Guidance for Financial Year 2019/20 Repealed Due to Coronavirus
Filderstadt, 23 March 2020 – the significant past years investments in technologies and processes to assure service and business continuity are proving just how valuable they can be in times of emergency: Even now, leading consultant and IT experts All for One Group AG are still able to guarantee the ongoing operation and support without restriction of the business software of its more than 2,500 customers. The Group is also extensively and actively involved in ongoing projects thanks to its ability to already deliver a significant portion of the work remotely, without having to be on site to advise its customers.
Added to which, the Group is helping its customers cope with the current challenges by providing special quick-start package solutions for setting up short-time allowances or digital collaboration in virtual teams based in home offices, for example.
The Group has, moreover, just acquired a new SAP S/4HANA customer who is being set up entirely remotely for the first time ever in light of the coronavirus pandemic.
In doing so, All for One Group is taking key measures to protect its staff and their families, as well as its customers and business partners, to break the chain of infection and to slow the spread of the coronavirus.
At the same time All for One Group is preparing for demand to decline. Cloud and software support account for around half of the Group's business, and this recurring revenue should continue to generate stable earnings and cash flows while stabilising the business.
By contrast, investments in licensing and project business will probably be largely put on hold in light of ever more production shutdowns, supply chain disruptions and restrictions imposed by the authorities.
All for One Group can neither adequately nor reliably quantify the extent and actual economic impact of the same at present. In connection with its annual general meeting on 12 March 2020, All for One Group AG had already communicated the aggravated risk situation caused by the further spread of the coronavirus.
In a further step, the company is now repealing its guidance for financial year 2019/20 that it published on 26 November 2019, forecasting sales of between EUR 375 million and 385 million and EBIT of between EUR 20 million and 22 million. As such, this guidance 2019/20 is no longer applicable. Although the company is maintaining close contact with its customers, business partners and the authorities to enable it to plan future developments more accurately on a concrete basis, it cannot at present issue a concrete and valid new outlook for financial year 2019/20, given the unclear economic situation and the fact that measures and predictions are changing on a daily basis.
The huge pressure already facing many companies to adjust – to agile working worlds or cloud-based software utilisation, for example – is particularly noticeable in the current state of emergency. Although projects can be postponed temporarily, they hardly cannot be suspended permanently.
Having successfully completed last year, on schedule, the launch of its strategy offensive 2022, All for One Group believes it is even better equipped to grow profitably once the situation returns to normal.