init innovation in traffic systems SE: Annual General Meeting brings good news for shareholders
init announces higher dividend and growth in incoming orders
- resolution to increase payout by 10 per cent to EUR 0.22 (previous year: EUR 0.20)
- incoming orders rise by around 20 per cent in the first quarter
- guidance for 2017 reaffirmed, stronger growth from 2018
For shareholders init innovation in traffic systems SE (ISIN DE 0005759807) today's Annual General Meeting in Karlsruhe brought good news on several fronts. As well as the 10 per cent dividend increase to EUR 0.22 (previous year: EUR 0.20) per dividend-bearing share, the good news related above all to orders: by the end of March 2017, the provider of integrated planning, dispatching, telematics and ticketing solutions for buses and trains had notched up the highest level of incoming orders for a first quarter in the company's history. At EUR 41.8m, these were almost 20 per cent up on the previous year (EUR 35m). This meant that at the end of March the order book had grown to EUR 115.7m (previous year: EUR 97m).
Some of the highlights were an order from Deutsche Bahn AG for the installation of automatic passenger counting systems, which marks init's entry into the rail market in this area, and the continued collaboration with the CDTA in Albany (US). The latter commissioned init to upgrade the operations control and real-time passenger information system installed in 2005. Furthermore, in the second quarter init received another major order from the other side of the world. The commission from nine New Zealand regional councils encompasses the installation, technical operation and maintenance of a ticketing system.
init benefits from digitisation, electromobility and networking
Against this backdrop, and despite a great deal of uncertainty in general economic terms, init CEO Dr Gottfried Greschner reaffirmed his guidance for 2017. Revenue is expected to rise to around EUR 120m and operating earnings (EBIT) of between EUR 5m and EUR 7m are anticipated. Incoming orders should range between EUR 120m and EUR 130m, in the Managing Board's estimation.
It regards digitisation, electromobility, the networking of transport systems, security in data communications, ID-based ticketing and mobile telephone ticketing as specific growth drivers in the market for init solutions. In addition, the Managing Board sees init as establishing a position for itself as a partner for transport operators in assuming responsibility for the technical operation of systems.
In Asia, Dr Greschner sees opportunities in particular in analytical tools for vehicle diagnosis, for driver behaviour and in automatic passenger counting. Furthermore, he expects init to benefit from growing requirements placed on local public transport systems, investment in climate protection and the need to modernise customer systems. From 2018 in particular, the init Managing Board therefore anticipates an acceleration in growth and a substantial increase in earnings.
CFO Bernhard Smolka hands over to his successor
In view of these trends and prospects, shareholders expressed their satisfaction with the work of the Managing Board and the Supervisory Board. The proposal for the appropriation of net profit was passed with a majority of 99.5 per cent. The discharge of the Managing Board and the Supervisory Board was approved by 95.9 and 98.4 per cent of shareholders respectively.
However, many shareholders were sad to see that long-standing CFO Bernhard Smolka would be leaving at the end of June. Mr Smolka has played a major role in helping to shape the success of init since its IPO in July 2001. The Managing Board and the Supervisory Board thanked Mr Smolka for his successful work and expressed their happiness that he would remain in init's orbit, heading up the largest operational company in the Group.
Mr Smolka is handing over his responsibilities (Finance, Controlling and Investor Relations) to Dr Herbert Bäsch, who introduced himself to shareholders at the AGM. With a degree in business administration and a doctorate, he has extensive experience in financial and commercial management, particularly in international medium-sized businesses. For the last eight years, he was finance director at GLATFELTER GERNSBACH GmbH, a leading global manufacturer of technical products and speciality papers with a sales volume of some USD 580m and more than 1,500 employees. Before that, he has served as CFO of VERBIO AG, Leipzig, and managed the company's successful stock market flotation.
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24.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: init innovation in traffic systems SE Käppelestraße 4-10 76131 Karlsruhe
Germany Phone: +49 (0)721 6100 0 Fax: +49 (0)721 6100 399 E-mail: firstname.lastname@example.org Internet: www.initse.com ISIN: DE0005759807 WKN: 575980 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service