Interim report Q2 2017/18

(the period 01.01.2018 - 31.03.2018)

GROWTH DESPITE UNFAVOURABLE US DOLLAR DEVELOPMENT
The Board of Directors of RTX A/S has today considered and approved the Group’s interim report for the second quarter of 2017/18 (covering the period 01.01.2018 – 31.03.2018).

SUMMARY OF THE SECOND QUARTER OF 2017/18 FOR THE RTX GROUP

• Net revenue increased in Q2 by 26.9% to DKK 106.8 million corresponding to an increase in revenue of DKK 22.7 million compared to Q2 of 2016/17. The increase in revenue in Q2 of 2017/18 is anchored in both business units, but is to some extent counterbalanced by the unfavourable development in the US dollar exchange rate, and corrected for this effect the increase was 41.9%.
• Revenue apportioned across RTX’s business units as follows:
  • Business Communications achieved an increase in revenue of DKK 19.1 million to DKK 68.8 million corresponding to a growth of 38.3% compared to Q2 of 2016/17 (corrected for exchange rate effect the growth was 58.7%).
  • Design Services increased revenue by DKK 3.6 million to DKK 38.0 million corresponding to a revenue growth of 10.4% compared to Q2 of 2016/17 (corrected for exchange rate effect the increase was 19.0%).
• Gross profit increased by 38.5% to DKK 64.8 million in Q2 of 2017/18 compared to the same period last year. Due to the revenue mix the gross margin increased by 5.1% points to 60.7% from 55.6% in Q2 of 2016/17.
• In Q2 of 2017/18, capacity costs increased by 8.8% driven by increased staff to meet the higher level of activity in both business units and continued investments in own financed development projects. The increased number of own financed development projects has resulted in capitalization of DKK 6.3 million in Q2 of 2017/18 compared to DKK 4.8 million in the same period last year.
• Operating profit (EBIT) increased to DKK 19.6 million compared to DKK 4.7 million in the same period last year. The growth in operating profit (EBIT) must be seen in the light of the disruptions in the supply chain last year.
• Cash flows from operating activities amounted to DKK 20.4 million in Q2 of 2017/18 compared to DKK 26.5 million in Q2 of 2016/17.

SUMMARY OF THE FIRST SIX MONTHS OF 2017/18 FOR THE RTX GROUP

• In the first six months of 2017/18 RTX realized a growth in revenue by 6.3% to DKK 207.7 million corresponding to an increase in revenue of DKK 12.3 million compared to the same period last year. Corrected for exchange rate effects the growth in revenue corresponds to 16.3%.
• Revenue apportioned across RTX’s business units as follows:
  • Business Communications saw an increase in revenue of DKK 8.1 million to DKK 134.6 million corresponding to a growth of 6.3% compared to Q2 YTD 2016/17 (corrected for exchange rate effect the growth was 18.3%).
  • Design Services increased revenue by DKK 4.2 million to DKK 73.1 million corresponding to a revenue growth of 6.2% compared to Q2 YTD 2016/17 (corrected for exchange rate effect the increase was 12.9%).
• Gross profit increased by 14.0% to DKK 121.8 million corresponding to a growth of DKK 14.9 million compared to the same period last year. Due to the revenue mix the gross margin increased by 4.0% points to 58.7% from 54.7% in the same period last year.
• In 2017/18, capacity costs have increased by 5.7% driven by increased staff to meet the higher level of activity in both business units and continued investments in own financed development projects. The increased number of own financed development projects has resulted in capitalization of DKK 9.7 million in 2017/18 compared to DKK 6.5 million in the same period last year.
• Operating profit (EBIT) increased to DKK 31.7 million compared to DKK 19.7 million in the same period last year. The growth in operating profit (EBIT) must be seen in the light of the disruptions in the supply chain in Q2 last year.
• Cash flows from operating activities in the first six months of 2017/18 amounted to DKK 39.4 million compared to DKK 18.0 million in 2016/17.

OUTLOOK FOR 2017/18

• Combined with the continued investment in a broader product portfolio and technology platform, Management maintains the expectations for revenue between DKK 460-490 million, EBITDA between DKK 72-87 million and Operating Profit (EBIT) between DKK 58-73 million, where especially EBIT must be seen in the light of an increased investment level supporting the newly defined strategic directions of RTX.

RTX A/S

PETER THOSTRUP                      PETER RØPKE
Chairman                                       CEO

Investor and analysts meeting
On Friday, 4 May 2018 at 9 am, RTX will hold a meeting for investors and analysts at ABG Sundal Collier, Forbindelsesvej 12, 2100 Copenhagen. At this meeting, the Company’s management will comment on the interim report for the second quarter of 2017/18. To register for the meeting, please e-mail ABGSCEvents-Copenhagen@abgsc.dk.

Questions and additional information:
CEO Peter Røpke, tel. +45 96 32 23 00
RTX’s homepage: www.rtx.dk

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