Ad-hoc | 28 February 2012 15:47
REALTECH AG / Key word(s): Final Results
28.02.2012 15:47
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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REALTECH AG: provisional consolidated annual figures for 2011
- Slight decrease in Group revenue
- Consulting revenues of EUR 26.4 million
- Software revenues of EUR 12.7 million
- Income from operations reduced to EUR 0.2 million
- Group net income up from minus EUR 1.4 million to plus EUR 0.8 million
- Significant increase in net cash and cash equivalents
Walldorf, February 28, 2012. According to provisional figures, REALTECH AG
recorded a Group revenue in fiscal year 2011 of EUR 39.2 million (2010: EUR
39.5 million). This included Consulting revenues of EUR 28.4 million, which
was slightly below the previous year's level (EUR 28.6 million). Software
revenues, at EUR 12.7 million, were not quite as high as the previous year
either (EUR 12.9 million in 2010).
We would like to point out here that REALTECH AG sold its Italian
subsidiary REALTECH Italia S. p. A., Agrate Brianza (Milan), on December
14, 2010. On June 28, 2011, the Spanish subsidiary REALTECH system
consulting S. L., Madrid was sold as part of a management buy-out (MBO) by
REALTECH AG. In line with IFRS regulations, the two companies are being
listed as 'Discontinued Operations'. Consequently, the figures for 2011 do
not include REALTECH Spain and those for 2010 do not include REALTECH Spain
or REALTECH Italy.
Income from operations (EBIT) fell in the 2011 fiscal year to EUR 0.2
million (EUR 4.2 million). Consequently, the EBIT margin was reduced from
11% to 0%. EBITDA decreased accordingly from EUR 5.3 million to EUR 1.4
million. This decline in earnings was partly due to lost revenues as a
result of the earthquake catastrophe in Japan in the first half of the
year, poor sales in New Zealand, increased special effects due to vacancies
in the REALTECH building in Walldorf, a lack of profitability in the
Consulting segment in Germany and general restructuring costs in the area
of human resources. On the other hand, some of the software revenues
scheduled for the fourth quarter have been postponed to 2012, meaning that
this profitable segment failed to have such a compensating effect as it
could have. Moreover, REALTECH invested considerable sums in 2011 in
research and development in order to adapt the technology of its theGuard!
software to meet the marketing agreement with SAP.
Group net income was greatly influenced by the sale of the Spanish and
Italian subsidiaries in the year under review and previous year
respectively, rising to EUR 0.8 million (minus EUR 1.4 million). Earnings
per share increased accordingly to EUR 0.15 (minus EUR 0.26). Net cash and
cash equivalents rose to EUR 13.2 million (EUR 6.4 million).
4th quarter of 2011:
Group revenue declined by 8% to EUR 10.6 million (Q4/2010: EUR 11.5
million). This included a 14% increase in Consulting revenue to EUR 7.1
million (EUR 6.2 million). Following a very strong final quarter in 2010,
Software revenues were down 34% to EUR 3.5 million (EUR 5.3 million).
Income from operations (EBIT) decreased by 56% to EUR 1.0 million (EUR 2.4
million) and EBITDA by 44% to EUR 1.5 million (EUR 2.7 million). Net income
rose from minus EUR 2.0 million to EUR 0.6 million, while earnings per
share thus increased from minus EUR 0.37 to EUR 0.11.
Outlook
In the current fiscal year of 2012, REALTECH will be focusing in the
Consulting segment on specifically strengthening its business in Germany
and the USA through organic growth and an optimized service range. The
subsidiaries in the Asia-Pacific region already have a good size, well
suited to the market. As a result of its proximity to SAP, the German
consulting company in the REALTECH Group plays a particular role as a
training station and know-how carrier. The company is now promoting
international exchange and coordinated training more intensively than it
had before.
In the software division, following investments in product development, the
main focus is now on the sales and distribution activities resulting from
the new partnership with SAP, with a view to achieving the planned revenues
together with the Walldorf-based corporation. At the same time, REALTECH is
expanding its geographic presence for product distribution through a new
subsidiary in Copenhagen, REALTECH Nordic ApS, which was already founded on
January 2, 2012. The aim of the software division is to intensify the
international product business - both in new countries and at the existing
international subsidiaries.
The Executive Board does not rule out the possibility of acquiring
companies that have their own intellectual property with regard to software
or other unique selling points and that fit in with REALTECH's long-term
portfolio strategy.
In view of these developments, the Executive Board aspires to record a
Group revenue of EUR 45 million and EBIT of EUR 3.7 million in 2012.
The net profit recorded by REALTECH AG in the 2011 fiscal year was EUR 3.4
million following EUR 0 million in 2010. This was affected by the sale of
the equity investment in the Spanish REALTECH subsidiary, the reversal of
impairment losses for the loan to the former Italian REALTECH subsidiary,
and by income from investments.
At the General Meeting, scheduled to be held in Wiesloch on May 22, 2012,
the Executive and Supervisory Boards of REALTECH AG will propose
distributing a dividend of EUR 0.30 per share for the net profit recorded
by REALTECH AG for fiscal year 2011. The two committees decided this in the
resolutions on February 27, 2012.
REALTECH will be publishing its final consolidated financial statements for
2011 on March 29, 2012.
Contact person:
Volker Hensel
Investor Relations
REALTECH AG, 69190 Walldorf
Tel.: +49 6227 837 500
Fax: +49 6227 837 9134
E-mail: investors@realtech.com
28.02.2012 DGAP's 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: REALTECH AG
Industriestraße 39c
69190 Walldorf
Germany
Phone: +49 (0)6227 837-500
Fax: +49 (0)6227 837 9134
E-mail: investors@realtech.com
Internet: www.realtech.com
ISIN: DE0007008906
WKN: 700890
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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