30.06.2016
Gesco AG DE000A1K0201
DGAP-News: GESCO: 2015/2016 considerably better than expected, but subdued outlook for 2016/2017
DGAP-News: Gesco AG / Key word(s): Final Results/Final Results
GESCO: 2015/2016 considerably better than expected, but subdued outlook for
2016/2017
30.06.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
- 2015/2016 results well above budget
- Dividend to be increased to EUR 2.00 per share
- Results expected to decline in financial year 2016/2017
- Share split intended to enhance attractiveness and
liquidity of share
Wuppertal/Engelskirchen, 30 June 2016 - GESCO Group, an association of
small and medium-sized industrial companies, is reporting on a successful
financial year 2015/2016 (1 April 2015 to 31 March 2016) at its annual
accounts press conference today, but is issuing a subdued outlook for
financial year 2016/2017.
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. Financial year 2015/2016 therefore
encompasses the operating calendar year 2015. GESCO Group generated lively
demand during this period. The Group grew both organically as well as
through acquisitions: Setterstix Inc., acquired in January 2015, is
included for the first time in the consolidated income statement.
Incoming orders improved 7.7 % to EUR 483.2 million in the reporting
period, compared to EUR 448.8 million in the previous year. Group sales
grew by 9.4 % from EUR 451.4 million to EUR 494.0 million. Earnings before
interest, taxes, depreciation and amortisation (EBITDA) increased much more
sharply than sales at 15.4 % to EUR 53.3 million (previous year: EUR 46.2
million). At 15.2 %, earnings before interest and taxes (EBIT) improved at
a similar rate and came in at EUR 31.5 million (EUR 27.3 million). Group
net income after minority interest increased by 30.6 % to EUR 16.1 million
(EUR 12.4 million).
The financial year was much better than originally expected, especially in
terms of the results. This is largely attributable to three factors: the
fact that considerable progress was made through restructuring activities
at two subsidiaries, that the operating business of several subsidiaries
developed better than planned, and that there were positive one-off effects
on the results.
At the Annual General Meeting on 25 August 2016, the Executive Board and
Supervisory Board will propose a dividend increase from EUR 1.75 to EUR
2.00 per share in view of the rise in profits.
The Group has issued a subdued outlook for financial year 2016/2017. Given
that industrial customers are showing a general reluctance to invest in the
currently highly volatile and uncertain market environment, there is a lack
of new growth stimuli in the capital goods industry of relevance to GESCO.
Many suppliers are registering low capacity utilisation, and prices are
subsequently under pressure. In view of this, management forecasts stable
Group sales of around EUR 480 million to EUR 490 million. Based on current
estimates, the results are unlikely to match the previous year's level and
should be between around EUR 13.5 million and EUR 14.5 million.
In the first quarter of the new financial year 2016/2017, incoming orders
did not achieve the exceptionally high level of the previous year's quarter
(EUR 146 million), but they were well above that of the subsequent fourth
quarter of the previous year (EUR 105.1 million). Sales amounted to some
EUR 113.5 million (previous year's period: EUR 118.7 million).
In order to make the GESCO share "lighter" and, in doing so, enhance the
share's attractiveness to private investors and improve its liquidity, a
share split of 1:3 will be proposed to the Annual General Meeting on 25
August 2016. The share capital is to be increased from EUR 8,645,000 to EUR
9,975,000 by way of a capital increase from company funds and will be
divided into 9,975,000 shares with a calculated nominal value of EUR 1.00.
Shareholders will receive two new GESCO shares per GESCO share. All shares
will be fully entitled to a dividend for financial year 2016/2017.
The new Chief Executive Officer, Dr Eric Bernhard, presented the "Portfolio
Strategy 2022" at the annual accounts press conference. As part of this
strategy, GESCO AG has defined four end customer segments where it has
identified long-term positive megatrends and specific opportunities for
profitable growth. These segments comprise production process technology,
resource technology, health and infrastructure technology as well as
mobility technology. The company plans to make acquisitions in the targeted
areas, and the segment reporting for the existing subsidiaries will be
adjusted accordingly from the first quarter of the current financial year.
Full annual report for financial year 2015/2016 on www.gesco.de.
About GESCO
GESCO AG is an industrial group with market and technology leaders in the
investment goods industry focusing on production process technology,
resource technology, health and infrastructure technology and mobility
technology. As a stock listed company on the Prime Standard, GESCO AG
offers private and institutional investors access to a portfolio of leading
small and medium-sized industrial German companies, so-called hidden
champions of Germany's Mittelstand.
Investor Relations - Oliver Vollbrecht
Tel. +49 202 24820-18 - Fax +49 202 24820-49
E-mail: [email protected] - Internet: www.gesco.de
---------------------------------------------------------------------------
30.06.2016 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.
Archive at 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
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News Service
---------------------------------------------------------------------------
475469 30.06.2016
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Gesco AG ISIN: DE000A1K0201 können Sie bei EQS abrufen
Beteiligungen , A1K020 , GSC1 , XETR:GSC1