Delignit

DB: DLX

€54.2m market cap

€6.62 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

Delignit continues to please with a 16% rise in FY18 EBITDA despite a demanding comparative and one-off contract as well as project start-up costs. Automotive, the major sector, stole the show with revenue up a quarter thanks to strong OEM activity and the maximisation of revenue per vehicle. This momentum, allied with an initial contribution from a potentially transformative OEM motor caravan order, underpins guidance of further double-digit growth in 2019 revenue at maintained EBITDA margin. Finances are healthy (year-end net debt was inflated by a temporary delay in customer receipts), allowing investment (up c 20% in FY18) and a progressive dividend policy.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (10.1) (11.3) (20.7)
Relative* (11.0) (11.8) (19.3)
52-week high/low €8.4/€5.8
*% relative to local index
Key management
Markus Buescher CEO