03/06/2015

ALLGEIER SE / Key word(s): Preliminary Results06.03.2015 18:12Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP – a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.—————————————————————————Munich, 06.03.2015 – Preliminary figures indicate that Allgeier SE (ISINDE0005086300, WKN 508630) recorded further growth in sales in continuedoperations in financial year 2014 (1 January 2014 to 31 December 2014),inspite of the difficult year for the Experts segment (as detailed in thead hoc announcement of 29 July 2014 and the half-year financial report to30 June 2014), and turned in a positive result. In 2014 the Group continuedto pursue the change in strategy initiated two years ago. During the yearthe management team once again devoted a great deal of time to ensuringthat the Group’s three segments were more strongly focused on high-growthand high-margin future-oriented business. In this context, in the past yearthe Group disposed of DIDAS Business Services GmbH, Langenfeld, as well asthe Allgeier Benelux business unit (Allgeier N.V., Belgium, AllgeierComputer BV, Netherlands, Allgeier S.A., Luxembourg, Allgeier Ltd., Cyprusand Allgeier Ltd., Turkey). In accordance with IFRS, both units areincluded in the financial statements under the heading of discontinuedoperations. The process of focusing will continue in 2015.Given the wide variations in the development in business in individualsegments in financial year 2014, in the interests of greater clarity thepreliminary figures for the three segments are detailed hereinafter asadditional information, followed afterwards by the figures for the Group:Experts segment (IT personnel services)The Experts segment achieved preliminary sales of EUR 228.6 million in 2014(previous year: EUR 245.3 million), representing a decline of 7 percent.This was primarily attributable to the conclusion of a major project at theend of the year 2013, as well as to the effects of labour market policyuncertainties in the first half of 2014. Preliminary value added (aggregateperformance less sales costs and personnel costs directly attributable tosales) accordingly declined to EUR 38.5 million, down 7 percent relative tothe year before (previous year: EUR 41.5 million), equating to a grossmargin of 16.9 percent (previous year: 16.9 percent). Preliminary EBITDAfrom operations (before extraordinary effects and effects relating to otherperiods) was down by a disproportionate 32 percent to EUR 10.3 million(previous year: EUR 15.1 million). One of the main reasons for this is thatthe company refrained from personnel downsizing and, in particular,invested in sales and marketing instead, as well as in improved internalstructures, which was reflected by an above-average acquisition of newcustomers compared with previous years.Solutions segment (IP and IT Solutions)The Solutions segment (continued operations) increased its sales by 6percent to EUR 88.6 million (previous year: EUR 83.9 million) according topreliminary figures. Preliminary value added (gross margin) accordinglyrose by 5 percent to EUR 29.2 million (previous year: EUR 27.8 million),equating to a gross margin of 33.1 percent (previous year: 32.9 percent).However, preliminary EBITDA from operations (before extraordinary effectsand effects relating to other periods) slipped by 15 percent to EUR 5.3million (previous year: EUR 6.3 million). Material factors contributing tothe decline included investments in developing a business unit acquired bythe Group in August 2014. This resulted in a nominal charge againstearnings (EBITDA) of EUR 1.2 million.Projects segment (software development)The Projects segment (software development) recorded strong growth of 26percent, which lifted preliminary sales to EUR 114.8 million (previousyear: EUR 91.3 million). Preliminary value added increased by 29 percent toEUR 41.8 million (previous year: EUR 32.4 million), equating to a grossmargin of 36.2 percent (previous year: 35.6 percent). Preliminary EBITDAfrom operations (before extraordinary effects and effects relating to otherperiods) climbed 22 percent to EUR 15.3 million (previous year: EUR 12.5million).GroupAt the Group as a whole, preliminary consolidated revenues from continuedoperations as per IFRS in financial year 2014 came in at EUR 428.3 million(previous year: EUR 414.8 million), representing growth of 3 percent.Preliminary value added at operational level rose by a disproportionate 8percent to EUR 109.6 million (previous year: EUR 101.7 million), equatingto a gross margin of 25.4 percent (previous year: 24.1 percent). Allgeierhas now taken another step along the path towards increasing thefundamental profitability of its business operations. The development ofthe Experts segment, which was accompanied by extraordinary, non-recurrentitems, in the past year should not disguise the fact that around two thirdsof the value added by the Group was achieved with a gross margin averagingover 33 percent.As a result of the situation described above at the Experts segment and theinvestments in developing the Solutions segment, the result for the Groupas a whole was somewhat lower than in the year before: Preliminary EBITDAfrom operations (before extraordinary effects and effects relating to otherperiods) slipped by 10 percent to EUR 25.6 million (previous year: EUR 28.5million). Preliminary extraordinary earnings for financial year 2014 werenegative at EUR -2.2 million (previous year: EUR 0.6 million). Significantcontributing factors in this instance were the effect of currencyfluctuations and currency hedging, as well as non-recurrent costs incurredthrough financing the Group totalling EUR -1.5 million (previous year: EUR-0.6 million). Preliminary consolidated EBITDA from continued operationsaccordingly amounted to EUR 23.4 million (previous year: EUR 29.8 million).Preliminary consolidated EBIT (earnings before interest and taxes) fromcontinued operations came in at EUR 10.6 million (previous year: EUR 16.5million). The Group generated preliminary pre-tax earnings from continuedoperations in the amount of EUR 6.3 million (previous year: EUR 12.5million). The Group received proceeds of EUR 3.0 million from the disposalof the business entities according to preliminary figures.Preliminary revenues from continued and discontinued operations in the pastfinancial year amounted to EUR 456.5 million (previous year: EUR 477.6million). Preliminary EBITDA from continued and