Ad-hoc: Sales and Earnings Increased
Stuttgart, 22 August 2007 – The fundamental repositioning as a leading full-scale SAP service provider for midmarket companies in countries where German is spoken is picking up great speed under Lars Landwehrkamp, the new spokesman of the board of directors, and is resulting in a dynamic expansion of the business base. The quarterly financial statements finalised and published today show AC-Service posting sales of EUR 41.9 million (prior-year period: EUR 33.1 million) during these first 6 months of the year. This 27% increase in sales (21 percentage points of which were organic growth) exceeds expectations and stems predominantly from the Managed IT Services (+38%) and SAP Solutions (+30%) business divisions. Even the Human Resource Services division again posted a slight upturn in sales. A significant and impressive increase in earnings was reported despite what continues to be a high level of investment in human resource development. The half-year EBITA more than tripled over that of the same period a year ago increasing from EUR 0.5 to 1.8 million, while the half-year EBIT improved from EUR 0.0 to 1.3 million.
The 2nd quarter closed with an increase in sales of 21% to EUR 20.8 million (prior-year quarter: EUR 17.3 million). The 2nd quarter EBITA was EUR 0.2 million (prior-year quarter: EUR 0.2 million) and the EBIT was minus EUR 0.1 million (prior-year quarter: EUR 0.0 million). Included in these earnings figures is a special charge in the amount of EUR 0.5 million from additions to a provision for a separation agreement that was made in May 2007 with the former chairman of the board Herbert Werle. Adjusted for this one-time expense relating to a different period, this 2nd quarter again showed a disproportionately high increase in EBITA and EBIT over that of the same quarter a year ago. The earnings per share (IFRS) for the 2nd quarter were even (prior-year quarter: minus 12 euro cents). In terms of the half-year earnings per share, AC-Service posted a profit jump from minus 26 euro cents (first half year 2006) to 17 euro cents (first half year 2007). The average staffing strength in full-time equivalents for the first half of the year was 458 (prior-year period: 405) and the number of individuals employed as at 30 June totalled 473 (prior half-year mark: 430).
The AC-Group has been committed to a clear growth strategy since the spring 2006 takeover of the SAP systems contractor All for One GmbH. AC-Service picked up remarkable momentum in the 2nd quarter with the implementation of the strategy developed over the course of 2006 to be a full-scale SAP service provider covering the entire IT value chain and providing complete, end-to-end service to small and mid-sized enterprises in countries where German is spoken. This development might lead to exceeding the sales and earnings projections for the full 2007 year as published in the annual report, which will lie within a range of EUR 77 to 79 million (sales) and EUR 2.3 to 2.7 million (EBITA).