- Sales up 22 %, results up 50 % - Dividend also reaches record high at EUR 1.25 - New financial year brings further growth
Wuppertal, 29 June 2006 – Prime Standard-listed holding company GESCO AG has reported record results again in financial year 2005/2006 (01.04.2005-31.03.2006) and growth will continue in the new 2006/2007 financial year. At today’s accounts press conference in Düsseldorf, the Executive Board reported on the second record year in a row and forecast further growth. Buoyant business activity led to a 22 % increase in sales to EUR 234.3 million (previous year: EUR 192.3 million). The rise in Group net income was even higher and at EUR 9.3 million was up 50 % on the previous year’s EUR 6.2 million. Earnings per share rose 36 % to EUR 3.39 (previous year: EUR 2.49) despite the increase in the number of shares. Staff numbers rose from 1,215 to 1,329; the 9 % rise is primarily due to the acquisition of the Dömer Group in Lennestadt, Germany, in August 2005. Shareholders are also set to benefit from this positive development with a considerable rise in the profit distribution. At the General Meeting on 24 August 2006, the Executive Board and Supervisory Board will propose an increase in the dividend of around 40 % to EUR 1.25 (previous year: EUR 0.90). The price of GESCO shares climbed 65 % during the reporting year and has therefore outperformed its benchmark index, the SDAX (+44 %). For the new 2006/2007 financial year (01.04.2006-31.03.2007) the company aims to outstrip these record figures again. The Executive Board is anticipating sales of around EUR 245 million and Group net income of around EUR 9.8 million with earnings per share of EUR 3.56. GESCO Executive Board member Dr. Hans-Gert Mayrose said, “The past financial year was indeed an extraordinarily good year, with sales benefiting from the increased price of materials and a temporary boom enjoyed by some subsidiaries. These effects no longer apply in the new financial year, but will be more than compensated for by the broad-based upturn. All systems are set for growth and we intend to generate further rises in sales and earnings as well as achieve external growth through acquisition. With the comfortable volume of liquid funds and excellent balance sheet structure, we are perfectly placed to do so.