Corporate News – 02 May 2018

Operational business greatly improved in 2017 business year

  • Consolidated sales revenues almost doubled in 2017
  • Improved capacity utilisation and margin in the container segmentr
  • Real estate as an additional investment focus
  • Positive outlook

Aves One AG (Aves), listed in Frankfurter Stock Exchange’s regulated market (Prime Standard), has published audited figures for the 2017 business year.

Aves again successfully expanded operational business considerably in the 2017 business year. Sales revenues at group level in the reporting year 2017 increased significantly to EUR 53.4 million (previous year: EUR 28.7 million), attributable essentially to consolidation for the first time of Aves Rail GmbH for a whole business year. Sales revenues were distributed almost equally between the Rail division with EUR 26.3 million (previous year: EUR 7.6 million) and the Container division with EUR 24.1 million (previous year: EUR 21.8 million).

Improved capacity utilisation and increased rentals in the Container segment as drivers
Growth in capacity utilisation and increased rental rates in the Container unit had a positive effect on sales revenues, whereby rental rates and capacity utilisation both showed a clearly rising trend at the year end. The Rail unit was also characterised by stable sales revenues and high capacity utilisation of almost 100% in 2017.

Strong growth in operating result (EBITDA) in 2017 compared to the previous year
For the business units that were continued in 2017, the effects resulting from operational improvements in the Rail and Container segments described above led to a marked increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to EUR 29.1 million (previous year: EUR 10.3 Mio). While Earnings before interest and taxes (EBIT) rose to EUR 9.4 million (previous year: EUR 1.8 million), the Group’s financial result changed from EUR -8.2 million to EUR - 46.7 million This change in the financial result arises essentially from largely non-cash-effective currency effects amounting to EUR 21.6 million, other costs of EUR 3.4 million connected with noncash capital increases carried out in the year under review, and interest expenses amounting to EUR 21.8 million (previous year: EUR 14.1 million). This results in pre-tax earnings (EBT) for the 2017 Business year amounting to EUR -37.3 million (previous year: EUR -6.5 million). The consolidated net loss remaining after taxes amounts to EUR -35.0 million (previous year: EUR -7.7 million). Disregarding special effects such as currency effects, expenses arising from non-cash capital increases and non-recurring depreciations due to depot rationalisation in the Container segment, Aves earned an improved consolidated result of EUR -6.2 million (previous year: EUR -13.7 million).

Rationalising the container portfolio will ensure increased future earnings Non-rented containers were disposed of in the past business year to avoid future depot costs. This involved a total of around 7,000 containers. Although the sale entailed a one-off expense due to special depreciations amounting to about EUR 3.8 million in 2017, this measure will ensure future annual depot cost savings of around EUR 1.5 million. In addition, it was possible to use the liquidity generated thereby to invest in new containers carrying more attractive rental contracts. Thus this measure makes a further contribution to better capacity utilisation and rejuvenation of the container fleet.

Focus on further growth continues in the 2018 business year
As already announced some time ago, Aves plans to invest in the Real Estate segment alongside the Rail and Container segments. The announced entry into holding a portfolio of logistics real estate properties was implemented by the recent acquisition of a logistics real estate property in Alsdorf Business Park near Aachen. Logistics properties with an asset volume of around EUR 100 million are currently at the purchasing due diligence stage. The plan is for a further big expansion of the managed portfolio of around EUR 448 million (end of 2017) by further build-up of as-new logistics assets and the acquisition of logistics real estate properties by the end of 2018. Based on measures currently being implemented, the management board expects higher sales revenues and further improvement in the operating result for the current business year 2018. For further explanations of the key figures, we refer to the Annual Report 2017. This is available for download at under the heading “Investors”.