GFT Technologies AG / Preliminary Results
01.03.2010 07:28
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- Preliminary figures presented for financial year 2009
- Expected year-on-year fall in consolidated revenue of 8 percent to EUR
216.81 million (previous year: EUR 236.62 million)
- Weaker demand and price pressure in first half of 2009 cause fall in
pre-tax earnings (EBT) to EUR 7.86 million (EUR 9.62 million)
- Significant rise in revenue and earnings in second half of 2009
- Strong upturn in Services segment during year; year-on-year growth in
revenue to EUR 91.35 million (EUR 90.94 million)
- Dividend of EUR 0.10 per share proposed again
- Outlook 2010: revenue of EUR 230 million, EBT between EUR 8 and 9
million
Stuttgart, 1 March 2010 - International IT company GFT Technologies AG
(GFT) today announced its preliminary and unaudited financial figures for
the financial year 2009. While business in the first half of the year was
still marked by adverse market conditions, GFT displayed strong growth in
revenue and earnings in the second half of the year. As expected, total
revenue of EUR 216.81 million fell short of the corresponding figure from
the previous year of EUR 236.62 million. Cyclical pressure on prices and
weak demand placed a strain on earnings before taxes, which fell to EUR
7.86 million (EUR 9.62 million). 'Following a difficult start to the year,
we were able to end 2009 with a strong final spurt. We were quick to adapt
our portfolio of services to the challenging market environment. Demand was
particularly strong for our compelling outsourcing products and pioneering
banking solutions in the second half of the year. We have created an
excellent base for sustainable growth in 2010,' stated Ulrich Dietz,
Chairman of the Executive Board of GFT.
In accordance with IFRS regulations, the disclosed revenue and earnings
figures for the first time do not include the Software division, as it is
due to be sold. Consequently, total revenue of the GFT Group in 2009
amounted to EUR 216.81 million. Revenue was thus down 8 percent on the
previous year's figure of EUR 236.62 million. Whereas a total of EUR 158.80
million was generated in the first three quarters, revenue in the fourth
quarter alone reached EUR 58.01 million. Progress was particularly
encouraging in the Services division. In spite of the difficult conditions
in the financial services sector, this segment even exceeded the high
figure from the previous year of EUR 90.94 million with revenue of EUR
91.35 million. 'We benefited here from our strong customer retention and
succeeded in late 2009, for example, in concluding a multi-year contract
for the development and maintenance of IT applications with Deutsche Bank
that has laid the foundation for growth in 2010,' comments Ulrich Dietz.
Once again, the Resourcing division made the strongest contribution to
total revenue with EUR 125.45 million (prior year: EUR 145.68 million). The
Software division generated revenue of EUR 4.62 million (previous year: EUR
5.62 million). Earnings before taxes of the GFT Group amounted to EUR 7.86
million (previous year: EUR 9.62 million).
GFT thus exceeded its revenue and earnings forecast for the financial year
2009. Including the Software division, revenue of EUR 220 million and
earnings before taxes of at least EUR 6 million were expected. If figures
for the Software division are considered, the GFT Group posted total
revenue of EUR 221.43 million and earnings before taxes of EUR 6.82 million
in 2009.
Outlook
In view of the rising demand for innovative IT solutions in the financial
sector, the GFT Group expects to be able to continue its positive
development of late 2009 also in 2010. Although market conditions remain
challenging, the company expects to generate total revenue of EUR 230
million and earnings before taxes of EUR 8 to 9 million in the current
financial year.
'We can feel that demand is picking up again in the UK and the USA, where
the investment banking sector is gradually regaining stability,' explains
Ulrich Dietz. 'At the same time, we see a growing need for IT outsourcing
services and solutions for the implementation of regulatory requirements in
the banking sector. Financial institutes are also being forced to make
their customer management processes more efficient and to offer new mobile
banking solutions on the basis of existing innovative technologies. We see
strong growth potential in this area.'
