Final annual figures LION Smart GmbH 2018
LION SMART GMBH: 2018 fiscal year marked by significant growth in total operating performance, high investments in fixed and financial assets
The fiscal year 2018 of LION Smart GmbH was characterized by the transition of an engineering service provider to a product manufacturer.
In 2018, the total operating performance of LION Smart GmbH increased to EUR 2,233 thousand (previous year: EUR 1,307 thousand) compared to the previous year, representing a growth of about 71 %. The total operating performance includes revenues (EUR 966 thousand), internally generated and capitalized intangible assets (EUR 1,188 thousand) and customer orders started on the balance date, which are reported as work in progress under inventories (EUR 79 thousand).
Due to the high development costs for the LIGHT Battery and an innovative battery management system with infrared communication interface in fiscal year 2018, revenues of EUR 966 thousand were lower than in the previous year (EUR 1,307 thousand). The “Proof of Concept” for the LIGHT Battery was completed, thus taking another major step towards the product maturity of this innovative technology.
In this context, the capitalization of intangible assets for the LIGHT Battery and the battery management system included the personnel expenses, cost of materials, patent costs and appropriate overhead costs.
LION Smart GmbH's adjusted EBITDA (EBITDA before effects that are classified as extraordinary or relating to other periods) was EUR - 859 thousand in the reporting period, and thus EUR - 106 thousand above the respective figure for the previous year.
The unadjusted EBITDA of 2018 amounted to EUR - 1,035 thousand compared to EUR -757 thousand in 2017.
The high personnel expenses compared to the previous year are primarily caused by the increase in the average number of employees, and the recognition of the stock option program in the balance sheet in fiscal year 2018.
Personnel expenses for 2018 include the allocation of shares to eligible employees as part of the stock option program for 2016 (after the freeze period of 24 months has expired) as well as variable income in the form of shares upon entrepreneurial and personal achievements for 2018. With this strategy, the company will be able to retain employees in the highly competitive battery technology market over the long term and to allow them to participate in the company's value growth.
The fixed assets of LION Smart GmbH are dominated by the significant increase in property, plant and equipment and the 30 % interest in TÜV SÜD Battery Testing GmbH (TSBT), which is reported under financial assets. In the year under review, LION Smart GmbH made a total of EUR 600 thousand in investments available for further expansion in a growth market. TSBT was able to report an extraordinarily successful fiscal year. With regard to publishing its financial figures, LION Smart GmbH is still in discussion with the majority shareholder of TÜV SÜD AG.
LION SMART GmbH had liquid assets of EUR 1,246 thousand at its disposal as of December 31, 2018. Short-term borrowings totaled EUR 296 thousand as of December 31, 2018, compared with EUR 225 thousand in the previous year. In comparison to the previous year, liabilities to banks were reduced by EUR 150 thousand.
Despite the net loss for the year, the equity of LION Smart GmbH increased from EUR 1,186 thousand in the previous year to EUR 2,326 thousand. This was due to the high capital contributions of LION AG to the capital reserve of LION Smart GmbH totaling EUR 1,700 thousand to finance ongoing business operations. The equity ratio is a good 43 % compared to 48 % in 2017.
For fiscal year 2019, the management of LION Smart GmbH expects increasing revenues with an improved cost structure, especially in the administrative area, and further expenses for the product development of the LIGHT Battery and the battery management system on the way to batch production.