EQS-News: Blue Cap AG with a successful and active financial year 2024 

• Adjusted EBITDA margin significantly improved to 10.3% after 8.6% in the previous year and at the upper end of the forecast corridor
• Consolidated revenue of EUR 206.6 million for continuing operations also in line with forecast
• Despite challenging market situation, two successful exits to strategic buyers were realized
• Forecast for 2025: revenue of EUR 200-220 million and an adjusted EBITDA margin of between 10-11%

Munich, 28 March 2025 – Blue Cap AG (“Blue Cap”) reflects on a successful and active year 2024 with the publication of preliminary, unaudited figures. Despite the challenging economic environment, Blue Cap was able to significantly increase its margin and profitably sell two successfully restructured portfolio companies in line with its buy-transform-sell strategy. The adjusted⁽²⁾ EBITDA margin rose to 10.3% (previous year: 8.6%). Absolute adjusted⁽²⁾ EBITDA increased to EUR 21.4 million (+13.2% compared to the previous year: EUR 18.9 million). After the two exits, consolidated revenue for the continuing operations amounted to EUR 206.6 million (-6.1% compared to the previous year: EUR 219.9 million)⁽¹⁾.

The preliminary key financial figures are therefore within the target corridor specified in the forecast for continuing operations, which was adjusted in October 2024 due to the transaction. The forecast for the adjusted⁽²⁾ EBITDA margin had been raised slightly. Blue Cap had expected revenue in a range of EUR 200 - 220 million and the adjusted⁽²⁾ EBITDA margin in a range of 9.5 - 10.5 %.

The increase in earnings is primarily due to the very good performance in the Plastics segment. This was offset by postponed projects at other portfolio companies and the general slowdown in demand due to the economic situation. These effects were particularly noticeable in the Business Services segment. Against the backdrop of the sale of Neschen, which Blue Cap has developed to a clear double-digit margin through a fitness program, the consolidated result is an indication of the overall high degree of maturity that Blue Cap AG's existing portfolio has now achieved.

Blue Cap continues to have a strong balance sheet and financing structure. The equity ratio improved from 36% to 44%, primarily thanks to exit proceeds. At 0.8 years (31.12.2023: 2.8), the net gearing ratio (including lease liabilities) is at a very low level and remains well within the target corridor of less than 3.5 years. Net financial debt has fallen noticeably to EUR 16.3 million compared to the end of 2023 (December 31, 2023: EUR 53.6 million). This reflects a comfortable liquidity position, which has increased significantly as a result of the exits executed in 2024.

Increased sell-side activities

On the transaction side, the 2024 financial year was characterized by the successful divestments of the nokra and Neschen portfolio companies in September and October. The proceeds from both exits were significantly higher than the last net asset value valuation as at June 30, 2024. The sale of Neschen in particular marks an important milestone. Henning Eschweiler, COO of Blue Cap, comments: “We have achieved our sell-side target for 2024 and successfully realized two exits in a value-generating manner. The sale of Neschen was preceded by a comprehensive turnaround that exemplifies our team's expertise in value creation through transformation. With the realization we were able to achieve an attractive return, which is expressed in a money multiple of over 8x.”

Investment portfolio: Plastics shines with significant increase in revenue and earnings

As at December 31, 2024, Blue Cap's continuing portfolio included five majority shareholdings, which are allocated to the Plastics, Adhesives & Coatings and Business Services segments, as well as one minority shareholding.

The Plastics segment recorded a noticeable increase in both revenue and earnings. The main driver of this development was con-pearl, which benefited from a strong order backlog in the USA. H+E also performed very stably and better than expected against the backdrop of the difficult situation in the automotive industry. The company was once again able to pass on cost increases to its OEM customers. With an adjusted EBITDA of EUR 19.5 million and a margin of 17.2%, this segment made the largest contribution to the group's earnings.

