28.06.2018
Gesco AG DE000A1K0201
DGAP-News: GESCO records a positive operating result for 2017/2018 with prospects of profit growth in 2018/2019
DGAP-News: Gesco AG / Key word(s): Forecast/Forecast
GESCO records a positive operating result for 2017/2018 with prospects of
profit growth in 2018/2019
28.06.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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* A successful operating year; antitrust proceedings have negative impact
on earnings
* Dividend to increase from EUR 0.35 to EUR 0.60 per share
* Significant profit increase expected in financial year 2018/2019
* First quarter delivers a dynamic start
Wuppertal/Erkrath, 28 June 2018 - The GESCO Group, an association of
industrial SMEs, is reporting a successful operating result for financial
year 2017/2018 (1 April 2017 to 31 March 2018) at its annual accounts press
conference today and is forecasting significant earnings growth for
financial year 2018/2019.
Given the general dynamic economic development and the significant pick-up
in business activities in the capital goods industry, the GESCO Group was
able to generate brisk demand with rising sales and disproportionately
strong operating profit growth in financial year 2017/2018. Moreover, it
implemented the optimisation projects defined in the Portfolio Strategy
2022. The pleasing operating development was overshadowed by antitrust
proceedings launched against Dörrenberg Edelstahl GmbH, a 90% subsidiary of
GESCO AG. Provision was made in the consolidated financial statements for
2017/2018 for a financial penalty of EUR 8.5 million to settle antitrust
proceedings.
The Pickhardt & Gerlach Group, which was acquired at the turn of the year
2016/2017, has been included in the income statement for the first time,
while the investment in Protomaster GmbH was sold in December 2017 as
announced.
Overall, incoming orders increased by 10.8% to EUR 552.4 million (previous
year: EUR 498.7 million) in a mix of internal and external growth. Group
sales came to EUR 547.2 million, up from EUR 482.5 million the previous
year, which equates to growth of 13.4%. At 52.6%, earnings before interest
and taxes (EBIT) increased at a significantly above-average rate, climbing
to EUR 33.8 million (EUR 22.1 million). Group net income after minority
interest increased to EUR 16.1 million, more than double the previous year's
figure of EUR 7.9 million.
The Production Process Technology segment expanded its sales slightly in the
face of a marginal decrease in earnings, while the largest segment, Resource
Technology, was able to translate economic tailwind into operating success,
making the greatest contribution to the increase in earnings in a
combination of internal and external growth. The second-largest segment,
Health and Infrastructure Technology, benefited from positive developments
in consumer markets, continuing its profitable growth trajectory. By
contrast, the Mobility Technology segment recorded a decline. There was a
significant negative impact on earnings when a subsidiary shut down a
business division.
In light of the vigorous increase in profits, the Executive Board and
Supervisory Board will propose significantly increasing the dividend by EUR
0.35 to EUR 0.60 per share at the Annual General Meeting on 30 August 2018.
In taking this step, the company is following its long-standing dividend
policy of distributing around 40% of Group net income after minority
interest.
The signals for continued positive economic development currently outweigh
the grave political uncertainties. From today's perspective, no relevant
non-recurring or one-off effects are foreseeable in the new financial year.
As a result, performance should largely be shaped by organic business
development. Specifically, the Executive Board is expecting Group sales of
between EUR 550 million and EUR 560 million in the new financial year
2018/2019 and Group net income after minority interest of between EUR 26
million and EUR 27 million.
The rather dynamic development of the previous year continued at the start
of the new financial year 2018/2019. At around EUR 150 million, incoming
orders in the first quarter, which encompassed the months January to March
2018, were slightly above the previous year's exceptionally high figure of
EUR 148.7 million. Sales increased by 5.5% to approx. EUR 140 million (EUR
133.4 million).
Robert Spartmann, member of GESCO AG's Excecutive Board, says: "In
2017/2018, the upturn also had an impact on the capital goods industry. Our
company was able to benefit from this to varying degrees and, overall, the
Group experienced pleasing growth. We successfully integrated Pickhardt &
Gerlach and strengthened the Group with a series of optimisation projects.
In the new financial year, we expect to record moderate sales growth and a
continued increase in earnings in all segments. The high levels of the first
quarter have strengthened our optimism."
The complete Annual Report is available at www.gesco.de/en.
Key figures for the GESCO Group pursuant to IFRS
Financial year 1 April - 31 March 2017/20- 2016/20- Chang-
18 17 e
Incoming orders (EUR 552,404 498,746 10.8%
'000)
Sales (EUR 547,193 482,480 13.4%
'000)
Attributable to international (%) 39% 37% -
business
EBITDA (EUR 57,404 49,745 15.4%
'000)
EBIT (EUR 33,789 22,137 52.6%
'000)
Earnings before tax (EUR 31,861 19,187 66.1%
'000)
Group net income after minority (EUR 16,099 7,890 104.0-
interest '000) %
Earnings per share pursuant to IFRS (EUR) 1.49 0.79 88.6%
Cash flow from ongoing business (EUR 38,513 41,922 -8.1%
activities '000)
Investment in property, plant and (EUR 24,638 19,788 24.5%
equipment '000)
Depreciation on property, plant and (EUR 17,989 24,009 -25.1-
equipment '000) %
Total assets (EUR 456,256 439,915 3.7%
'000)
Equity (EUR 224,265 214,095 4.8%
'000)
Equity ratio (%) 49.2% 48.7% -
Employees (as at 31 Dec) (No.) 2,489 2,535 -1.8%
Share price 31 March (EUR) 28.50 24.96 14.2%
Dividend per share (EUR) 0.60 0.35 71.4%
About GESCO
GESCO AG is an industrial group made up of market and technology leading
companies in the capital goods industry. Its focus is on production process
technology, resource technology, healthcare and infrastructure technology
and mobility technology. As a stock company listed in the Prime Standard,
GESCO AG offers private and institutional investors access to a portfolio of
hidden champions among Germany's industrial SMEs.
Investor Relations - Oliver Vollbrecht
Tel. +49 (0) 202 24820-18 - Fax +49 (0) 202 24820-49
E-mail: [email protected] - Website: www.gesco.de
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28.06.2018 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.
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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, Tradegate Exchange
End of News DGAP News Service
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699331 28.06.2018
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