Additional key data
With its focus on the financial services sector, the Services division
performed well under challenging market conditions and achieved slight
growth. The segment generated revenue of EUR 91.35 million (previous year:
EUR 90.94 million) and contributed EUR 6.21 million (previous year: EUR
7.60 million) to total earnings. The division had to cope with strong
pressure on prices caused by the economic downturn. In the course of the
year, there was increasing demand in particular for outsourcing services to
help companies create more flexible cost structures.
Once again, the Resourcing division made the strongest contribution to
total revenue with EUR 125.45 million (prior year: EUR 145.68 million). The
fall in revenue in this segment was mainly due to weaker demand for
freelance IT specialists in all sectors and countries. Low-margin Third
Party Management activities suffered from the effects of the financial
market crisis. The segment result amounts to EUR 2.75 million (previous
year: EUR 3.03 million).
Adverse market conditions for the sale of software products impacted
revenue in the Software division. At EUR 4.62 million, revenue was down 18
percent on the previous year (EUR 5.62 million). Measures to raise
efficiency helped improve earnings before taxes from EUR -3.09 million in
2008 to EUR -1.00 million in the year under review. The sale of the
Software division is due to be completed in the second quarter of 2010. In
accordance with IFRS regulations, the Software division is therefore
carried as 'discontinued operations' in the Consolidated Financial
Statements 2009. As a consequence, it is no longer disclosed in the key
figures of the GFT Group.
The economic upturn and gradual return to stability in the financial sector
are reflected in the revenue and earnings figures for the fourth quarter.
In a more buoyant market environment, GFT was able to impress clients with
its compelling range of services. In the last three months of the year
under review, the GFT Group posted revenue of EUR 58.01 million and
earnings before taxes of EUR 2.24 million.
Largely as a result of the growing demand in the Services divsion, the
number of employees grew by 117. As of 31 December 2009, the GFT Group
employed 1,144 people (previous year: 1,027); of this total, 282 (previous
year: 309) were employed in Germany.
On 31 December 2009, the GFT Group held cash and cash equivalents of EUR
37.71 million (previous year: EUR 35.20 million). Net income from continued
operations (without the Software division) amounted to EUR 6.19 million
(previous year: EUR 7.91 million). Undiluted earnings per share from
continued operations fell from EUR 0.30 in 2008 to EUR 0.23 in the year
under review.
Detailed financial figures are available in the Press section of the GFT
website at http://www.gft.com/ir
About GFT:
The GFT Group, based in Germany, is an international provider of innovative
IT solutions and services. More than 20 years of experience make the
company a reliable and strategic IT partner. With creative ideas, GFT
supports clients in three divisions to optimise their business processes
through intelligent IT systems and specialists and thus sustainably improve
their competitive positions.
GFT is among the world's leading IT service providers in the financial
services sector. For the development, implementation and maintenance of
customised IT solutions, the company combines established technology
experience with a wide range of industry expertise (Services division).
GFT recruits and places IT freelancers for businesses in all branches and
also takes care of the complete management package for their IT service
providers. The basis for this is a worldwide reserve of experts consisting
of over 180,000 freelance IT specialists (Resourcing division).
With the software environment inboxx, GFT provides a new generation of IT
solutions that make it possible to manage all archiving tasks within a
company via a uniform central infrastructure (Software division).
Ulrich Dietz founded GFT in 1987 and is now CEO of the Group that in 2009
achieved revenues of around 217 million EUR. It has more than 1,100
employees at locations in seven countries. GFT shares are listed on the
Frankfurt Stock Exchange (Prime Standard: WKN 580 060, GEX).
Contact:
Andrea Wlcek
Head of Corporate Communications and Investor Relations
GFT Technologies AG
FilderhauptstraÃe 142
70599 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek@gft.com
www.gft.com
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Language: English
Company: GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Deutschland
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: Investor-Relations@gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-News: GFT Technologies AG: Strong finish to financial year 2009 for GFT
| Source: EQS Group AG