Delignit

DB: DLX

€42.6m market cap

€5.2 last close

Delignit is a German manufacturer of ecological products and system solutions based on hardwood for the automotive, rail and safety equipment industries. It was acquired by Germany-based industrial holding company MBB in 2003 and was later listed in 2007. 70% of group sales are derived domestically.

Investment summary

After further positive guidance in April, Delignit’s H119 earnings shortfall (EBITDA down 16%) and full-year profit warning are all the more disappointing. In mitigation, the company has arguably been a victim of its own successful Automotive OEM business in ramping up for special call-offs that may yet materialise, while incurring higher costs than planned for a still potentially transformative motor caravan order. Management now expects 2019 revenue of €64m (ahead of last year but below the original forecast of €70m) and an EBITDA margin between 6% and 7% (originally 9.3%, as in 2018). Its confidence in Delignit’s strategic direction and long-term prospects appears to remain undimmed.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual 19.5 (24.2) (25.7)
Relative* 13.3 (32.8) (35.1)
52-week high/low €7.9/€4.1
*% relative to local index
Key management
Markus Buescher CEO