ALLGEIER SE / Key word(s): Preliminary Results
06.03.2015 18:12
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Munich, 06.03.2015 - Preliminary figures indicate that Allgeier SE (ISIN
DE0005086300, WKN 508630) recorded further growth in sales in continued
operations in financial year 2014 (1 January 2014 to 31 December 2014),
inspite of the difficult year for the Experts segment (as detailed in the
ad hoc announcement of 29 July 2014 and the half-year financial report to
30 June 2014), and turned in a positive result. In 2014 the Group continued
to pursue the change in strategy initiated two years ago. During the year
the management team once again devoted a great deal of time to ensuring
that the Group's three segments were more strongly focused on high-growth
and high-margin future-oriented business. In this context, in the past year
the Group disposed of DIDAS Business Services GmbH, Langenfeld, as well as
the Allgeier Benelux business unit (Allgeier N.V., Belgium, Allgeier
Computer BV, Netherlands, Allgeier S.A., Luxembourg, Allgeier Ltd., Cyprus
and Allgeier Ltd., Turkey). In accordance with IFRS, both units are
included in the financial statements under the heading of discontinued
operations. The process of focusing will continue in 2015.
Given the wide variations in the development in business in individual
segments in financial year 2014, in the interests of greater clarity the
preliminary figures for the three segments are detailed hereinafter as
additional information, followed afterwards by the figures for the Group:
Experts segment (IT personnel services)
The Experts segment achieved preliminary sales of EUR 228.6 million in 2014
(previous year: EUR 245.3 million), representing a decline of 7 percent.
This was primarily attributable to the conclusion of a major project at the
end of the year 2013, as well as to the effects of labour market policy
uncertainties in the first half of 2014. Preliminary value added (aggregate
performance less sales costs and personnel costs directly attributable to
sales) accordingly declined to EUR 38.5 million, down 7 percent relative to
the year before (previous year: EUR 41.5 million), equating to a gross
margin of 16.9 percent (previous year: 16.9 percent). Preliminary EBITDA
from operations (before extraordinary effects and effects relating to other
periods) was down by a disproportionate 32 percent to EUR 10.3 million
(previous year: EUR 15.1 million). One of the main reasons for this is that
the company refrained from personnel downsizing and, in particular,
invested in sales and marketing instead, as well as in improved internal
structures, which was reflected by an above-average acquisition of new
customers compared with previous years.
Solutions segment (IP and IT Solutions)
The Solutions segment (continued operations) increased its sales by 6
percent to EUR 88.6 million (previous year: EUR 83.9 million) according to
preliminary figures. Preliminary value added (gross margin) accordingly
rose by 5 percent to EUR 29.2 million (previous year: EUR 27.8 million),
equating to a gross margin of 33.1 percent (previous year: 32.9 percent).
However, preliminary EBITDA from operations (before extraordinary effects
and effects relating to other periods) slipped by 15 percent to EUR 5.3
million (previous year: EUR 6.3 million). Material factors contributing to
the decline included investments in developing a business unit acquired by
the Group in August 2014. This resulted in a nominal charge against
earnings (EBITDA) of EUR 1.2 million.
Projects segment (software development)
The Projects segment (software development) recorded strong growth of 26
percent, which lifted preliminary sales to EUR 114.8 million (previous
year: EUR 91.3 million). Preliminary value added increased by 29 percent to
EUR 41.8 million (previous year: EUR 32.4 million), equating to a gross
margin of 36.2 percent (previous year: 35.6 percent). Preliminary EBITDA
from operations (before extraordinary effects and effects relating to other
periods) climbed 22 percent to EUR 15.3 million (previous year: EUR 12.5
million).
Group
At the Group as a whole, preliminary consolidated revenues from continued
operations as per IFRS in financial year 2014 came in at EUR 428.3 million
(previous year: EUR 414.8 million), representing growth of 3 percent.
Preliminary value added at operational level rose by a disproportionate 8
percent to EUR 109.6 million (previous year: EUR 101.7 million), equating
to a gross margin of 25.4 percent (previous year: 24.1 percent). Allgeier
has now taken another step along the path towards increasing the
fundamental profitability of its business operations. The development of
the Experts segment, which was accompanied by extraordinary, non-recurrent
items, in the past year should not disguise the fact that around two thirds
of the value added by the Group was achieved with a gross margin averaging
over 33 percent.
As a result of the situation described above at the Experts segment and the
investments in developing the Solutions segment, the result for the Group
as a whole was somewhat lower than in the year before: Preliminary EBITDA
from operations (before extraordinary effects and effects relating to other
periods) slipped by 10 percent to EUR 25.6 million (previous year: EUR 28.5
million). Preliminary extraordinary earnings for financial year 2014 were
negative at EUR -2.2 million (previous year: EUR 0.6 million). Significant
contributing factors in this instance were the effect of currency
fluctuations and currency hedging, as well as non-recurrent costs incurred
through financing the Group totalling EUR -1.5 million (previous year: EUR
-0.6 million). Preliminary consolidated EBITDA from continued operations
accordingly amounted to EUR 23.4 million (previous year: EUR 29.8 million).
Preliminary consolidated EBIT (earnings before interest and taxes) from
continued operations came in at EUR 10.6 million (previous year: EUR 16.5
million). The Group generated preliminary pre-tax earnings from continued
operations in the amount of EUR 6.3 million (previous year: EUR 12.5
million). The Group received proceeds of EUR 3.0 million from the disposal
of the business entities according to preliminary figures.
