Blue Cap AG proposes a further increase in dividend to EUR 0.90 per share following strong revenue and earnings growth in the 2022 financial year - NAV target per share for the end of 2025 at EUR 55
_Group revenue increases by around 30% to EUR 347.5 million in 2022 (previous year: EUR 267.3 million)
_Adjusted EBITDA rises by around 23% to EUR 30.4 million (previous year: EUR 24.6 million)
_Adjusted EBITDA margin at 8.6%
_Net asset value (NAV) at EUR 160.8 million or EUR 36.60 per share
_Dividend proposal of EUR 0.90 per share corresponds to a dividend yield of approximately 4%, distribution optionally as scrip dividend
_Forecast for the 2023 financial year with revenue of EUR 340-355 million and adjusted EBITDA margin of 8-9% confirmed
_Medium-term target: NAV is expected to increase by around 50% to EUR 55 per share by the end of 2025
Munich, May 04, 2023 Blue Cap AG (”Blue Cap”) continued its profitable growth last year. The audited annual figures for the 2022 financial year according to IFRS accounting standards have now been published and confirm the preliminary figures presented on 7 March.
In a challenging economic environment, the Blue Cap Group’s consolidated revenue increased to EUR 347.5 million year-on-year (previous year: EUR 267.3 million). The operating result (adjusted(1) EBITDA) rose to EUR 30.4 million (previous year: EUR 24.6 million), which corresponds to a margin of 8.6% (previous year: 9.1%) of total adjusted operating performance. The adjusted EBIT margin is 4.6% (previous year: 4.9 %)
The development of the portfolio company con-pearl, which, as in the previous year, benefited from a major order in the logistics sector, in addition to the improved volumes at H+E and HY-LINE, were major drivers of this significant growth. At an inorganic level, the acquisition of Transline and the first full-year inclusion of H+E and HY-LINE also contributed to the positive trend.
Net asset value per share at EUR 36.60
The NAV declined to EUR 160.8 million (previous year: EUR 172.8 million), equivalent to EUR 36.60 per share, which is significantly higher than the current share price. The deviation compared to the previous year is due to the sum of reduced valuation multiples of the peer group and changes in the business prospects in the portfolio. While the value contributed by the Plastics and Business Services segments improved significantly, the value of the medical technology company INHECO fell due to initial investments for the expansion strategy and the resulting lower profitability. A decline in value was also recorded in the Adhesives & Coatings segment.
Continued good balance sheet quality despite high M&A investments
The acquisition of Transline in the Business Services segment, which was partly financed through acquisition loans, led to an increase in net financial debt in the year under review. The net debt ratio nevertheless fell from 2.6 years to 2.4 years and is thus comfortably within the target range of less than 3.5 years.
Equity increased to EUR 109.4 million (previous year: EUR 98.2 million). The main driver was the positive annual result. With an equity ratio of 36.6% (previous year: 36.7%), Blue Cap has a healthy net assets and financial position.
Dynamic growth in the Plastics and Business Services segments
As of 31 December 2022, Blue Cap's portfolio includes eight majority holdings, which are allocated to the Plastics, Adhesives & Coatings, Business Services and Others segments, as well as a minority stake.
The Plastics segment was the group’s strongest segment last year (EUR 163.7 million, previous year: EUR 135.7 million). The main drivers of this development were con-pearl and H+E. After a difficult start to the year, H+E was able to noticeably improve its operating performance in the second half of the year. Uniplast was able to pass the increases in raw material prices on to customers over the course of the year, while energy prices, which also rose noticeably, had a negative impact on the result. Overall, these positive trends resulted in an increase in the segment’s adjusted EBITDA to EUR 19.0 million (previous year: EUR 17.3 million).
The Adhesives & Coatings segment increased its revenue year-on-year (EUR 96.0 million, previous year: EUR 88.2 million) due to inflation, earnings fell short of expectations at EUR 4.8 million due to the sharp rise in energy and raw material prices, which could only be partially passed on to customers, and were lower than in the previous year (previous year: EUR 6.9 million).
