Preliminary Results Confirmed / Annual Financial Statements 2006
Stuttgart, 28 March 2007 – AC-Service has set out on a clear path of growth with its strategy of being a one-stop service provider that covers the entire IT value chain and delivers end-to-end support to small and mid-sized businesses in countries where German is spoken. According to the group financial statements published today, AC-Service posted sales of EUR 72.9 million (prior year: EUR 44.7 million) in the financial year 2006. This high increase in sales stems mostly from the SAP Solutions business division, which had strong organic growth thanks to the inclusion of the All for One Midmarket Solutions GmbH acquisition, and which reported segment sales of EUR 39.7 million (prior year: EUR 12.4 million). Sales in the Human Resource Services division declined from EUR 11.3 to 10.3 million, whereas the Managed IT Services division increased its sales by about 8% to EUR 18.8 million. Big investments were made in expanding consultant capacity in order to manage this vastly enlarged business volume, which put a temporary burden on earnings. The EBITA was EUR 2.4 million (prior year: EUR 1.1 million) and the EBIT was EUR 1.4 million (prior year: EUR 0.8 million). The preliminary results published in the ad hoc announcement of 14 March 2007 were confirmed. The range for sales announced in March 2006 was surpassed while the projected EBITA was just achieved.
Earnings before taxes totalled EUR 0.7 million (prior year: EUR 1.1 million) and was burdened by large one-time costs for the provision of the loan to fund the acquisition. A major income tax expense of EUR 2.6 million (prior year: EUR 0.1 million), which mostly had no impact on liquidity, led to earnings after taxes of minus EUR 1.9 million (prior year: EUR 1.0 Mio million). Earnings per share (IFRS) were therefore minus 35 euro cents (prior year: 22 euro cents). The inclusion of All for One led to some fundamental changes in AC-Service's balance of accounts. Total reported assets increased from EUR 42.4 to 64.3 million, while the share of equity to the balance sheet total dropped from 63% to 39%.
The strategic objectives behind the acquisition of All for One have been achieved. All for One with its focus on SAP industry solutions and AC-Service concentrating on outsourcing services together enable optimal coverage of the entire SAP value chain, as evidenced by the total of over 50 new SAP client projects that were garnered in 2006. The market launch of the AC-Group's one-stop range of SAP products and services is being made in line with a broad new alignment designed to strengthen the organisational structure uniformly under the All for One brand in the future.
The board of directors expects sales of some EUR 77 to 79 million for 2007 and about EUR 89 to 92 million for 2008. The EBITA for 2007 should be in the range of between EUR 2.3 and 2.7 million for 2007, and between about EUR 4.2 and 4.7 million for 2008.