1H12 figures: n.runs AG reported its half-year result for FY12. Worth mentioning is that all figures are solely based on n.runs standalone business (excluding VITEC). The company achieved revenues of EUR 3.5m (1H11: EUR 2.2m, +60% YoY). EBIT before transaction costs stood at EUR 0.4m (1H11: EUR -0.1m). Including special items of EUR 0.5m EBIT was at EUR -0.1m. While adjusted net result was positive at EUR 0.5m (1H11: EUR -0.1m), reported net result came in at EUR -0.1m. Hence, the translating EPS stood at EUR -0.06 (adjusted: EUR +0.32). Overall, the figures are completely in line to achieve company guidance. Previously the management expected the group (excluding VITEC) to achieve revenues of EUR 6.8m for full-year 2012.
Change in management: After finalising the integration of VITEC, the management and the supervisory board decided to transfer the n.runs standalone business into a 100% subsidiary (not yet established) of the group, so that n.runs AG will remain a holding company for the n.runs business and newly integrated VITEC business. In the course of that the two board members Mr. Donald Lee and Mr. Stefan Tewes will both be managing director of the aforesaid subsidiary. Furthermore, both will resign of the group management board as of 31 December 2012. As of 1 October already two new members have been elected to the management board. Mr. Charles Barnick is the new CEO of the group, and Mr. Werner Gentzke is the new CFO.
Capital increase and integration finalised: End of September both the capital increase and the non-cash capital increase (VITEC integration) was executed. As a result the share capital of the group increased by EUR 4,702,522. After both capital increases VITEC now holds 94.2% of n.runs (as of end of September). The current 5.8% free float is a low figure, hence, a broader share of investors would result in higher acceptance on the market and will help to increase the trading volume.
Unchanged PT: Regarding the recent news flow we feel confident that the newly established group is able to achieve its mid-term targets. Since the legal integration is now completed the company can work on generating synergy effects and to achieve a sustain profitability on a much higher level than in the past. For the time being we stick to our previous PT of EUR 3.70 and confirm our HOLD recommendation.
Change in management: After finalising the integration of VITEC, the management and the supervisory board decided to transfer the n.runs standalone business into a 100% subsidiary (not yet established) of the group, so that n.runs AG will remain a holding company for the n.runs business and newly integrated VITEC business. In the course of that the two board members Mr. Donald Lee and Mr. Stefan Tewes will both be managing director of the aforesaid subsidiary. Furthermore, both will resign of the group management board as of 31 December 2012. As of 1 October already two new members have been elected to the management board. Mr. Charles Barnick is the new CEO of the group, and Mr. Werner Gentzke is the new CFO.
Capital increase and integration finalised: End of September both the capital increase and the non-cash capital increase (VITEC integration) was executed. As a result the share capital of the group increased by EUR 4,702,522. After both capital increases VITEC now holds 94.2% of n.runs (as of end of September). The current 5.8% free float is a low figure, hence, a broader share of investors would result in higher acceptance on the market and will help to increase the trading volume.
Unchanged PT: Regarding the recent news flow we feel confident that the newly established group is able to achieve its mid-term targets. Since the legal integration is now completed the company can work on generating synergy effects and to achieve a sustain profitability on a much higher level than in the past. For the time being we stick to our previous PT of EUR 3.70 and confirm our HOLD recommendation.
