Ad-hoc | 24 March 2004 01:00

AC-Service AG -Good Performance in a Tough Environment – Dividend Recommendation

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AC-Service AG -Good Performance in a Tough Environment – Dividend Recommendation Sales decline by 7% to EUR 48.3 million, EBIT at EUR 1.3 million (prior year: EUR 2.8 million), Earnings per share of 21 euro cents on par with last year. Strong balance sheet. Positive multiple-year trend. Dividend distribution recommended for the first time. Stuttgart, 24 March 2004 – Following an exceptional increase in 2002 – primarily caused by a number of special projects – AC-Service closed the financial year 2003 with declines in sales and EBIT stemming from a difficult market environment. An overall positive trend is evident, however, when looking at results over the past several years. As an IT service provider focused on outsourcing, human resources und SAP consulting services, the company finished the financial year 2003 with sales of EUR 48.3 million (prior year: EUR 52.0 million), an EBITDA of EUR 7.7 million (prior year: EUR 9.7 million) and an EBIT of EUR 1.3 million (prior year: EUR 2.9 million). Included here are charges and earnings of a one-time nature or relating to other periods, as well as regular goodwill amortisation of EUR 0.8 million (prior year: EUR 1.0 million). All operating business divisions reported positive segment earnings. Despite the drop in EBIT, the after-tax profit of EUR 1.1 million (prior year: EUR 1.2 million) and the earnings per share of 21 euro cents (prior year: 22 euro cents) are still just about at the same level as a year ago. This is attributable to the application of deferred tax assets from prior years. Through continued stock buy-backs, the average number of shares outstanding declined to 5 264 703 (prior year: 5 381 755). Cash and cash equivalents as at 31 December 2003 totalled EUR 13.4 million (31 Dec 02: EUR 12.3 million), while the shareholders’ equity of EUR 26.4 million (31 Dec 02: EUR 26.2 million) accounted for 62% (31 Dec 02: 59%) of the balance sheet total of EUR 42.8 million (31 Dec 02: EUR 44.6 million). AC-Service’s average annual staffing strength was 317 people (prior year: 338). In view of actions undertaken to reduce costs and an anticipated slight decline in overall sales in line with a modest economic recovery, the Board of Directors expects an increase in operating earnings for 2004. The Board of Directors and Supervisory Board will be recommending to the annual general meeting a dividend distribution of 15 euro cents. Additional information on the Internet at http://www.ac-service.com . end of ad-hoc-announcement (c)DGAP 24.03.2004 ——————————————————————————– WKN: 511000; ISIN: DE0005110001; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 240100 Mär 04