Frequentis saw 18% growth in new order book in 2016 despite drop in public safety and transport business
Frequentis AG’s new order book grew by 18 per cent to an all-time high of €259.5 million in 2016, while its operating performance rose by 11 per cent from €227.9 million in 2015 to €252.2 million in 2016. However, the company, which is now in its 70th year, saw a one per cent decline in EBIT (earnings before interest and taxes) over the same period from €12.55 million to €12.43 million.
Last year’s order intake for Frequentis’ public safety and transport business segment amounted to €59.0 million, a 30 per cent decline on that reported for 2015 (€85.0 million). The segment’s operating performance also fell by 11.2 per cent to €91.7 million.
Frequentis’s annual report states: “For Public Safety, the business year of 2016 represented a challenge – there were postponements with several large-scale projects. However, the big key accounts in Norway, Germany, and Great Britain proved stable once more. In connection with the project for London’s police, an important milestone was reached: Here the new radio standard LTE will be used for the first time in the mission-critical environment, which means that Frequentis can prove its innovative leadership in the sector of command centres.”
“The new product line 3020 LifeX took up operation and went live in a command centre in South Tyrol; a large new order for the new software-based system was secured in Great Britain, another large order is to be awarded soon.”
The company’s relative exposure to the public safety market declined in 2016, due to its take-over of Comsoft GmbH’s main air traffic management (ATM) assets and the creation of Comsoft Solutions GmbH. ATM accounted for 77.3 per cent of Frequentis’ sales in 2016 compared to 22.7 per cent for public safety and transport.
Frequentis’ public safety R&D activities are focused on the continued development of its IP-based integration platform, 3020 LifeX, as part of a software-centred business model.