Fallout from the Dieselgate scandal included a reduction in demand for the chemicals used in automotive catalytic converters. This adversely affected IBU tec advanced materials AG (DE:IBU) FY17 revenues (down 5%) and pre-tax profits (down 55%). Conversely, the environmental agenda is driving demand for electric vehicles, battery energy storage systems for use with renewables and catalytic devices for cleaning up factory exhaust gases. Management expects demand for specialist materials used in these applications to support a recovery in sales and EBITDA during FY18.
Shift away from diesel adversely affects FY17
IBU-tec was not able to completely offset reduced sales of product for automotive catalysts, as it had been able to during H117. Although revenues related to battery storage materials and chemical catalysts both showed double-digit growth, sales overall fell by 5% to €16.8m. Excluding IPO costs, EBITDA margin dropped by 10pp to 26%, while pre-tax profit fell by 55% to €1.9m. The group reported a modest €0.2m profit after tax after deducting the €1.6m IPO costs. Following the IPO, which raised €16.5m (gross) at €16.5/share in March 2017, the group moved from €2.0m net debt at end FY16 to €12.7m net cash.
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