DGAP-News: GFT Technologies AG / Key word(s): Half Year Results
GFT Technologies AG: GFT posts revenue growth in second quarter
09.08.2012 / 07:13
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GFT posts revenue growth in second quarter
- Services division achieves year-on-year revenue growth of 4 percent in
first six months of 2012
- Resourcing division's core business grows by 5 percent
- Total revenue of EUR 116.38 million in first half-year in line with
expectations
- Pre-tax earnings of EUR 3.78 million reflect investments in innovation
topics
- Positive development over course of year: Services division records
quarter-on-quarter earnings growth of 35 percent in second quarter as
well as increase in new orders
- Full-year 2012 guidance confirmed: Executive Board expects total
revenue of EUR 250 million and pre-tax earnings of EUR 12 million
Stuttgart, 9 August 2012 - GFT Technologies AG (GFT) can look back on a
dynamic development in the second quarter and closed its first half-year
2012 according to plan. At EUR 116.38 million, revenue was in line with
expectations and below the prior-year figure of EUR 141.80 million due to
the company's strategic withdrawal from low-margin business in its
Resourcing segment. EBT amounted to EUR 3.78 million (previous year: EUR
5.52 million) and included investments in the innovation initiative
CODE_n12 amounting to EUR 1.32 million. Business made encouraging progress
in the second quarter of 2012: in its consulting business, GFT raised
earnings over the first quarter by 35 percent; there was also a strong
increase in new orders. 'We can feel a surge in demand from the finance
sector. Our investments in future markets are already showing signs of
success and laying the foundation for stronger growth in the second half of
the year,' concludes GFT's CEO Ulrich Dietz. 'We see rising demand for the
flexible staffing of technology projects with highly skilled personnel as
well as for mobile financial services. We will continue to focus on such
future-oriented topics and, in view of the second half-year ahead, are
optimistic that we can reach the targets we set ourselves for the year as a
whole.' GFT's Executive Board still expects the company to reach revenue of
EUR 250 million and EBT of EUR 12 million.
Revenue: segment revenue of Services division up 4 percent year on year;
Resourcing segment down 34 percent on previous year
In the first six months of the year, GFT generated total revenue of EUR
116.38 million and thus 18 percent less than in the same period last year
(EUR 141.80 million). Compared to the first quarter of 2012 (EUR 57.65
million), however, revenue rose to EUR 58.73 million in the second quarter.
The year-on-year decrease resulted from a fall in revenue in the Resourcing
division. Due to the scheduled termination of cooperation with a customer
from the financial sector in the low-margin Third Party Management
business, segment revenue amounted to EUR 55.53 million (previous year: EUR
83.54 million). The decline in Third Party Management revenue to EUR 10.94
million (previous year: EUR 41.14 million) was offset in part by the
positive development of the segment's higher-margin Resource Management
business. The latter raised revenue by 5 percent to EUR 44.60 million
(previous year: EUR 42.40 million), due mainly to growing business with
clients in the telecommunication sector and strong global demand for IT
experts and engineers.
The Services division raised segment revenue by 4 percent year on year and
contributed EUR 60.85 million to total revenue (previous year: EUR 58.26
million). This was due to the acquisitions in Switzerland and the USA made
in 2011.
A comparison of the GFT Group's national markets reveals that France
achieved particularly strong organic growth in the period under review.
Thanks to the dynamic development of its Resource Management business,
revenue was raised here by 29 percent. The revenue reduction in Third Party
Management had a particularly strong impact on business in Germany, where
revenue fell by 44 percent. Switzerland and the USA displayed year-on-year
growth of 28 percent and 72 percent, respectively. The aforementioned
acquisitions had positive effects in both cases. In the USA, revenue growth
was also fuelled by rising demand in the field of corporate and investment
banking. This trend was also increasingly noticeable in the UK, which
performed better than initially expected with a slight decline of 6
percent. Despite the ongoing adverse conditions for the finance sector in
Spain, the high revenue level in this market was expanded further by 6
percent.
