DGAP-News: GFT Technologies AG / Key word(s): Preliminary Results
GFT Technologies AG: GFT raises core business revenue in 2012,
earnings up 10 percent
28.02.2013 / 07:15
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GFT raises core business revenue in 2012, earnings up 10 percent
- Revenue growth of 3 percent in core business
- Consolidated revenue falls to EUR 230.69 million due to withdrawal from
Third Party Management activities
- Pre-tax earnings (EBT) up 10 percent to EUR 12.11 million
Stuttgart, 28 February 2013 - GFT Technologies AG (GFT) today announced its
preliminary and unaudited financial figures for the financial year 2012. At
EUR 230.69 million, consolidated revenue was down 15 percent on the
previous year (EUR 272.38 million). The planned reduction of lower-margin
Third Party Management business amounts to around EUR 50 million. Adjusted
for this discontinued revenue contribution, core business grew year on year
by 3 percent. Consolidated pre-tax earnings climbed 10 percent to EUR 12.11
million (prev. year: EUR 11.05 million).
'The GFT Group performed well in a challenging economic environment,'
states GFT's CEO Ulrich Dietz. 'We sharpened our profile and extended our
leading position in the finance sector as a strategic partner for
innovative IT solutions. With the realignment of our Resourcing division
under the emagine brand, we are helping growth sectors staff their
technology projects with highly skilled specialists. We will steadily
continue the solid growth of our core business by delivering innovations
and top quality to support our clients' business,' adds Ulrich Dietz.
Revenue: solid growth in core business
As part of its realignment, the two business divisions of the GFT Group
were renamed as GFT Solutions (formerly Services) and emagine (formerly
Resourcing).
As an IT solutions provider for the finance sector, the GFT Solutions
division achieved revenue growth of 5 percent to EUR 121.05 million in 2012
(prev. year: EUR 115.50 million). This growth rate is well above the global
growth of the IT Services market, which Gartner's market specialists put at
2.8 percent in 2012. There was a positive impact on revenue in this
division from the rising demand for corporate and investment banking
solutions in the USA. The division's contribution to consolidated revenue
rose to 52 percent (prev. year: 42 percent).
In the emagine division, revenue was down 30 percent year on year to EUR
109.54 million (prev. year: EUR 156.38 million). This decline resulted from
the planned reduction in lower-margin Third Party Management activities of
around EUR 50 million to EUR 18.57 million (prev. year: EUR 68.38 million).
The staffing of technology projects with highly skilled IT specialists and
engineers generated revenue of EUR 90.97 million for emagine, corresponding
to year-on-year growth of 3 percent (prev. year: EUR 88.00 million). All in
all, this division's share of consolidated revenue fell to 47 percent
(prev. year: 58 percent).
The withdrawal from Third Party Management business in connection with
modest capital spending in the banking sector led to a decline in
consolidated revenue in Germany of 39 percent. Business was also down in
Switzerland by 11 percent, compared to the previous year. The GFT Group's
strongest revenue growth was reported in the USA, with an increase of 38
percent. In addition to considerable organic growth, this figure also
includes the positive effects of an acquisition made in 2011 which added
consulting expertise for the investment banking sector. Driven by demand
for IT and engineering specialists, business in France also grew by an
encouraging 20 percent. There was stable revenue growth in the UK (up 3
percent) and Spain (up 1 percent).
EBT: growth in consolidated earnings of 10 percent
In 2012, the GFT Group achieved earnings before taxes of EUR 12.11 million,
corresponding to year-on-year growth of 10 percent (EUR 11.05 million).
These earnings include income of EUR 2.38 million from the adjustment of
the purchase price for the Service division of G2 Systems LLC, USA,
acquired in 2011, as well as expenditure of EUR 1.35 million for the
innovation initiative CODE_n. The GFT Solutions division increased its
contribution to earnings to EUR 12.86 million (prev. year: EUR 9.01
million). In the emagine division, segment earnings fell to EUR 2.32
million (prev. year: EUR 3.49 million), partly due to the discontinuation
of its Third Party Management business.
The GFT Solutions division increased its contribution to earnings to EUR
12.86 million (prev. year: EUR 9.01 million). In the emagine division,
segment earnings fell to EUR 2.32 million (prev. year: EUR 3.49 million),
partly due to the discontinuation of its Third Party Management business.