Preliminary revenues from continued and discontinued operations in the past
financial year amounted to EUR 456.5 million (previous year: EUR 477.6
million). Preliminary EBITDA from continued and discontinued operations
during the period amounted to EUR 23.4 million (previous year: EUR 30.1
million).
The preliminary figure for equity rose to EUR 102 million as of 31 December
2014 (previous year: EUR 94.7 million). Excluding discontinued operations,
the Allgeier Group had liquidity at its disposal as of 31 December 2014 in
the amount of EUR 98 million (previous year: EUR 46.7 million). Current and
non-current financial liabilities on the balance sheet closing date had
increased to EUR 125.2 million (previous year: EUR 75.5 million). The
balance sheet total at the end of the financial year stood at EUR 331
million (previous year: EUR 289.3 million).
Outlook for financial year 2015
In view of the widely varying developments at its individual segments,
Allgeier SE has decided that an adequately transparent and comprehensive
illustration of the company's current development in this situation should
include an outlook for the financial year 2015.
The outlook for the individual segments is as follows:
- The Experts segment has achieved the turnaround back to growth
development in the second half of 2014 and expects the investments made
in previous years to pay for themselves in 2015. The segment is
endeavouring to achieve a single-digit percentage increase in sales
accompanied by corresponding growth in earnings. Furthermore, the
segment is soon to be further expanded through further acquisitions.
- The Solutions segment continues to focus on growth areas such as
Medical IT, Productivity and Mobile Solutions, Banking and Insurance
Solutions as well as BPM solutions and is aiming to achieve a
double-digit percentage increase in sales along with substantially
higher earnings. Additionally, this segment will also be further
expanded by acquisitions in 2015.
- The Projects segment with over 2,700 highly qualified employees
committed to excellence in high-end software development and
engineering is in an outstanding position to achieve further strong
growth accompanied by high margins. The segment plans to generate
double-digit growth in sales with a corresponding increase in earnings.
Also in this segment, the concrete intention is to boost further growth
by acquisitions.
Plans for the Group as a whole anticipate overall sales growth in the
single-digit range in financial year 2015, but with a disproportionately
strong increase in earnings. The projected figures relate exclusively to
the organic development of the existing Group and do not include any
variations in the portfolio, whether as a result of further acquisitions or
due to further divestments.
Allgeier SE is working intensively towards a clear and dynamic development
of its portfolio in order to focus the Group's strategic orientation in the
marketplace and take the Allgeier Group to the next level by continuing to
sharpen its focus. A particular goal is once again in 2015 to accelerate
the future development of the business through further value-creating
acquisitions over and beyond current projections. To this end, even before
the past financial year came to an end, the Group had already begun to
restructure its finances on attractive terms for the years ahead (cf. ad
hoc announcement of 4 December 2014).
Note
All of the IFRS figures quoted in this announcement for financial year 2014
are preliminary and have not yet been conclusively verified by the Group
auditor. The aforementioned annual results from continued operations are
not comparable with the financial year 2013 owing to the retrospective
adjustment in the previous year to account for the disposal of the two
entities. Publication of the Allgeier annual report for 2014 is scheduled
for 30 April 2015. The statements on the year 2015 represent expectations
based on current plans and projections; there is no certainty that they
will be realized.
Contact:
Allgeier SE
Corporate Communications & Investor Relations
Dr. Christopher GroÃe
WehrlestraÃe 12
81679 Munich
Tel.: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-Mail: ir@allgeier.com
Web: www.allgeier.com
Allgeier SE is one of the leading IT companies for Business Performance
today: Allgeier combines the advantages of an international provider with
the merits of medium-sized companies with a growth strategy oriented
consistently to innovations and future trends, and an integrative business
model. Operating divisions, each with their individual specialist or
sector-related focal points, work together for more than 3,000 customers
from almost all sectors. With a highly flexible delivery model, Allgeier
covers the full range of IT services, from on-site and nearshore through to
offshore: A strong presence in India ensures flexibility and maximum
scalability of the services, supplemented by highly qualified expertise in
high-end software development. With more than 5.300 salaried employees and
over 1.200 freelance IT experts, Allgeier, as a one-stop shop, offers
customers a comprehensive portfolio of solutions and services. Allgeier's
customers include globally operating groups as well as innovative
medium-sized operations that wish to secure strategic advantages through
high-performing IT solutions, intelligent software and flexible personnel
services. This high-growth company, which is based in Munich, Germany,
operates at more than 90 sites in the German-speaking region, and at
further locations in the rest of Europe, as well as in India, Mexico and
the USA. In 2014 Allgeier generated EUR 428 million of revenue (continued
operations), according to preliminary figures. Allgeier SE was ranked first
in the Lünendonk(R) List 2014 of "Leading German medium-sized IT consulting
and system integration companies". The Allgeier Experts division ranks
among the top three IT personnel service-providers in Germany according to
the Lünendonk(R) 2014 market segment study "The market for recruiting,
mediating and managing IT freelancers in Germany". The company is listed on
the regular market of the Frankfurt Stock Exchange in the General Standard
segment (WKN 508630/ISIN DE0005086300). Further information is available on
the company's website at: www.allgeier.com.
06.03.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ALLGEIER SE
WehrlestraÃe 12
81679 München
Germany
Phone: +49 (0) 89 - 99 84 21 0
Fax: +49 (0) 89 - 99 84 21 11
E-mail: info@allgeier.com
Internet: http://www.allgeier.com
ISIN: DE0005086300
WKN: 508630
Indices: CDAX
Listed: Regulated Market in Frankfurt (General Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Allgeier reports sales growth in financial year 2014
| Source: EQS Group AG