EBT: 32 percent down on previous year due to investments
In the first six months of 2012, pre-tax earnings amounted to EUR 3.78
million (previous year: EUR 5.52 million). This figure includes group-wide
investments in innovation topics. Expenses of EUR 1.32 million incurred for
the international innovation initiative CODE_n12, for example, had a
dampening effect on EBT in the first quarter. In a quarterly comparison,
EBT rose by 98 percent from EUR 1.27 million in the first to EUR 2.51
million in the second quarter.
Earnings in the Services division made particularly strong progress over
the course of 2012: following EUR 1.81 million in the first quarter,
earnings reached EUR 2.44 million in the second - an increase of 35
percent. All in all, the segment posted earnings of EUR 4.25 million in the
reporting period and was thus just slightly below the prior-year figure of
EUR 4.56 million. In the first six months of 2012, the Resourcing division
contributed EUR 1.15 million to total earnings (previous year: EUR 1.65
million) and fell short of expectations due to weaker results in the UK and
Switzerland.
Other key figures: balance sheet structure remains solid; rise in headcount
As of 30 June 2012, net income for the first half-year amounted to EUR 2.36
million and was thus below the prior-year figure of EUR 3.63 million. Cash,
cash equivalents and securities rose by 68 percent to EUR 30.40 million
(previous year: EUR 18.09 million). Earnings per share came to EUR 0.09
(previous year: EUR 0.14). As of the reporting date, the GFT Group had
1,371 employees - 54 persons more than on the same date last year (1,317).
The main reasons for this increase were acquisitions in the USA and an
expansion of activities in Spain. The number of people employed in Germany
as of 30 June 2012 amounted to 271 (previous year: 280).
Outlook: full-year forecast for revenue and earnings confirmed; growth
expected to gain pace in second half of year
'We expect growth to gain momentum in the second half of our financial year
2012,' explains GFT's CEO Ulrich Dietz. Above all, the GFT Group
anticipates a significant boost from its clients in corporate and
investment banking, which will have a positive impact on business in the
Services segment in the period up to year-end. In addition to outsourcing
services, financial institutes are expected to invest more heavily in IT
solutions which help meet compliance requirements as well as in mobile
banking services. In its Resourcing division, GFT sees the greatest growth
potential in the rising global demand for engineers and IT specialists for
international technology projects. 'The shortage of skilled personnel can
become a hindrance to further growth in many industries. With our global
network of experts, we can quickly meet the demand of numerous companies
for flexible, highly qualified specialists,' says Ulrich Dietz. For the
current financial year, the Executive Board of GFT has confirmed its
guidance and continues to expect revenue of EUR 250 million and EBT of EUR
12 million.
Detailed financial figures are available in the Investor Relations section
of the GFT website at www.gft.com/ir.
Key figures in accordance with IFRS*:
|[![CDATA[|[pre|]]]|]
IFRS figures in EUR million 01.01.-30.06.2012 01.01.-30.06.2011
Revenue 116.38 141.80
EBITDA 4.43 5.76
EBIT 3.67 5.13
Earnings before taxes (EBT) 3.78 5.52
Net income as of 30.06. 2.36 3.63
Earnings per share acc. to IAS 33 0.09 0.14
in EUR
Equity ratio in percent 57 53
Employees, absolute figure as of 1,371 1,317
30.06.
|[![CDATA[|[/pre|]]]|]
*Deviations possible due to rounding differences
About GFT:
As a strategic IT partner based in Stuttgart, Germany, the GFT Group helps
companies optimise their business processes by providing intelligent IT
systems and highly skilled specialists. Under the motto 'inspiring IT', GFT
converts cutting-edge technological developments into sustainable business
models.
GFT is one of the world's leading IT service suppliers for the finance
sector. It enables financial institutes to quickly and securely utilise
modern technologies in order to enhance their long-term competitive
standing. GFT combines established technological experience with
comprehensive industry expertise, in order to develop, implement and
maintain customised IT solutions. With its international network of
experts, GFT offers companies in all sectors the opportunity to manage the
staffing of their technology projects flexibly.
For 25 years, GFT has stood for technological expertise, innovative
strength and outstanding quality. Founded in 1987 by its current CEO,
Ulrich Dietz, GFT achieved revenues of EUR272 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, GEX).
Contact:
Andrea Wlcek
Director Global Marketing, Media & 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
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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180981 09.08.2012
DGAP-News: GFT Technologies AG: GFT posts revenue growth in second quarter
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