Gesco AG

  • WKN: A1K020
  • ISIN: DE000A1K0201
  • Land: Deutschland

Nachricht vom 28.06.2018 | 07:30

GESCO records a positive operating result for 2017/2018 with prospects of profit growth in 2018/2019

DGAP-News: Gesco AG / Key word(s): Forecast/Forecast

28.06.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


 

  • A successful operating year; antitrust proceedings have negative impact on earnings
  • Dividend to increase from EUR 0.35 to EUR 0.60 per share
  • Significant profit increase expected in financial year 2018/2019
  • First quarter delivers a dynamic start

Wuppertal/Erkrath, 28 June 2018 - The GESCO Group, an association of industrial SMEs, is reporting a successful operating result for financial year 2017/2018 (1 April 2017 to 31 March 2018) at its annual accounts press conference today and is forecasting significant earnings growth for financial year 2018/2019.

Given the general dynamic economic development and the significant pick-up in business activities in the capital goods industry, the GESCO Group was able to generate brisk demand with rising sales and disproportionately strong operating profit growth in financial year 2017/2018. Moreover, it implemented the optimisation projects defined in the Portfolio Strategy 2022. The pleasing operating development was overshadowed by antitrust proceedings launched against Dörrenberg Edelstahl GmbH, a 90% subsidiary of GESCO AG. Provision was made in the consolidated financial statements for 2017/2018 for a financial penalty of EUR 8.5 million to settle antitrust proceedings.

The Pickhardt & Gerlach Group, which was acquired at the turn of the year 2016/2017, has been included in the income statement for the first time, while the investment in Protomaster GmbH was sold in December 2017 as announced.

Overall, incoming orders increased by 10.8% to EUR 552.4 million (previous year: EUR 498.7 million) in a mix of internal and external growth. Group sales came to EUR 547.2 million, up from EUR 482.5 million the previous year, which equates to growth of 13.4%. At 52.6%, earnings before interest and taxes (EBIT) increased at a significantly above-average rate, climbing to EUR 33.8 million (EUR 22.1 million). Group net income after minority interest increased to EUR 16.1 million, more than double the previous year's figure of EUR 7.9 million.

The Production Process Technology segment expanded its sales slightly in the face of a marginal decrease in earnings, while the largest segment, Resource Technology, was able to translate economic tailwind into operating success, making the greatest contribution to the increase in earnings in a combination of internal and external growth. The second-largest segment, Health and Infrastructure Technology, benefited from positive developments in consumer markets, continuing its profitable growth trajectory. By contrast, the Mobility Technology segment recorded a decline. There was a significant negative impact on earnings when a subsidiary shut down a business division.

In light of the vigorous increase in profits, the Executive Board and Supervisory Board will propose significantly increasing the dividend by EUR 0.35 to EUR 0.60 per share at the Annual General Meeting on 30 August 2018. In taking this step, the company is following its long-standing dividend policy of distributing around 40% of Group net income after minority interest.

The signals for continued positive economic development currently outweigh the grave political uncertainties. From today's perspective, no relevant non-recurring or one-off effects are foreseeable in the new financial year. As a result, performance should largely be shaped by organic business development. Specifically, the Executive Board is expecting Group sales of between EUR 550 million and EUR 560 million in the new financial year 2018/2019 and Group net income after minority interest of between EUR 26 million and EUR 27 million.

The rather dynamic development of the previous year continued at the start of the new financial year 2018/2019. At around EUR 150 million, incoming orders in the first quarter, which encompassed the months January to March 2018, were slightly above the previous year's exceptionally high figure of EUR 148.7 million. Sales increased by 5.5% to approx. EUR 140 million (EUR 133.4 million).

Robert Spartmann, member of GESCO AG's Excecutive Board, says: "In 2017/2018, the upturn also had an impact on the capital goods industry. Our company was able to benefit from this to varying degrees and, overall, the Group experienced pleasing growth. We successfully integrated Pickhardt & Gerlach and strengthened the Group with a series of optimisation projects. In the new financial year, we expect to record moderate sales growth and a continued increase in earnings in all segments. The high levels of the first quarter have strengthened our optimism."

The complete Annual Report is available at www.gesco.de/en.

Key figures for the GESCO Group pursuant to IFRS
 
         
Financial year
1 April - 31 March
  2017/2018 2016/2017 Change
         
Incoming orders (EUR '000) 552,404 498,746 10.8%
Sales (EUR '000) 547,193 482,480 13.4%
Attributable to international business (%) 39% 37% -
EBITDA (EUR '000) 57,404 49,745 15.4%
EBIT (EUR '000) 33,789 22,137 52.6%
Earnings before tax (EUR '000) 31,861 19,187 66.1%
Group net income after minority interest (EUR '000) 16,099 7,890 104.0%
Earnings per share pursuant to IFRS (EUR) 1.49 0.79 88.6%
Cash flow from ongoing business activities (EUR '000) 38,513 41,922 -8.1%
Investment in property, plant and equipment (EUR '000) 24,638 19,788 24.5%
Depreciation on property, plant and equipment (EUR '000) 17,989 24,009 -25.1%
Total assets (EUR '000) 456,256 439,915 3.7%
Equity (EUR '000) 224,265 214,095 4.8%
Equity ratio (%) 49.2% 48.7% -
Employees (as at 31 Dec) (No.) 2,489 2,535 -1.8%
Share price 31 March (EUR) 28.50 24.96 14.2%
Dividend per share (EUR) 0.60 0.35 71.4%
 

About GESCO
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
Tel. +49 (0) 202 24820-18 - Fax +49 (0) 202 24820-49
E-mail: info@gesco.de - Website: www.gesco.de




 


28.06.2018 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.

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