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Publication of inside information pursuant to Art. 17 MAR
Munich, March 5, 2020 – Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) reports double-digit growth in total performance and value added and a significantly disproportionate increase in earnings for the 2019 financial year (January 01, 2019 – December 31, 2019) according to preliminary figures.
Business development for the full year 2019
The Group’s total operating performance in fiscal 2019 rose by 14 percent year-on-year to EUR 786 million (previous year: EUR 690 million). Consolidated 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). This corresponds to an increase in the value added margin for the Group from 28.3 percent in 2018 to 29.2 percent in 2019. Adjusted Group EBITDA (EBITDA before effects that are classified as extraordinary or relating to other periods) rose by 34 percent to EUR 74 million in the period under review (previous year: EUR 55 million). Group EBITDA increased by 59 percent to EUR 71 million (previous year: EUR 45 million). Group EBIT rose by 108 percent to EUR 38 million (previous year: EUR 18 million).
The business unit consisting of Nagarro, iQuest, Objectiva and the SAP business of Allgeier Enterprise Services, for which a spin-off with the aim of an independent stock exchange listing is being intended (see ad hoc announcement of November 05, 2019), is making a significant contribution to the growth achieved in the 2019 financial year. The total operating performance of this business unit increased by 40 percent to EUR 403 million (previous year: EUR 289 million). Part of this growth is due to the full consolidation of the companies acquired in 2018 and 2019, in particular iQuest and Objectiva, which were acquired in 2018 and which were still consolidated pro rata temporis from the acquisition date in the previous year. In an as-if analysis for 2018 and 2019, the business unit’s total operating performance grew by 23 percent to EUR 405 million (previous year: EUR 329 million). The business unit’s EBITDA rose by 52 percent to EUR 55 million (previous year: EUR 36 million).
Key balance sheet data as of 31 December 2019
At the end of the 2019 financial year, the Allgeier Group had cash and cash equivalents of EUR 97 million (previous year: EUR 77 million) at its disposal. Current and non-current financial liabilities amounted to EUR 165 million as of the balance sheet date (previous year: EUR 182 million). The leasing liabilities to be carried as liabilities according to IFRS 16 amounted to EUR 97 million (previous year EUR 69 million). The balance sheet total was EUR 590 million (previous year: EUR 536 million).
Outlook for the 2020 financial year
Allgeier SE today confirms the guidance for the financial year 2020, which was published in the ad hoc release of December 09, 2019. This envisages sales in the order of EUR 820 to 840 million for the Group as a whole in the 2020 financial year, which corresponds to sales growth of between 6 and 8 percent. The background is a further planned significant reduction in low-margin business in the Allgeier Experts division. The adjusted EBITDA margin for the Group as a whole is expected to increase to between 11 and 12 percent, corresponding to an adjusted EBITDA in the range of EUR 90 to 100 million. It is not yet possible to estimate a possible influence of the consequences of the current global spread of the corona virus on these forecasts.
All figures stated for 2019 have been prepared in accordance with IFRS, by applying IFRS 16, which is effective as of 2019. The comparative figures for 2018 have been retroactively adjusted to IFRS 16 for the purpose of comparability. All IFRS figures mentioned in this release refer to the business of the entire Group. All business figures for the 2019 financial year are preliminary and have not yet been conclusively audited by the Group auditor. It is also pointed out that all statements for the financial year 2020 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 correct, future actual developments and future actual results may differ from these assumptions and estimates. Allgeier SE gives no guarantee and assumes no liability that future developments and the actual results achieved in the future will correspond to the assumptions and estimates expressed in this ad hoc announcement.
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 indicators may have limited suitability as an analytical tool and should not be used in isolation or as an alternative to the financial indicators presented in the consolidated financial statements and determined in accordance with the relevant accounting framework in order to assess Allgeier SE’s net assets, financial position and results of operations. Other companies that present or report alternative performance measures with a similar name may calculate them differently and they may therefore not be comparable.