"The increased commercial focus, partly on the basis of the innovation and product development of recent years, has resulted in revenue growth. Results were good, although there was not yet a clear economic recovery,” commented Loek de Vries, President and CEO.

“We look with confidence to the future with our new owners. The consortium of investors endorses the existing buy & build strategy. This implies that end users, customers and employees will continue to benefit from the long-term horizon of TenCate. The application of new materials with new standards is often accompanied by an extensive introduction phase in close co-operation with end users and partners in the value chain."

Developments

In 2015, TenCate revenues rose organically by 5% to EUR 1,159 million. Nominal revenue growth was 11%. Military protective fabrics, synthetic turf components and systems, as well as aerospace composites, accounted for most of the revenue growth. For the whole of 2015, revenues in the defense market represented 13% of the total, compared to 7% in 2014.

EBITA before exceptional items rose to EUR 68.3 million. The increase in the EBITA margin to 5.9% was primarily due to revenue growth and higher efficiencies at TenCate Grass.

Excluding exceptional items, the 2015 group net profit was EUR 41.6 million, compared to EUR 24.1 million in 2014. Reported net profit after exceptional items was EUR 34.1 million.

Advanced Textiles & Composites

Revenues of the Advanced Textiles & Composites sector grew organically by 8% to EUR 531.3 million in 2015. EBITA rose to EUR 32.9 million, compared to EUR 27.2 million in 2014. The EBITA margin of the Advanced Textiles & Composites sector was 6.2%, similar to the previous year. EBITA as a percentage of average net capital employed increased to 11.1%.

The revenue growth in this sector was mainly due to increased sales from the TenCate Defender M portfolio and to continued growth in aerospace composites. The demand for industrial protective fabrics fell sharply as a result of circumstances in the oil and gas industry. The growth in revenues of TenCate Advanced Armour at the end of the year was too limited to offset the sharp decline in previous quarters.

Geosynthetics & Grass

Revenues of the Geosynthetics & Grass sector grew organically by 4% to EUR 611.7 million in 2015, compared to EUR 538.7 million in 2014. EBITA rose to EUR 42.6 million and the EBITA margin of the Geosynthetics & Grass sector amounted to 7.0%. EBITA as a percentage of average net capital employed rose to 10.0%, compared to 6.1% in 2014.

As in the previous year, most of the revenue growth came from synthetic turf components and systems of TenCate Grass. Excluding currency effects, revenues of TenCate Geosynthetics were slightly lower than in the previous year. The rise in EBITA margin in this sector was mainly due to improved efficiencies through higher utilisation rates at TenCate Grass.

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