GESCO AG intends to propose a dividend increase of 28.6%


Wuppertal, 20 May 2005 – On the basis of its unaudited figures, Prime Standard-listed holding company GESCO AG, which already revised its forecast in February this year, is set to marginally exceed the sales target and clearly outstrip the earnings forecast for the financial year ending on 31 March 2005.

Sales forecasts were increased in February from EUR 176 million to EUR 190 million, with the actual figure totalling EUR 192 million (previous year EUR 171 million).

The forecast Group net income for the year was revised upwards from EUR 4.8 million (EUR 1.93 per share) to EUR 5.4 million (EUR 2.16 per share) in February. Based on the current consolidated financial statements, Group net income for the year is set to amount to EUR 6.2 million, or EUR 2.50 per share (previous year adjusted net of scheduled depreciation on goodwill which no longer applies: EUR 4.2 million, or EUR 1.73 per share). This is the result of positive trend in operating business and also of non-recurring effects of EUR 0.8 million.

On the basis of the preliminary figures, the Executive Board is likely to propose a dividend of EUR 0.90 per share (previous year EUR 0.70 per share), which represents a dividend increase of 28.6%.

GESCO is forecasting a slight increase in sales and Group net income for the year, net of the non-recurring effects for financial year 2005/2006. The annual financial statements for financial year 2004/2005 and the forecast for financial year 2005/2006 will be presented at the accounts press conference on 28 June 2005.