DGAP-News: GFT continues dynamic growth and exceeds expectations in second quarter
(firmenpresse) - GFT Technologies AG / Half Year Results
09.08.2010 14:44
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- Earnings before taxes (EBT) up strongly by 68 percent to EUR 4.64
million
- Year-on-year revenue growth to EUR 114.68 million (prev. year: EUR
105.07 million)
- Services division almost doubles prior-year EBT to EUR 4.01 million and
raises revenue by 30 percent to EUR 56.21 million
- Headcount up 235 compared to last year; 100 additional staff to be
employed by year-end
- Forecast raised for current year: total revenue of EUR 240 million and
EBT of EUR 10 to EUR 11 million expected
Stuttgart, 9 August 2010 - GFT Technologies AG can look back on an
encouraging first six months of 2010. Both revenue and earnings before
taxes (EBT) were ahead of growth expectations and underline the strong
upturn in business activity. At EUR 4.64 million, earnings before taxes
were 68 percent up on the previous year (EUR 2.76 million). There was
year-on-year growth in revenue of 9 percent to EUR 114.68 million (prev.
year: EUR 105.07 million). The Services division in particular succeeded in
significantly expanding its activities in the UK, Spain and the USA,
raising segment revenue by 30 percent and almost doubling segment earnings.
'Following a strong first quarter, we were able to maintain the dynamic
development in the following months,' states GFT's CEO Ulrich Dietz. In
view of the strong order position and more stable economic climate, the
company expects significant growth in revenue and earnings in 2010. GFT has
thus raised its earnings forecast to EUR 10 to EUR 11 million and now
expects revenue to reach EUR 240 million. 'Our strategy of focusing on the
financial sector and the global placement of engineers and IT specialists
is proving successful. We see tremendous growth potential in both areas
over the coming years,' says Dietz.
Revenue: growing demand in financial sector; high growth rates in UK, Spain
and USA
In the first six months of 2010, the GFT Group generated total revenue of
EUR 114.68 million - 9 percent more than in the same period last year.
Compared to revenue of EUR 54.43 million in the first quarter of 2010,
revenue in the second quarter grew by 11 percent to EUR 60.25 million. This
positive development can largely be ascribed to the Services division,
which reported year-on-year growth in segment revenue of 30 percent to EUR
56.21 million in the first six months of 2010 (prev. year: EUR 43.32
million). This development was mostly driven by strong demand from the
financial sector. In addition to outsourcing services, which help financial
institutes create more flexible cost structures, there was also increased
demand for IT solutions for corporate and investment banking. There were
exceptionally high growth rates in the UK, Spain and the USA. Revenue
generated by clients in the UK leapt by 73 percent, while revenue in Spain
was up 48 percent and in the USA by 77 percent. The gradual improvement in
the economic climate was not felt to the same extent by the Resourcing
division. The segment generated revenue of EUR 58.44 million (prev. year:
EUR 61.74 million) in the first six months. Restrained demand for freelanceIT specialists was felt in particular in the field of Resource Management,
whose clients are mainly in the industrial sector. Revenue in this field
was 10 percent down on the previous year at EUR 28.44 million (prev. year:
EUR 31.79 million). The Group's Third Party Management business, however,
benefited from the recovery of the financial sector and succeeded in
keeping revenue stable at EUR 30.00 million (prev. year: EUR 29.96
million).
Earnings: significant year-on-year increase of 68 percent and growth of 86
percent on previous quarter
As of 30 June 2010, earnings before taxes of the GFT Group amounted to EUR
4.64 million and thus exceeded the prior-year figure of EUR 2.76 million by
68 percent. Compared to the past quarter, this growth in earnings was even
more apparent: following EBT of EUR 1.62 million in the first quarter of
2010, earnings in the second quarter climbed to EUR 3.02 million. This
corresponds to quarter-on-quarter growth of 86 percent. The Services
division made the largest contribution to total earnings in the first six
months of 2010. The segment almost doubled earnings to EUR 4.01 million
(prev. year: EUR 2.10 million), benefiting in particular from a gradual
return to stability in the financial sector and a resulting increase in
demand. The Resourcing division accounted for EUR 0.86 million of Group
earnings (prev. year: EUR 0.99 million).
Further key figures: solid balance sheet structure, increased headcount
Net income for the period ending 30 June 2010 amounted to EUR 3.28 million
and was thus up EUR 1.69 million on the prior-year figure of EUR 1.59
million. Earnings per share improved to EUR 0.13 in this period under
review compared to EUR 0.08 for the same period last year. There was an
increase in cash, cash equivalents and securities, which amounted to EUR
26.44 million as of the balance sheet date (prev. year: EUR 24.90 million).
On 30 June 2010, the GFT Group had 1,209 employees - 235 persons more than
on the same date last year. The Group has thus already achieved its aim of
raising headcount to 1,200 by year-end. There are plans to hire a further
100 employees by the end of the year.
In line with the Group's strategic focus on the Resourcing and Services
divisions, GFT sold the Software segment on 17 May 2010. The disposed
Software division is no longer included in the current key financial
figures.
Outlook: revenue and earnings forecast for 2010 as a whole upgraded
'There has been a noticeable return to stability in our client markets;
demand is picking up again. We expect that our positive business
development will continue to gather pace in the second half of the year,'
explains GFT's CEO Ulrich Dietz. According to Dietz, the financial sector's
high propensity to invest will continue in the remaining months and will
have a positive impact on the GFT Group's order position. In addition to
outsourcing services and solutions for corporate and investment banking,
increased demand is also expected for intelligent IT solutions which help
banks with the implementation of regulatory compliance. The GFT Group also
expects growth potential from the expansion of its Resourcing business,
which has added the international placement of engineers. 'With our
portfolio of services, we are well positioned on the market and will
continue to strive for sustainable growth in 2010,' states Ulrich Dietz.
Detailed financial figures are available in the Investor Relations section
of the GFT website at http://www.gft.com/ir.
Contact:
Andrea Wlcek
Director Global Marketing, Media&Investor Relations
GFT Technologies AG
Filderhauptstraße 142
70599 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek(at)gft.com
www.gft.com
09.08.2010 14:44 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Deutschland
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: Investor-Relations(at)gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
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Datum: 09.08.2010 - 14:44 Uhr
Sprache: Deutsch
News-ID 31917
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