Q2 figures for FY 2015/2016 (01.01.-31.03.2016)

Revenues up 4% to EUR 41.1m (previous year EUR 39.5m)
Service share reaches 79% (previous year 76%)
DATAGROUP secures low interest rate with promissory note loan for 7 years

Pliezhausen, May 9, 2016. In Q2 2015/2016 (01.01.-31.03.2016), DATAGROUP AG (WKN A0JC8S) again managed to increase revenues compared to the prior-year period. In particular in the IT services core business, the company recorded strong revenue growth of 8%. DATAGROUP optimises its financing structure with a long-term promissory note loan (Schuldscheindarlehen) of EUR 30m and benefits from the current low interest rates to an even stronger extent. The money is intended to promote further company growth.

In Q2 2015/2016, DATAGROUP generates revenues of EUR 41.1m (previous year EUR 39.5m, +4%). This is attributable to a strong increase of 8% in the IT services core business. Service revenues were up EUR 32.5m (previous year EUR 30.1m), the service share in revenues climbed to 79% (previous year 76%). Accordingly, the intended improvement of the gross profit to EUR 28.2m was very strong with 7% (previous year EUR 26.3m).

“DATAGROUP continues to develop strongly in its core business with Cloud services and managed IT services”, comments DATAGROUP CEO Max H.-H. Schaber. “We are very pleased with the operating performance of the fiscal year, particularly with the ongoing strong demand for our full-service offer CORBOX. We are also making good progress in integrating our most recent subsidiary, DATAGROUP Vega, and have already reached break even as planned. As announced, however, our intensive activities in the area of mergers and acquisitions lead to temporarily higher expenses and reduce the very good operating earnings. Targeted inorganic growth offers great opportunities for the long-term corporate development. This is definitely worth the expenditure.”

As a result of large one-off income in the same quarter a year ago, which will not occur to this extent this year, as well as acquisition-related expenses, Q2 earnings are below the level of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) totaled EUR 3.5m (previous year EUR 4.2m, -16%). This corresponds to an EBITDA margin of 8.6% (previous year 10.6%). Earnings per share amounted to 13 cents (previous year 23 cents).

In the entire first half of 2015/2016 (01.10.2015-31.03.2016), DATAGROUP increased revenues by 5% to EUR 82.7m, reaching a new peak (previous year EUR 78.4m). EBITDA came in at EUR 6.0m (previous year EUR 7.3m, -18%), earnings per share at 17 cents (previous year 33 cents).

New promissory note loan secures financing and growth opportunities in the long term

The issue of a promissory note loan of EUR 30m further improves DATAGROUP’s financing structure. The loan issued on April 1, 2016 has a total term of 7 years and was heavily oversubscribed. The average interest rate is 1.2% and so it is again well below the 3.0% that DATAGROUP pays for a promissory note loan issued in 2013. The loan was exclusively placed with banks with which the company has long-standing business relationships.

“We have had very good experience with these financing tool”, says Dirk Peters, COO of DATAGROUP AG. “The long duration ensures a high degree of planning security and financial stability at favourable conditions. We can continue on our growth path in a forceful way and have additional room for acquisitions. At the same time, we are pleased about the banks’ very strong demand. It is a clear sign of confidence in our company and the sound corporate management.” The issue was arranged by the Landesbank Baden-Württemberg.

The new promissory note loan will be payable after 3, 5 and 7 years in instalments of EUR 9m, 12m and 9m. Repayment differs from the loan in 2013 with two outstanding installments of EUR 7.5m each, which will be payable in 2 and 4 years. Thanks to an even distribution, debts can be repaid from the company’s operating cash flow according to plan.

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