IT-Analysis.com
IT-Analysis.com Logo
Business Issues Compliance
Business Issues Channels Enterprise Services SME Technology
Module Header
Louella FernandesLouella Fernandes
Louella Fernandes
11th April - Managed Print Services: Are SMBs Ready?
Louella FernandesLouella Fernandes
Louella Fernandes
11th April - The Managed Print Services (MPS) Opportunity for SMBs
Simon HollowayThe Holloway Angle
Simon Holloway
11th April - Intellinote - capture anything!
David NorfolkThe Norfolk Punt
David Norfolk
11th April - On the road to Morocco
Philip HowardBloor IM Blog
Philip Howard
10th April - Attunity Gold Client

News Release

GFT posts accelerated growth. Revenue up 22 per cent in third quarter of 2013

GFT Solutions division grows by 30 per cent in the first three quarters
Released: 7th November 2013
Publisher: GFT Solutions
  • GFT Solutions division grows by 30 per cent in the first three quarters
  • Pre-tax earnings after nine months up 44 per cent on previous year
  • Full-year guidance for pre-tax earnings raised to around EUR 16 million

Stuttgart, 7 November 2013 – Following a planned development of revenue in the first half of 2013, the GFT Group stepped up the pace of growth significantly in the third quarter. Thanks to dynamic organic growth in the GFT Solutions division and the initial consolidation of the newly acquired Sempla S.r.l., consolidated revenue in the third quarter grew by 22 per cent to EUR 71.25 million (prev. year: EUR 58.23 million). After the first nine months, the GFT Group posted revenue growth of 6 per cent to EUR 185.44 million (prev. year: EUR 174.61 million). Pre-tax earnings (EBT) improved over the same period by 44 per cent to EUR 11.21 million (prev. year: EUR 7.80 million). The company has upgraded its full-year guidance for pre-tax earnings issued in August to around EUR 16 million (formerly at least EUR 15 million) and expects revenue for the full year to increase to at least EUR 260 million (prev. year: EUR 230.69 million) with an EBITDA result of around EUR 19 million (prev. year: EUR 13.35 million).

“We are delighted with the good performance of the GFT Solutions division, which has grown steadily stronger over the course of the year. The successful integration of Sempla has strengthened our range of solutions. We look forward with confidence to the fourth quarter and the continuation of our growth trajectory,” states GFT’s CEO Ulrich Dietz.

GFT Solutions grows by 30 per cent in the first nine months
Dedicated to delivering IT solutions for the finance sector, the GFT Solutions division posted revenue growth of 30 per cent to EUR 117.82 million in the first nine months (prev. year: EUR 90.48 million), of which EUR 10.20 million was contributed by the newly integrated Sempla S.r.l. Adjusted for this revenue contribution, GFT Solutions posted growth of 19 per cent. This strong organic growth was helped by rising demand for outsourcing services and investment banking solutions, especially in the UK and Germany. Segment earnings rose by 62 per cent to EUR 12.85 million (prev. year: EUR 7.93 million).

With its consultancy services for the staffing of technology projects, the emagine division posted revenue of EUR 67.61 million – 20 per cent down on the previous year (EUR 84.13 million). This decline in revenue resulted mainly from the planned discontinuation of its low-margin Third Party Management (TPM) business. As a result, the TPM business contributed just EUR 2.33 million (prev. year: EUR 16.55 million) to segment revenue.

GFT Group improves pre-tax earnings by 44 per cent
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the GFT Group rose by 48 per cent to EUR 13.05 million in the first nine months (prev. year: EUR 8.81 million). The newly consolidated Sempla S.r.l. contributed income of EUR 0.93 million to EBITDA. The EBITDA result includes tax-free income of EUR 1.73 million from an adjustment to the expected purchase price for Asymo AG, acquired in 2011, as well as costs for the CODE_n innovation drive and CeBIT fair presence amounting to EUR 0.97 million (prev. year: EUR 1.35 million).

Earnings before interest and taxes (EBIT) improved by 47 per cent to EUR 11.27 million (prev. year: EUR 7.65 million). In the first nine months of 2013, earnings before taxes (EBT) amounted to EUR 11.21 million and were thus 44 per cent up on the previous year (EUR 7.80 million). The operating margin before taxes improved by 1.5 per cent, from 4.5 per cent in the previous year to 6.0 per cent.

In the reporting period, the GFT Group generated net income of EUR 8.38 million, corresponding to growth of 64 per cent over the prior-year figure (EUR 5.10 million). The calculated tax ratio amounted to 25 per cent, compared to 35 per cent in the previous year.

Earnings of GFT Solutions up 62 per cent
The earnings contribution of the GFT Solutions segment rose by 62 per cent to EUR 12.85 million in the first nine months (prev. year: EUR 7.93 million), corresponding to an improvement in the operating margin to 10.9 per cent (prev. year: 8.8 per cent). This disproportionately strong increase in earnings, compared to revenue, resulted mainly from a higher utilisation rate and the adjustment of the remaining purchase price for Asymo AG. Segment earnings of the emagine division were burdened by expenses involved with the division’s realignment, especially in the first six months. Following an upturn in the third quarter, segment earnings for the first nine months amounted to EUR 0.41 million (prev. year: EUR 1.59 million).

Headcount grows to over 2,000
Due to the positive development of business and high utilisation of capacity in the GFT Solutions division, headcount at the Spanish development centres was increased by 19 per cent to over 1,000 during the reporting period. All in all, the number of full-time staff employed by GFT increased to 2,029 as of 30 September 2013 (prev. year: 1,371).

Outlook: full-year guidance for pre-tax earnings raised
Following a first six months in line with expectations and a strong third quarter, the GFT Group expects business to make further progress in the fourth quarter. The Executive Board has therefore upgraded its full-year guidance for pre-tax earnings issued in August to around EUR 16 million (formerly at least EUR 15 million) and expects revenue for the full year to increase to at least EUR 260 million (prev. year: EUR 230.69 million) with an EBITDA result of around EUR 19 million (prev. year: EUR 13.35 million).

Detailed financial figures are available in the Investor Relations section of the GFT website at http://www.gft.com/ir.


Related Links:

Advertisement



Published by: IT Analysis Communications Ltd.
T: +44 (0)190 888 0760 | F: +44 (0)190 888 0761
Email: