Development of revenues and earnings according to IFRS

In the 2019 financial year (January 01, 2019 – December 31, 2019), the Allgeier Group recorded double-digit growth in revenues and value added. In 2019, consolidated revenues rose by 14 percent year-on-year to EUR 784 million (previous year: EUR 688 million). Group value added (defined as total performance less the costs of sales and personnel costs directly attributable to sales) increased by 18 percent to EUR 230 million (previous year: EUR 195 million). Adjusted Group EBITDA (EBITDA before effects that are classified as extraordinary or related to other periods) rose by 34 percent to EUR 73.4 million (previous year: EUR 54.9 million). Group EBITDA (earnings before interest, taxes, depreciation and amortization) rose by 57 percent to EUR 70.1 million (previous year: EUR 44.6 million). EBIT (earnings before interest and taxes) increased by 104 percent to EUR 37.6 million (previous year: EUR 18.4 million). EBT (earnings before taxes) rose by 132 percent to EUR 29.8 million (previous year: EUR 12.9 million). Income tax expenses amounted to EUR 11.5 million (previous year: EUR 6.4 million). After taxes, the Group generated earnings of EUR 18.4 million for the period (previous year: EUR 6.4 million). Including the divested business, earnings for the period amounted to EUR 18.7 million (previous year: EUR 8.2 million). Of this amount, EUR 15.1 million was attributable to the shareholders of the parent company (previous year: EUR 5.9 million). Earnings per share amounted to EUR 1.44 (previous year: EUR 0.59). Operating earnings per share adjusted for depreciation and amortization from acquisition activities and calculated with normalized taxes amounted to EUR 2.16 (previous year: EUR 1.69).

Key balance sheet data as of 31 December 2019

As of the balance sheet date December 31, 2019, consolidated equity amounted to EUR 165.9 million (previous year: EUR 128.7 million). At the end of 2019, the Allgeier Group had cash and cash equivalents of EUR 97.4 million (previous year: EUR 77.0 million). Current and non-current financial liabilities fell to EUR 164.9 million (previous year: EUR 181.7 million). Total assets amounted to EUR 587.0 million (previous year: EUR 535.9 million).

Appropriation of profits

The Management Board and Supervisory Board regard the continuity of dividend payments as a key objective. The 2019 financial year was very successful for the Allgeier Group. However, in view of the global SARS-CoV-2 pandemic and its economic consequences, the Management Board is cautious and proposes to suspend the dividend for the financial year 2019. The primary objective must be to secure liquidity, competitiveness and jobs in the company.

The Supervisory Board has therefore decided today, April 16, 2020, to propose to the Annual General Meeting to carry forward the net profit of EUR 66,283,968.80 reported in the annual financial statements of Allgeier SE as of December 31, 2019, to new account.

In view of the currently still too low predictability of the consequences of the pandemic, the Supervisory Board will review this decision immediately before convening the Annual General Meeting and then make a final decision.

Outlook for the 2020 financial year

The Management Board expects a very good business performance in the first quarter in line with the previous planning for 2020 and anticipates a significant increase over the same quarter of the previous year. The Management Board is currently not issuing a guidance for the entire 2020 financial year due to the uncertainty about the possible consequences of the global Covid-19 pandemic on the global economy. The course of business in the first quarter of 2020 was still almost unaffected by this. After our colleagues in China had already worked exclusively from the home office from January onwards, almost all Allgeier Group employees transferred their activities to the home office as a precautionary measure in the course of March to protect their health. With the appropriate measures, the service for our clients and the work in the projects could be continued in a safe and productive manner without major restrictions. However, the development for the coming quarters cannot yet be estimated with sufficient reliability.

The Management Board continues to adhere to its plans for the spin-off and independent stock exchange listing of the global technology and software development business planned for the 2020 financial year (see ad hoc announcement of November 05, 2019). All reasons for this step remain valid, even against the background of the current pandemic and its possible consequences. It is expected that the digitization of business models in all industries and public administrations will tend to accelerate further in the coming years, and that the business models of the spun-off global technology company as well as the remaining Allgeier business, which focuses more on the German market, will benefit sustainably. The Management Board and Supervisory Board will make a decision on a possible concrete timetable in the coming weeks, as soon as the short-term effects of the current corona crisis on the preparatory work for the spin-off and the subsequent listing, as well as the condition of the capital markets for the second half of 2020, become more clearly foreseeable.

Note

The Allgeier Annual Report 2020 will be published on April 20, 2020 and can then be viewed at www.allgeier.com.

All figures mentioned for the financial year 2019 have been prepared in accordance with IFRS, applying IFRS 16, which will apply from 2019. The comparative figures for 2018 have been retrospectively adjusted to IFRS 16 for the purpose of comparability. All IFRS figures quoted in this release refer to the business of the entire Group.

It should also be noted that all figures for the 2020 financial year represent expectations of the Management Board based on assumptions and estimates. Although the Management Board is of the opinion that these assumptions and estimates are appropriate, future actual developments and future actual results may differ from these assumptions and estimates. Allgeier SE does not warrant or assume any liability that future developments and future actual results will be consistent with the assumptions and estimates expressed in this ad hoc release.

This document contains supplementary financial indicators – not precisely defined in the relevant accounting framework – which are or may be so-called alternative performance indicators. These supplementary financial figures may have limited suitability as an analytical tool and should not be used in isolation or as an alternative to the financial figures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks in order to assess the net assets, financial position and results of operations of Allgeier SE. Other companies that present or report alternative performance indicators with a similar designation may calculate them differently and may therefore not be comparable.