Ad-hoc | 15 May 2001 08:02

Ad hoc-Service: Softline AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– High growth coupled with cost reduction Offenburg, May 15, 2001. The Softline Group is set to establish itself as a major player in the European professional software market: in the nine month period since the beginning of the current financial year 2000/2001 (30 June), consolidated sales (according to US-GAAP) increased by 128% to Euro 64.2m, compared with the previous year’s figure of Euro 28.2m. The increase in sales over the first six month period alone was 72%. The organic growth of Softline AG (excluding acquisitions) was 45.7%. The proportion of international business trebled from 14% to 45% of sales. Significant cost reductions in the third quarter resulted in the operating results nearly reaching breakeven. In the third quarter, the Softline Group achieved a significant increase in EBITDA to Euro 0.65m (compared with H1 Euro 0.06m). Operating results nearly reached breakeven in the third quarter, showing a loss of Euro 73,000. The loss before tax for the nine month period amounted to – Euro 0.76m, compared to a profit before tax of Euro 0.80m in the previous year. The net loss was -Euro1.7m (previous year: loss of Euro0.10m). Thisloss results from several reasons: Firstly, goodwill amortization on the new acquisitions totalling Euro 0.72m. Secondly, the adjustment of the deferred taxes, which was made to reflect the reduced tax rate (Euro 0.49m), and in addition, the existing losses carried forward have been value-adjusted, resulting in a deferred tax charge of Euro 0.41 m. These three items total Euro 1.62m of non cash losses. The cost side is also looking increasingly positive. With an operating cost ratio of 26.5 % (previous year: 26.9%), operating costs of Euro 16.98m (previous year: Euro 7.57m) were significantly lower than in the first six month period when the operating cost ratio was 28.5%. Marketing and sales costs of Euro 9.8m (previous year: Euro 5.6m) dropped to 15.3 % (previous year: 19.8%) of sales. Capitalizing on economies of scale, synergies and the introduction of Softline AG’s successful business model in some of its subsidiary companies, the Softline Group is set to reduce its operating costs even further in the coming months end of ad hoc announcement (c) DGAP 15.05.2001 ——————————————————————————– WKN: 720600; Index: Listed: Neuer Markt in Frankfurt, Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 150802 Mai 01