SNP Schneider-Neureither & Partner SE

  • WKN: 720370
  • ISIN: DE0007203705
  • Land: Deutschland

Nachricht vom 02.08.2019 | 08:00

SNP SE First Half of 2019: Decline in Total Revenue in the First Half of the Year - Strong Order Entry and Order Backlog Underscore Expectations for Very Strong Second Half of the Year - Revenue and Earnings Forecast Confirmed for the Entire Year

DGAP-News: SNP Schneider-Neureither & Partner SE / Key word(s): Half Year Results

02.08.2019 / 08:00
The issuer is solely responsible for the content of this announcement.


SNP | Corporate News

SNP SE First Half of 2019: Decline in Total Revenue in the First Half of the Year - Strong Order Entry and Order Backlog Underscore Expectations for Very Strong Second Half of the Year - Revenue and Earnings Forecast Confirmed for the Entire Year

Heidelberg, August 2, 2019 - SNP Schneider-Neureither & Partner SE was able to increase order entry on a Group-wide basis by 27% to EUR 85.1 million in the first half of 2019. At the same time, the company is confirming its forecasts for the development of the Group's revenue and financial performance for 2019 as a whole. Driven by a very strong order situation in the German-speaking (DACH) region and an intensified dynamic in the SAP S/4HANA environment in the second quarter in particular, the company anticipates a much stronger second half of the year.

Total revenue of EUR 58.9 million was generated in the first six months of the 2019 fiscal year. Compared to the previous year, this represents a decrease of about 9% (previous year: EUR 65.0 million). In the Service business segment, which comprises consulting services in particular, revenue declined by EUR 8.2 million to EUR 44.1 million (previous year: EUR 52.3 million). By contrast, revenue in the Cloud and Software business segment increased by EUR 2.1 million on the same half-year period in the previous year and amounted to EUR 14.8 million.

Operating earnings in the first half of the year (EBIT; IFRS) came to EUR -5.9 million (previous year: EUR -6.0 million). The second-quarter operating loss (EBIT; IFRS) in the amount of EUR -2.6 million (previous year: EUR -3.4 million) is mainly attributable to the temporarily low level of capacity utilization in the USA as well as a delay on the customer's side in the launch of a major project in the German-speaking (DACH) region.

"The very strong order situation will have a positive impact on revenue and earnings growth in the second half of 2019 and will make up for the first half of the year. The key point is that we are achieving especially strong success in SNP's core areas, which will have a positive impact on our margin. In addition, we are experiencing intensive demand for our products and services on the part of strategic partners, which will in turn help us to accelerate our growth strategy while maintaining strong cost control. We are also making progress in integrating the companies which we have acquired. Not least, we are very successfully pursuing the transformation of our management team by recruiting strong new senior executives. SNP is clearly on the right track," says Dr. Andreas Schneider-Neureither, Chairman of the Board of Directors and CEO of SNP SE.

Order Entry and Order Backlog

Order entry in the first half of 2019 of EUR 85.1 million was around EUR 18 million or about 27% above the comparable figure for the previous year. In the second quarter of 2019, an order entry volume of EUR 46.2 million was achieved; this represents an increase of around 76% on the same quarter in the previous year. The mid-year performance in the German-speaking (DACH) region was extremely strong, which is particularly important for profitability. At around EUR 41 million, this was up by nearly two thirds in comparison with the previous year. Order entry in connection with upcoming SAP S/4HANA projects more than tripled to about EUR 10 million.

The order backlog as of June 30, 2019 was at a record level of EUR 71.2 million (as of June 30, 2018: EUR 63.3 million). The order backlog has picked up by more than 25% in comparison with the start of 2019.

"In view of the growing order backlog and a clear increase in the weighted project pipeline, the management envisages a significant increase in Group-wide capacity utilization for the third quarter and thus a clearly positive revenue trend in the second half of the year. In the second quarter, the low level of capacity utilization in the USA had an adverse impact of around EUR 1.3 million on revenue and earnings at the Group level. Moreover, delayed project starts on the customers' side had a negative effect on revenue and earnings of about EUR 1.2 million in the second quarter. These projects will now be implemented in the second half of the year," says Dr. Uwe Schwellbach, CFO of SNP SE.

Confirmation of Forecast

Overall, the management continues to expect Group revenue of between EUR 145 million and EUR 150 million in the 2019 fiscal year and plans on an operating earnings margin (EBIT margin) in the lower- to mid-single-digit percentage range. As a result, an EBIT margin (IFRS) in the low double-digit percentage range is expected in the second half of 2019.

The detailed half-year financial report is available for download at: https://www.snpgroup.com/en/financial-publications

A teleconference will be held next Monday, August 5, 2019, at 4:30 p.m. CET. The dial-in number may be found in the Investor Relations area of SNP's website.

 

About SNP

With its own solutions, SNP SE supports organizations in adapting their business models and seizing the opportunities of digitalization. SNP software and services facilitate the implementa-tion of business or technical modifications to business applications and enable its customers to implement these modifications automatically.

The unique BluefieldTM approach and world-leading SNP Business Transformation Platform have created the conditions necessary to set an industry standard for automated business transformations. SNP specializes in automatically analyzing, implementing and tracking changes in IT systems. This approach significantly improves quality, reduces risk, and makes transformation projects much faster and more cost-effective in compliance with the highest compliance and security standards.

The SNP Group has around 1,250 employees worldwide. Headquartered in Heidelberg, the company generated revenue of approximately EUR 131 million in the 2018 fiscal year. SNP's cus-tomers are global corporations from all industries. SNP was founded in 1994 and has been pub-licly traded since 2000. As of August 2014, the company is listed on the Prime Standard seg-ment of the Frankfurt Stock Exchange (ISIN DE0007203705). Since 2017, the company has operated as a European stock corporation (Societas Europaea/SE).

Further information is available at www.snpgroup.com

Investor Relations Contact:

Marcel Wiskow
Tel: +49 6221 6425-637
Fax: +49 6221 6425-20
Email: investor.relations@snpgroup.com



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The issuer is solely responsible for the content of this announcement.

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