DGAP-News: GFT Technologies AG: GFT posts best quarterly result for two years
(firmenpresse) - DGAP-News: GFT Technologies AG / Key word(s): Quarter Results
GFT Technologies AG: GFT posts best quarterly result for two years
08.11.2012 / 07:11
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GFT posts best quarterly result for two years
- Third quarter earnings before taxes (EBT) up 14 percent year on year to
EUR 4.02 million
- Services division: year-on-year growth of 5 percent in revenue and 7
percent in earnings in first nine months
- Resourcing division posts slight revenue growth in core business;
general performance below expectations
- Executive Board adjusts guidance for 2012 as a whole: total revenue of
EUR 233 million and pre-tax earnings of EUR 11 million expected
Stuttgart, 8 November 2012 - GFT Technologies AG (GFT) closed the third
quarter of 2012 with one of the best quarterly results in its history.
Growth was encouraging in the Services division. At EUR 7.80 million, the
EBT of the GFT Group was 14 percent down on the previous year (EUR 9.05
million). However, this figure includes investments in the innovation
initiative CODE_n12 totalling EUR 1.35 million. Consolidated revenue in the
first nine months amounted to EUR 174.61 million, 16 percent below the
corresponding figure last year (EUR 207.87 million). There was a noticeable
impact from the planned reduction of less profitable business in the field
of Third Party Management. In the core business of its Resourcing segment,
GFT achieved revenue growth of 4 percent but fell short of expectations.
Against this backdrop, the Executive Board of GFT has adjusted its guidance
for the financial year 2012: revenue of EUR 233 million and EBT of EUR 11
million is expected. 'We are in the course of restructuring the Resourcing
division. Measures have been initiated which will significantly strengthen
and expand our position. These will already be effective in financial year
2013,' says GFT's CEO Ulrich Dietz. 'The Services division continues to
make encouraging progress with growth in new orders received. Our portfolio
of offerings addresses exactly those topics which interest the finance
sector in these times.'
Revenue: stable performance over the year, growth of 5 percent in Services
segment
In the first nine months of 2012, GFT generated revenue of EUR 174.61
million and thus 16 percent less than in the same period last year (EUR
207.87 million). The development of revenue has been stable throughout the
year so far: after EUR 57.65 million in the first and EUR 58.73 million in
the second quarter, GFT generated revenue of EUR 58.23 million in the third
quarter. The Services division accounted for the largest share of total
revenue with an amount of EUR 90.48 million (previous year: EUR 86.26
million). By contrast, the Resourcing segment generated EUR 84.13 million
in the first nine months (previous year: EUR 121.41 million). This decline
is due to the planned reduction of sales in the Third Party Management
business. These activities accounted for revenue of EUR 16.55 million in
the period under review (previous year: EUR 56.73 million). Revenue from
traditional consulting activities in the field of Resource Management grew
by 4 percent to EUR 67.58 million (previous year: EUR 64.68 million).
An analysis of revenue in the GFT Group's national markets reveals that
France in particular achieved significant growth with a year-on-year
increase inthe first nine months of 26 percent. In Germany, the planned
reduction of Third Party Management business had a corresponding impact on
revenue, which fell by 40 percent in comparison to the first three quarters
of 2011. Despite a volatile market environment, revenue in the UK fell just
short of the high prior-year level. In the face of challenging conditions
in Spain, GFT succeeded in raising revenue by 6 percent. There was an even
more positive development for GFT in the USA: the year-on-year increase of
68 percent was due to growing demand from the corporate and investment
banking sector. As of 30 September 2012, revenue in Switzerland was in line
with the prior-year figure.
EBT: earnings make strong progress over course of year, 60 percent increase
in third quarter over preceding quarter
At EUR 4.02 million, the GFT Group recorded one of its best-ever quarterly
results. After EUR 1.27 million in the first and EUR 2.51 million in the
second quarter, the positive development of EBT was continued in the third
quarter. All in all, earnings before taxes in the first nine months of 2012
amounted to EUR 7.80 million (previous year: EUR 9.05 million). The
year-on-year decline of 14 percent resulted from investments for the
innovation initiative CODE_n12. Expenses of EUR 1.35 million affected EBT
in the first quarter.
Positive effects on EBT resulted from the Services division. In the nine
months under review, segment earnings totalled EUR 7.93 million and were up
7 percent on the previous year (EUR 7.40 million). The Resourcing division
was unable to meet expectations for earnings in Switzerland, the UK and
Germany. With EBT of EUR 1.59 million (previous year: EUR 2.66 million),
the segment fell short of the prior-year figure.
Other key figures: balance sheet structure still solid; growing number of
employees
As of 30 September 2012, the GFT Group posted net income of EUR 5.10
million (previous year: EUR 6.76 million). There was growth of 3 percent in
cash, cash equivalents and securities, which amounted to EUR 29.08 million
at the end of the third quarter (previous year: EUR 28.16 million).
Earnings per share stood at EUR 0.19 and were thus 7 cents below the
prior-year figure (EUR 0.26). Headcount increased by 50 persons to a total
of 1,371 employees at the end of the third quarter 2012 (previous year:
1,321). This growth resulted from an acquisition made in the USA in October
2011 and the expansion of activities in Spain. In Germany, the number of
employees fell from 288 to 274 as of the reporting date.
Outlook: full-year guidance for revenue and earnings adjusted;
restructuring of Resourcing division making good progress
'For the remaining three months of the financial year 2012, we expect to
continue the positive trend of the third quarter on the whole,' explains
GFT's CEO Ulrich Dietz. After deducting special items - for the innovation
initiative CODE_n12 - earnings before taxes at year-end will be above the
prior-year figure. In the fourth quarter, the Services segment is
benefitting from increased demand in the corporate and investment banking
sector. Consistently strong demand for modern core banking solutions,
customer management systems and outsourcing services in the financial
services sector will also have a positive impact on revenue and earnings.
Challenging market conditions and weaker demand for freelance IT
specialists and engineers due to the economic situation, however, will slow
the development of the Resourcing division. As a consequence, the GFT Group
has already taken steps to optimise the division. At the beginning of 2013,
GFT will introduce measures to improve the division's market image. 'We
expect this to give us a more effective market positioning,' says Dietz.
Based on the developments stated above, the Executive Board has adjusted
the guidance for financial year 2012 which it announced in the Consolidated
Financial Statements 2011: it now expects revenue of EUR 233 million
(formerly EUR 250 million) and an EBT result of EUR 11 million (formerly
EUR 12 million). The outlook for 2013 isoptimistic. The planned
restructuring of Resourcing business aimed at raising earnings of the
entire Group is already showing initial success and will have impact in the
years ahead. The GFT Group expects that the current dynamic
growth of the Services segment will continue.
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.-30.09.2012 01.01.-30.09.2011* Deviations possible due to rounding differences
Revenue 174.61 207.87
EBITDA 8.81 9.49
EBIT 7.65 8.53
Earnings before taxes (EBT) 7.80 9.05
Net income as of 30.09. 5.10 6.76
Earnings per share acc. to IAS 33 in 0.19 0.26
EUR
Equity ratio in percent 59 58
Employees, absolute figure as of 1,371 1,321
30.09.
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).
Contact:
Andrea Wlcek
Director of Global Marketing, Media&Investor Relations
GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Germany
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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08.11.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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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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