DGAP-News: Gesco AG / Key word(s): Investment/Profit Warning02.02.2017 / 13:04
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P R E S S R E L E A S E
GESCO optimizes portfolio, revises guidance for current financial year and provides positive outlook for new financial year Wuppertal, 02.02.2017 - GESCO AG decided to put its majority holding in Protomaster GmbH, Wilkau-Haßlau, for sale. As already explained, this subsidiary has burdened the Group accounts in the last two financial years as well as in the current financial year as a restructuring case.
Against the background of the intended sale, GESCO AG revises its guidance for the current financial year 2016/2017. The company's most recent forecast for Group net income after minority interest from November 2016 amounted to EUR 11.5 million to EUR 12.5 million. Since in the fourth quarter operating business developed better than expected, the company now expects Group net income after minority interest on an operating basis to come in at between EUR 12.5 million and EUR 13.5 million. Based on the information available now, putting Protomaster for sale will have a negative one-off effect on Group earnings of around EUR 6.5 million. Therefore the new guidance for Group net income after minority interest for financial year 2016/2017 amounts to around EUR 6.0 million to EUR 7.0 million. The outlook for Group sales of around EUR 480 million is not affected. The effects from the intended sale will mainly not influence cash flow.
The quarterly statement for the nine months period will be published on 14 February 2017. In the Group accounts of the nine months period the effects of the intended sale on the balance sheet and on the profit and loss statement will not yet be included, since today's decision of the exit was made in the current fourth quarter of the financial year.
GESCO's CEO Dr Eric Bernhard comments on the intended disposal of Protomaster: "By putting Protomaster for sale, we are commencing the termination of this investment, which by far did not live up to our initial expectations. This does not change at all our strategy to acquire companies with a long term focus and develop them further."
For the new financial year 2017/2018 starting on 1 April, the company expects growth in terms of sales and earnings on an organic basis as well as profitable external growth provided by Pickhardt & Gerlach group which had been acquired in December 2016.
Dr Bernhard on the outlook: "The acquisition of Pickhardt & Gerlach and the intended sale of Protomaster strengthen our portfolio and make it more robust. We will start into the new financial year with reduced risks, a positive view on operating business and external growth."
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
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