., assets were classified as partially impaired in value. This revaluation led to an impairment charge of some EUR 5.1 million. In addition, impairment charges of EUR 1.5 million were applied 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, they could not yet be recognised as revenue in accordance with IAS 18. This also had a negative effect on the earnings trend. Accordingly, the EBIT margin (in relation to total operating revenue) was negative at -14.4 % (2019: 9.1 %). Earnings per share amounted to EUR -1.79 (2019: EUR 1.20).