Singulus Technologies AG Facing Uncertain Future

NuWays AG has released a research update on Singulus Technologies AG, flagging significant risks to the company's future. The preliminary Q2 numbers show sales at €20.1 million, falling short of the estimated €22.5 million. EBIT met expectations at €0.6 million, supported by cost-cutting measures.

Singulus has revised its FY24 sales guidance from €120-130 million to €95-105 million, and EBIT from "low double-digit millions" to €3.0-6.5 million. However, weak order intake suggests these new targets might still be optimistic.

The primary concern is the company's unsecured financing. Singulus has yet to secure a reorganization agreement with CNBM for a €20 million loan due in August and September. Additional discussions with the Bank of Shanghai for a €10 million loan are also unresolved.

The risk of CNBM not supporting further financing poses a threat to Singulus's going concern. CNBM's roles as a supplier and shareholder may eventually lead to constructive support, but the situation remains uncertain until financing is secured.