Both of Hydratec’s core activities – Industrial Systems and Plastic Components – contributed almost equally to a positive EBITDA; 8.9% and 9.1% respectively.

Industrial Systems

Revenue at Industrial Systems increased by 3.6% due to the acquisition of Rollepaal. Autonomously, revenue at Industrial Systems decreased by 14.6%, due to customers’ reluctance to make major replacement investments. Although the gross margin increased, the acquisition of Rollepaal and the reorganisation which followed meant that, on balance, costs increased significantly. The Systems segment saw a substantial drop in its operating profit, partly due to losses at Rollepaal. However, the reorganisation has laid the foundation for structurally sound business operations at Rollepaal.

Plastic Components

Plastic Components experienced a slight drop in revenue (5.2%) as a result of the COVID-19 pandemic. The segment had to contend with disappointing revenue from automotive customers and out-of-home-food customers, particularly in the second quarter. After that, revenue recovered. The gross margin increased due to a better product mix and purchasing benefits. Despite cost savings, a non-recurring restructuring provision caused operating results for Plastic Components in 2020 to be significantly lower in comparison to 2019.

Bart Aangenendt (CEO) on the past year:

“2020 was a bizarre year. Part of the demand very suddenly dropped significantly and we were forced to terminate certain operations. All this affected our financial results for 2020, but we were able to generate a modestly positive result nonetheless. By making decisive choices, we will emerge stronger from the crisis. Operational and strategic agility is crucial in this hectic period. Our organisational set-up with independently operating companies close to the market has proved to be a sound structure well-suited for these dynamics.”

Key figures 2020 vs 2019

(€ millions)	2020	2019
Net revenue	217.6	219.6
Gross margin	114.4	108.5
Operating result (EBIT)	3.3	10.2
Operating result before depreciation (EBITDA)	17.6	18.8
Net profit from continuing operations	3.5	6.6
Net profit per share (in euros)	1.01	5.16
Solvency ratio	31.8%	29.5%

2020 Annual Report

Hydratec Industries will publish its full 2020 Annual Report on Friday 26 March 2021. The audit currently has not yet been fully completed.

Proposed Dividend

In connection with the NOW subsidy received for a number of companies, no dividend will be paid over 2020. In the autumn of 2021, we will decide whether there is scope for an interim dividend.

Outlook for the 2021 financial year

Hydratec enjoyed a good start to 2021 and, partly due to the implemented cost-saving measures, the intensified focus and the effect of reorganisations, expects better results for 2021. Industrial Systems has a well-filled order book. There are however major differences across companies. The COVID-19 pandemic has caused uncertainty, especially in the food and mobility markets at Plastic Components, but the recovery in the second half of 2020 gives confidence for 2021.

Due to the exceptional circumstances caused by the coronavirus crisis, we are unable to make more specific statements about 2021. As always, macroeconomic developments such as volatile exchange rates, trade barriers, and now the coronavirus pandemic, have an effect on our customers’ willingness to invest. The companies’ market position, each in its own niche, remains strong, however.

Hydratec Industries is listed on Euronext Amsterdam NV (ISIN NL0009391242, ticker: HYDRA).

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