Based on preliminary figures, Aves One reflects on 2020 as a landmark financial year. Exceptional write-downs mark the 2020 consolidated results.
Preliminary figures confirm strategic focus on rail business
Increase in Group turnover by about 6.1% to approximately EUR 123.9 million (prior year: EUR 116.8 million)
EBITDA remains high at approximately EUR 81.8 million (prior year: EUR 84.5 million) despite the impact of COVID 19
EBT (adjusted) of approximately EUR -36.3 million negatively impacted by exceptional write-downs in the sea container division (prior year: EUR 11.1 million)
Cost reductions in excess of EUR 1.5 million per year expected
Positive outlook: significant expansion of rail business and increasing profitability planned
Hamburg, 22 April 2020 - Aves One AG, an asset owner of durable rail assets, publishes its preliminary figures for 2020. The preliminary figures substantiate the strategic decision of the Management Board to sell the sea container business and to concentrate in future on the systematic development of the resilient and profitable rail business. The sale of the sea container portfolio in March 2021 already impacts the 2020 preliminary figures, as the effects on results were largely taken into account in the 2020 financial statements. The Management Board expects the concentration on the rail business to contribute to future cost reductions of more than EUR 1.5 million p.a.. The company will also benefit from a reduction in the average nominal interest rate of debt financing by 0.3% to approximately 3.1% p.a.
Preliminary results for 2020 shaped by strong rail business
Based on preliminary calculations, revenues rose by around 6.1% to approximately EUR 123.9 million (prior year: EUR 116.8 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) remained high at EUR 81.8 million (prior year: EUR 84.5 million). The main driver was the rail business. This division contributed revenues of EUR 83.9 million (prior year: EUR 76.1 million) and EBITDA of EUR 61.6 million (prior year: EUR 54.8 million). Compared to the previous year, Aves One experienced a slight decline in the utilisation of its rail portfolio, also due to the effects of the COVID 19 pandemic. Nonetheless, the utilisation rate remained high at approximately 90% on average (prior year: 95.5%). Nevertheless, the rail business compensated for the declining performance of the sea container portfolio. In the sea container business, rental price reductions agreed in the course of contract extensions and currency effects led to declining revenue and EBITDA.
Aves One also expanded its rail portfolio as a result of acquisitions in the past financial year. The asset volume in the rail division grew by 12% to over EUR 738.8 million. As a result of rail investments of approximately EUR 90.8 million, mainly in new-build wagons, the average age of the freight wagon fleet fell to 15.9 years.
"Our rail portfolio has proven to be a resilient and profitable investment in a challenging financial year. Contributing approximately 68% to sales and 75% to EBITDA respectively, it played a significant part in our stable development in a volatile market environment. The cash surplus of approximately USD 23.8 million generated by the sale of the sea container portfolio and the expansion of our warehouse facility of EUR 75.0 million enables us to continue to systematically strengthen this division. The expected cost reductions make it clear that with the sale of our sea container portfolio, we have reached an important milestone on our route to focused and profitable growth," commented Sven Meißner, Member of the Management Board of Aves One AG.
2020 results marked by exceptional write-downs
Based on the preliminary figures, write-downs of EUR 72.2 million were made in the 2020 reporting year (prior year: EUR 32.9 million). These include the exceptional write-downs already announced on the sea container fleet of approximately EUR 33.1 million. As a result of this one-off effect, the operating result (EBIT) decreased significantly to EUR 9.6 million (prior year: EUR 51.7 million). EBT adjusted for the exchange rate effects shown in the financial result decreased to EUR -36.3 million (prior year: EUR 11.1 million).
Outlook 2021: good prospects for sustainable rail business
Tobias Aulich, Member of the Management Board of Aves One AG: "With a first-class rail portfolio, consistently high utilisation rates and a packed acquisition pipeline, Aves One is ideally positioned. We are accordingly confident about the future. For the 2021 financial year, we are striving to continually expand the rail business. We are planning a revenue volume of more than EUR 100 million for the continuing business divisions of rail and swap bodies - of which more than EUR 92 million is to come from the rail division (prior year rail: approximately EUR 83 million). For the Aves One Group we forecast an EBITDA of more than EUR 70 million for the current financial year - of which EUR 64 million is to come from the rail division (prior year rail: approximately EUR 62 million). By focusing on the rail business, we expect a further increase in profitability for 2021, as a year of transition, and in particular thereafter.“