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Zurich, 17 September 2018
The interim balance sheet as at 30 June 2018 confirms the management’s forecasts: the operating result (EBIT) fell by 33.4% to CHF 12.3 million (previous year CHF 18.5 million), while Group profit stands at CHF 9.6 million (previous year CHF 14.8 million or -35.4%). Sales dropped to CHF 239.2 million, down 3.4% on the previous year (CHF 247.6 million). Earnings per share decreased by 35.2% to CHF 1.60 (previous year CHF 2.47).
These results are not solely attributable to the absence of income from Alpiq Burkhalter Technik AG but also, and particularly, to the price war raging in the building industry. Although there is a lack of skilled workers, the sector is plagued by a fear of insufficiently high capacity utilisation. This anxiety is entirely unfounded as the building industry is booming; nevertheless, it is still squeezing prices. We are responding to this contradictory situation by concentrating on high-quality orders, including some with very fast turnarounds. In this market environment, our target EBIT margin of some 6% is well above the industry average and must be regarded as solid.
Growth through further acquisitions
The Burkhalter Group has continuously expanded its network in Switzerland since its IPO in June 2008. We did not make any acquisitions in the first half of 2018. With effect from 2 July 2018, we purchased Fliri & Conrad Electro SA in Santa Maria in Val Müstair. The company mainly provides traditional electrical engineering services and has been running a successful operation in Val Müstair since 1990. A decisive factor in purchasing the company was its proximity to Electra Buin SA in Scuol, giving customers in Lower Engadine and Val Müstair a choice between two locations.
As of 30 June 2018, the Burkhalter Group comprised 44 independent electrical engineering companies in 93 locations in Switzerland. It will remain part of the Burkhalter Group’s strategy in future to grow through selectively acquiring other electrical engineering companies. However, as acquisitions are only made selectively and at fair prices, it is difficult to say in advance when the next acquisition will take place.
Outlook
As a result of the sustained price pressure in the industry and without any income from Alpiq Burkhalter Technik AG, the Burkhalter Group’s management currently anticipates that, although earnings per share will decline in the 2018 financial year compared with the 2017 financial year, the EBIT margin target of around 6% can still be met.
Key figures
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In CHF million
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30.06.2017
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30.06.2018
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+ / - in %
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Operating result (EBIT)
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18.5
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12.3
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-33.4
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Group profit
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14.8
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9.6
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-35.4
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Group sales
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247.6
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239.2
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-3.4
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CHF
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Earnings per share
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2.47
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1.60
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-35.2
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The 2018 interim report can be downloaded from the Burkhalter website at http://www.burkhalter.ch/en/investor-relations/reports
Telephone conference: Monday, 17 September 2018, from 09h15
The Burkhalter Group will discuss its 2018 consolidated interim financial statements during a telephone conference today.
Please call in five minutes before the start of the conference (at 09h15) on
+41 (0)58 310 50 00 (Europe)
+44 (0)207 107 0613 (UK)
+1 (1)631 570 56 13 (USA)
The moderator for the telephone conference will connect you with the Chairman of the Board of Directors, Mr Gaudenz F. Domenig, the CEO and the delegate of the Board of Directors, Mr Marco Syfrig and the CFO, Mr. Zeno Böhm.
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