SLM Solutions continues to record growing performances—after a challenging 2020—with growing revenues. The SLM Solutions H1 2021 results saw a strong increase in the order intake: the company received orders totaling a value of €24.7 million, compared to only €13.7 million in the first half of 2020, which was heavily burdened by the COVID-19 pandemic.
Revenues increased slightly to €31.7 million (H1 2020: €31.2 million). In H1 2020, SLM benefited from multiple one-offs effects such as a forgivable loan for its US entity, short-time work at its German headquarter in Lübeck and the release of accruals. The Company’s Order backlog improved by €11.0 million to €30.2 million year-on-year (30 June 2020: €19.2 million) which reflects the improved order intake and provides a healthy basis for the acceleration in revenue growth that is expected for the second half of 2021.
NXG ready for take off
Sam O’Leary, CEO of SLM Solutions commented: “SLM Solutions reports a positive business development for the first half of 2021. The easing of COVID-19 related meetings, travel and other restrictions due to increasing vaccination levels globally have improved overall operating conditions considerably. The easier interaction with our customers compared to the first half of 2020 is well reflected in the increase in our order intake and order backlog. We expect our business to continue to pick up over the coming months and, in terms of revenue, a strong second half of the year. For the years after 2021, the NXG XII 600 is evolving as intended as the important driver of SLM’s further growth. Some weeks ago, SLM Solutions signed the first Memorandum of Understanding with a company in the US aerospace industry regarding the delivery of the NXG XII 600. The first system delivery is scheduled for Q2 2022. Additionally, we aim to conclude MoU negotiations with two other customers in the US aerospace industry in Q3 2021. From our point of view, these encouraging dynamics on the sales side illustrate that the NXG XII 600 is well underway to become the laser powder bed fusion system of choice for key players in the aerospace, automotive and energy sectors.”
The company is confirming the outlook for the full FY 2021, based on the sound Order backlog and the overall business dynamics, expecting revenue growth of at least 15% compared to 2020 and a year-on-year improvement in EBITDA.
Dirk Ackermann, CFO of SLM Solutions added: “The financial results achieved for the first half of 2021 are in line with our internal operating plan. In addition, we are also pleased with the steps we have successfully taken to strengthen the company´s balance sheet. These include, in particular, the issuance of the second tranche of convertible bonds in April and the capital increase in July 2021. Combined, the two transactions generated gross proceeds of around EUR 40 m for SLM Solutions. We believe we are well-positioned to finance the next growth steps planned for our company. This includes, among other things, the already announced establishment of a presence on the US West Coast. SLM Solutions has secured a location and started recruitment to establish a Center of Excellence for nickel-based superalloys on the West Coast. The facility is expected to be operational in Q4 2021.”
No formnext (it’s not you)
Besides creating some challenges in terms of demand in 2020, COVID-19 also pushed SLM Solutions to embrace a more digital marketing approach. As a result, the company will not be attending Formnext this year, citing a successful year of digital communications as its primary reason.
The company will continue to communicate coming news and releases digitally, while also investing more into its customer experience and infrastructure and incentives for its team. To foster the next generation of additive experts, SLM Solutions intends to distribute funds to education programs to help facilitate the next generation of additive experts.
CEO Sam O’Leary commented: “Despite restrictions related to the pandemic, we’ve had one of our best years yet — and this has been in part due to going digital about our products, our people, and our culture.” The company saw an overwhelming amount of success in the past year with its NXG XII 600 and Free Float launches and has added even more world leaders in the Space, Automotive and Medical industries to its roster.
“Our decision to not attend Formnext is not about saving money, and it’s for sure not about having none: it’s about sticking to our digital path while concentrating even harder on our three most important groups: Our customers, team, and the global community.” – O’Leary commented.
To back up this statement, it will upgrade the experiences of both its customers and its team with improved infrastructure, services, and incentives in a myriad of new and exciting ways. In addition to this, they will grant promising students with a passion for engineering a better financial chance. Exact details will be released in the coming weeks — digitally, of course.
“It is essential for us to give back. This year, we will financially aid a few of the next generation of additive experts. In doing this, we aim to give them and, in turn, the world, a brighter future.”