Binect AG: HALF-YEAR REPORT PUBLISHED – CONTINUED GROWTH; AGAIN STRONG LARGE CUSTOMER BUSINESS
Group revenue increased to EUR 11.0 million (+19.6%) Major orders as driver, growth in standard products moderate Costs reduced, EBITDA improved to EUR 338 thousand (+40.7%) Operating cash flow positive, liquidity position remains good Good start to the second half of the year Weiterstadt, September 18, 2025. Binect AG (ISIN: DE000A3H2135) continued the successful development of the previous year in the first half of 2025. At around 20%, the increase in revenue was once again significantly above the industry average, and EBITDA even increased by around 41% despite the difficult economic environment. A look at the revenue mix also shows, however, that growth in the SME business, which is important for scaling, with the solutions and services sold under the company's own Binect brand, has not yet picked up full speed again. "This high growth proves once again that our solutions, from SaaS to on-premise, are attractive for public authorities, SMEs, and large customers, and that we can offer customers a one-stop shop for all their digital outgoing mail. At the same time, we were unable to shift the revenue mix more significantly toward SME products as planned in the first six months. We are seeing high levels of interest in the market, but the current economic situation has made it less predictable for us to do business. Some confirmed orders are being canceled shortly before the scheduled start after several rounds of negotiations. Adjusted for the effect of the loss of a tendering customer last year, growth in the SME sector is still around 11%, which is double-digit. After a relatively subdued second quarter, revenue picked up again in July, and the sales pipeline is quite well filled. Converting these into fixed and valuable customer contracts for 2025 is the key task for the coming months," commented CEO Dr. Frank Wermeyer on Binect's situation and prospects. Sales, earnings, and asset position Overall, consolidated sales increased to EUR 10,984 thousand in the first half of 2025 (H1 2024: EUR 9,184 thousand). This represents an increase of 19.6% compared to the same period of the previous year. Sales from large customers were significantly above target during the reporting period, while sales in the standard business were below target. The realized new business growth was offset by the loss of a high-volume customer in the previous fiscal year, so that sales growth in the SME business was lower than expected at 1.5% to EUR 5,443 thousand (H1 2024: EUR 5,355 thousand). At 49%, the share of SME products in total sales in the first half of 2025 was below the previous year's figure. (H1 2024: 57%). On the cost side, two developments can be observed: Firstly, the revenue mix realized in the first half of 2025 led to a changed margin mix. In particular, the significant expansion of business with AOK Niedersachsen led to a disproportionate increase in material costs, which primarily consist of the purchase of printing and delivery services. Secondly, personnel costs decreased despite the significant increase in revenue due to the significantly improved automation and scaling options resulting from "Project ONE." Overall, these effects had a positive impact on EBITDA, which improved by EUR 98 thousand to EUR 338 thousand in the reporting period (H1 2024: EUR 240 thousand). EBIT improved by EUR 87 thousand to EUR -29 thousand (H1 2024: EUR -116 thousand). The consolidated net loss, excluding deferred taxes, which are only determined at the end of the financial year, amounted to EUR -47 thousand (H1 2024: EUR -124 thousand). This represents an improvement of EUR 77 thousand, despite a reduction in the amount of own work capitalized by EUR 46 thousand. Binect AG remains financially sound. Cash flow from operating activities was positive at EUR 118 thousand in the first half of 2025 (H1 2024: EUR 13 thousand). Total cash flow after investing and financing activities amounted to EUR -56 thousand in the reporting period (H1 2024: EUR -201 thousand). Cash and cash equivalents thus totaled EUR 2,260 thousand as of June 30, 2025 (December 31, 2024: EUR 2,316 thousand), and the equity ratio improved to 72.7% (December 31, 2024: 61.6%) due to the significant decline in total assets. Outlook: In the first half of 2025, Binect AG increased revenue more significantly than expected and also improved EBITDA despite the difficult overall economic environment. This successful development is expected to continue in the second half of the year, with a key focus on achieving stronger growth in the strategic SME business through the "Product-Led Growth" approach launched with Binect ONE. Targeted, sales-supported upselling is intended to increasingly convert new customers from the lower market segment into high-volume medium and enterprise customers. However, the market environment remains extremely volatile; Economic uncertainty and the economic challenges facing many medium-sized companies make it difficult to predict the future business performance of small and medium-sized enterprises (SMEs) in 2025. Despite these challenges, Binect's business model, which is geared toward various market segments, continues to win new, long-term (major) customer contracts. Larger tender customers acquired in the last fiscal year are also reporting increasing shipment volumes, and the onboarding backlog that persisted at the beginning of the year is gradually dissolving. Furthermore, the current strategic initiatives to further develop the offering toward a (ONE!) platform for input and output (management of incoming and outgoing documents) and digital AI-supported value-added services demonstrate that Binect is becoming increasingly attractive for strategic partnerships that allow for the relatively easy implementation of digital value-added services on the ONE platform. Discussions with potential partners offering complementary services are ongoing. Based on the development to date in all business areas, as well as taking into account the aforementioned challenges and the unpredictability of bulk mailings from major customers in the year-end business, the Management Board currently stands by its original forecast for the full year. This forecast predicts revenue growth of 2.5 to 5% with a disproportionately strong increase in EBITDA. Binect management will closely monitor developments, consistently pursue its strategic direction, and take all necessary measures to achieve its short- and long-term corporate goals. The complete 2025 Half-Year Report is available for download on the Binect website at www.binect.com. The Management Board will present the figures in a conference call today at 11:00 a.m. (CEST).
