Page 27 - Hoftex Annual Report 2018 EN

Following a less than satisfactory fiscal year in 2018, the HOFTEX division also began the year with a certain level of restraint. Customer call-offs have slowed and statements regarding order quantity forecasts remain cautious. This behaviour clearly reflects the general uncertainty in the economy. The sales teams have worked with engineering and production for years to implement customer de- mands in the most effective, individualised manner possible while ensuring that processes remain cost effective. Successive investments in new equipment and technology have helped the dyeing plant embrace the trend towards smaller batch sizes and shorter delivery cycles. It is becoming increasingly difficult to find qualified personnel for production, particularly at the Drebach site. Our efforts here include training and qualifying employees from other areas.
Due to the major political uncertainties, the economic situation and the business prospects in the markets and industries relevant to Hoftex Group companies, we anticipate sales to be sluggish overall for the current fiscal year, anywhere from -5 % to +5 % compared to the previous year (EUR 174.1 million). EBITDA is expected to be between EUR 17.0 million to EUR 19.0 million, below that of the year prior.
We are planning on investing EUR 16 million in 2019. The largest share will go to the TENOWO loca- tions in Hof and Mittweida. While Hof is now acting on comprehensive modernisation plans it has had for some time for its facilities, Mittweida is building a new administrative building and technical centre.
Letter to Shareholders Supervisory Board Report Group Management Report Consolidated Financial Statements Annexes
The various TENOWO locations have been hiring a steady stream of new employees over the years to keep pace with expansion investments in the TENOWO division. There are no plans to reduce personnel during the 2019 fiscal year, meaning that the number of employees will remain constant.
However, for our expectations to be met it is important that global political frictions do not have a more profound effect on economic conditions than anticipated and therefore do not have a sustained negative effect on the economy.
Hof, 29 March 2019 HOFTEX GROUP AG
The Management Board
Klaus Steger Robert Seibold
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