Nanogate’s (DE:N7GG) most recent acquisition, that of Ohio-based Jay Plastics in January 2017, has taken the group into the North American market and helped deliver an 81% hike in revenues to a record €94.5m. The integration of the business, now called Nanogate Jay Systems, is progressing well and encouraged management to raise its FY17 guidance in August.
Benefit of strong demand and internationalisation
Group sales increased by 81% year-on-year during H117 to €94.5m, through a combination of continued high demand for design-orientated, high-tech components and the impact of Nanogate Jay Systems. EBITDA rose by 86% to €11.0m as EBITDA margin improved slightly, by 0.3pp to 11.6%. EPS reduced by 8% to €0.33, reflecting the dilutive impact of placings in July 2016 and April 2017 to fund the acquisitions of plastics specialist Goletz and US-based Jay Plastics. Net debt increased by €29.7m during the period to €44.2m, raising gearing to 48%.
Continued progress against strategy objectives
Ohio-based Jay Plastics, an integrated provider of high-quality plastic components and enhancement, is delivering on management’s objectives. It has received several new orders, including one from a Japanese automotive manufacturer for high-quality decorative enhancement and its first components for an electric vehicle. The total order volume for the new projects is in the double-digit million range and extends over several years. The first projects involving technology transfer between the new US and existing European operations (and vice versa) have commenced. Management reiterated its FY17 guidance of over €170m revenues and €20m consolidated EBITDA. It also set a new target for over €250m in sales within the next five years, at continuously increased margins.
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