The Adhesives & Coatings segment, consisting of Planatol, was affected by the absence of the recovery expected in the industry, which was felt in almost all business areas. Thanks to successfully implemented measures to increase gross profit in combination with strict cost discipline, earnings increased slightly compared to the previous year, but fell short of expectations overall.

In the Business Services segment, the two companies HY-LINE and Transline performed significantly below the previous year and worse than expected. The difficult economic situation led to a significant underutilization of capacity at both companies and thus to a noticeable decline in both revenue and adjusted EBITDA.

Following an extensive turnaround program, the minority shareholding Inheco was able to significantly improve all relevant key figures compared to the previous year.

Segment key figures (before consolidation) at a glance

Note: Rounding differences are possible

^(*) Continuing operations, adjusted for the Neschen and nokra investments sold in 2024

^(**) Key figures for the 2023 financial year were adjusted for the investments Neschen and nokra, which were sold in 2024, to ensure comparability

^(***)bps= Basis points

Revenue and earnings in 2025 expected to remain at the previous year's level

In view of the persistently tense economic situation and the major geopolitical uncertainties, the Management Board of Blue Cap expects revenue and earnings to remain constant at the previous year's level in 2025. Accordingly, the forecast for the Group is revenue of EUR 200 - 220 million and an adjusted EBITDA margin of 10.0 - 11.0%.

Portfolio work will focus on the Business Services segment. For HY-LINE in particular, the organizational structure has been adapted to the expected sales volume and an IT project to increase productivity is being implemented. As a result of these measures, the company and the holding company are confident that they will be able to return to an adequate result in the course of 2025. At Transline, the management also does not expect to compensate for the decline in revenue through marketing measures in the short term. The focus is therefore clearly on increasing cash flow and earnings under the current market conditions.

Following the two realized divestments, Blue Cap has high financial reserves - irrespective of the planned dividend payment, which is expected to be increased by a special dividend - and will place a strategic focus on portfolio acquisitions this year.

Dr. Henning von Kottwitz, CEO of Blue Cap, explains: “The macroeconomic environment will remain challenging in 2025 and our planning is correspondingly conservative. Nevertheless, we are optimistic about the year, not least because of our overall high-margin and resilient portfolio and our good liquidity position. We want to further develop our portfolio operationally and through acquisitions and thus create the basis for further value generation for our shareholders”

Important Note

On the occasion of the published figures, a virtual conference call with the Management Board of Blue Cap AG will take place today at 11:30 am. You are invited to register via this link.

The presentation will be available after the conference call on our website at https://www.blue-cap.de/investor-relations/praesentationen/

The key figures disclosed in this press release are preliminary and unaudited. The 2024 Annual Report with the audited figures and further details as well as the dividend proposal are expected to be published at the end of April.

 ⁽¹⁾ The information in this release always relates to continuing operations unless otherwise stated. Continuing operations include all portfolio companies with the exception of nokra Optische Prüftechnik and Neschen Coating GmbH, which were sold in September 2024 and October 2024 respectively.

⁽²⁾ Adjustments: Adjusted for extraordinary, out-of-period and other effects from reorganization measures and one-off effects as well as effects arising from purchase price allocations

About  Blue Cap AG

Blue Cap AG is a Munich-based investment company founded in 2006 and listed on the capital market. The company acquires medium-sized companies from the B2B sector in special situations and supports them in their entrepreneurial development with the aim of selling them profitably at a later date. The acquired companies are headquartered in the DACH region, generate revenues of between EUR 20 and 200 million and have a sustainably stable core business. Blue Cap mostly holds majority stakes in six companies from the Adhesives Technology, Plastics Technology, Life Sciences and Business Services sectors. The Group currently employs around 1,000 people in Germany and other European countries. Blue Cap AG is listed on the open market (Scale, Frankfurt and m:access, Munich; ISIN: DE000A0JM2M1; ticker symbol: B7E). www.blue-cap.de

Contact:

Blue Cap AG
Annika Küppers
Corporate Affairs
Tel. +49 89 288909-24
akueppers@blue-cap.de