(Alliance News) - ErreDue Spa reported that it closed 2023 with a net profit of EUR3.4 million, doubling the 2022 figure of EUR1.7 million.

Revenues from sales and services amounted to EUR16.5 million, a significant growth of 34 percent compared to EUR12.3 million achieved as of December 31, 2022 with a 63 percent increase recorded in the Hydrogen sector.

"This result is due to the increase in all revenue categories and highlights how the company's growth strategies have made it possible to capture the development of the emerging energy transition market, which in the last year has begun to take advantage of the first incentive interventions, albeit still insignificant, by institutions. The excellent economic results were achieved despite the continuation of the Russian-Ukrainian conflict, countries in which ErreDue had developed significant revenues," the company explained.

The value of production amounted to EUR19.3 millionim in annual growth of 40 percent, and included, in addition to revenues, the 105 percent increase on the construction of leased machines, an important balance sheet item due to the high marginality it brings, the increase in inventories of work in progress, finished products deliverable in the first two months of 2024, and interest income accrued on cash investments.

As of Feb. 29, 2024, the company has a total backlog of about EUR13.6 million, of which about 85 percent relates to the current year resulting from about EUR7.7 million in sales and generators for rent, about EUR4 million in spare parts and maintenance work, and EUR2 million related to leases, confirming the significant growth expected in the current year. According to ErreDue's business model, orders acquired have a delivery process of three to six months; therefore, the shares of orders that can be filled in FY2024 will be further increased with requests arriving starting in March.

Ebitda stands at EUR5.9 million, a significant growth of 49 percent over the previous year. Ebitda margin stands at 35.7 percent from 32.1 percent in 2022. This indicator shows an increase of EUR1.9 million compared to FY2022, mainly attributable to the company's business model, which is characterized by strong vertical integration that has allowed it to maintain high margins and contain direct production costs; government incentives; increased visibility achieved through the listing; improved sales mix; and increased revenues from after market and leases. In continuity with the company's growth ambitions, 2023 was also affected by a significant increase in personnel costs - EUR905,000 - driven by staff upgrading to benefit in particular the production departments by 21 units.

Ebit was EUR4.1 million from EUR2.2 million as of Dec. 31, 2022, registering an increase of 84 percent.

Net financial position shows positive cash of EUR16.3 million compared to positive cash of EUR17.4 million as of December 31, 2022. This reduction was mainly determined by the absorption of increased financial resources related to the purchase of the new industrial area on which the "GigaFactory" will be built as well as the growth of inventories functional to support the increase in production for the construction of leased machines. Cash is up EUR1.4 million from June 30, 2023 due to operating performance.

The board proposed a dividend of EUR0.224 per share, to be paid on May 29, with ex-dividend date May 27 and record date May 28.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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