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Publication of inside information pursuant to Art. 17 MAR
Munich, 05 November 2018 – According to preliminary figures, Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) achieved significant growth in sales and earnings in the first nine months of 2018 (01 January 2018 – 30 September 2018).
Business development in the first nine months of 2018
According to preliminary figures, consolidated sales from continuing operations rose by almost 20 percent to EUR 503.2 million in the first nine months of 2018 compared with the corresponding period in 2017 (previous year: EUR 420.0 million). Preliminary value added (total output less productive personnel costs and purchased services) was up by 27 percent to EUR 140.1 million (previous year: EUR 110.0 million), corresponding to a gross margin of 27.8 percent (previous year: 26.2 percent).
Preliminary adjusted Group EBITDA for the period increased by 64 percent to EUR 32.4 million (previous year: EUR 19.7 million), corresponding to an adjusted EBITDA margin of 6.4 percent (previous year: 4.7 percent). In this figure, extraordinary expenses and effects relating to other periods of EUR 6.3 million have been adjusted for the purposes of comparability of the years and transparent presentation of operating earnings power; in the same period of the previous year, however, the corresponding extraordinary effects had balanced out to income of EUR 0.2 million. The extraordinary effects in 2018 mainly relate to extraordinary expenses from restructuring in the Enterprise Services and Experts segments as well as in the Technology segment from the comprehensive acquisition activities.
The preliminary Group EBITDA of continuing operations, including extraordinary effects, rose by 32 percent to EUR 26.1 million (previous year: EUR 19.8 million). Preliminary consolidated EBIT from continuing operations amounted by 58 percent to EUR 16.9 million (previous year: EUR 10.7 million).
In addition, as reported, the Group generated a pre-tax profit of EUR 1.9 million in the first quarter from the sale of Allgeier Medical IT GmbH, Freiburg, at the end of March 2018. The gain on disposal is reported under discontinued operations.
In June 2018, Allgeier acquired 100 percent of the shares of Objectiva Software Solutions, Inc. based in San Diego, California, USA. The company will be consolidated in the Group pro rata temporis from July 2018. According to preliminary figures, the pro rata contribution in the third quarter of 2018 included in the above figures amounted to EUR 5 million in revenues and EUR 0.68 million in EBITDA.
In August 2018, Allgeier concluded a purchase agreement for the acquisition of approximately 67 percent of the iQuest Group’s shares. The international software company has over 700 highly qualified software specialists at development centers in Romania as well as at other locations in Germany, Switzerland and Poland. The closing, including the payment of the purchase price, took place in September 2018. The balance sheet of the iQuest Group is included in the Allgeier consolidated balance sheet as of September 30, 2018. The inclusion of the income statement in the The income statement will not be included in the Allgeier Group until 1 October 2018, so that the purchase price paid in September 2018 is not yet offset in the nine-month figures by a contribution to sales and earnings. In the first nine months of 2018, the iQuest Group generated revenues of EUR 25.5 million and EBITDA of approximately EUR 3 million.
Business development in the third quarter of 2018
In the third quarter of 2018 (July 1, 2018 – September 30, 2018), the Group recorded a 20 percent increase in sales from continuing operations to EUR 175.6 million (previous year: EUR 146.4 million) compared with the same period of the previous year according to preliminary figures. Preliminary value added (total output less productive personnel costs and purchased services) rose by 24 percent to EUR 50.1 million (previous year: EUR 40.3 million), corresponding to a gross margin of 28.5 percent (previous year: 27.6 percent).
At EUR 12.3 million, preliminary adjusted Group EBITDA before extraordinary expenses and effects relating to other periods was 18 percent higher than the previous year’s figure of EUR 10.4 million, which corresponds to an adjusted EBITDA margin of 7.0 percent (previous year: 7.1 percent). Adjusted extraordinary expenses and effects relating to other periods totalled approximately minus EUR 2.6 million in the third quarter of 2018 (previous year: minus EUR 0.4 million). The main reasons for the higher extraordinary effects compared with the previous year are that extraordinary income from currency hedging in the Technology segment in the amount of EUR 1.1 million was incurred in the third quarter of 2017 and not in the third quarter of 2018. In addition, in the third quarter of 2018 extraordinary expenses of EUR 0.9 million were incurred for former employees in the Experts segment.
Including extraordinary and non-period effects, preliminary Group EBITDA for the third quarter amounted to EUR 9.7 million (previous year: EUR 9.9 million). The preliminary Group EBIT (earnings before interest and taxes) for the same period was EUR 6.5 million (previous year: EUR 6.9 million).
Key balance sheet data as of September 30, 2018
Preliminary consolidated equity amounted to EUR 130.7 million as of the balance sheet date of September 30, 2018 (December 31, 2017: EUR 122.8 million). Preliminary cash and cash equivalents amounted to EUR 64.9 million (December 31, 2017: EUR 53.0 million). According to preliminary figures, financial liabilities increased to EUR 170.6 million (December 31, 2017: EUR 109 million) as of September 30, 2018 due to the drawing on funds from the long-term credit line.
Preliminary total assets increased to EUR 454.7 million at the end of the third quarter of 2018 (December 31, 2017: EUR 337.9 million), mainly due to the acquisitions made.
Outlook for the fourth quarter of 2018
The Management Board expects continued growth in sales and earnings in the final quarter of 2018. Including the consolidation of Objectiva Software Solutions and iQuest Group, revenue from continuing operations is expected to increase by approximately 25 percent in the fourth quarter of 2018 compared to the same period of the previous year according to Group planning.
All IFRS figures mentioned are preliminary. All figures relate to continuing operations. The voluntary interim formation of Allgeier SE as of September 30, 2018 will be published on November 14, 2018 and can then be viewed at www.allgeier.com.
Corporate Communications & Investor Relations
Dr. Christopher Große
Phone: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11