SLM Solutions Group AG, Lübeck, Germany, reported revenues of €31.2 million for the first half of the 2020 financial year. Both figures were improved significantly compared to the same period in previous year, despite the unfavourable environment due to the COVID-19 pandemic.
In the second quarter of 2020, SLM Solutions recognised revenue of €13.3 million and received orders amounting to €10.7 million. Overall, the total order intake in the first half of 2020 was reported at €13.7 million (H1 2019: €20.8 million), slowing down compared to the previous year due to the significant restrictions caused by COVID-19 and the resulting global economic slowdown.
However, the order backlog of €19.2 million as of 30 June 2020 was well above the previous year’s level, increasing by 31% (30 June 2019: €14.6 million). EBITDA (earnings before interest, taxes, depreciation and amortisation) improved by €12.9 million to €–6.0 million for the reporting period (H1 2019: €–18.9 million).
A major driver was the increased revenue. Additionally, measures from SLM Solutions’ turnaround program had a positive effect on costs. For example, the company stated that it had benefitted from a more efficient material cost management, leading to improved gross margins.
In addition, SLM Solutions recorded positive one-time effects of €1.2 million within personnel costs as it benefitted from the short-term work programme in Germany and the Paycheck Protection Program in the US. Furthermore, travel expenses decreased by €0.5 million compared to the previous year due to COVID-19.
Meddah Hadjar, CEO of SLM Solutions, commented, “The first half of 2020 was significantly burdened by the effects and uncertainties of the COVID-19 pandemic. Nevertheless, we have made good progress with our turnaround at SLM Solutions.”
“This applies in particular to the development process for our next generation machine, which has progressed according to plan and will be launched in the week commencing 9 November 2020,” he continued. “We strongly believe this machine will be a game changer for us and the entire metal additive industry.”
Dirk Ackermann, CFO of SLM Solutions, added, “After a significant slowdown starting in March, we experienced an uptake of customer activities towards the end of the first half of the year. So far, this trend continued in the third quarter.”
“For the remaining second half of 2020, we expect customer activities to intensify and our business to pick up further,” he explained. “With the funds generated in July from the first tranche of our new convertible bond, we believe that we are currently well positioned to steer SLM Solutions through these challenging times and to continue our turnaround.”
The Management Board stated that it expects a revenue increase of at least 20% compared to the previous year for the full year 2020 (revenue 2019: €49.0 million). This forecast is based on the assumption that there will be no significant deterioration of the COVID-19 situation with extensive lockdown measures in the company’s key sales markets during the remainder of 2020.