Ad-hoc: Quarterly Results 1/2007
Stuttgart, 08 May 2007 – AC-Service continues making progress along the course it charted out in 2006 with its strategy of being a full-scale SAP service provider covering the entire IT value chain and providing end-to-end services to small and mid-sized companies in countries where German is spoken. According to the quarterly financial statements completed and published today, AC-Service posted sales of EUR 21.1 million (prior-year quarter: EUR 15.8 million) in the first three months of 2007. This 33% increase in sales was in part achieved organically, exceeds expectations and stems predominantly from the SAP Solutions (+54%) and Managed IT Services (+25%) business divisions. Even the Human Resource Services division was able to post a slight sales plus. A significant increase in earnings was generated in spite of the high level of investments made in expanding consultant capacities in order to manage the unexpectedly strong rise in business volume. The EBITA increased more than five-fold over the prior-year quarter improving from EUR 0.3 to 1.7 million, the EBIT rose from EUR 0.1 to 1.4 million, earnings before taxes totalled EUR 1.3 million (prior-year quarter: minus EUR 0.3 million), while earnings after taxes improved from minus EUR 0.8 to plus 0.9 million. Earnings per share were 17 euro cents (prior-year quarter: minus 14 euro cents). An impressive increase in earnings was achieved even when adjusted by unanticipated income from investment tax credits relating to other periods in the amount of EUR 0.7 million.
The share of equity to the balance sheet total rose from 39% to 41% and the cash flow from operating activities improved markedly from EUR 0.2 to 0.8 million over that of the prior-year period. The level of free cash flow is positive, yet not enough to fully cover the cash used in financing activities. Cash and cash equivalents declined slightly from EUR 9.3 to 9.0 million compared to the prior-year quarter.
The key strategic issues involving the integration of All for One and the related realignment of the AC-Group were once again successfully driven forward. At the core of the strategy is the consolidation of the SAP systems-contracting and consulting business with the Managed IT Services activities to form a comprehensive and integral one-stop range of complete SAP services for midmarket companies under the newly developed All for One brand with the endorsement »Member of AC-Group«. The »AC« brand, as the master brand of the AC-Group, will continue to be the centrepiece of AC-Service AG's communications with the capital markets.
The board of directors has reaffirmed the projections for sales and earnings for the full 2007 year as announced in the annual report, which will be in a range of from EUR 77 to 79 million (sales) and EUR 2.3 to 2.7 million (EBITA).