SLM Solutions Group AG, Lübeck, Germany, has reported a generated revenue of €15.4 million in Q1 2021, down from €17.8 million in the same quarter of 2020. The company recorded an improved EBITDA of €-2.1 million (Q1 2020: €-3 million), driven by more cautious spending.
Following on from an improved order intake in the second half of 2020 in comparison to the first half of the year, the steady recovery of business was also noticeable in Q1 2021, with an order intake of €13.4 million, nearly five times higher than in Q1 of 2020 (€2.9 million). The company’s order backlog also improved, by €8.1 million to €31.8 million year-on-year (March 31 2020: €23.7 million). Working capital decreased to €28.2 million from €37 million in Q1 2020, reflecting the positive effects of SLM Solution’s improved inventory management.
“With order intake gaining traction over the last quarters, SLM Solutions has had a strong start to the new year. First quarter revenue was solidly in line with our expectations,” stated Sam O’Leary, CEO. “A notable portion of our backlog will be converted into revenue over the next quarters as we project a significant acceleration of our growth, especially in the second half of the year.”
“A significant driver of our future growth is the commercialisation of the NXG XII 600, which continues to exceed our already high expectations in terms of customer response. Most recently, SLM Solutions signed a memorandum of understanding with a major Energy OEM which, as with similar agreements with other customers, will follow a firm purchase order after achieving clearly-defined technical requirements.”
Based on the sound order backlog and the overall business dynamics, SLM Solutions reaffirms its positive outlook for 2021 and expects revenue growth of at least 15% compared to the previous year, as well as a year-on-year improvement in EBITDA.
Dirk Ackermann, CFO, added, “To support SLM Solutions’ accelerating growth, we further strengthened our liquidity position with the issuance of the second tranche of our 2020 convertible bond. The raised capital in the amount of €15 million will help us to ramp-up production of the NXG XII 600 and expand the required sales and service network.”