Paragon (DE:PGNG) has delivered several announcements over the last few months that have strengthened the medium-term investment case and highlighted the group’s significant growth potential. H116 results highlight the rapid increase in the group’s Electromobility division; all others apart from Body Kinematics also grew, generating a 9% increase in total revenues. Subsequently, the group has announced a series of contracts with significant blue-chip customers while also achieving a capital increase that was oversubscribed more than three times, which further strengthens the balance sheet and supports growth objectives.
H116 results showed benefits of investment
H1 revenues were up 9.4% to €48.8m (H115: €44.6m) driven by substantial increases in Electromobility (+235%) and Acoustics (+17%) and more moderate growth in Sensors (+4%) and Cockpit (+1%). Body Kinematics was held back by the transition from development to serial production. With increased depreciation and amortisation, EBIT eased slightly to €3.5m (H115: €3.8m) resulting in a margin of 7.2% (H115: 8.6%). Management maintains FY16 guidance for c 8% revenue growth and c 9% EBIT margin; our forecasts have been reduced to reflect this.
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