Investor

Investor Relations

 

Current situation

Since the last capital increase in 2017, Andres Industries AG has grown steadily. In the past two years alone, the increase in turnover amounted to 50% in each case and a corresponding increase was originally also expected for 2022.

 

On Friday 20 May, the 19th Annual General Meeting of Andres Industries AG unanimously decided, on the advice of the 20th Supervisory Board meeting, to instruct the Executive Board to carry out a comprehensive capital increase. For this purpose, all necessary obligations will be clarified next month in cooperation with a law firm. Subsequently, the subscription procedure will be started. Subject to this clarification, an issue price of 350 euros per share is currently assumed.
 
However, the intensification of the security situation is leading to a considerable increase in demand for our products. Here, we are now well above our initial planning. Military projects that we have been working on for a long time and which were only planned for procurement in the coming year must now be brought forward in view of their acute urgency and in some cases considerably increased.

As a result, an increase of up to 500% is expected for the coming business year. Based on the order situation as well as political and market trends, it is already foreseeable at this point in time that this rate of development will continue for the next few years.

 

Order situation

In view of the current order situation, however, it must be stated that such growth cannot be achieved with our own resources. In the meantime, we have several procurement projects of more than 1000 units each of military thermal imaging equipment with a total value in the double-digit millions. Almost without exception, the customers are armed forces of NATO countries or allied partners. Advance payments are generally unusual here, and accordingly, we can expect corresponding liquidity gaps in the advance financing of the material.

Without additional capital, this would mean that deliveries to some customers would inevitably have to be postponed to the future or orders would even have to be rejected altogether. We are aware of our responsibility and, given our function as a guarantor of safety, this is the last option.

But it is not only concrete projects that require reliable financing. The same applies no less to the area of product development. Due to limited (personnel) capacities, the full potential cannot yet be exploited here. The technical know-how has been available for years: For example, we have a self-developed main electronic system in use, which is characterised by its small size. This enables us to develop the smallest thermal imaging systems on the world market. The devices of the TILO and TigIR series are proof of our quality as well as our innovative spirit and laid the foundation for the current success of the company in recent years. The interest shown so far and the advance orders for our latest development, the PumIR thermal imaging attachment, also indicate a successful series launch before the end of this year.

 

Outlook

However, these three systems are only a selection of many more possible devices. In the coming year, we want to use the unused potential of our electronics for at least two more new types of thermal imaging devices, which in terms of their compactness and innovation should be in line with their predecessors and clearly surpass them in their capabilities. In order to realise these development goals, a significant expansion of the development department is necessary.


Capital increase

Since 2006 Andres Industries has been run as a "small" public limited company and is therefore not listed on the stock exchange. Company shares can therefore only be acquired through direct trade between shareholders or new issues. The former has not been the case so far and the latter last took place in 2017. Since then, our turnover has increased almost six-fold. In view of the current global political situation and our development opportunities, we are planning a further capital increase this year and, in this third round, are also opening up to a larger circle of private investors for the first time.

On 20 May 2022, AIAG's shareholders will meet together with the Board of Directors and the Supervisory Board at the annual general meeting to decide on the next steps.

On this page and via a separate newsletter, we will report regularly on the key developments of the coming months. In addition to basic information on the capital-technical procedure and deadlines, this will also include investor-relevant news on current orders and projects as well as general news from and about Andres Industries AG.

Of course, we are also happy to receive questions and suggestions.

 

 

Berlin, 16.05.2022 Dr Björn Andres (Executive Board)