DGAP-News: GFT Technologies AG: GFT on track in new financial year: investment in growth fields
(firmenpresse) - DGAP-News: GFT Technologies AG / Key word(s): Quarter Results
GFT Technologies AG: GFT on track in new financial year: investment in
growth fields
10.05.2012 / 07:22
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GFT on track in new financial year: investment in growth fields
- Services division grows by 6 percent to EUR 30.49 million
- Resourcing division revenue down on previous year at EUR 27.16 million
due to focus on higher-margin technology projects
- Total revenue of EUR 57.65 million confirms expectations
- Pre-tax earnings (EBT) of EUR 1.27 million: investment in innovation
topics in first quarter
- Overwhelming international response to CODE_n innovation initiative
- Group forecast for 2012 confirmed: total revenue of EUR 250 million and
EBT of EUR 12 million expected
Stuttgart, 10 May 2012 - The GFT Group has continued its development of the
past financial year and got off to a solid start in its financial year
2012. The company's two business divisions reported operating growth in
both revenue and earnings during the first three months. Due to a scheduled
reduction in low-margin projects in the Resourcing division, consolidated
revenue amounted to EUR 57.65 million (previous year: EUR 67.30 million).
EBT reached EUR 1.27 million (previous year: EUR 2.02 million). This figure
also includes significant investments of EUR 1.25 million for the
international innovation initiative CODE_n. 'Our expectations for the first
quarter were fulfilled. By focusing on digital business models and the
flexible staffing of technology projects, we made a targeted investment in
growth markets,' concludes GFT's CEO Ulrich Dietz. 'Consulting activities
are likely to pick up over the remaining months of the year. We also expect
a renewed increase in demand from financial service providers. Moreover,
the growing need for highly skilled specialists will drive further growth
in our Resourcing division.' GFT's Executive Board has confirmed its
full-year forecast and continues to expect revenue of EUR 250 million and
an EBT result of EUR 12 million for 2012 as a whole.
Revenue: segment revenue of Services division up 6 percent on previous
year, segment revenue of Resourcing division down 29 percent
In the first three months of 2012, the GFT Group generated total revenue of
EUR 57.65 million. This corresponds to a fall of 14 percent on the
prior-year figure (EUR 67.30 million) and resulted from a reduction in
revenue in the Resourcing segment. Following a decision to focus on
higher-margin projects in the field of Resource Management, GFT
significantly reduced revenue with clients in its Third Party Management
business in financial year 2011. As a consequence, segment revenue fell by
29 percent to EUR 27.16 million in the first quarter of 2012 (previous
year: EUR 38.41 million). Despite this burden, the division continued its
successful development and was able to benefit from strong demand for
freelance IT specialists and engineers, especially in the industrial
sector. As a result, there was significant growth in the segment's Resource
Management business during the first three months of 2012. Revenue
generated with Third Party Management services fell to EUR 5.23 million
(previous year: EUR 17.87 million), while revenue in the higher-margin
Resource Management business grew to EUR 21.93 million (previous year: EUR
20.54 million). Due to the successful expansion of existing projects and
acquisition of new clients, revenue in France leapt by 42 percent during
the period under review. In Germany, the scheduled reduction in revenue
from Third Party Management services led to a decline of 42 percent.
In the Services division, segment revenue increased to EUR 30.49 million
(previous year: EUR 28.89 million). Although clients in the field of
corporate and investment banking remained cautious in the early part of the
year, the segment succeeded in raising the previous year's high revenue
level by a further 6 percent. This growth was mainly due to stable demand
for outsourcing services and IT solutions for the implementation of
compliance requirements. There was also a positive effect from the
acquisitions made in the USA and Switzerland in 2011.
In Switzerland, year-on-year growth amounted to 59 percent and in the USA
to 61 percent. In the UK, the difficult market conditions in the finance
sector observed in late 2011 continued to affect business in the first
quarter of 2012. As a result, revenue fell slightly by 6 percent. The
company's traditionally high level of revenue in Spain was raised by 2
percent thanks to stable long-term projects with European financial
institutes.
EBT: year-on-year decline due to innovation investments; operating growth
in both business divisions
Earnings before taxes in the first quarter reflected the positive
development of both segments as well as the investments made in the field
of innovation. At EUR 1.27 million for the period under review, pre-tax
earnings lay below the prior-year figure (previous year: EUR 2.02 million).