discontinued operationsduring the period amounted to EUR 23.4 million (previous year: EUR 30.1million).The preliminary figure for equity rose to EUR 102 million as of 31 December2014 (previous year: EUR 94.7 million). Excluding discontinued operations,the Allgeier Group had liquidity at its disposal as of 31 December 2014 inthe amount of EUR 98 million (previous year: EUR 46.7 million). Current andnon-current financial liabilities on the balance sheet closing date hadincreased to EUR 125.2 million (previous year: EUR 75.5 million). Thebalance sheet total at the end of the financial year stood at EUR 331million (previous year: EUR 289.3 million).Outlook for financial year 2015In view of the widely varying developments at its individual segments,Allgeier SE has decided that an adequately transparent and comprehensiveillustration of the company’s current development in this situation shouldinclude an outlook for the financial year 2015.The outlook for the individual segments is as follows: – The Experts segment has achieved the turnaround back to growth development in the second half of 2014 and expects the investments made in previous years to pay for themselves in 2015. The segment is endeavouring to achieve a single-digit percentage increase in sales accompanied by corresponding growth in earnings. Furthermore, the segment is soon to be further expanded through further acquisitions. – The Solutions segment continues to focus on growth areas such as Medical IT, Productivity and Mobile Solutions, Banking and Insurance Solutions as well as BPM solutions and is aiming to achieve a double-digit percentage increase in sales along with substantially higher earnings. Additionally, this segment will also be further expanded by acquisitions in 2015. – The Projects segment with over 2,700 highly qualified employees committed to excellence in high-end software development and engineering is in an outstanding position to achieve further strong growth accompanied by high margins. The segment plans to generate double-digit growth in sales with a corresponding increase in earnings. Also in this segment, the concrete intention is to boost further growth by acquisitions.Plans for the Group as a whole anticipate overall sales growth in thesingle-digit range in financial year 2015, but with a disproportionatelystrong increase in earnings. The projected figures relate exclusively tothe organic development of the existing Group and do not include anyvariations in the portfolio, whether as a result of further acquisitions ordue to further divestments.Allgeier SE is working intensively towards a clear and dynamic developmentof its portfolio in order to focus the Group’s strategic orientation in themarketplace and take the Allgeier Group to the next level by continuing tosharpen its focus. A particular goal is once again in 2015 to acceleratethe future development of the business through further value-creatingacquisitions over and beyond current projections. To this end, even beforethe past financial year came to an end, the Group had already begun torestructure its finances on attractive terms for the years ahead (cf. adhoc announcement of 4 December 2014).NoteAll of the IFRS figures quoted in this announcement for financial year 2014are preliminary and have not yet been conclusively verified by the Groupauditor. The aforementioned annual results from continued operations arenot comparable with the financial year 2013 owing to the retrospectiveadjustment in the previous year to account for the disposal of the twoentities. Publication of the Allgeier annual report for 2014 is scheduledfor 30 April 2015. The statements on the year 2015 represent expectationsbased on current plans and projections; there is no certainty that theywill be realized.Contact:Allgeier SECorporate Communications & Investor RelationsDr. Christopher GroßeWehrlestraße 1281679 MunichTel.: +49 (0)89/998421-0Fax: +49 (0)89/998421-11E-Mail: ir@allgeier.comWeb: www.allgeier.comAllgeier SE is one of the leading IT companies for Business Performancetoday: Allgeier combines the advantages of an international provider withthe merits of medium-sized companies with a growth strategy orientedconsistently to innovations and future trends, and an integrative businessmodel. Operating divisions, each with their individual specialist orsector-related focal points, work together for more than 3,000 customersfrom almost all sectors. With a highly flexible delivery model, Allgeiercovers the full range of IT services, from on-site and nearshore through tooffshore: A strong presence in India ensures flexibility and maximumscalability of the services, supplemented by highly qualified expertise inhigh-end software development. With more than 5.300 salaried employees andover 1.200 freelance IT experts, Allgeier, as a one-stop shop, offerscustomers a comprehensive portfolio of solutions and services. Allgeier’scustomers include globally operating groups as well as innovativemedium-sized operations that wish to secure strategic advantages throughhigh-performing IT solutions, intelligent software and flexible personnelservices. This high-growth company, which is based in Munich, Germany,operates at more than 90 sites in the German-speaking region, and atfurther locations in the rest of Europe, as well as in India, Mexico andthe USA. In 2014 Allgeier generated EUR 428 million of revenue (continuedoperations), according to preliminary figures. Allgeier SE was ranked firstin the Lünendonk(R) List 2014 of “Leading German medium-sized IT consultingand system integration companies”. The Allgeier Experts division ranksamong the top three IT personnel service-providers in Germany according tothe Lünendonk(R) 2014 market segment study “The market for recruiting,mediating and managing IT freelancers in Germany”. The company is listed onthe regular market of the Frankfurt Stock Exchange in the General Standardsegment (WKN 508630/ISIN DE0005086300). Further information is available onthe company’s website at: www.allgeier.com.06.03.2015 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: EnglishCompany: ALLGEIER SE Wehrlestraße 12 81679 München GermanyPhone: +49 (0) 89 – 99 84 21 0Fax: +49 (0) 89 – 99 84 21 11E-mail: info@allgeier.comInternet: http://www.allgeier.comISIN: DE0005086300WKN: 508630Indices: CDAXListed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart End of Announcement DGAP News-Service —————————————————————————