SLM Solutions Group AG, Lübeck, Germany, reports that the company generated 22% revenue growth in what it stated was a challenging 2016 fiscal year. The consolidated revenue of the group rose to €80,707,000 during the year, up from €66,137,000 in 2015. SLM reported that the majority of this revenue (86.3%, compared to 89.5% in the previous year) stemmed from the company’s core business comprising the sale of laser melting systems. Revenue in the After Sales segment recorded a disproportionately high increase of 58.2% to €11,032,000 (compared to €6,972,000 in the previous year).
Uwe Bögershausen, CFO of the Company, stated, “SLM Solutions once again succeeded in realising clear double-digit revenue growth. This represents a continuation of our company’s very positive development. However, we are convinced that the outstanding technology employed by our machines can enable us to achieve considerably higher growth rates in future. It goes without saying that such development should also once again positively influence earnings.”
New order intake in 2016 came in at 130 ordered machines. This represents an increase of around 27.5% compared to the previous year’s 102 machines. The value of the ordered machines rose disproportionately by 30.9% to €79,992,000 in 2016 compared to the number of machines ordered, compared to the previous year’s machine value of €61,132,000.
The total operating revenue for 2016, including the sum of consolidated revenue, inventory changes and other own work capitalised, was reported to be €90,476 – up by 15% year on year against the previous year’s operating revenue of €78,654,000. The cost of materials ratio as a percentage of the total operating revenue was reported at 54.4%, a slight increase on the previous year’s 53.7%.
Adjusted EBITDA, however, was recorded at €3,069,000 down from €8,050,000 in the previous year, with an adjusted EBITDA margin of 3.8% in 2016 compared to 12.2% in 2015. On an unadjusted basis, EBITDA stood at €2,040,000 (previous year: €6,860,000).
“The 2016 fiscal year was dominated by extraordinary events and earnings fell short of our expectations. Nevertheless, we still view the past year as positive overall: The general interest in the technology rose considerably and the industrial relevance is undeniable. This leaves us looking forward to the rest of the current 2017 fiscal year with great optimism,” commented Bögershausen.
Henner Schöneborn, CTO of SLM Solutions, added, “We believe that we are excellently positioned for further growth with our multi-laser technology. Our newly introduced machines which can be fitted with multiple 700-watt lasers are excellently suited for the series production of parts. At the same time we are permanently expanding our range of competencies– we are aiming to continue our development into an integrated solutions provider through close cooperation with the industry.”
SLM’s Management Board has stated that it anticipates a consolidated revenue of between €110,000,000 and €120,000,000 for 2017, depending on the advantageous position of the technology in the market to form the foundations for a return to the strong growth track of previous years. If the forecast revenue corridor is achieved, the Management Board anticipates an adjusted EBITDA margin of between 10% and 13%.