HWA AG CLOSES 2021 WITH A POSITIVE RESULT
Apr 20, 2022
HWA AG generated revenue of EUR 85.8 million in 2021, compared to EUR 65.6 million in the previous year. EBIT amounted to EUR 1.2 million, compared to a loss of EUR 10.6 million in 2020. After taxes and interest, the Group reported a profit of more than EUR 0.6 million in 2021, compared to a loss of more than EUR 11 million in the previous year.
The significant improvement in earnings was also largely attributable to the effectiveness of the cost and efficiency program, which was further intensified during 2021. The previously negative operating cash flow of EUR -2.5 million improved to a positive figure of nearly EUR 7 million. Equity increased from EUR 18.1 million to EUR 19.1 million. The Group’s equity ratio improved from more than 26% to over 32%.
In 2021, HWA AG benefited from a strong recovery in business volume within the Vehicles/Vehicle Components segment. Encouragingly, this segment returned to pre-pandemic levels, primarily due to the continued close partnership with Mercedes-AMG GmbH and its Customer Racing activities.
Business operations were characterized by the ongoing production of the Mercedes-AMG GT3 and GT4. In addition, HWA AG secured new projects within this segment, although some of these were postponed into 2022 due to supply chain challenges. Overall, the Vehicles/Vehicle Components segment performed above Management Board expectations. Activities within the Motorsport segment developed in line with expectations.
From a sporting perspective, HWA’s role as the operating team for the Mercedes-EQ Formula E Team in the ABB FIA Formula E Championship was highly successful. HWA concluded Season 7 of the ABB FIA Formula E Championship by securing both the Manufacturers’ and Drivers’ World Championship titles.
As planned, HWA AG’s role as the Mercedes-EQ Formula E Team ended after the 2020/2021 season. Services continue to be provided, albeit on a significantly reduced scale. In FIA Formula 2 and FIA Formula 3, podium finishes were achieved in selected races. At the end of 2021, HWA AG fully discontinued its activities in both racing series. The relatively low business volume and the costs associated with maintaining these commitments were decisive factors in this decision.
The outlook for 2022 remains positive. In the Vehicles/Vehicle Components business segment, the Company expects further revenue growth compared to the previous year.
The Motorsport business segment will lose significant importance in 2022. Following the end of HWA AG’s involvement in the ABB FIA Formula E Championship and the withdrawal from Formula 3 and Formula 2 activities, almost no services will be provided in this segment during 2022. As a result, revenue volume is expected to decline substantially.
Nevertheless, HWA AG expects Group revenue to remain approximately at the level of 2021. Group EBIT is expected to continue recovering and could reach up to EUR 2 million.
However, the 2022 outlook is subject to the condition that global economic conditions do not deteriorate significantly over the course of the year, particularly with regard to the increasing global economic risks arising from the war in Ukraine. Likewise, uncertainties relating to raw material availability and supply chains should not worsen significantly, as these could impact HWA AG’s business if required components are not available in sufficient quantities or at the required time.
HWA AG will publish its audited annual and consolidated financial statements for 2021 in mid-May.
The capital increase announced on February 24, 2022, has since been successfully completed and registered in the commercial register. As part of the transaction, the share capital was increased by 599,191 new shares. The new share capital now amounts to EUR 6,591,105.00.
The gross proceeds from the capital increase amounted to EUR 4.55 million. The new shares were subscribed equally by Aufrecht GmbH and Dörflinger Management & Beteiligungs GmbH (“DMB”). Aufrecht GmbH is represented by Hans Werner Aufrecht and DMB by Willibald Dörflinger. Both gentlemen are major shareholders of HWA AG and members of the Company’s Supervisory Board.
Contact:
Investor Relations
HWA AG
Marc Schimmelpfennig
Benzstraße 8
71563 Affalterbach
Germany
Phone: +49 (0) 7144 8717-279
Fax: +49 (0) 7144 8718-111
E-mail: ir@hwaag.com
Company Profile of HWA AG
HWA AG is an independent 360-degree engineering specialist in the fields of motorsport and high-performance vehicles. Founded in 1998 by Hans Werner Aufrecht, the company is headquartered in Affalterbach, Germany, and currently employs around 300 highly qualified professionals.
All products and services of HWA AG are guided by the principle ENGINEERING SPEED. The company’s mission is to develop the highest-quality and most effective solutions to help its partners and customers achieve their goals faster. The service portfolio ranges from the design and engineering of all vehicle components to the development and production of complete vehicles, complemented by logistics, aftersales and support services.