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Half-year results 2020/21: Strong growth in the cloud // Substantial increase in EBIT and rising EBIT margin

Highlights (all results unaudited): SAP Pinnacle Award 2021: »Partner of the Year – SAP S/4HANA Movement« // Cloud sales: up 11% to EUR 41.9 million; ratio of recurring revenues increases to 53% (prior year: 50%) // License sales: down 24% to EUR 12.0 million // Total sales: up 2% to EUR 185.5 million; up 4% without taking license sales into account // EBIT: up 14% to EUR 10.7 million; result for the period: up 17% to EUR 7.0 million // LOB segment: Cloud subscriptions and self-developed add-ons enhance scalability and margin potential // CORE segment: Strong CONVERSION/4 pipeline // Planned acquisition of SNP Poland to take place in current financial year // Michael Zitz (CSO) joins the management board // Sales and EBIT forecasts for 2020/21 confirmed

Filderstadt, 6 May 2021 – All for One Group SE, leading consulting and IT group, published its unaudited results for the period from 1 October 2020 to 31 March 2021 today.

The strategy of comprehensively taking customers' competitiveness in the digital world to the next level is driving growth at All for One Group SE – despite the pandemic and clearly noticeable reticence on the part of customers. Recurring revenues increased from both cloud services and support (plus 11% to EUR 41.9 million) and software support (plus 3% to EUR 55.6 million). At EUR 97.5 million in total (plus 6%), recurring revenues now account for 53% (Oct 2019 – Mar 2020: 50%) of total sales.

Despite the good pipeline, licensing revenues continue to decrease considerably (minus 24% to EUR 12.0 million) as a result both of the pandemic and cloud transformation (»Rise with SAP«), whereas consulting and services revenues were 2% up year on year (Oct 2019 – Mar 2020: EUR 74.4 million). Accordingly, total revenues of EUR 185.5 million were 2% above the prior-year figure. Disregarding the declining non-recurring license revenues, sales growth would have been 4%.

EBITDA totalled EUR 21.5 million (plus 4%). The EBITDA margin relevant to sales amounted to 11.6% (Oct 2019 – Mar 2020: 11.3%). The increase in EBIT was proportionately much higher than the sales trend, increasing by 14% to EUR 10.7 million. The EBIT margin increased to 5.8% (Oct 2019 – Mar 2020: 5.2%). EBT totalled EUR 10.0 million (plus 16%), while the earnings for the period amounted to EUR 7.0 million (plus 17%) and earnings per share to EUR 1.39 (plus 17%). As of 31 March 2021, the equity ratio was 34% (30 Sep 2020: 35%), while the number of employees was 4% higher than the prior year at 1,917 (31 Mar 2020: 1,838).

In spite of a marked decline in licensing revenues, All for One Group was able to increase CORE (ERP and collaboration solutions) segment sales by 1% to EUR 154.5 million (segment EBIT: minus 10% to EUR 7.5 million). The good progress being made in expanding new products and services for IoT & machine learning, cybersecurity and new work, and the growing access to the larger midmarket are creating an ever broadening base for business, despite the pandemic. All for One Group continues to make good progress in building the pipeline for the CONVERSION/4 subscription model based on SNP’s Bluefield technology to migrate customers to SAP S/4HANA. The announced acquisition of SNP Poland is expected to generate additional growth stimulus while expecting a migration wave. »For driving adoption of SAP S/4HANA with a conversion-factory approach«, All for One Group was recognised globally by SAP receiving a Pinnacle Award 2021 (»Partner of the Year – SAP S/4HANA Movement«).

In the LOB (lines of business solutions) segment, recurring cloud subscriptions combined with self-developed add-on solutions are enhancing the scalability of the business model and offer future additional margin potential. With LOB segment sales increasing by 4% to EUR 38.8 million, EBIT almost tripled to EUR 3.2 million (Oct 2019 – Mar 2020: EUR 1.1 million). Accordingly, the segment’s EBIT margin has now reached 8.3% (Oct 2019 – Mar 2020: 2.9%).

As an acknowledged expert in customer centricity, Michael Zitz was appointed Chief Sales Officer (CSO) and has enhanced the management board since 1 April 2021.

According to All for One Group CFO Stefan Land: »The lion’s share of core investment in the strategy offensive we launched in 2018 is now completed. Our sales approach of aiming for complete transformation of our customers in all fields of business is increasingly gaining acceptance although – given the ongoing pandemic – we are still operating in exceptional conditions. We expect the pandemic to slowly fade, enabling us to launch increasingly larger projects from the summer onwards«.

All for One Group SE is upholding its guidance of 13 November 2020 and continues to estimate a slight increase in sales and an EBIT of between EUR 17.5 million and 20.5 million in financial year 2020/21.

All for One Group SE will be publishing its complete half-year financial report for the 6-month period 2020/21 as scheduled on 7 May 2021.