01.03.2017
GFT Technologies SE DE0005800601
DGAP-News: GFT Technologies SE: GFT Group posts double-digit growth in financial year 2016
DGAP-News: GFT Technologies SE / Key word(s): Preliminary Results
GFT Technologies SE: GFT Group posts double-digit growth in financial year
2016
01.03.2017 / 17:51
The issuer is solely responsible for the content of this announcement.
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GFT Group posts double-digit growth in financial year 2016
- Consolidated revenue up 13 percent to EUR 422.56 million
- Revenue in Continental Europe grows by 23 percent to EUR 200.52 million
- Consolidated earnings (EBITDA) improve by 5 percent to EUR 46.77
million
- Revenue and earnings guidance for 2016 exceeded
- Headcount up 20 percent to 4,870
Stuttgart, 1 March 2017 - The GFT Group today announced its preliminary and
unaudited figures for the financial year 2016. With solid growth in revenue
and earnings, the technology specialist for the financial services industry
exceeded its full-year guidance slightly. The main growth driver was demand
from retail banks for digitalisation solutions. In the Americas & UK
division, growth was slowed by the reduced propensity of investment banks
to invest in IT services.
Organic revenue growth of 10 percent
Compared to the previous year, consolidated revenue rose by 13 percent to
EUR 422.56 million in the financial year 2016 (2015: EUR 373.51 million)
and thus exceeded the upgraded full-year guidance of EUR 420.00 million
issued in August 2016. Adjusted for revenue contributed by the acquisitions
made in July 2015 (Adesis Netlife S.L.) and April 2016 (Habber Tec Brazil),
organic growth amounted to 10 percent.
Dynamic revenue trend in Continental Europe
The Continental Europe division increased revenue by 23 percent to EUR
200.52 million in the financial year 2016 (2015: EUR 162.68 million). This
growth was driven above all by consistently strong demand from retail
banking clients for solutions to digitise their business processes. Revenue
growth was particularly encouraging in Spain, whose banking sector is one
of Europe's most advanced in terms of digitalisation. Revenue in this
country rose by 61 percent to EUR 78.05 million (2015: EUR 48.45 million).
The Americas & UK division (which mainly comprises investment banking
clients) achieved revenue growth of 4 percent to EUR 219.42 million (2015:
EUR 210.78 million). The moderate revenue trend in this division mirrors
the general downturn in investment banking since the beginning of 2016.
Uncertainties surrounding the Brexit referendum also led to more subdued
investment in IT services.
Earnings burdened by currency-related special items
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
rose by 5 percent to EUR 46.77 million (2015: EUR 44.56 million). This
figure includes negative exchange rate effects of EUR -1.97 million due
mainly to the devaluation of the British pound. Account was taken of these
effects in August 2016, when full-year guidance for EBITDA and EBT was
downgraded by EUR 2.00 million each to EUR 46.50 million and EUR 33.00
million, respectively. Pre-tax earnings (EBT) improved by 2 percent to EUR
33.05 million (2015: EUR 32.52 million). Due to a higher tax rate of 27
percent, earnings per share fell year-on-year by 9 cents to EUR 0.92 (2015:
EUR 1.01). In the previous year, retroactive tax refunds in Spain had led
to a tax rate of just 18 percent.
Headcount grows to around 4,900
As of 31 December 2016, the GFT Group had 4,870 full-time employees -
representing growth of 20 percent over the previous year (31 December 2015:
4,050). The increase in headcount resulted from the hiring of numerous new
staff - above all at the company's development centres in Spain, Brazil,
Poland and Costa Rica - as well as from the acquisition of Habber Tec
Brazil with over 100 employees.
Development in 4th quarter of 2016
Consolidated revenue of EUR 108.28 million was generated in the fourth
quarter of 2016, corresponding to year-on-year growth of 6 percent
(Q4/2015: EUR 102.03 million). EBITDA and EBT in the fourth quarter were
both 4 percent down on the prior-year period at EUR 12.77 million (Q4/2015:
EUR 13.26 million) and EUR 9.34 million (Q4/2015: EUR 9.77 million),
respectively.