The result from eliminations amounted to EUR -3.07 million (prev. year: EUR
-1.45 million).
Outlook
In its financial year 2013, GFT expects further growth in the GFT Solutions
division. 'With our innovative solutions for Mobile Applications and Big
Data Analytics, we are targeting the current growth fields of our finance
sector clients. We also see rising demand for solutions to meet the growing
compliance requirements in this field,' says Ulrich Dietz.
In the course of its realignment, the emagine division expects to have
almost completed its withdrawal from German Third Party Management
activities in 2013. GFT anticipates further strong progress in its
consultancy business for the staffing of technology projects. As Ulrich
Dietz explains: 'We expect companies in the growth sectors we are targeting
to have growing demand for IT and engineering experts who are highly
specialized and willing to contribute their expertise in challenging
projects.' The GFT Group will announce its guidance for the current
financial year 2013 on publication of its final results on 28 March 2013.
Dividend payment
In line with its stable dividend policy, the Executive Board will recommend
that the Supervisory Board proposes a dividend of EUR 0.15 once again for
the financial year 2012 at the Annual General Meeting. This would
correspond to a total dividend payout of EUR 3.95 million.
Additional key data
In the fourth quarter of 2012, GFT posted revenue of EUR 56.08 million
(prev. year: EUR 64.51 million) and earnings of EUR 4.31 million (prev.
year: EUR 2.00 million).
As of 31 December 2012, the GFT Group employed 1,386 people - an increase
of 49 employees compared to the previous year (31 December 2011: 1,337). In
Germany, headcount totalled 273 as of the balance sheet date - 16 fewer
employees than one year before.
On 31 December 2012, the GFT Group had cash and cash equivalents of EUR
40.42 million (previous year: EUR 39.68 million). Net income amounted to
EUR 8.34 million and was thus slightly up on the previous year (EUR 8.29
million). Basic earnings per share for the period under review amounted to
EUR 0.32 (prev. year: EUR 0.31).
Detailed financial figures are available in the Investor Relations section
of the GFT website at http://www.gft.com/ir
Key figures (unaudited)
<pre>
IFRS figures in EUR million 01.01.-31.12.2012
01.01.-31.12.2011
Revenue 230.69 272.38
EBITDA 13.35 11.84
Total depreciation 1.57 1.35
EBIT 11.79 10.49
Earnings before taxes (EBT) 12.11 11.05
Net income 8.34 8.29
Earnings per share acc. to IAS 33 in EUR 0.32 0.31
Equity ratio in percent 61 55
Employees, absolute figure at year-end 1,386 1,337
</pre>
* Deviations possible due to rounding differences
About GFT:
As a strategic technology partner based in Germany, the GFT Group helps
companies optimize their business processes by providing intelligent IT
solutions and highly skilled specialists.
GFT is one of the world's leading IT solution suppliers for the finance
sector. Under the motto 'inspiring IT', GFT enables financial institutes to
quickly and securely utilize modern technologies. GFT combines established
technological experience with comprehensive industry expertise in order to
develop, implement and maintain customized IT solutions.
With its subsidiary emagine, the GFT Group enables companies in selected
growth sectors to quickly and flexibly staff their technology projects.
emagine combines comprehensive business understanding with established
technological know-how. Moreover, emagine has an international network of
highly qualified IT and engineering specialists.
For over 25 years, the GFT Group has stood for technological expertise,
innovative strength and outstanding quality. Founded in 1987 by its current
CEO, Ulrich Dietz, GFT achieved consolidated revenue of around EUR 272
million in 2011. The GFT Group is represented in seven countries by its 22
local facilities. A global team of over 1,300 employees and 1,300 external
consultants implement complex IT projects across various countries. The GFT
share is listed on the Frankfurt Stock Exchange (Prime Standard: WKN 580
060).
Andrea Wlcek
Director of Global Marketing, Media & Investor Relations
GFT Technologies AG
Filderhauptstr. 142
DE-70599 Stuttgart
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
Germany
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, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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202560 28.02.2013
DGAP-News: GFT Technologies AG: GFT raises core business revenue in 2012, earnings up 10 percent
| Source: EQS Group AG