© stockfotocz dreamstime.com
Electronics Production | February 27, 2017
Connect Group: Sales of EUR 116.8 million in 2016
Connect Group NV reported sales of EUR 116.8 million in 2016, compared to EUR 113.4 million in the previous year (+ 3 %). Without the ASML impact (sales of EUR 12.2 million in 2015 and EUR 9.6 million in 2016), sales rose 5.9 percent.
Jeroen Tuik (CEO): “In the 1st half, we were still involved in the restructuring resulting from the loss of ASML in our Dutch plant. The results achieved in the 2nd half show that we are on the right track. We are pleased that our strict cost control programme has produced results. Sales are on the rise again, and for the first time in many years we have achieved a good net profit of EUR 1.2 million. Our order book is also developing positively. Despite the loss of ASML (whose orders amounted to EUR 7.7 million at the end of 2015), orders have risen from EUR 86.6 million at the end of 2015 (including the EUR 7.7 million from ASML) to EUR 89.4 million at the end of 2016, constituting an increase of over 13 percent. As a result, we are entering 2017 on a positive note.
Nevertheless, we are still not where we want to be, and more cost adjustments will be necessary in 2017 to further improve our profitability. We also need to invest in skill development in our plants in Romania and the Czech Republic to meet all customer demands.”
The gross margin on sales increased from 9.2 to 11.9 percent, due to better cost containment and pricing. R&D, administrative and sales costs dropped 8 percent from EUR 11.3 million to EUR 10.5 million.
Other operating income / expenses in 2015 totalled EUR ‐369'000, mainly due to the write‐off of receivables of EUR 465'000 and gains on selling fixed assets amounting to EUR 115'000. Other operating income / expenses in 2016 total EUR ‐282'000, this time mainly due to reversals / write‐offs of revenues from customers amounting to EUR 360'000 and an EUR 285'000 gain on the sale of a building, as well as lease costs totalling EUR 289'000 and a provision for litigation of EUR 650'000
The net financial result improved to EUR 260'000, mainly due to lower financing costs amounting to EUR 123'000 (through lower financing requirements due to the capital increase and a positive operating cash‐flow) and lower exchange losses (EUR 93'000). The group's net result thus improved from a loss of EUR 6'979'000 in 2015 to a profit of EUR 1'161'000 in 2016.
The order book at the end of the 2016 financial year stood at EUR 89.4 million (against EUR 86.6 million at the end of 2015).
Outlook for 2017
The current economic climate makes it difficult to establish clear expectations for 2017. Connect Group is positive about its position with its current and new customers and expects a further positive impact in 2017 of the restructuring and other measures taken in 2016, but as a subcontractor, Connect Group remains largely dependent on the general evolution of its customers.
Shell to acquire german battery manufacturer sonnen
Shell Overseas Investment B.V. has agreed to acquire 100% of sonnen, a manufacturer of...
Engaged & happy employees - clear drivers of growth & health for Season Group
EMS provider Season Group, is flagging a major change in its organisation, both operational and somewhat philosophical. Randy Ziegenhagel, previously VP Business Development, is moving to the new position of Global Culture Officer and...
BB Electronics expands into Eastern Europe via acquisition
Danish EMS provider BB Electronics has acquired Czech company Wendell Electronics.
UK manufacturer doubles work space in head office acquisition
Yorkshire-based Contract Production Ltd has acquired its current head office and production facilities in Pickering, expanding into a third adjoining unit as part of its expansion programme.
Aquantia and Sumitomo Electric to deliver multi-gig Ethernet connectivity to...
Sumitomo Electric Industries Ltd., based in Japan, and Silicon Valley’s Aquantia Corp. have...
Lockheed Martin opens Florida R&D center, adds jobs
Lockheed Martin has completed construction on its USD 50 million, 255,000 square foot...
UAT picks Veeco to bolster fan-out wafer-level packaging portfolio
Unisem Advanced Technologies Sdn Bhd (UAT) has purchased Veeco’s single-wafer solvent...
ESI gets Asia order for FPC laser via drilling system
Electro Scientific Industries (ESI), a division of MKS Instruments Inc. and provider of laser-based...
DMASS: 'the highest distribution sales ever reported in Europe'
DMASS reports 14.2% growth in semiconductor distribution for Q4/CY18. Smaller countries and Eastern Europe benefit over-proportionally. MOS Micro and Optoelectronics below average, says DMASS.
Merger between Widex and Sivantos receives final clearance
The European Commission has approved the merger between Sivantos (owned by EQT funds)...
Finmasi Group acquires German PCB manufacturer
On the 21st of January 2019 Finmasi Group bought 100% of the capital stock of EPN Electroprint GmbH, located in Neustadt in Thuringia region in Germany.
NCAB expands to Malaysia
NCAB Group starts the first quarter of 2019 by establishing operations in Malaysia. The...
Series A funding fuels May Mobility’s momentum
Millennium New Horizons and Cyrus Capital Partners have joined May Mobility’s...
ZAF Energy Systems Lands Strategic Investment from Wirtz...
Wirtz Manufacturing has made a strategic investment in battery developer ZAF Energy Systems...
Johnson & Johnson to acquire Auris Health for $3.4 billion
Johnson & Johnson says that its subsidiary, Ethicon, Inc., has entered into a definitive agreement to acquire surgical robotics company Auris Health, Inc. for approximately USD 3.4 billion in cash.
ZF plans to open new Serbian facility in April
German automotive technology company, ZF Friedrichshafen, is reportedly planning to open its...
Microlease and Electro Rent Europe to join forces
The two companies will unify their European operations to become one of the largest...
OHB awarded ESA contract for the development of...
OHB System AG, a subsidiary of the space and technology group OHB SE, has received funding...
Invotec expands its presence with new facility in Germany
Custom equipment provider Invotec is opening a facility in Villingen-Schwenningen...
WH executive order outlines AI plan, omits critical funding details
President Trump has signed an executive order creating the “American AI Initiative,” which serves as a high-level strategy guiding AI development within the U.S.
AIStorm snags USD 13.2 million in quest to advance edge processing
San Jose-based AI start-up AIStorm has secured USD 13.2 million in Series A financing from...
Most Read
Load more news