07.08.2014
GFT Technologies AG DE0005800601
DGAP-News: GFT Technologies AG: GFT Group continues its growth in first half of 2014
DGAP-News: GFT Technologies AG / Key word(s): Half Year Results
GFT Technologies AG: GFT Group continues its growth in first half of
2014
07.08.2014 / 07:14
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GFT Group continues its growth in first half of 2014
- Consolidated revenue up 37 percent to EUR 156.74 million
- Pre-tax earnings more than doubled to EUR 11.13 million
- Business with investment banks in UK and USA key growth driver
Stuttgart, 7 August 2014 - The GFT Group continued its growth course in the
first half of 2014 with an increase in revenue of 37 percent to EUR 156.74
million (prev. year: EUR 114.19 million). Adjusted for the revenue
contribution of Sempla acquired in mid-2013 (now GFT Italia) amounting to
EUR 22.53 million, the GFT Group achieved organic growth of 18 percent. The
GFT Group enjoyed particularly strong revenue growth of 61 percent to EUR
41.70 million in the UK (prev. year: EUR 25.94 million) and the USA, where
revenue rose by 96 percent to EUR 8.42 million (prev. year: EUR 4.29
million). Earnings before interest, taxes, depreciation and amortisation
(EBITDA) improved to EUR 13.61 million (prev. year: EUR 6.09 million) in
the first six months. Pre-tax earnings were also more than doubled to EUR
11.13 million (prev. year: EUR 5.50 million). With earnings after tax of
EUR 7.32 million (prev. year: EUR 4.36 million), earnings per share rose to
EUR 0.28 (prev. year: EUR 0.17).
The UK-based international Business and IT consultancy Rule Financial Ltd.
was acquired on 26 June 2014. Due to the transaction date shortly before
month-closing, the company is not yet included in the consolidated income
statement - it is included, however, in the balance sheet and headcount
figures.
Dedicated to delivering IT services for the finance sector, the GFT
division raised revenues by 65 percent to EUR 114.07 million in the first
half of 2014 (prev. year: EUR 69.14 million). Adjusted for the revenues of
GFT Italia included in this division, GFT posted revenue growth of 32
percent. This encouraging organic growth resulted mainly from the ongoing
progress in business with investment banks, as well as from projects for
the implementation of banking compliance regulations. The GFT division's
share of consolidated revenue rose to 73 percent (prev. year: 61 percent).
In the first six months of 2014, the pre-tax earnings contribution (EBT) of
the GFT segment rose by 72 percent to EUR 11.78 million (prev. year: EUR
6.86 million), corresponding to an increase in the operating margin to 10.3
percent (prev. year: 9.9 percent). Compared to revenue, this
disproportionately strong rise in earnings resulted mainly from increased
capacity utilisation and economies of scale.
With its services for the staffing of technology projects, the emagine
division achieved revenue of EUR 42.66 million - 5 percent down on the
previous year (EUR 45.04 million). The division's share of total Group
revenue fell to 27 percent (prev. year: 39 percent). Despite lower
revenues, a greatly improved operating margin of 2.1 percent (prev. year:
0.1 percent) helped raise earnings to EUR 0.89 million (prev. year: EUR
0.06 million).
"The strong progress of our IT services for investment banks was a key
growth driver in the first six months," says Ulrich Dietz, CEO of GFT
Technologies AG. "We expect that growing compliance requirements will
continue to necessitate heavy investments in IT. The acquisition of Rule
Financial has greatly strengthened our position in this field - both from
the client and employee perspective. We are now represented in London by
around 230 highly skilled Business and IT consultants and have more than
tripled headcount in the USA to over 70. The acquisition of Rule has also
provided us with two cost-efficient nearshore development centres in Poland
- making us well equipped for further growth."
Headcount grows to around 3,000
As of 30 June 2014, the number of full-time employees of the GFT Group
almost doubled to 2,983 (including 662 FTE Rule Financial) compared with
the previous year (30 June 2013: 1,503). This was due to the acquisition of
Sempla in mid-2013 and of Rule Financial, as well as to numerous hirings at
the development centres in Spain and Brazil due to high capacity
utilisation.
Additional key data
Rule Financial was included in the consolidated financial statements of the
GFT Group for the first time on 30 June 2014. The figures are preliminary
and only contain the balance sheet figures. Due to the Rule acquisition,
cash and cash equivalents fell to EUR 25.52 million as of 30 June 2014 (31
December 2013: EUR 48.63 million). Equity amounted to EUR 87.98 million on
30 June 2014 and was thus EUR 0.83 million above the year-end figure of 31
December 2013 (EUR 87.15 million). Total assets as of 30 June 2014 were up
EUR 66.93 million to EUR 273.31 million (31 December 2013: EUR 206.38
million), of which EUR 33.96 million resulted from initial consolidation of
Rule Financial. Due to the increased balance sheet total, the equity ratio
decreased to 32 percent as of 30 June 2014 (31 December 2013: 42 percent).
Outlook
On the announcement of its acquisition of Rule Financial, the GFT Group
adjusted its revenue and earnings guidance for the financial year 2014
stated in the Annual Report 2013. As a result of the acquisition, the GFT
Group expects additional revenue of around EUR 42 million in the second
half of 2014. This increases the GFT Group's revenue expectations for the
financial year 2014 to around EUR 352 million (previously EUR 310 million).
The annual forecast for EBITDA has been upgraded by EUR 1.50 million to EUR
29.50 million (previously EUR 28.00 million). The GFT Group's forecast for
EBT remains unchanged at EUR 23.00 million. The earnings guidance stated
above is subject to the final purchase price allocation in connection with
the acquisition of Rule Financial.
Detailed financial figures are available in the Investor Relations section
of the GFT website at http://www.gft.com/ir.
Key figures (deviations possible due to rounding differences)
IFRS figures in EUR million 01.01.-30.06.2014 01.01.-30.06.2013 Revenue 156.74 114.19 EBITDA 13.61 6.09 EBIT 11.40 5.36 Earnings before taxes (EBT) 11.13 5.50 Net income for the period 7.32 4.36 Earnings/share acc. to IAS 33 in 0.28 0.17 EUR Equity ratio 32 percent 42 percent (30.06.2014) (31.12.2013) Employees (full-time) as of 30 2,983 1,503 JuneAbout the GFT Group: The GFT Group is a global technology partner for future digital issues - covering everything from discovering innovation to developing and implementing sustainable business models. Within the GFT Group, GFT stands for competent consulting and reliable development, implementation and maintenance of customized IT solutions. The company is one of the world's leading IT solutions providers in the banking sector. emagine offers companies the opportunity to staff their strategic technology projects both quickly and flexibly with capable experts. To achieve this, emagine has an international network of highly qualified IT and engineering specialists at its disposal. CODE_n, the GFT Group's innovation platform, offers international startups, technology pioneers and established companies access to a global network. It's where ideas become business. Headquartered in Germany, the GFT Group has stood for technological expertise, innovative strength and outstanding quality for over 25 years. Founded in 1987, the GFT Group is represented in eleven countries by its 3,000 employees. The GFT Group is listed on the Frankfurt Stock Exchange (Prime Standard). Contact: Felix Jansen, External Communications GFT Technologies AG Filderhauptstr. 142, 70599 Stuttgart T +49 711 62042-115 [email protected] www.gft.com--------------------------------------------------------------------- 07.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 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 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 281201 07.08.2014
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