Corporate | 7 November 2013 07:09
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GFT Technologies AG / Key word(s): Quarter Results
GFT posts accelerated growth. Revenue up 22 percent in third quarter of 2013
– GFT Solutions division grows by 30 percent in the first three quarters – Pre-tax earnings after nine months up 44 percent on previous year – Full-year guidance for pre-tax earnings raised to around EUR 16 million
‘We are delighted with the good performance of the GFT Solutions division, which has grown steadily stronger over the course of the year. The successful integration of Sempla has strengthened our range of solutions. We look forward with confidence to the fourth quarter and the continuation of our growth trajectory,’ states GFT’s CEO Ulrich Dietz.
Dedicated to delivering IT solutions for the finance sector, the GFT Solutions division posted revenue growth of 30 percent to EUR 117.82 million in the first nine months (prev. year: EUR 90.48 million), of which EUR 10.20 million was contributed by the newly integrated Sempla S.r.l. Adjusted for this revenue contribution, GFT Solutions posted growth of 19 percent. This strong organic growth was helped by rising demand for outsourcing services and investment banking solutions, especially in the UK and Germany. Segment earnings rose by 62 percent to EUR 12.85 million (prev. year: EUR 7.93 million). With its consultancy services for the staffing of technology projects, the emagine division posted revenue of EUR 67.61 million – 20 percent down on the previous year (EUR 84.13 million). This decline in revenue resulted mainly from the planned discontinuation of its low-margin Third Party Management (TPM) business. As a result, the TPM business contributed just EUR 2.33 million (prev. year: EUR 16.55 million) to segment revenue.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the GFT Group rose by 48 percent to EUR 13.05 million in the first nine months (prev. year: EUR 8.81 million). The newly consolidated Sempla S.r.l. contributed income of EUR 0.93 million to EBITDA. The EBITDA result includes tax-free income of EUR 1.73 million from an adjustment to the expected purchase price for Asymo AG, acquired in 2011, as well as costs for the CODE_n innovation drive and CeBIT fair presence amounting to EUR 0.97 million (prev. year: EUR 1.35 million). Earnings before interest and taxes (EBIT) improved by 47 percent to EUR 11.27 million (prev. year: EUR 7.65 million). In the first nine months of 2013, earnings before taxes (EBT) amounted to EUR 11.21 million and were thus 44 percent up on the previous year (EUR 7.80 million). The operating margin before taxes improved by 1.5 percentage points, from 4.5 percent in the previous year to 6.0 percent. In the reporting period, the GFT Group generated net income of EUR 8.38 million, corresponding to growth of 64 percent over the prior-year figure (EUR 5.10 million). The calculated tax ratio amounted to 25 percent, compared to 35 percent in the previous year.
The earnings contribution of the GFT Solutions segment rose by 62 percent to EUR 12.85 million in the first nine months (prev. year: EUR 7.93 million), corresponding to an improvement in the operating margin to 10.9 percent (prev. year: 8.8 percent). This disproportionately strong increase in earnings, compared to revenue, resulted mainly from a higher utilisation rate and the adjustment of the remaining purchase price for Asymo AG. Segment earnings of the emagine division were burdened by expenses involved with the division’s realignment, especially in the first six months. Following an upturn in the third quarter, segment earnings for the first nine months amounted to EUR 0.41 million (prev. year: EUR 1.59 million).
Due to the positive development of business and high utilisation of capacity in the GFT Solutions division, headcount at the Spanish development centres was increased by 19 percent to over 1,000 during the reporting period. All in all, the number of full-time staff employed by GFT increased to 2,029 as of 30 September 2013 (prev. year: 1,371).
Following a first six months in line with expectations and a strong third quarter, the GFT Group expects business to make further progress in the fourth quarter. The Executive Board has therefore upgraded its full-year guidance for pre-tax earnings issued in August to around EUR 16 million (formerly at least EUR 15 million) and expects revenue for the full year to increase to at least EUR 260 million (prev. year: EUR 230.69 million) with an EBITDA result of around EUR 19 million (prev. year: EUR 13.35 million). Detailed financial figures are available in the Investor Relations section of the GFT website at http://www.gft.com/ir .
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Contact:
Contact: Andrea Wlcek Director Global Marketing, Media & Investor Relations GFT Technologies AG Filderhauptstraße 142 70599 Stuttgart Germany T +49 711 62042-440 F +49 711 62042-301 andrea.wlcek@gft.com www.gft.com End of Corporate News 07.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| 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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