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DGAP-News: 2G Energy AG / Key word(s): Investment/Change in Forecast
Corporate News Heek, June 09, 2021
2G Energy AG acquires HJS Motoren GmbH and raises sales forecasts
- Complete acquisition of HJS Motoren GmbH broadens customer access
- Sales forecast 2021 now set at EUR 250 to 260 million (previously: EUR 245 to 260 million), EBIT margin (6.0% to 7.5%) unchanged
- Sales forecast 2024 raised to EUR 330 million (previously: EUR 300 million), unchanged EBIT margin of 10% expected
- First-time sales forecast for 2026 of EUR 400 million, EBIT forecast at 8.5 % to 10 %
Heek, June 09, 2021 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of gas-fired combined heat and power (CHP) plants, has now fully acquired Amtzell-based HJS Motoren GmbH. To date, 2G held a 50% stake in the company, which specializes in the maintenance and repair of combined heat and power plants with gas engines.
HJS Motoren GmbH employs a total of 30 service technicians at 5 locations in Germany. Founded in 2017, the company has succeeded in continuously raising its sales revenues. The past fiscal year 2020 was concluded with sales of EUR 7.3 million and an EBIT margin in the double-digit range. Besides to the additional revenue and earnings contributions from HJS Motoren GmbH, 2G is also anticipating complementary potential for sales of the company's own new equipment. To date, HJS Motoren GmbH is already servicing around 400 systems, most of which are not from 2G and whose motors will reach the end of their technical service life in the next few years.
"After we initially acquired a 50% share in HJS Motoren GmbH in 2018, the company has developed extremely well, posting sales gains of 91% in 2019 and an additional 44% in 2020. In view of the sound and trust-based cooperation with local management as well as the further positive growth prospects, we are very pleased to have now reached an agreement with the founding shareholder on the acquisition of the remaining 50%," as CEO Christian Grotholt stated. "Not least due to the fact that our deepened cooperation will secure the sales level and presents the genuine opportunity to leverage additional synergies."
With a look to the medium term, 2G expects the full consolidation of HJS Motoren GmbH to generate additional sales revenues of EUR 10 to 15 million per year, in connection with an EBIT margin above 10%.
Full sales and earnings consolidation, with retrospective effect from January 01, will be carried out for the first time in the 2021 half-year financial statements.
For the current fiscal year, 2G now expects sales in the range of EUR 250 to 260 million (previously: 245 to 260 million euros). The acquisition of the remaining shares in HJS Motoren GmbH is associated with goodwill, which will lead to respective depreciation and amortization. Therefore, the earnings forecast remains unchanged at 6.0 to 7.5%.
Taking into account the contribution by HJS Motoren GmbH, but especially against the backdrop of the successful internationalization strategy, 2G is now raising its sales forecast for 2024 to EUR 330 million.
Whether the current distortions on the procurement market, which are also reflected in noticeable price increases for many raw materials and products, will be compensated by further successes in the lead-to-lean project cannot yet be foreseen. 2G therefore leaves its EBIT margin forecast unchanged at 10%.
In this context, 2G is planning an EBIT margin in the range of 8.5 to 10%.
Note on the virtual Annual General Meeting
2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional energy production methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. 2G's customers thereby derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.
2G is consistently expanding its technological leadership through continuous research and development work, both in gas engine technology for natural gas, hydrogen and biogas applications, as well as in specific software development. Moreover, in the energy revolution's future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and establishes a high barrier to market entry for competitors.
2G employs around 700 staff at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 247 million in the 2020 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. As of February 15, 2021, company founders Christian Grotholt and Ludger Gausling held a 45.1 % interest in the company, with the free float amounting to 54.9 %.
2021 calendar dates
09.06.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
2G Energy AG
Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange
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