The Digital Transformation is Taking Shape / 6-Month Report as at 31 March 2015
The digital transformation is taking shape. Our customers, including project service providers and those from the machinery and equipment manufacturing, automotive and consumer goods industries, are getting themselves into position to reap the benefits. New technologies that make enterprise data available no matter where you are (»mobility«), allow you to draw specific conclusions from enormous volumes of information in mere seconds (»big data«), drastically simplify software applications (»apps«) and allow them to be used on a pay as you use basis on the internet (»cloud») are on the road and arriving at small to mid-sized enterprises. Those who understand how to intelligently employ such technology assets as the SAP HANA technology platform, SAP R/3’s successor SAP S/4HANA or the many new cloud solutions will be able to unlock and access considerable new growth potential. Putting such scenarios into action and the steps needed to transform from the »current« to the »new« are just some of the topics we discuss with our customers as part of a specially designed workshop programme.
As a full-service provider and the Number 1 in the German-speaking SAP market serving the largest customer base, we want to play an instrumental role in shaping this digital transformation within the midmarket segment. Our ability to orchestrate even large enterprise software landscapes, along with everything that this entails, is an asset now being sought particularly by large corporations operating their own data centers. We acquired a majority interest in Grandconsult DEXINA GmbH effective 1 April 2015 in order to further strengthen this field of business which we started in early 2014. This technology foundation allows us to not only go beyond large businesses to sustainably grow and take the lead in supporting the early adapters among our midmarket customers within the global SAP ecosystem, but to also acquire important insights and knowledge for broadly implementing that all-important digital transformation among small to mid-sized enterprises.
Our results for the 2014/15 half-year, namely a gain of 10% in revenues to EUR 120.3 million and a 39% increase in EBIT to EUR 10.3 million, exceeded expectations. The EBIT margin for the 1st half-year was 8.5% (Oct 2013 – Mar 2014: 6.8%). On 8 May 2015 we raised our forecast for the full financial year 2014/15 that was originally announced on 12 November 2014 and which projected revenues ranging from EUR 230 million to 240 million and an EBIT of between EUR 14 million and 15 million. We now expect revenues of a good EUR 240 million and an EBIT of between EUR 16 million and 17 million. Economic developments in our target markets continue to be robust, yet remain difficult to predict. Occasional setbacks cannot be ruled out.
Although we are only active in sales within Germany, Austria and Switzerland (the so-called DACH region), SAP again recognised us in 2015 – as it did in 2013 and 2014 – with a Pinnacle Award as »SME Value-Added Reseller of the Year«, an honour that is mostly conferred on globally operating companies such as Accenture, Cap Gemini, Deloitte, HP, IBM, OpenText or Tata Consultancy. This Pinnacle Award also sheds a favourable light on United VARs, our global partner alliance through which we serve our customers on site in what are now 71 countries. Answerthink, Miami/USA, was another United VARs partner besides All for One Steeb to win a Pinnacle Award this year for its outstanding performance within the global SAP ecosystem.
Yours sincerely,
Lars Landwehrkamp Stefan Land
Chief Executive Officer Chief Financial Officer
6-Month Report as at 31 March 2015