DGAP-News: Gesco AG / Key word(s): Final Results/Final Results2016-06-30 / 07:30
The issuer is solely responsible for the content of this announcement.
- 2015/2016 results well above budget
- Dividend to be increased to EUR 2.00 per share
- Results expected to decline in financial year 2016/2017
- Share split intended to enhance attractiveness and liquidity of share
Wuppertal/Engelskirchen, 30 June 2016 - GESCO Group, an association of small and medium-sized industrial companies, is reporting on a successful financial year 2015/2016 (1 April 2015 to 31 March 2016) at its annual accounts press conference today, but is issuing a subdued outlook for financial year 2016/2017.
The financial year of GESCO AG and GESCO Group runs from 1 April to 31 March of the following year, while the financial years of the subsidiaries coincide with the calendar year. Financial year 2015/2016 therefore encompasses the operating calendar year 2015. GESCO Group generated lively demand during this period. The Group grew both organically as well as through acquisitions: Setterstix Inc., acquired in January 2015, is included for the first time in the consolidated income statement.
Incoming orders improved 7.7 % to EUR 483.2 million in the reporting period, compared to EUR 448.8 million in the previous year. Group sales grew by 9.4 % from EUR 451.4 million to EUR 494.0 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased much more sharply than sales at 15.4 % to EUR 53.3 million (previous year: EUR 46.2 million). At 15.2 %, earnings before interest and taxes (EBIT) improved at a similar rate and came in at EUR 31.5 million (EUR 27.3 million). Group net income after minority interest increased by 30.6 % to EUR 16.1 million (EUR 12.4 million).
The financial year was much better than originally expected, especially in terms of the results. This is largely attributable to three factors: the fact that considerable progress was made through restructuring activities at two subsidiaries, that the operating business of several subsidiaries developed better than planned, and that there were positive one-off effects on the results.
At the Annual General Meeting on 25 August 2016, the Executive Board and Supervisory Board will propose a dividend increase from EUR 1.75 to EUR 2.00 per share in view of the rise in profits.
The Group has issued a subdued outlook for financial year 2016/2017. Given that industrial customers are showing a general reluctance to invest in the currently highly volatile and uncertain market environment, there is a lack of new growth stimuli in the capital goods industry of relevance to GESCO. Many suppliers are registering low capacity utilisation, and prices are subsequently under pressure. In view of this, management forecasts stable Group sales of around EUR 480 million to EUR 490 million. Based on current estimates, the results are unlikely to match the previous year's level and should be between around EUR 13.5 million and EUR 14.5 million.
In the first quarter of the new financial year 2016/2017, incoming orders did not achieve the exceptionally high level of the previous year's quarter (EUR 146 million), but they were well above that of the subsequent fourth quarter of the previous year (EUR 105.1 million). Sales amounted to some EUR 113.5 million (previous year's period: EUR 118.7 million).
In order to make the GESCO share "lighter" and, in doing so, enhance the share's attractiveness to private investors and improve its liquidity, a share split of 1:3 will be proposed to the Annual General Meeting on 25 August 2016. The share capital is to be increased from EUR 8,645,000 to EUR 9,975,000 by way of a capital increase from company funds and will be divided into 9,975,000 shares with a calculated nominal value of EUR 1.00. Shareholders will receive two new GESCO shares per GESCO share. All shares will be fully entitled to a dividend for financial year 2016/2017.
The new Chief Executive Officer, Dr Eric Bernhard, presented the "Portfolio Strategy 2022" at the annual accounts press conference. As part of this strategy, GESCO AG has defined four end customer segments where it has identified long-term positive megatrends and specific opportunities for profitable growth. These segments comprise production process technology, resource technology, health and infrastructure technology as well as mobility technology. The company plans to make acquisitions in the targeted areas, and the segment reporting for the existing subsidiaries will be adjusted accordingly from the first quarter of the current financial year.
Full annual report for financial year 2015/2016 on www.gesco.de.
GESCO AG is an industrial group with market and technology leaders in the investment goods industry focusing on production process technology, resource technology, health and infrastructure technology and mobility technology. As a stock listed company on the Prime Standard, GESCO AG offers private and institutional investors access to a portfolio of leading small and medium-sized industrial German companies, so-called hidden champions of Germany's Mittelstand.
Investor Relations ( Oliver Vollbrecht
Tel. +49 202 24820-18 ( Fax +49 202 24820-49
E-mail: firstname.lastname@example.org ( Internet: www.gesco.de
2016-06-30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de