HWA AG TARGETING A RETURN TO PROFITABILITY IN 2021
Apr 30, 2021
Negative EBIT amounted to EUR 10.6 million, compared to negative EBIT of EUR 8.9 million in 2019. Prior to the pandemic, expectations for 2020 had anticipated lower revenue but a positive EBIT. These expectations were clearly missed due to the impact of the pandemic.
After taxes and interest, the Group recorded a loss of EUR 11.3 million in 2020, compared to a loss of EUR 8.2 million in the previous year. During the reporting period, operating cash flow was negative at EUR 2.5 million, compared to negative EUR 3.7 million in the previous year. Cash flow from investing activities amounted to EUR 0.8 million, compared to EUR 5.4 million in the prior year.
At the end of 2020, HWA AG reported Group equity of EUR 18.1 million. The Group’s equity ratio amounted to more than 26%.
In the Vehicles/Vehicle Components business segment, HWA AG initially got off to a promising start. The close partnership with Mercedes-AMG GmbH in its Customer Racing activities remains unchanged but was significantly affected by the pandemic in 2020. Although the market launch of the Mercedes-AMG GT3 MY 2020 was successful, deliveries came to an abrupt halt from mid-March 2020 onwards.
The aftersales business associated with the racing season also developed significantly weaker than expected in 2020. In addition, projects that had been firmly planned towards the end of the year were either postponed or delayed.
Within the Motorsport business segment, HWA AG had already budgeted for lower revenue in 2020 due to the discontinuation of its DTM activities. Activities in the ABB FIA Formula E Championship, as well as FIA Formula 2 and FIA Formula 3, largely developed in line with expectations.
For 2021, HWA AG expects to return to profitability. This remains the Company's highest priority.
As a result of a significant reduction in the overall cost structure, the Management Board currently considers a low single-digit million euro EBIT achievable for 2021.
Revenue in the Motorsport business segment is expected to decline significantly this year due to the end of activities related to the ABB FIA Formula E Championship from the 2021/2022 season onwards. At present, this decline in revenue cannot be fully compensated.
In the Vehicles/Vehicle Components segment, revenue growth is expected. Nevertheless, total Group revenue is anticipated to decline once again compared to the previous year.
HWA AG will publish its audited annual and consolidated financial statements for 2020 in mid-May.
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.