Strong Path of Growth / Annual Financial Accounts 2007
Stuttgart, 31 March 2008 – AC-Service, the IT full service provider with a leading position on the German-language SAP midmarket segment, continues moving forward along a path of strong growth. AC-Service finished the financial year 2007 with sales in its continuing business divisions improving from EUR 62.6 million in the prior year to EUR 78.1 million (+25%). The mainstay of what continues to be robust growth are the revenues from consulting services totalling EUR 30.6 million (+23%), from outsourcing services (including software maintenance) of EUR 23.8 million (+18%) and from SAP licenses in the amount of EUR 12.7 million (+29%).
"These results have not only enabled us to significantly exceed sales expectations, but also place us among those full service companies with the fastest organic growth in the SAP midmarket segment where German is spoken," summarised the AC-Service board spokesman Lars Landwehrkamp. "The renewed strong rise in sales of SAP licenses strengthens our customer base for the future, as this is where recurring revenues from software maintenance and added potential for multi-year outsourcing and managed-services contracts are generated," reported Stefan Land, who has been appointed to the board of directors as the new chief financial officer of AC-Service AG effective 1 April 2008. Mr Land will replace Marco Fontana who is leaving the company on 31 March 2008.
The EBIT in the financial year 2007 was EUR 1.0 million (prior year: EUR 0.3 million) and includes depreciation and amortisation totalling EUR 3.3 million (prior year: EUR 2.7 million). These figures include amortisation of intangible assets in an unchanged amount of some EUR 1.0 million. The operating earnings before amortisation of intangible assets (EBITA) was EUR 2.1 million (prior year: EUR 1.3 million). This means that the ratio of EBITA to sales was 3% (prior year: 2%) and the ratio of EBIT to sales was 1% (prior year: 0%). Earnings per share improved considerably from minus 46 euro cents in the prior year to plus 15 euro cents in the financial year 2007. The number of employees increased from 355 (31 December 2006) to 425 (31 December 2007). All the figures stated above do not include the discontinued ACCURAT (Human Resource Services) business division, which in 2007 posted sales of EUR 10.4 million (prior year: EUR 10.3 million), an EBITA of EUR 1.4 million (prior year: EUR 1.1 million) and earnings per share of 7 euro cents (prior year: 10 euro cents). This division is to be sold as part of the realignment of the AC-Group's corporate strategy to focus on the SAP midmarket segment.
Thanks to the remarkably strong rise in sales in both 2006 and 2007, the starting point for further growth has been pushed to a much more advantageous level. So far there has been no indication of any potential economic slowdowns in the AC-Group's target markets. Not accounting for the discontinued business division, the board of directors expects sales for 2008 to be within an approximate range of from EUR 82 million to EUR 85 million. The major investments and expenditures already made for further expanding the business base will again increase sharply and ultimately culminate in 2008. Thus the board of directors expects an EBITA of between EUR 2.3 million to EUR 2.7 million for the financial year 2008 - a plus of some 10% to 30% over the prior year. The rapidly progressing realignment to become an SAP full service provider combined with an integrated market presence should facilitate further growth and create more potential for added value in the coming years.