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UMT announces value and risk adjustment for Buchberger and for UMS

By 25. June 2024No Comments

UMT announces value and risk adjustment for Buchberger and for UMS

UMT United Mobility Technology AG (“UMT AG”, Securities identification number WKN: A2YN70, ISIN: DE000A2YN702) announces an impairment for both Buchberger companies and for UMS United Mobile Services GmbH (“UMS GmbH”) in the 2023 annual financial statements. The shares in the Buchberger Group (Buchberger Baugeräte Handel GmbH and Buchberger Baumaschinen Service + Vermietung GmbH) will be written down by EUR 15,200 thousand from EUR 15,300 thousand to EUR 100 thousand.

The reasons for this strategic decision are explained below.

Uncertainty even in the event of victory in the 2nd instance
With regard to the investment in the two Buchberger companies and the associated legal dispute, UMT AG generally expects a favorable ruling in Munich. However, the timing of this decision is very difficult to predict from today’s perspective. Even in the event of a positive outcome in the second instance, the investment is subject to further legal uncertainties, such as an appeal to the Federal Court of Justice. The companies cannot be used by UMT AG today and for an unforeseeable period of time. In addition, the issue as a whole is complex and difficult to communicate, and neither UMT AG shareholders nor investors can be expected to wait any longer for a court decision.

Economic uncertainty & lack of transparency
Just as the legal situation is uncertain, the economic situation of the two companies is not transparent for UMT AG. UMT AG has no access to the two Buchberger companies and therefore no insight into their annual financial statements or other important information, such as plans, which are important for a valuation. These circumstances also speak in favor of the write-down.

Lack of strategic importance
As we have already communicated, UMT AG will focus on digital and scalable growth. The business model as it was associated with Buchberger at the time is no longer in line with this strategy.

Capital market has already reflected the measure
Last but not least, the capital market has already fully anticipated this measure in UMT AG’s share price.

The decision to write down the investment in UMS GmbH by EUR 5,600 thousand from EUR 8,486 thousand to EUR 2,886 thousand was made on the basis of the valuation carried out for reasons of prudence due to the realignment of the company to be implemented and the general economic situation. In order to achieve sustainable success, considerable investments had to be made and capacities expanded accordingly. The investments in the operating business are aimed at sustainably strengthening the company’s earning power and will have a positive impact on sales and earnings in the future.

“The stock market buys the future – it buys potential for performance and dividends. And as long as this potential is not clearly visible or threatened by legal risks, it does not buy. With the value adjustments, we are creating possible hidden reserves, consistently eliminating risks and thus enabling the share price to recover. We can hold forward-looking discussions with investors and are once again in a position to talk to companies in order to acquire them. In addition, the sales activities that UMS has initiated are already beginning to bear fruit,” explains Erik Nagel, CEO of UMT AG.

About UMT AG:
As an innovative company, UMT United Mobility Technology AG stands above all for the integration of customized solutions in the field of digitization and automation of business processes. The self-developed payment hub, AI and blockchain enable UMT AG to be successful in the rapidly growing and sought-after segment of supply chain management solutions. The focus here is on digital and scalable solutions for the B2B segment. In addition to organic growth, UMT AG aims to acquire both customers and technologies through targeted acquisitions of companies. The IT and consulting expertise built up over a decade is the basis for value-creating investments in companies that contribute to the digital transformation of SMEs.

UMT United Mobility Technology AG shares (WKN: A2YN70, ISIN: DE000A2YN702) are traded on the Frankfurt Stock Exchange and are listed on the Basic Board of Deutsche Börse AG.