DGAP-News: Gesco AG
/ Key word(s): Preliminary Results
26.03.2021 / 16:21
The issuer is solely responsible for the content of this announcement.
GESCO AG publishes preliminary figures for financial year 2020 - largest-ever portfolio restructuring has positive impact
- Sales target achieved at € 397.2 million (continuing operations)
- Earnings better than forecast at € 5.8 million (continuing operations)
- Overall result negative as expected following impairment
- Dividend suspended for financial year 2020
- Net debt reduced significantly by € 69.5 million
Wuppertal, 26 March 2021 - GESCO AG, a Prime Standard-listed company, achieved its expectations for continuing operations in terms of sales and exceeded them in terms of earnings in financial year 2020 (1 January 2020 to 31 December 2020), according to preliminary and as yet unaudited figures. The company's expectations were most recently substantiated in December 2020.
Following the successful sale of a group of six subsidiaries and the closure of the Mobility Technology segment as part of the NEXT LEVEL strategy, GESCO adjusted its outlook for continuing operations for financial year 2020 in December 2020 to forecast Group sales of roughly € 400 million and net income for the year after minority interest of around € 5 million.
The Group sales for continuing operations in the amount of € 397.2 million stood in contrast to Group sales for continuing operations of € 354.8 million in the nine-month abbreviated financial year 2019 (AFY 2019). Including discontinued operations, Group sales totalled € 495.2 million (AFY 2019: € 439.6 million). The continuing business operations generated net income for the year after minority interest of € 5.8 million in the financial year. In the nine-month abbreviated financial year 2019, that same figure stood at € 14.5 million. Earnings per share from continuing business operations accordingly amounted to € 0.54 (AFY 2019: € 1.34).
After minority interest, Group sales including discontinued operations stood at € -16.6 million in total (AFY 2019: € 12.4 million). Of that amount, € 17.6 million were attributable to non-cash expenditure for impairment and valuation allowances for financial assets. Earnings per share from continuing and discontinued operations amounted to € -1.53 in total (AFY 2019: € 1.14).
The Group's net debt improved significantly from € 102.9 million to € 33.4 million, thanks in particular to the successful portfolio restructuring efforts. In addition, provisions for pension obligations and lease liabilities fell by € 15.9 million.
Given the negative result on the whole in financial year 2020, the Executive Board and Supervisory Board have decided to suspend the dividend payment for financial year 2020. The decision was made in consideration of the current dividend strategy of distributing between 20 % and 60 % of net income for the year and also serves to maintain liquid reserves in light of the NEXT LEVEL strategy. In 2020, GESCO paid out a dividend of 23 cents per share for the nine-month abbreviated financial year 2019 despite the uncertainties associated with the coronavirus pandemic.
The company will publish the financial statements for financial year 2020 and a detailed outlook for the new financial year 2021 on its website at https://www.gesco.de/en/investor-relations/financial-reports/ on 27 April 2021 as part of the virtual annual accounts press conference.
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 and healthcare and infrastructure 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.
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26.03.2021 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