Figures for Q2 2016/2017 (01.01. – 31.03.2017) Revenue up by 33%, EBITDA by 77% Strong organic growth of 10% Earnings per share skyrocketed from 13 auf 36 cents Management raises guidance for the current fiscal year
Pliezhausen, May 8, 2017. DATAGROUP SE (WKN A0JC8S) has accelerated its strong and profitable growth in the second quarter of FY 2016/2017 once again. Revenues grew by one third, earnings per share almost tripled. Based on the very good business development and the recent acquisition of IT service provider HanseCom, the management board raises its guidance for FY 2016/2017.
In the second quarter of FY 2016/2017 (01.01. – 31.03.2017), DATAGROUP achieved a strong increase in revenues of 33% yoy. The IT service provider thus has been able to accelerate growth even further after an increase of 29% had been entered in the books in the first quarter. Q2 revenues amounted to EUR 54.6m (previous year EUR 41.1m). This was due to strong organic growth of 10% and the takeover of IT specialists from Hewlett-Packard Enterprise in September 2016. The significant expansion of the high-margin core business with Cloud and outsourcing services leads to a disproportionate increase in earnings. Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 77% to EUR 6.3m (previous year EUR 3.5m). The EBITDA margin was up from 8.6% to 11.5%. Earnings before interest and taxes (EBIT) more than doubled to EUR 4.3m (previous year EUR 1.9m), corresponding to an increase of 123%. Earnings per share (EPS) almost tripled yoy from 13 cents to 36 cents.
In the first half of FY 2016/2017 (01.10.2016 – 31.03.2017) DATAGROUP boosted revenues by 31% to EUR 108m (previous year EUR 82.7m). The increase in EBITDA, which was up 92% yoy to EUR 11.5m (previous year EUR 6.0m), was even more pronounced. EPS improved from 17 cents to 59 cents. When accounting for the 10% capital increase on April 5, 2017, EPS amounted to 54 cents.
“We are very pleased with the course of the fiscal year up to now, especially with the strong organic growth of 10%”, commented DATAGROUP CEO Max H.-H. Schaber. “The operating business with long-term service contracts and recurring income is developing extremely well. The acquisition of IT service provider HanseCom will provide an additional impetus and the successful capital increase creates financial scope for further strong growth. All of this makes us look to the future with great optimism and enthusiasm!”The capital increase by 10% has substantially strengthened equity. Resulting from a significant extension of the balance sheet by 55% in the last fiscal year, the equity ratio had dropped to below 20% despite the very good operating business trend. The reasons were sharp increases in pension liabilities in the wake of the takeover of 306 IT specialists from Hewlett-Packard Enterprise as well as the issuance of a promissory note loan with a volume of EUR 30m to secure the low level of interest over the long term. At the reporting date on March 31, 2017, the equity ratio stood at 18% (including subordinated loan: 20%). When including the issue proceeds of the capital increase of over EUR 21m, the equity ratio would have been 28% at the reporting date (including subordinated loan: 29%). The sustainable improvement of the equity base enables DATAGROUP to continue to play an active and dynamic role in the consolidation of the market for IT services.
Since its IPO, DATAGROUP has acquired 19 companies or parts of companies, the most recent of which was Hamburg-based IT service provider HanseCom in early April. The company has some 70 employees and generates annual revenue of ca. EUR 16m, which will be consolidated in the annual financial statement of DATAGROUP SE from May 2017. In line with DATAGROUP’s corporate strategy, HanseCom will act as an independent subsidiary in the market under the new name DATAGROUP Operate IT GmbH. At the same time, DATAGROUP’s and HanseCom’s service profiles will be interlinked so that customers benefit from the broader service offering and expertise within the group.
“An above-average customer satisfaction is one of our most important competitive advantages”, said DATAGROUP board member and Chief Operating Officer Dirk Peters. “As our corporate structure is heavily influenced by the German Mittelstand, we are always close to our customers and at eye-level. At the same time, our structure guarantees a consistently high level of quality. This is achieved with our joint full-service portfolio CORBOX, which is partly produced locally and partly in central service factories, but always on the basis of our standardised production processes. This combination of proximity to our Mittelstand customers and certified process and service qualities is our core strength in the market.”
Based on the very good development of the operating business and the successful acquisition of HanseCom, the management board raises its guidance for the current fiscal year 2016/2017 and now expects revenues of EUR 215 – 225m (previously EUR 210 – 220m ) and EBITDA of EUR 22.0 – 23.0m (previously EUR 21.5 – 22.5m).
The complete semi-annual report can be downloaded at DATAGROUP > Publications