Since 2014, Nanogate AG (DE:N7GG) has achieved stellar growth, doubling revenues to hit its €100m goal earlier than expected. This is the result of a sequence of acquisitions that has created a vertically integrated business, which designs and manufactures components with the optical qualities of glass or the durability and shine of chrome-plated parts, as well as taking the group into the lucrative North American market.
Successful execution of strategy during FY16
During FY16 management announced two acquisitions, each of which fulfils a key strategic ambition. The first was plastic specialist Goletz in April 2016, which substantially strengthens the group’s capability to manufacture and glaze smaller and mid-sized, design-orientated plastic components. This enabled the group to secure a €20m+ multi-year contract to supply plastic components with optically high-quality surfaces to a luxury car manufacturer. The second, US-based Jay Plastics, which was bought at the start of 2017, gives a platform for expansion in North America as well as a strong leap in group revenues from FY17 onwards. In September 2016, the production facilities for the new N-Metals Chrome advanced metals treatment were opened.
Medium-term target of €100m revenues reached early
Sales grew by 24% year-on-year during FY16 to a record €112.5m, benefiting from strong demand for advanced metals and advanced polymers and the Goletz acquisition. As a result, the group hit the medium-term target of doubling revenues that was set in 2014, when it initiated the Phase 5 growth programme, earlier than planned. EBITDA rose by 21% to €12.4m, also a record, despite the increased costs relating to investment in technology capability and acquisitions.
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