The Business Services segment recorded strong revenue growth to EUR 84.1 million (previous year: EUR 17.6 million) due to Transline, which was acquired in March 2022, and the strong performance of HY-LINE, which benefited from a high order backlog and incoming orders. Adjusted EBITDA increased significantly to EUR 6.5 million (previous year: EUR 1.1 million).
The development of the Others segment was largely inorganic year-on-year (sales and deconsolidation of Gämmerler in 2022 and Carl Schaefer in 2021). As a result, segment revenue fell to EUR 3.8 million (previous year: EUR 25.8 million). Blue Cap’s smallest portfolio company, nokra, reported positive service business and developed significantly better than in the same period of the previous year, which led to a recovery in the segment's adjusted EBITDA to EUR 0.2 million (previous year: EUR -0.6 million).
Even after the corona pandemic subsided, the minority holding INHECO was able to maintain revenue at the previous year's level. However, due to investments in long-term growth in a market which is still very attractive, the result is below the previous year.
Segment key figures at a glance
| EUR million | 2022 | 2021 | Change in % or in basis points (bps) |
|---|---|---|---|
| Plastics | |||
| Revenue | 163.7 | 135.7 | 20.6% |
| Adjusted EBITDA | 19.0 | 17.3 | 9.7% |
| Adjusted EBITDA margin in % | 11.4% | 12.5% | -110 bps |
| Adhesives & Coatings | |||
| Revenue | 96.0 | 88.2 | 8.7% |
| Adjusted EBITDA | 4.8 | 6.9 | -30.% |
| Adjusted EBITDA margin in % | 5.0% | 7.7% | -270 bps |
| Business Services | |||
| Revenue | 84.1 | 17.6 | >100% |
| Adjusted EBITDA | 6.5 | 1.1 | >100% |
| Adjusted EBITDA margin in % | 7.5% | 6.2% | 130 bps |
| Others (*) | |||
| Revenue | 3.8 | 25.8 | -85.4% |
| Adjusted EBITDA | 0.2 | -0,6 | >100% |
| Adjusted EBITDA margin in % | 2.1% | -1.9% | 400 bps |
Note: rounding differences are possible
(*) The Others segment includes nokra, the Group's holding and real estate management companies, and Carl Schaefer and Gämmerler holdings already sold as of the reporting date.
Dividend to increase to EUR 0.90 per share
The Management Board and Supervisory Board will propose to the virtual Annual General Meeting, which is expected to take place on 23 June, the payment of a dividend of EUR 0.90 per share (previous year: EUR 0.85). Blue Cap will thereby reaffirm its dividend strategy despite the generally uncertain macroeconomic environment. The dividend yield is currently at an attractive ~4%. For the first time, shareholders will be able to choose between having the dividend paid out in cash or in the form of new shares. They therefore have the freedom of choice as to whether and to what extent they wish to make use of the scrip dividend offer. If new shares are chosen, shareholders will have the opportunity to benefit more from the development of the Blue Cap portfolio in the long term through additional shares.
Guidance 2023: Stable operating performance expected - high potential for value appreciation until 2025
Against the background of an uncertain environment, the Management Board assumes that the trend for the full year 2023 will remain positive and largely stable year-on-year. The forecast for group sales is between EUR 340 and 355 million and for the adjusted EBITDA margin between 8.0% and 9.0%. This is due to positive effects from the ongoing reorganisation of Neschen and Transline, increased sales activities in the Plastics segment and an expected fundamentally better market situation in the individual segments in the second half of 2023.
For the next few years, Blue Cap has set itself the goal of consistently transforming the investment portfolio towards more growth and higher profitability and improving its management structures. On the basis of existing operational opportunities in the portfolio, Blue Cap sees great potential for value growth in the medium term and expects the net asset value to improve by around 50% to EUR 55 by the end of 2025.
The audited annual financial statements are available for download online on the website www.blue-cap.de in the Investor Relations section (direct link: https://www.blue-cap.de/investor-relations/berichtswelt; available in English shortly).
(1) Adjustments: Adjusted for extraordinary, out-of-period and other effects from reorganisation measures and one-off effects as well as for effects arising from purchase price allocations