Investments in connection with the innovation and business platform CODE_n
and its fair presence at the CeBIT 2012 represented a burden on EBT of EUR
1.25 million (previous year: EUR 0).
In the first three months of 2012, the Services division raised segment
earnings by 26 percent to EUR 1.81 million. In addition to a slight
increase in revenues, this improvement resulted from new client
acquisitions and a high level of capacity utilisation in both nearshore and
farshore operations in the UK, Spain, Brazil and the USA.
Segment earnings in the Resourcing division amounted to EUR 0.68 million in
the first quarter and were thus above the prior-year figure (EUR 0.65
million), in spite of much lower segment revenue. In addition to successful
measures aimed at raising efficiency, the main reason was a shift in
revenue volumes in favour of the higher-margin Resource Management
business.
Other key figures: solid balance sheet structure; increased headcount
As of 31 March 2012, the GFT Group posted quarterly net income of EUR 0.63
million, corresponding to a year-on-year decline of 53 percent (previous
year: EUR 1.35 million). Earnings per share for the period under review
amounted to EUR 0.02, compared to EUR 0.05 in the same period last year. As
of 31 March 2012, cash, cash equivalents and securities totalled EUR 27.52
million (previous year: EUR 38.27 million). The number of employees
increased to 1,346 (previous year: 1,307), mainly as a result of
acquisitions in Switzerland and the USA in the previous financial year. The
number of people employed in Germany as of 31 March 2012 amounted to 275 -
7 persons below the prior-year figure.
Outlook: continued focus on growth markets; full-year forecast confirmed
'2012 will be a year of rapid technological progress. The ongoing
transformation of the real economy into digital business models, for
example, offers a host of opportunities. We have aligned our innovation
management efforts with these developments and are capable of swiftly
developing attractive and future-compliant business concepts,' explains
GFT's CEO Ulrich Dietz. The Group sees great potential in the field of
mobile finance applications. In its Services division, GFT also expects
growing demand for intelligent IT solutions for corporate and investment
banking in the second half of the year. Demand for outsourcing services and
IT solutions to implement compliance regulations will remain strong
throughout the year. In its Resourcing division, the Group expects high
growth rates in the field of Resource Management.
The Executive Board of GFT is therefore upholding its forecast for the
financial year 2012 as a whole and expects revenue of EUR 250 million with
pre-tax earnings of EUR 12 million. As CEO Ulrich Dietz states: 'We will
retain our focus on the finance industry and selected growth markets while
continuing to strengthen our expertise in future markets during 2012.'
Detailed financial figures are available in the Investor Relations section
of the GFT website at www.gft.com/ir.
Key figures in accordance with IFRS*:
IFRS figures in EUR million 01.01.-31.03.2012 01.01.-31.03.2011*Deviations possible due to rounding differences
Revenue 57.65 67.30
EBITDA 1.51 2.18
EBIT 1.14 1.86
Earnings before taxes (EBT) 1.27 2.02
Net income as of 31.03. 0.63 1.35
Earnings per share acc. to IAS 33 0.02 0.05
in EUR
Equity ratio in percent 59 56
Employees, absolute figure as of 1,346 1,307
31.03.
About GFT:
As a strategic IT partner based in Stuttgart, Germany, the GFT Group helps
companies optimize their business processes by providing intelligent IT
systems and highly skilled specialists. Under the motto 'inspiring IT', GFT
converts cutting-edge technological developments into sustainable business
models.
GFT is one of the world's leading IT service suppliers for the finance
sector. It enables financial institutes to quickly and securely utilize
modern technologies in order to enhance their long-term competitive
standing. GFT combines established technological experience with
comprehensive industry expertise, in order to develop, implement and
maintain customized IT solutions. With its international network of
experts, GFT offers companies in all sectors the opportunity to flexibly
manage the staffing of their technology projects.
For 25 years, GFT has stood for technological expertise, innovative
strength and outstanding quality. Founded in 1987 by its current CEO,
Ulrich Dietz, GFT achieved revenues of EUR 272 million in 2011. The GFT
Group is represented in seven countries by its 22 local facilities. A
global team of over 1,300 employees and 1,300 external consultants
implement complex IT projects across various countries. The GFT share is
listed on the Frankfurt Stock Exchange (Prime Standard: WKN 580 060, GEX).
Andrea Wlcek
Director of Global Marketing, Media&Investor Relations
GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek(at)gft.com
www.gft.com
End of Corporate News
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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(at)gft.com
Internet: www.gft.comISIN: 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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