Max 21 AG (DE:MA1G) continues its successful turnaround story, with a solid increase in H118 sales related to Binect family products and LinOTP (even if somewhat behind management expectations). Encouraged by the top-line growth and recently introduced cost efficiencies, management has reaffirmed its FY18 revenue guidance at €7m (implying a 27% y-o-y growth) and is now expecting an EBITDA loss no greater than €1.5m (vs €2.5m previously). The reduced cash burn and business outlook for H218 will eliminate the need for a new share issue, according to the company.
Growing core revenues and cost reductions
Max 21 has delivered healthy growth in its strategic business verticals in H118, with Binect family product sales at €0.7m compared with €0.2m in H117 and LinOTP revenues up 90.5% y-o-y to €0.5m. Supported by the cost optimisation measures (particularly headcount reduction), the company’s EBITDA loss came in at €0.5m, below the H117 loss at €2.3m. Binect was profitable throughout H118, while KeyIdentity improved its EBITDA but is still recording a loss (€0.8m vs €1.3m in H117).
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