DGAP-News: GFT continues successful course with significant growth and strongly improved earnings
(firmenpresse) - GFT Technologies AG / Key word(s): Quarter Results/Change in Forecast
08.11.2010 08:30
---------------------------------------------------------------------------
- Earnings before taxes (EBT) up 55 percent on previous year to EUR 8.76
million
- 13 percent growth in revenue to EUR 178.74 million
- EBT of EUR 4.12 million in third quarter (prev. year: EUR 2.89 million)
company's best-ever quarterly result
- Services division improves earnings by 68 percent and revenue by 30
percent compared to previous year
- Revenue and earnings forecast for 2010 upgraded: total revenue of EUR
245 million and earnings before taxes of EUR 11 to EUR 12 million
expected
- New IT solution for Touch Banking on iPads offers further growth
opportunities
Stuttgart, 8 November 2010 - GFT Technologies AG has continued its positive
development of the first six months and closed the third quarter of 2010
with significant increases in revenue and earnings. 'This represents a
further consecutive quarter of strong organic growth with our best-ever
quarterly result,' states GFT's CEO Ulrich Dietz. In view of its
encouraging order position and renewed demand for IT solutions and IT
specialists from all sectors, the company has upgraded its forecast for
revenue and earnings in 2010. The Executive Board now expects total revenue
of EUR 245 million and earnings before taxes of between EUR 11 and EUR 12
million. 'There is a broad base for our growth. The financial sector's
demand for innovative IT solutions remains unbroken. The response to our
recently unveiled solution for investment advice using iPads and
flat-screen monitors has been particularly encouraging. At the same time,
however, we see enormous potential for the placement of freelance IT
specialists and engineers in the industrial sector. Our portfolio of
services is closely aligned with market needs and we are well on the way
towards achieving an impressive annual result for 2010 and further dynamic
growth in 2011,' says Dietz.
Earnings: year-on-year growth of 55 percent; high level of orders and
capacity utilisation in Services segment
The GFT Group succeeded in maintaining its positive development of the
first six months with year-on-year EBT growth of 55 percent to EUR 8.76
million for the first nine months of 2010 (prev. year: EUR 5.65 million).
At EUR 7.71 million, the Services division accounted for the lion's share
of total earnings. The segment benefitted from very high capacity
utilisation in connection with increased project volume with its existing
clients. In the third quarter, it was able to build on the high order
position achieved in the first half of the year and capitalise on the
positive development in the financial sector. Compared to the first two
quarters of the year, the Resourcing division succeeded in improving its
segment result in the third quarter and contributed EUR 1.53 million (prev.
year: EUR 1.74 million) to consolidated earnings for the first nine months.
The ongoing recovery of the economy as a whole - and thus the growing
demand for freelance IT specialists - did not have a significant impact on
segment earnings in the third quarter yet. This effect is expected,
however, in the fourth quarter as revenues in this division begin to pick
up again. In the third quarter, the GFT Group posted pre-tax earnings of
EUR 4.12 million (prev. year: EUR2.89 million) - the best quarterly result
in the company's history.
Revenue: demand remains strong in the financial sector with significant
growth in the UK, the USA and Spain
In the first nine months of 2010, the GFT Group generated total revenue of
EUR 178.74 million - representing year-on-year growth of 13 percent (prev.
year: EUR 158.90 million). The increase was largely due to the very
encouraging development of revenue in the Services division. The segment
benefitted from the ongoing high level of demand in the financial sector
and posted year-on-year growth in segment revenue of 30 percent to EUR
86.14 million (prev. year: EUR 66.02 million). Growth was driven above all
by strong demand for outsourcing services in Spain and for IT solutions in
the field of corporate and investment banking in the UK and the USA. The
Resourcing division remained the largest segment by revenue with stable
sales of EUR 92.57 million (prev. year: EUR 92.88 million). The economic
upswing was only noticeable in this division towards the end of the third
quarter. The division's Third Party Management business generated slight
growth in revenue to EUR 47.50 million with projects in the financial
sector. The Resource Management business - whose clients are mostly in the
industrial sector - posted stable revenue of EUR 45.07 million (prev. year:
EUR 45.45 million). In view of the clearly visible improvement in the
manufacturing sector, demand for freelance IT experts is expected to
increase in the fourth quarter with a positive impact on revenue in the
Resourcing division. Compared to the preceding quarters with EUR 54.43
million (Q1) and EUR 60.25 million (Q2), revenue was increased once again
in the third quarter of 2010 to reach EUR 64.06 million (prev. year: EUR
53.84 million).
Further key figures: solid balance sheet structure, strong increase in
headcount
The GFT Group generated net income of EUR 6.70 million in the nine months
ending 30 September 2010, representing growth of 51 percent over the same
period last year (EUR 4.44 million). Earnings per share improved to EUR
0.25 in the period under review, compared to EUR 0.17 in the previous year.
There was a year-on-year increase in cash, cash equivalents and securities
of 20 percent to EUR 32.68 million as of the balance sheet date (prev.
year: EUR 27.33 million). Compared to last year, headcount increased by 257
persons. This was due to revenue growth and high capacity utilisation in
the Services division, which led to new hirings at the Group's development
centres in Spain and Brazil. As of 30 September 2010, the GFT Group
employed 1,268 persons (prev. year: 1,011), including part-time staff
calculated on a pro rata basis. This corresponds to year-on-year growth of
25 percent. The number of staff employed in Germany grew to 264 (prev.
year: 251).
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 upgraded
'For GFT, 2010 is an important year on the path to sustainable growth. The
results show that just one year after the economic and financial crisis
we're back on track for success - and capable of building on this success,'
explains GFT's CEO Ulrich Dietz. He then adds that both divisions will
continue to benefit from the economic recovery in the remaining months of
2010, as well as in early 2011. The financial sector's demand for
innovative IT solutions will remain strong while dynamic growth is
anticipated for the placement of freelance IT specialists. 'We also expect
our new multi-touch solution for investment advice to generate attractive
growth. Banks will be using an increasing number of intelligent IT
applications in future to support compliance with growing regulatory
demands while also improving the quality of the advice they offer,'
explains Dietz. Against this backdrop, the Executive Board has upgraded its
2010 forecast for revenue and earnings. The Executive Board now expects
total revenue to reach EUR 245 million in the current fiscal year with
earnings before taxes of EUR 11 to EUR 12 million. 'Our business model has
proven to be perfectly in sync with market needs. We have been able to
capitalise on the economic recovery and are now well placed to build on our
excellent business development,' says 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
08.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.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 Announcement DGAP News-Service
---------------------------------------------------------------------------
Datum: 08.11.2010 - 08:30 Uhr
Sprache: Deutsch
News-ID 32510
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 239 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: GFT continues successful course with significant growth and strongly improved earnings"
steht unter der journalistisch-redaktionellen Verantwortung von
GFT Technologies AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
