2017 was another year of healthy growth extending Datron's (DE:DARG) powerful recovery following the years of economic crisis. On the basis of management guidance for the current year, the shares trade at 15.0x earnings. Further growth is expected in 2019 which could drive margins to the previous level of 10% and beyond.
2017 broadly in line with expectations
Turnover in 2017 rose by 8% to €49.3m and operating EBIT was up an impressive 33% to €3.9m. These compare with guidance at the H1 results of turnover of at least €50m and EBIT of approximately €4m. Both sales and operating EBIT softened in H217 after healthy increases in the first half. Adjusted EPS for the year was €0.69.This underpinned a 33% increase in the dividend to €0.20. By contrast to the lower turnover, order inflow growth accelerated to 22% in H2 making for a 13% increase for the full year. This boosted the book/bill ratio excluding purely technical turnover items to 1.05x up from 1.01x in 2016.
Core CNC HSM milling machines drive business
The main driver was the core computer numerically controlled high-speed milling (CNC HSM) machines segment where performance broadly mirrored results for the group as a whole with turnover growth of 12% and order inflow growth of 16%. The replacement tools segment was another noteworthy performer with a 14% rise in turnover to €10.4m, in this case spread evenly across the two halves. Here, sales of tools for third-party manufacturers’ machines continue to grow in importance. The expanding installed base of machines (principally CNC HSM) helped drive a 14% increase in after sales and other revenue. There were no new product launches in either of the smaller machine segments, dental and dispense systems although the biennial trade fair effect helped drive a recovery in dental sales.
To read the entire report Please click on the pdf File Below: