- Three acquisitions significantly expand GESCO Group - Robust demand continues in the third quarter - Order backlog of around € 190 million at the end of September - Full year guidance confirmed
Wuppertal, 12 November 2012– In the first half of financial year 2012/2013 (1 April 2012 to 31 March 2013), GESCO Group’s business activities continued to be at a high level; the third quarter also saw robust demand. GESCO AG has also considerably expanded its portfolio with three acquisitions since the beginning of the financial year.
Incoming orders levelled off in the first half of the year; in contrast, sales increased. While key earnings figures rose far above average during the boom period, they now grew less strongly than sales. This was also due to increased depreciation resulting from the increased investment volume as well as the effects from the first-time consolidation of the new companies.
Incoming orders totalled € 225.1 million compared to € 233.5 million in the first half of the previous year. Group sales came to € 220.7 million (previous year’s period: € 211.1 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to € 26.5 million, up 2.9 % on the previous year’s period (€ 25.8 million). Earnings before interest and taxes (EBIT) came to € 20.2 million (€ 20.0 million) and Group net income after minority interest to € 11.7 million (€ 11.6 million). As the capital increase launched in February 2012 resulted in the number of shares rising by almost 10 %, earnings per share pursuant to IFRS fell from € 3.85 to € 3.52.
In the consolidated income statement for the first half of the year, Werkzeugbau-Laichingen Group, which was acquired in December 2011, is included with the full six months and C.F.K. CNC-Fertigungstechnik Kriftel GmbH, which was acquired in May 2012, with one month. Ackermann Fahrzeugbau GmbH, which was sold in April 2012, is no longer included.
The first six months of the financial year at GESCO Group encompass the months April to September for GESCO AG and January to June for its subsidiaries. In the third quarter, the months July to September in the case of the subsidiaries, GESCO Group incoming orders amounted to approximately € 112 million (previous year’s period: € 103.6 million) and Group sales to around € 114 million (€ 98.1 million). These figures include Protomaster Riedel & Co. GmbH and Modell Technik GmbH & Co. Formenbau KG, which were acquired in July, with their pro rata incoming orders and sales. Order backlog amounted to around € 190 million at the end of September; for the first time, this figure includes order backlog from Protomaster and Modell Technik.
Based on the information available at this time, the company can confirm the guidance for Group sales, which were increased in August 2012 from € 430 million to € 438 million due to the acquisitions, as well as the guidance for Group net income for the year after minority interest of € 20.5 million and earnings per share pursuant to IFRS of € 6.17.
GESCO Executive Board member Dr. Hans-Gert Mayrose comments: “The portfolio changes made in the past 11 months have significantly strengthened GESCO Group. Due to the effects from the first-time consolidation, the newly acquired subsidiaries will often not be able to contribute their entire share of earnings to Group earnings in the first two years after acquisition. In positive terms, this means that as soon as the effects from the first-time consolidation have been absorbed, GESCO Group is expected to become more profitable as a result of the new companies – with balance sheet risks remaining low. This is because goodwill only amounts to 8.1 % of equity, an exceptionally low level despite the three acquisitions.”
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