's-Hertogenbosch, August 29, 2022

Preface

The war that also affects a number of our customers, the aftermath of Corona and the drawing up of the MOU regarding the deal with the English sensor company have made it 1e attracted the necessary management attention for six months. It is therefore positive that the Due Diligence on the English company is almost completed and that we can start drawing up the SPA.

The start-up of the Propulsion Controls company, in which we have a 50% interest, has been very successful and will continue in the 2e half of the year will contribute to additional turnover within our company and a significant profit from our 50% shareholding.

Half-year figures

Explanation of the half-yearly figures and the past half-year

The first half of 2022 was the period in which the NPEX loan was written off, the LOU was signed with the English Sensor Company and the start-up of the Propulsion Controls company, in which a 50% stake is held.

The costs, preparation of documentation and costs related to booking out, to ultimately acquire the NPEX loan were considerable. In the first half of 2022, this involved an amount of approximately €57.000, which had a clear impact on the result.

The Due Diligence on the English Sensor company is almost completed and we are on the eve of drawing up the SPA. The prospects of the English company are good and above expectations.

The Dutch company in Propulsion Controls has made a flying start. The order book is filled beyond expectations and all service work will continue PAT KRUGER be done. Black figures have already been recorded in the first six months of its existence.

Any relevant changes within the company

Management:

  • As of July 1, we have appointed a new financial manager. This was necessary to improve the MIS (management information system).
  • We also have an operational manager in the Netherlands from August 1. This has also proven to be important in connection with the development within the Propulsion Controls company, which has made a very positive start

Governance:

  • We have expanded the RvA (advisory board) to 2 people.

Preview of the coming period

With the planned takeover of the English Sensor company, the expected large orders from the Middle East and the significantly higher than forecast turnover at the Propulsion Controls company, we still believe that the forecast used in the prospectus will be maintained. However, the distribution of turnover and the distribution of profit will be different.

In short:

  • We maintain expected turnover (consolidated with the English Sensor company and the additional work via the Propulsion Controls company) at € 7.558.000 and this also applies to the EBIT of € 441.00. In other words, we maintain the budget.;
  • Order intake consists of regular orders. Extraordinary large orders have not yet been confirmed. Decision making is delayed
  • This month we will deliver the first order of our in-house developed wireless load cells. These are characterized by much greater range and better battery life. Also local reading via app on Android and IOS platforms.
  • ATEX CCTV systems are now also available with IP cameras in addition to analog. First systems delivered last 2 months.
  • New markets, as already explained, the market that focuses on propulsion controls, or electronics products and services for shipping, is a new market.
  • We expect the SPA with the English company in the beginning of the 4e quarter completed;
  • External circumstances that could have an impact on business operations (for example: Corona, inflation, chip shortage, situation in Ukraine, etc.);

PAT-Krüger Group BV

 

Coert Kleijwegt

Group Managing Director