GESCO sees strong first half of financial year


DGAP-News: Gesco AG / Key word(s): Half Year Results/Half Year Results

14.11.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


- Continued high order intake

- Sales up, earnings increase disproportionately

- In third quarter, order intake and sales remain
on a high level

- Hidden champion Sommer & Strassburger strengthens

- Outlook for full year refined further

Wuppertal, 14 November 2018 - Hot on the heels of a dynamic first quarter, brisk business activity continued in the second quarter at GESCO Group, a Prime Standard-listed company. All told, the first half of financial year 2018/2019 (1 April 2018 to 31 March 2019) saw a significant increase in incoming orders, rising sales and disproportionate growth in earnings figures compared to the same period in the previous year.

At 13.3 %, incoming orders saw marked growth in the first half of the year, which comprises the subsidiaries' operating business from January to June, and reached EUR 313.0 million (previous year's period: EUR 276.3 million). Sales rose by 5.7 % from EUR 264.7 million to EUR 279.9 million. Protomaster GmbH, which was sold in December 2017, was still included in the previous year's figures. In organic terms, adjusting the previous year's figures for the values attributable to Protomaster, incoming orders grew by 15.8 %, with sales posting a 7.7 % rise.

Earnings figures rose more sharply than sales. Earnings before interest and taxes (EBIT) increased by 17.2 % from EUR 20.4 million to EUR 23.9 million, with Group net income after minority interest growing from EUR 10.6 million to EUR 12.8 million for a rise of 21.3 %.

The half-year interim report comprises the subsidiaries' operating business from January to June 2018. In the subsequent third quarter, which accounts for the operating months July to September 2018 in the case of the subsidiaries, at approximately EUR 143 million, incoming orders were significantly higher than the previous year's figure of EUR 131.6 million, as based on preliminary figures. Group sales totalled around EUR 143 million compared to EUR 139.6 million in the same quarter of the previous year. Demand therefore continued at a high level in the third quarter.

In the first half of the year, GESCO Group not only generated internal growth, but also laid the foundation for external growth through the acquisition of Sommer & Strassburger GmbH & Co. KG. The developer and manufacturer of processing equipment for the pharmaceutical, food, water technology and chemical industries employs approximately 130 members of staff and generates sales of roughly EUR 20 million. The purchase agreements were signed in August, with the Federal Cartel Office (Bundeskartellamt) approving the acquisition in September. As a result, the transaction has since been completed.

On the basis of the information available at the current time, the Executive Board has further refined the outlook for the current financial year (2018/2019). With regard to Group sales, the company expects to slightly exceed the upper end of the communicated range of EUR 550 million to EUR 560 million on an organic basis. The inclusion of Sommer & Strassburger in the consolidated income statement on a pro rata basis for a period of four months will also result in additional inorganic sales growth of around EUR 6.5 million. With regard to Group net income after minority interest, the company now expects a value on or slightly below the lower end of the forecast range of EUR 26 million to EUR 27 million - without taking the acquisition into account. The main reason for this estimate is a temporary underutilisation of capacities within the Resource Technology segment. In the year of its completion, the acquisition of Sommer & Strassburger will lead to both positive and negative effects on earnings. On the one hand, the company's pro rata earnings contribution will have a positive impact. On the other hand, incidental acquisition costs and the scheduled write-downs of consolidation-related surplus value resulting from the purchase price allocation will have a negative impact on Group net income. Overall, the acquisition will weigh Group net income after minority interest down by around EUR 0.5 million in the current financial year. Sommer & Strassburger will be contributing a full financial year's worth of sales and earnings for the first time in the coming financial year.

Ralph Rumberg, Speaker of the Executive Board: "While we are not blind to the many political and economic risks, we do not currently see any specific signs of a significant decline in our operating business on a wider scale. Although some subsidiaries may be feeling the impact of isolated reluctance by customers to make investments, overall demand remains robust. Business in some areas of the Mobility Technology segment remains difficult, yet GESCO Group is generally in good shape. By acquiring Sommer & Strassburger, we have also lastingly strengthened the Group by adding a leading company that serves attractive markets which are not highly susceptible to macroeconomic volatility."

The complete quarterly statement is available at

GESCO Group key figures for the first half (1 April to 30 September 2018) of financial year 2018/2019 pursuant to IFRS:

  1st half
1st half
Incoming orders(EUR'000)313,045276,294+13.3%
Earnings before tax(EUR'000)22,74119,138+18.8%
Group net income
after minority interest
Earnings per share pursuant to IFRS(EUR)1.180.97+21.3%

GESCO AG is an industrial group made up of market and technology leading companies in the capital goods industry. Its focus is on production process technology, resource technology, healthcare and infrastructure technology and mobility technology. As a stock company listed in the Prime Standard, GESCO AG offers private and institutional investors access to a portfolio of hidden champions among Germany's industrial SMEs.

Investor Relations - Oliver Vollbrecht
Phone +49 202 24820-18 - Fax +49 202 24820-49
Email: - Website:


14.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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