Gesco AG / Key word(s): Final Results/Forecast 26.06.2014 07:34 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Wuppertal, 26 June 2014 ‒ GESCO Group, an association of industrial SMEs in the fields of tool manufacturing/mechanical engineering and plastics technology, announces at today's annual press conference its solid performance during financial year 2013/2014 (1 April 2013 to 31 March 2014). The company forecasts sales growth in financial year 2014/2015 but expects earnings to remain curbed by one-off effects. The financial year of GESCO AG and GESCO Group runs from 1 April to 31 March of the following year, while the financial years of the subsidiaries coincide with the calendar year. Therefore financial year 2013/2014 encompasses the operating business of calendar year 2013, which was shaped by subdued economic development and a lack of growth momentum. All in all, GESCO Group succeeded in maintaining a relatively solid position in this market environment: Business at the larger companies as well as the majority of the smaller subsidiaries mostly either declined slightly or remained at a stable level. Several smaller companies were hit hard by problems in specific countries or by a downturn in industrial sectors, which in turn impacted Group earnings. The decline in incoming orders on an organic basis was largely offset as a result of companies acquired in the previous year being consolidated for a full year for the first time. Incoming orders stood at EUR 435.6 million, just slightly lower than in the previous year (EUR 439.4 million). Sales increased by 2.9 % to EUR 453.3 million (previous year: EUR 440.4 million) due to the full-year consolidation of the new companies. Material prices were less volatile and the ratio of material expenditure decreased. In contrast, the ratio of personnel expenditure increased. With a view to maintaining a competitive position in the long term, there were no significant job cuts even at those companies that had been particularly affected by falling demand in 2013. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to EUR 48.7 million (EUR 51.8 million). Depreciation and amortisation rose at a significantly faster rate than sales, totalling EUR 16.7 million (EUR 14.4 million) due to the considerable investments made in the reporting year and in previous years. Consequentially, earnings before interest and taxes (EBIT) fell more sharply than EBITDA in percentage terms to EUR 32.0 million (EUR 37.3 million). Group net income after minority interest stood at EUR 18.1 million (EUR 20.9 million). Earnings per share amounted to EUR 5.45 (EUR 6.30). These figures slightly exceeded GESCO Group's most recent targets in February 2014. In keeping with the established dividend policy, which calls for the distribution of roughly 40 % of Group net income after minority interest, the Executive Board and the Supervisory Board will propose a dividend of EUR 2.20 per share to the Annual General Meeting on 28 August 2014. A dividend of EUR 2.50 per share was paid out in the previous year. The company anticipates that the economic climate will on the whole improve in financial year 2014/2015 (1 April 2014 to 31 March 2015) and expects sales to increase to between EUR 470 million and EUR 480 million, although earnings are not expected to grow at the same pace. This is due to the situation at two subsidiaries, which are currently facing considerable challenges and having to make structural changes on account of the strong growth that they are experiencing. Overall, the company predicts Group net income after minority interest of between EUR 17.5 million and EUR 18.5 million for financial year 2014/2015. Looking at the first quarter of financial year 2014/2015, which includes the months January to March 2014 for the subsidiaries, incoming orders in GESCO Group increased significantly from EUR 110.4 million to around EUR 126 million. At roughly EUR 109 million, sales remained more or less on par year on year (EUR 108.9 million). At the end of the first quarter, order backlog amounted to approximately EUR 205 million. The full report is available at www.gesco.de. A video webcast on financial year 2013/2014 and the outlook by GESCO Executive Board member Dr. Hans-Gert Mayrose can be viewed at www.gesco.de. The annual accounts press conference/analysts' meeting on 26 June 2014 will be broadcast live as an audio webcast on the internet from 10.30 am and will be available at www.gesco.de for a period of twelve months (in German only). Investor Relations * Oliver Vollbrecht Phone +49 (0)202 24820-18 * Fax: +49 (0)202 24820-49 E-mail: info@gesco * Web: www.gesco.de 26.06.2014 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: Gesco AG Johannisberg 7 42103 Wuppertal Germany Phone: +49 (0)202 248200 Fax: +49 (0)202 2482049 E-mail: [email protected] Internet: www.gesco.de ISIN: DE000A1K0201 WKN: A1K020 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------