Ad-hoc: Major Growth in Sales
Stuttgart, 29 August 2006 – AC-Service AG, a full-scale service provider focused on Managed IT Services, SAP Solutions and Human Resource Services, today published its quarterly report in which it details closing the second quarter of 2006 with sales of EUR 17.4 million (prior year: EUR 11.7 million) and an EBITA of EUR 0.3 million (prior year: EUR 0.1 million). With that, AC-Service has posted an increase in sales of almost 50% to EUR 33.3 million (prior year: EUR 22.2 million) for these first six months of 2006. The EBITA of EUR 0.7 million for the first half of 2006 (prior year: EUR 0.7 million) includes one-time costs of some EUR 0.2 incurred in the first quarter of 2006 in connection with the provision of the loan for acquiring All for One Midmarket Solutions. The half-year earnings after taxes were minus EUR 1.3 million (prior year: EUR 0.3 million) and include additional one-time costs totalling EUR 0.4 million that arose in the first quarter of 2006 for arranging the acquisition financing. The income tax expense of EUR 1.0 million (prior year: EUR 0.4 million), which rose so sharply over that of last year, only affected liquidity in the amount of EUR 0.3 million (prior year: EUR 0.2 million). The semi-annual earnings per share (IFRS) were minus 24 euro cents (prior year: plus 6 euro cents). The company enjoys a healthy balance of accounts. At the end of the first half of the year, shareholders' equity accounted for 41% (31 Dec 05: 63%) of the balance sheet total, while cash and cash equivalents totalled EUR 11.3 million (31 Dec 05: EUR 11.9 million). The EUR 1.8 million (prior year: EUR 1.9 million) in cash flows from operating activities include EUR 0.6 million in cash used for one-time costs in connection with the provision of the loan to acquire All for One Midmarket Solutions. The semi-annual average number of full-time equivalents was 405 (prior year: 298 FTEs) and there were 430 people (prior year: 303 people) employed in the AC Group at the end of this first half of the year.
With the integration of All for One, AC-Service AG is pursuing a growth strategy and moving into the top positions among SAP service providers on the German-language market for small to mid-size companies. The board of directors still maintains that the goals announced in the annual financial statements published in March 2006 will be reached for the full 2006 year. According to these goals, the annual sales for 2006 should lie within the approximate range of EUR 67 to 70 million. The Managed IT Services, Human Resource Services and Other Operations divisions finished the first half of 2006 above the earnings expectations of the board of directors. The ability to reach the projected earnings (EBITA) in the range of some EUR 2.4 to 2.9 million will depend to a great extent on how well the current earnings deficiencies within the SAP Solutions division can be overcome. Even against the backdrop of an improved economic climate, there is a good volume of orders for the second half of the year in addition to a whole range of promising projects.