Additional key data
As of 31 December 2016, cash, cash equivalents and securities amounted to
EUR 62.29 million and were thus EUR 15.31 million, or 33 percent, above the
year-end figure for 2015 (31 December 2015: EUR 46.98 million). Equity of
EUR 115.90 million was EUR 8.55 million, or 7 percent, down on year-end
2015 (31 December 2015: EUR 124.45 million). Total assets rose by EUR 39.23
million, or 12 percent, to EUR 366.04 million as of 31 December 2016 (31
December 2015: EUR 326.81 million). The equity ratio of 32 percent as of 31
December 2016 was 6 percentage points below the year-end 2015 figure (31
December 2015: 38 percent).
Dividend
The Administrative Board of GFT Technologies SE has decided to propose a
dividend of EUR 0.30 (2015: EUR 0.30) for the financial year 2016 at the
Annual General Meeting on 31 May 2017. This corresponds to a dividend
payout of EUR 7.90 million (prev. year: EUR 7.90 million).
Outlook
The GFT Group anticipates a further positive development of business in its
financial year 2017: "Dynamic growth stimuli are expected from the rising
pressure on costs and growing competition in the banking sector. Financial
institutes need to implement projects to enhance their efficiency and drive
the digitalisation of their business processes," commented Ulrich Dietz,
CEO of GFT. Consolidated revenue is expected to rise to EUR 450.00 million
in 2017. Over the year as a whole, EBITDA is expected to improve to EUR
48.50 million with an increase in EBT to EUR 35.00 million.
The medium-term forecast of the GFT Group issued on 2 March 2016 has been
confirmed. Assuming that the demand for solutions to implement compliance
requirements remains unbroken and the trend to digitise business processes
continues, the GFT Group aims to raise revenue to EUR 800.00 million in the
medium term with an EBITDA margin of around 12 percent in 2020. The
underlying business plan anticipates consistent organic growth of around 10
percent per year in combination with targeted acquisitions.
Detailed financial figures can be found in the Investor Relations section
of the GFT website at http://www.gft.com/ir.
Key figures (IFRS, unaudited)
(deviations possible due to rounding differences)
In EUR million 2016 2015 ∆ %
Revenue 422.56 373.51 13%
EBITDA 46.77 44.56 5%
EBIT 34.85 34.23 2%
Pre-tax earnings (EBT) 33.05 32.52 2%
Net income for the year 24.23 26.55 -9%
Earnings/share in EUR 0.92 1.01 -9%
Equity ratio 32 38 -
in percent (31.12.2016) (31.12.2015)
Employees (full-time) as of 31 December 4,870 4,050 20%
In EUR million Q4/2016 Q4/2015 ∆ %
Revenue 108.28 102.03 6%
EBITDA 12.77 13.26 -4%
EBIT 9.45 10.38 -9%
Pre-tax earnings (EBT) 9.34 9.77 -4%
Net income for the period 6.15 11.11 -45%
Earnings/share in EUR 0.23 0.42 -45%
Equity ratio 32 38 -
in percent (31.12.2016) (31.12.2015)
Employees (full-time) as of 31 December 4,870 4,050 20%
About the GFT Group:
GFT Technologies SE (GFT) is a business change and technology consultancy
trusted by the world's leading financial services institutions to solve
their most critical challenges. Specifically defining answers to the
current constant of regulatory change - whilst innovating to meet the
demands of the digital revolution. GFT brings together advisory, creative
and technology capabilities with innovation culture and specialist
knowledge of the finance sector, to transform the clients' businesses.
Utilising the CODE_n innovation platform, GFT is able to provide
international start-ups, technology pioneers and established companies
access to a global network, which enables them to tap into the disruptive
trends in financial services markets and harness them for their out of the
box thinking.
GFT plans to generate consolidated revenue of around EUR 450 million in its
financial year 2017. Founded in 1987, the company is now represented in
twelve countries with a global team of almost 5,000 employees. The GFT
share is listed on the Frankfurt Stock Exchange in the TecDAX (ISIN:
DE0005800601).
Contact:
Jutta Stolp, CIRO
Investor Relations Manager
GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
T +49 711 62042-591
F +49 711 62042-301
[email protected]
www.gft.com
Andrea Wlcek
Global Head of Communications
GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
[email protected]
www.gft.com
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01.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: [email protected]
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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