Brockhaus Technologies AG: Subsidiary IHSE on course for profitable growth with record order situation in current fiscal year 2023

Brockhaus Technologies AG: Subsidiary IHSE on course for profitable growth with record order situation in current fiscal year 2023

• IHSE receives largest single order in the company’s history from the air traffic control sector
• Order backlog currently at record level of around €13 million
• Outlook 2023: Significant growth in revenue and earnings expected at IHSE

Frankfurt am Main, April 26, 2023. In April 2023, with a volume of over €7 million, IHSE, a subsidiary of Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42), received the largest single order since the company was founded in 1984. The customer is a major government aviation agency. With the help of IHSE’s technology, around 1,500 air traffic controllers at 21 air traffic control locations will be able to monitor around 74% more aircraft simultaneously on their screens than before thanks to more efficient data processing once the project is implemented. IHSE thus makes a significant contribution to improving national aviation safety.

IHSE and kvm-tec, which has been part of IHSE since November 2021, develop, produce, and sell KVM technology (keyboard, video and mouse) for highly secure, latency-reduced and loss-free data transmission of often high data volumes in “mission-critical” applications. For example, IHSE products are used in air traffic control, hospitals, utilities, transportation, banking, seafaring, semiconductor production and control centers in general.

Order backlog more than doubled to around €13 million compared to year-end 2022

The major order was placed to coincide with the NAB Show, which was held April 15–19 in Las Vegas and is one of the most important trade shows in the broadcasting market. At the show, IHSE saw high customer interest and a number of visitors that even exceeded the pre-COVID-19 year 2019. Including this order, IHSE’s order backlog reaches a record level of around €13 million – as of December 31, 2022, it was still at €5.9 million. This shows a continuation of the upward trend already evident in 2022, after the company had suffered noticeably from the COVID-19-related global travel and contact restrictions in the last two years.

IHSE sees great revenue and earnings potential for 2023 and subsequent years

The current development confirms the Management Board’s optimism that IHSE will be able to achieve significant revenue growth in fiscal year 2023 and, against the backdrop of an easing of material costs and within the supply chains, also a noticeable increase in profitability. The Security Technologies segment achieved revenue growth (before PPA) of more than 10% to €36.1 million and an adjusted EBITDA margin of 23.9% in fiscal year 2022.

The segment's successes are based on the further development of existing KVM systems, the development and market launch of new hybrid solutions and further market potential from obtaining additional regulatory certifications in accordance with the highest IT security standards. In this context, IHSE is benefiting from global digitization and increasing connectivity in many application areas – from autonomous driving to connected production and from the need to safeguard against the growing number of cyberattacks worldwide.

“The current development of our subsidiary IHSE in fiscal year 2023 is very positive. IHSE’s high-performance and secure solutions are meeting ever-increasing demand in a world of uncertainty and threats. The major contract we have just landed in the air traffic control sector once again confirms our conviction that with IHSE we have a growing, highly profitable and global technology leader in our group of companies – the kind of pearl we are constantly on the lookout for,” adds Marco Brockhaus, founder and CEO of Brockhaus Technologies.

Next release date:

Brockhaus Technologies’ Q1 2023 report will be released on Monday, May 15, 2023. As usual, an earnings call for investors and analysts is planned for the same day.

For more information about the company, please visit: https://www.brockhaus-technologies.com/en/

About Brockhaus Technologies

Based in Frankfurt am Main, Brockhaus Technologies AG (BKHT, ISIN: DE000A2GSU42) is a technology group that acquires high-margin, high-growth technology and innovations champions with B2B business models in the German Mittelstand. With a unique platform approach and a long-term horizon, Brockhaus Technologies actively and strategically supports its subsidiaries in achieving profitable long-term growth, both across industries and internationally. At the same time, Brockhaus Technologies offers a gateway into these non-listed German technology champions, which are otherwise inaccessible to capital market investors.

Contact information

For investors:

Paul Göhring
Phone:  +49 69 20 43 40 978

Fax:  +49 69 20 43 40 971

E-Mail:  ir@brockhaus-technologies.com

For Media:

GFD - Gesellschaft für Finanzkommunikation
Phone:  +49 69 97 12 47 33

Fax:  +49 69 97 12 47 20

E-Mail:  dietz@gfd-finanzkommunikation.de