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DGAP-News: SMT Scharf AG / Key word(s): Change in Forecast
SMT Scharf AG receives final approval for China III machines and notes positive effects for business growth in 2021
Hamm, September 30, 2021 - SMT Scharf AG (WKN 575198, ISIN DE0005751986) announces that it has received final approval for China III machines from China's "MA" regulator. Given this, significant subsequent recognition of around EUR 12.8 million in revenue and of around EUR 4.2 million in profit from operating activities (EBIT) can now be made on the basis of deliveries the Group has already made. These items will have a corresponding positive impact on the interim financial statements for the third quarter of 2021. In addition, further subsequent entries are expected in the fourth quarter of 2021 following the contractually required customer confirmations, which are also expected to lie in the low double-digit range in millions of euros in relation to revenue, and in the low single-digit range in millions of euros in relation to EBIT. On the basis of IFRS 15, the company had not yet been able to recognise such revenues from new systems in China in its financial statements.
Hans Joachim Theiss, CEO of SMT Scharf AG, notes: "Now that machines constructed according to the new China III standard have been approved, we have significantly improved the prerequisites for further growth. The new regulations have been mandatory for Chinese mining companies since the start of 2021, so we currently see attractive growth potential in the Chinese market and will continue to do so in future years. In addition, we expect high coal prices and the Chinese government's new five-year plan to have a positive impact on our business there. We already increased our revenue in China by around 23 % to EUR 8.1 million in the first half of the year. The subsequent entries implemented in connection with the China III approval are now providing a further boost to growth."
In light of these positive effects from the China III approval and the associated improved growth prospects for the final quarter, the Managing Board is raising its revenue and earnings guidance for the 2021 fiscal year, and now expects consolidated revenue for 2021 in the range between EUR 75 million and EUR 80 million. Furthermore, the Managing Board now forecasts 2021 EBIT in a range between EUR 9 million and EUR 11 million. Previously, for the 2021 fiscal year SMT Scharf anticipated consolidated revenue in a range between EUR 72 million and EUR 77 million, and EBIT in a range between EUR 5 million and EUR 6 million.
30.09.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
SMT Scharf AG
+49 2381 960-01
+49 2381 960-311
Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich (m:access), Tradegate Exchange
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