OTI Greentech AG (German securities code (WKN) A0HNE8), an international engineering and technology services group listed on the Düsseldorf stock exchange has concluded fiscal year 2016 with higher revenues according to audited consolidated figures. Compared to the 2015 reporting period revenues in 2016 were up by 41% to EUR 8.8 million. Irrespective of this increase, the income lagged OTI Greentech’s expectations for reasons including delays in taking over Uniservice Unisafe S.r.l. and the conclusion of the strategic alliance agreement with KMI Cleaning Solutions Inc. In addition, income that had been forecast for this year from projects at the subsidiary VTT Maritime in Norway and West Africa failed to materialise.
Johnny Christiansen, OTI Greentech’s CEO, commented: “OTI Greentech AG’s Managing Board is not satisfied with our results for fiscal 2016. However, we have now set the foundations for sustainable, profitable growth with our acquisition of minority interests in Visionaire Energy AS and VTT Maritime AS, our acquisition of Uniservice Unisafe, the formation of our new joint venture in West Africa, VTT Maritime West Africa Limited, the conclusion of the strategic alliance agreement with KMI Cleaning Solutions and making the group’s structure leaner.
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) totalled minus EUR 2.67 million in fiscal year 2016 compared to an EBITDA loss of EUR 2.25 million in the 2015 reporting period. The negative EBITDA to a large extent results from the revenue target not being met. In addition, investments of around EUR 700,000 in connection with setting up the new joint venture in West Africa also contributed.
As part of its annual financial statements, OTI Greentech booked an extraordinary impairment of goodwill in the amount of EUR 2.0 million in addition to the scheduled write-down of EUR 1.5 million. This resulted in a one-off write-down of EUR 12.35 million at the level of OTI Greentech AG’s single-entity financial statements. Notwithstanding the write-down, the equity ratio at group level totalled 40.3% as of 31 December 2016. The conclusion of already announced the debt-to-equity swap will allow OTI Greentech to reduce the group’s financial liabilities by around 40% and reinforce its equity base. The transaction will result in an annual reduction of around EUR 300,000 in financing costs.
Revenues in Q1 up by around 40%
Important advances in the group’s operating business as well as cost savings as a result of making the group’s structure leaner and optimising this structure by merging the Swiss companies had a positive impact in the second half of fiscal 2016 as well as in Q1 2017. As a result of the activities implemented in 2016, OTI Greentech has created a group structure which allows the company to address its markets and customers even more efficiently.
During the first three months of fiscal year 2017 the group recorded revenues up by around 40% to EUR 3.1 million according to preliminary calculations, and also balanced EBITDA.
“As a result of the large number of major and interesting projects in which OTI Greentech is involved, we are confident that our investments will pay off over the medium term,” commented Johnny Christiansen, OTI Greentech’s CEO.
After the excellent start to fiscal year 2017 and the activities and transactions already implemented, OTI Greentech is forecasting a significant improvement in its operating result in 2017. The group is forecasting slightly positive EBITDA in 2017 with revenues of EUR 16 million.