DGAP-Adhoc: Allgeier SE: Allgeier achieves further growth in revenue and EBITDA in the first half of 2019

Munich, August 14, 2019 - Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) achieves further revenue and EBITDA growth in the first half of 2019 (January 1, 2019 - June 30, 2019) in line with its planning for the 2019 financial year, according to preliminary figures. On the one hand, the two strategic Group segments Technology and Enterprise Services achieved revenue growth of 33 percent and earnings growth (adjusted EBITDA) of 31 percent with a corresponding margin of 13 percent according to preliminary figures. In the same period, the Experts segment recorded a decline in sales of 7 percent and a decline in EBITDA of EUR 5.7 million. The reason for the development in the Experts segment is the strategic realignment of the business already planned in the past, which in the first half of 2019 in particular was accompanied by expected declines in sales and earnings as well as one-off burdens on earnings.
 

Business development in the first half of 2019
 

According to preliminary figures, consolidated sales in the first half of 2019 rose by 16 percent to EUR 380.8 million compared with the first six months of the previous year (continuing operations of the previous year: EUR 327.5 million). Preliminary value added (defined as total output less sales and personnel expenses directly attributable to sales) increased by 18 percent to EUR 106.1 million (previous year: EUR 90.0 million). Preliminary adjusted Group EBITDA for the period (EBITDA before effects that qualify as extraordinary or non-periodic) amounted to EUR 29.0 million (previous year: EUR 26.4 million), corresponding to an increase of 10 percent compared with the same period in 2018. The increase in earnings is driven by the strategic Group segments Technology and Enterprise Services and is in line with the Group's forecast expectations for the current year. According to preliminary figures, the two segments increased their adjusted EBITDA by 31 percent to EUR 31.8 million (previous year: EUR 24.3 million), while the Experts segment achieved an adjusted EBITDA of EUR 1.5 million (previous year: EUR 6.3 million). Preliminary Group EBITDA grew by 15 percent to EUR 25.7 million in the reporting period (previous year: EUR 22.3 million). The preliminary consolidated EBIT amounted to EUR 10.6 million (previous year: EUR 11.1 million).
 

Business development in the second quarter of 2019
 

In the second quarter of 2019 (April 1, 2019 - June 30, 2019), the Group increased sales by 11 percent year-on-year to EUR 191.1 million (previous year: EUR 172.4 million) according to preliminary figures. In the same period, preliminary value added rose by 16 percent to EUR 54.2 million (previous year: EUR 46.8 million). At EUR 14.9 million, the preliminary adjusted Group EBITDA was 6 percent below the result for the same period last year (previous year: EUR 15.9 million). Preliminary Group EBITDA for the second quarter amounted to EUR 12.3 million (previous year: EUR 12.8 million), corresponding to a decline of 3 percent compared with the same period of the previous year. The preliminary consolidated EBIT (earnings before interest and taxes) for the same period amounted to EUR 4.8 million (previous year: EUR 6.9 million).
 

Acquisition of Farabi Technology Middle East LLC and SOLUTIONS4MOBILITY L.L.C.
 

On April 2, 2019, Allgeier Nagarro Holding GmbH, Munich, signed contracts for the acquisition of Farabi Technology Middle East LLC and SOLUTIONS4MOBILITY L.L.C., both based in Dubai, United Arab Emirates. The companies are experts in the development of mobile applications to support digital transformation. The transaction gives Allgeier valuable access to market- and industry-leading clients in the Middle East and strengthens its advisory and implementation expertise in local markets. The companies were consolidated for the first time on 1 April 2019.
 

Implementation of IFRS 16
 

The standard for accounting for rental and lease agreements (IFRS 16), which must be applied from 1 January 2019 in accordance with IFRS, was implemented in the first half of 2019. The Allgeier Group uses the retrograde method for the conversion, which means that the previous year's figures have been adjusted to the reporting for the first half of 2019 and the comparability of the figures is ensured.
 

Key balance sheet data as of June 30, 2019
 

Preliminary consolidated equity increased to EUR 158.9 million as of June 30, 2019 (December 31, 2018: EUR 130.6 million). According to preliminary figures, the Allgeier Group had cash and cash equivalents of EUR 72.7 million at its disposal at the end of the second quarter of 2019 (December 31, 2018: EUR 77.0 million). According to preliminary figures, interest-bearing financial liabilities fell to EUR 174.7 million as of June 30, 2019 (December 31, 2018: EUR 181.7 million) - including EUR 148.3 million in non-current financial liabilities (December 31, 2018: EUR 150.3 million).
The preliminary balance sheet total at the end of the second quarter of 2019 amounted to EUR 553.6 million (December 31, 2018: EUR 536.6 million).
 

Outlook for the second half of 2019
 

Against the background of the assessment of the economic environment and business development, the Management Board is sticking for the current financial year to the sales and earnings forecast for the Group as a whole made in the 2018 Annual Report.
 

Reference

All figures for the first half of 2019 have been calculated in accordance with IFRS and have not been audited. The half-year financial report 2019 of Allgeier SE will be published on August 29, 2019 and can then be viewed at www.allgeier.com
 

Contact:

Allgeier SE
Corporate Communications & Investor Relations
Dr. Christopher Große
Wehrlestraße 12
81679 Munich, Germany
Phone: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-mail: ir@allgeier.com
Web: www.allgeier.com

Allgeier SE is one of the leading IT companies for digital transformation. With a growth strategy focused on innovations and future trends and an integrative entrepreneurial model, Allgeier is seizing the opportunities of digitalization. Four segments with individual technical and industry-related focal points work together for around 3,000 customers from almost all industries. With over 9,800 employees and around 1,300 freelance experts, Allgeier offers its customers a comprehensive portfolio of solutions and services as a one-stop shop. With a highly flexible delivery model, Allgeier covers the complete IT service spectrum from onsite to nearshore to offshore: With strong footholds in India, China, Vietnam and Eastern Europe, flexibility and maximum scalability of services as well as highly qualified expert knowledge in high-end software development are ensured. Allgeier's customers include global corporations as well as innovative medium-sized companies that want to secure strategic advantages through high-performance IT solutions, intelligent software and flexible personnel services. The fast-growing group, headquartered in Munich, Germany, has more than 140 offices worldwide in fourteen European countries as well as in India, China, Singapore, Vietnam, Thailand, Malaysia, Japan, the United Arab Emirates, South Africa, Mauritius, Australia, Mexico, Canada and the USA. In 2018 fiscal year, Allgeier generated sales of EUR 687 million from continuing operations. According to Lünendonk(R) List 2018, Allgeier is one of the ten leading IT consulting and systems integration companies in Germany. According to Lünendonk(R) Market Segment Study 2019 "The market for recruitment, placement and management of IT freelancers in Germany", Allgeier Experts ranks among the top 3 IT personnel service providers in Germany. Allgeier SE is listed in the General Standard of the Regulated Market of the Frankfurt Stock Exchange (WKN A2GS63, ISIN DE000A2GS633). Further information is available at: www.allgeier.com.