AC-Service AG / Quarter Results
30.04.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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AC-Service AG Quarterly Results: Major Advances in 1st Quarter
Largest licensing deal in corporate history / Sales increase 19% /
Significant progress in operating earnings / Stefan Land new CFO /
Realignment leads to newly formed business divisions / Outlook confirmed
for full 2008 year
Stuttgart, 30 April 2008 AC-Service is off to a successful start in the
financial year 2008. The results for the 1st quarter show once again the
kind of strength that comes from a business model that is becoming better
integrated, embraces the entire IT value chain of small to mid-sized
businesses and enables comprehensive service and support for the customer.
This end-to-end sales and support approach also proved to be a success
factor in the largest licensing deal in the companys history, which the
AC-Service unit All for One landed in the 1st quarter of 2008 along with a
whole series of other new client projects.
Realignment taking giant steps forward
The realignment that began in 2007 with the goal of becoming a leading IT
service provider for SAP in the German-language midmarket segment is making
great strides in 2008. The new Chief Financial Officer is Stefan Land. The
reorganisation of the board of directors, which began in 2007, is now
complete. The decision to sell the wholly-owned subsidiary ACCURAT
Informatik GmbH is another consequence of the focus on the SAP midmarket
segment. The exclusive sales negotiations that were announced on 14
February 2008 have started. ACCURAT has been reported separately as a
discontinued operation (IFRS 5) since that time. The realignment and the
implementation of the strategy are also reflected in a change in the
reporting of the AC-Groups operating segments (IFRS 8). The two business
units »Integrated Solutions« and »HR Solutions« highlight this newly
formed, integrated business model.
Continued robust and dynamic growth curve
The AC-Group is continuing with its robust and dynamic approach to
expansion in the 1st quarter of 2008. Big gains in sales compared to the
corresponding prior-year quarters have now been posted over 9 consecutive
quarters. Not including the discontinued ACCURAT division, sales grew 19%
to EUR 21.7 million in this 1st quarter of 2008. The 1st quarters EBITA
was EUR 0.8 million (Q1 2007: EUR 1.1 million) and the EBIT was EUR 0.6
million (Q1 2007: EUR 0.9 million). The prior-year EBITA and EBIT mentioned
include investment tax credits in the amount of EUR 0.7 million that are
attributable to other periods. A comparison on an adjusted basis shows an
increase in EBITA of +81% and in the EBIT of +197% and illustrates the
excellent progress that was made in operating earnings performance during
the 1st quarter of 2008. Earnings after taxes totalled EUR 0.1 million
(prior-year quarter: EUR 0.5 million) and represent quarterly earnings per
share of 2 euro cents (Q1 2007: 10 euro cents) in the continuing divisions.
The staffing strength as at the end of the quarter increased 19% from 367
to 438 full-time employees. Total cash and cash equivalents declined from
EUR 7.4 million (31 December 2007) to EUR 5.2 million and are at a
relatively low level. The sustained high speed of growth and the further
expansion of IT infrastructures also result in an investment peak in 2008,
which cannot be funded solely from the operating cash flow. A new
debt-financing strategy geared to the longer term has been developed. The
negotiations with financing partners that are currently in progress should
be concluded in the course of the 2nd quarter of 2008 and will enable the
AC-Group to continue with its dynamic growth strategy.
The good operating results of the 1st quarter of 2008 will keep the
AC-Group among the fastest-growing IT services companies in the SAP
midmarket segment. The Management Board has confirmed its projections for
the full 2008 financial year of achieving annual sales of EUR 82 to 85
million, an EBITA of EUR 2.3 to 2.7 million, as well as an EBIT of EUR 1.3
to 1.7 million.
The full Quarterly Report 1/2008 will be published as scheduled on 8 May
2008.
Additional information is available on the Internet at www.ac-service.com
Background Information on AC-Service AG
Operating primarily in Germany, Austria and Switzerland, AC-Service is an
industry focussed IT full service provider for the mid-sized business
market. Market observers rank AC-Service among the leading companies
serving the German-language market for SAP. AC-Service AG features a number
of established brands including AC, All for One, Process Partner and KWP.
Originating in Switzerland, the AC-Group has been operating for over 45
years, offers a sustainable track record and serves over 1,000 clients.
With wide-ranging expertise in the whole of the IT value chain, AC
implements integral solutions providing SAP licenses and software
maintenance, industry solutions, business consulting, business
intelligence, managed services on a »leading edge technology« basis, human
capital management as well as HR business process outsourcing. With its
outstanding service culture and extensive industry know-how, the AC-Group
makes claim to a quality leadership with excellent customer satisfaction
and service quality. AC-Service pursues a clear growth strategy and expects
sales of around EUR 82 million to EUR 85 million in 2008 without the
ACCURAT division (»discontinued operations«). AC-Service AG is listed in
the Prime Standard segment of the Frankfurt Stock Exchange (ISIN
DE0005110001, WKN 511 000) and is a subsidiary of BEKO HOLDING AG, which
owns approximately 55% of its stock.
www.ac-service.com/english
Contact:
AC-Service AG, Dirk Sonntag, Tel. 0049 (0)711 78807-260, eMail
dirk.sonntag@de.ac-service.com
DGAP 30.04.2008
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Language: English
Issuer: AC-Service AG
Schockenriedstr. 7
70565 Stuttgart
Deutschland
Phone: 07 11-7 88 07-260
Fax: 07 11-7 88 07-222
E-mail: info@de.ac-service.com
Internet: www.ac-service.com
ISIN: DE0005110001
WKN: 511000
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: AC-Service AG Quarterly Results: Major Advances in 1st Quarter
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