GESCO continues growth trend


Wuppertal, 15. August 2006 – Prime Standard-listed holding company, GESCO AG, has continued its positive development in the first quarter (01.04. to 30.06.2006) of financial year 2006/2007. Operating business of the subsidiaries remains lively and sales and earnings have risen significantly. The Group has also grown externally with the acquisition of Frank Walz- und Schmiedetechnik GmbH in July 2006.

Incoming orders for the GESCO Group increased in the first quarter by 8.9 % from EUR 58.3 million to EUR 63.4 million. Group sales rose from EUR 53.3 million to EUR 60.4 million. Around 8.2 % of this sales growth of 13.2 % is organic, i.e. not attributable to changes in the scope of consolidation, while around 5 % of growth is attributable to the acquisition of the Dömer Group in August 2005.

Earnings figures increased overproportionally. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 20.3 % to EUR 7.1 million (previous year EUR 5.9 million). With virtually unchanged depreciation, earnings before interest and tax (EBIT) reached EUR 5.2 million (previous year EUR 4.1 million), an increase of 27.9 %. Group net income climbed from EUR 2.0 million to EUR 2.5 million, representing growth of 26.0 %. On the basis of the current total equity of 2,749,000 bearer shares, earnings per share stand at EUR 0.92 (previous year EUR 0.80 based on 2,500,000 shares).

The staff complement at the GESCO Group rose on the year from 1,205 to 1,315. This is mainly attributable to the addition of the Dömer Group, which was not taken into account in the first quarter of the previous year.

During the accounts press conference on 29 June 2006, we announced a sales forecast of EUR 245 million and an earnings forecast of EUR 9.8 million, or EUR 3.56 per share, for financial year 2006/2007. Frank Walz- und Schmiedetechnik GmbH, acquired in July, was not taken into account in this forecast. Frank will be included in the consolidated financial statements for five months, which means that Group sales should reach around EUR 253 million. The acquisition of Frank will have little impact on Group net income in the year of first-time consolidation.