Ad-hoc | 29 August 2006 08:39

AC-Service AG Posts Major Sales Growth

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— AC-Service AG Posts Major Sales Growth Sales in second quarter almost 50% better than same quarter a year ago. Growth factors hold earnings from keeping pace with sales. Market position produces strong rise in projects for new and existing customers. Stuttgart, 29 August 2006 – AC-Service AG, a full-scale service provider focused on Managed IT Services, SAP Solutions and Human Resource Services, today published its quarterly report in which it details closing the second quarter of 2006 with sales of EUR 17.4 million (prior year: EUR 11.7 million) and an EBITA of EUR 0.3 million (prior year: EUR 0.1 million). With that, AC-Service has posted an increase in sales of almost 50% to EUR 33.3 million (prior year: EUR 22.2 million) for these first six months of 2006. The EBITA of EUR 0.7 million for the first half of 2006 (prior year: EUR 0.7 million) includes one-time costs of some EUR 0.2 incurred in the first quarter of 2006 in connection with the provision of the loan for acquiring All for One Midmarket Solutions. The half-year earnings after taxes were minus EUR 1.3 million (prior year: EUR 0.3 million) and include additional one-time costs totalling EUR 0.4 million that arose in the first quarter of 2006 for arranging the acquisition financing. The income tax expense of EUR 1.0 million (prior year: EUR 0.4 million), which rose so sharply over that of last year, only affected liquidity in the amount of EUR 0.3 million (prior year: EUR 0.2 million). The semi-annual earnings per share (IFRS) were minus 24 euro cents (prior year: plus 6 euro cents). The company enjoys a healthy balance of accounts. At the end of the first half of the year, shareholders’ equity accounted for 41% (31 Dec 05: 63%) of the balance sheet total, while cash and cash equivalents totalled EUR 11.3 million (31 Dec 05: EUR 11.9 million). The EUR 1.8 million (prior year: EUR 1.9 million) in cash flows from operating activities include EUR 0.6 million in cash used for one-time costs in connection with the provision of the loan to acquire All for One Midmarket Solutions. The semi-annual average number of full-time equivalents was 405 (prior year: 298 FTEs) and there were 430 people (prior year: 303 people) employed in the AC Group at the end of this first half of the year. With the integration of All for One, AC-Service AG is pursuing a growth strategy and moving into the top positions among SAP service providers on the German-language market for small to mid-size companies. The board of directors still maintains that the goals announced in the annual financial statements published in March 2006 will be reached for the full 2006 year. According to these goals, the annual sales for 2006 should lie within the approximate range of EUR 67 to 70 million. The Managed IT Services, Human Resource Services and Other Operations divisions finished the first half of 2006 above the earnings expectations of the board of directors. The ability to reach the projected earnings (EBITA) in the range of some EUR 2.4 to 2.9 million will depend to a great extent on how well the current earnings deficiencies within the SAP Solutions division can be overcome. Even against the backdrop of an improved economic climate, there is a good volume of orders for the second half of the year in addition to a whole range of promising projects. Additional information available at www.ac-service.com ————————————————————————— Information and Explaination of the Issuer to this News: Background Information on AC-Service AG Operating primarily in Germany, Austria and Switzerland, AC-Service AG is an industry focussed full-scale IT service provider for the mid-size business market. Market observers rank AC-Service AG among the leading companies serving the German-language market for SAP and HR services. AC-Service AG features a number of established brands including AC, ACCURAT, All for One, Process Partner and KWP. Originating in Switzerland, the AC Group has been operating for over 45 years, has amassed an impressive track record and now serves over 1,200 clients. With wide-ranging expertise in the whole of the IT value chain, AC implements integral solutions providing SAP licenses and software maintenance, industry solutions, business consulting, business intelligence, managed IT services on a “leading edge technology basis”, payroll and human capital management as well as HR business process outsourcing. With its outstanding service culture and extensive industry know-how, the AC Group makes claim to a quality leadership and is regularly recognised with awards for outstanding customer satisfaction and service quality. AC-Service AG pursues a clear growth strategy, currently employs around 420 staff members (prior year: around 300) and expects sales of around 67 to 70 million Euros (prior year: EUR 45.7 million) in 2006. AC-Service AG is listed in the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0005110001, WKN 511 000) and is a subsidiary of BEKO HOLDING AG, which owns approximately 52 percent of its stock. Contact: AC-Service AG, Dirk Sonntag, Tel. 0049 (0)711 78807-260, eMail dirk.sonntag@de.ac-service.com (c)DGAP 29.08.2006 ————————————————————————— Language: English Issuer: AC-Service AG Schockenriedstr. 7 70565 Stuttgart Deutschland Phone: 07 11-7 88 07-260 Fax: 07 11-7 88 07-222 E-mail: info@de.ac-service.com WWW: www.ac-service.com ISIN: DE0005110001 WKN: 511000 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————