Datron AG (DE:DARG) has built on a strong start to the year to deliver positive H118 results. While not strictly comparable owing to first group accounts, EBIT all but doubled thanks to sustained buoyancy in its largest business, CNC milling machines (revenue up 14%), and strict cost control (trading margin 9.0% vs 5.6% y-o-y). Despite a tightening of US trade policy, such momentum and management expectations of an export-led rise in order intake in the second half reinforce confidence in newly confirmed guidance for 2018 (revenue up 9% at c €55m and EBIT up 30% at c €5m). Finances remain disciplined (c €7m net cash at June 2018).
H1: Keeping busy
H118 saw first half-year group figures, so there are no available comparatives for the previous period or at the quarterly level. However, the dominance of parent company DATRON AG in the group allows its performance to be taken as a good proxy. A softening in the latter half of last year (lower revenue and EBIT with guidance slightly missed) proved to be temporary as a high order backlog (book/bill ratio of 1.05 at December 2017) drove a resumption in growth in H1. Indeed, Q2 was particularly strong with an above-trend EBIT margin (12% against 6% and 8% in the last two full years) on €14m revenue. This delivered an increase of over 50% in trading profit, adjusted for Q217’s €0.9m capital gain. The period was notable also for the formation of a specialist tool technology operation, effective in 2019.
To read the entire report Please click on the pdf File Below: