EQS-News: Brockhaus Technologies AG: Very positive development of all business segments in the third quarter - full year expected at the upper end of forecast

Brockhaus Technologies: Very positive development of all business segments in the third quarter - full year expected at the upper end of forecast

• All three business segments with continued profitable growth in the third quarter
• Full year of the group expected at upper end of guidance with revenue of € 140 to 150 million and adjusted EBITDA margin of 35%
• Significant further reduction of debt through a voluntary early repayment based on high free cash flow

Frankfurt am Main, October 11, 2022. Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) continued the strong profitable growth of the first half of the year in the third quarter of fiscal year 2022, underlining the very high resilience of its business model in the face of a difficult geopolitical and macroeconomic environment. Against the backdrop of this sustained positive development within all segments, the Management Board is confident that the upper end of the previously communicated revenue corridor (€ 140 to 150 million) will be achieved in the full year. The adjusted EBITDA margin is expected to remain unchanged at 35%.

Very positive development in all three business segments

The Financial Technologies segment, consisting of Bikeleasing, continued to develop strongly. In the first nine months of 2022, just under 100,000 company bikes were brokered via the digital platform, an increase of more than 40% compared to around 69,000 bikes in the same period of the previous year. The number of corporate customers on the Bikeleasing platform, an important indicator of future growth potential, also increased again compared to the end of the first half year, from around 40,000 to c. 43,000. In Austria, Bikeleasing also showed noticeable success from its recently launched internationalization strategy.

The Security Technologies segment, comprising IHSE and kvm-tec, also seamlessly continued the growth of the first half of the year in the third quarter. The market recovery following the partial lifting of corona-related travel and contact restrictions of the previous two years continued unabated. The US business in particular continued to develop very positively in the third quarter, while China activities continued to be impacted by lockdowns. Thanks to the high order backlog, a further positive development is also expected for the remaining fiscal year.

The Environmental Technologies segment, consisting of Palas, also showed a very positive performance. The third quarter was significantly up on the prior-year quarter, mainly due to strong demand in the core business with certified optical measuring instruments for ambient air measurement. This growth in the core business was able to compensate for the already communicated decline in business with test rigs for respiratory masks, which had grown strongly in the previous year due to Corona.

Strong free cash flow enables significant reduction in debt

Free cash flow before taxes, which had already risen sharply from € 1.7 million to € 16.0 million in the first half of 2022, continued to develop positively in the third quarter. On this basis, the Group's debt was further reduced significantly. Bikeleasing alone was able to make a further voluntary early repayment of around € 15 million on one of the acquisition loans related to the company acquisition from November 2021 in the third quarter. Further repayments are planned for the fourth quarter of the current fiscal year.

The quarterly announcement 9M 2022 will be published on November 14, 2022. As usual, the company invites investors and analysts to an earnings call on the same day.

About Brockhaus Technologies

Based in Frankfurt am Main, Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) is a technology group that acquires high-margin, high-growth technology and innovations champions with B2B business models in the German Mittelstand. With a unique platform approach and a long-term horizon, Brockhaus Technologies actively and strategically supports its subsidiaries in achieving profitable long-term growth, both across industries and internationally. At the same time, Brockhaus Technologies offers a gateway into these non-listed German technology champions, which are otherwise inaccessible to capital market investors. For further information, please visit www.brockhaus-technologies.com

Contact information

For investors:

Paul Göhring

Phone: +49 69 20 43 40 978

Fax:  +49 69 20 43 40 971

E-Mail:  [email protected]

For media:

GFD - Gesellschaft für Finanzkommunikation
Phone:  +49 69 97 12 47 33

Fax:  +49 69 97 12 47 20

E-Mail:  [email protected]