DGAP-News: GFT Technologies AG: GFT grows in third quarter despite volatile market environment

DGAP-News: GFT Technologies AG / Key word(s): Quarter Results
GFT Technologies AG: GFT grows in third quarter despite volatile
market environment

09.11.2011 / 07:16

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  - Year-on-year revenue growth of 16 percent to EUR 207.87 million 

  - Pre-tax earnings (EBT) up on previous year at EUR 9.05 million 

  - Revenue growth of 31 percent in Resourcing division

  - Despite adverse finance sector environment, revenue of Services
    division remains firm at prior-year level

  - Weaker demand from corporate and investment banking clients burdens
    operating result in third quarter

  - New revenue and earnings targets defined for 2011: revenue expected to
    reach EUR 270 million with pre-tax earnings of EUR 11 million


Stuttgart, 9 November 2011 - The GFT Group made stable progress in the
first nine months of 2011. Following a strong performance in the first half
of the year, growth began to lose momentum in the third quarter. The main
cause was the ongoing uncertainty on the financial markets. Despite a
growing tendency for banks to postpone their investments as of September,
revenue in the first nine months grew by 16 percent to EUR 207.87 million.
The Group's strongest division in terms of revenue, Resourcing, posted
growth of 31 percent to EUR 121.41 million. Revenue in the Services segment
remained unchanged from the previous year at EUR 86.26 million. Earnings
before taxes in the period under review were slightly up on the previous
year at EUR 9.05 million. 'In the third quarter we were able to compensate
for adverse market trends in the finance industry with a positive
development in the industrial sector. With our full range of products and
services, we are excellently positioned to react flexibly to fluctuations
in the investment behaviour of various sectors,' says GFT's CEO Ulrich
Dietz. In view of the current uncertain economic situation, GFT's Executive
Board has adjusted its expectations for the financial year as a whole to
the market environment and now expects revenue of EUR 270 million and an
EBT result of EUR 11 million.


Revenue: 16 percent up on the previous year; encouraging growth for
Resourcing segment in Germany and France

In the first nine months of 2011, the GFT Group generated total revenue of
EUR 207.87 million and thus grew by 16 percent over the same period last
year (EUR 178.74 million). The third quarter accounted for EUR 66.07
million of this total (prev. year: EUR 64.06 million). Increased revenue
resulted mainly from the positive development of the Resourcing division,
which posted segment revenue of EUR 121.41 million - up 31 percent on the
prior-year figure of EUR 92.57 million. This segment benefited from
consistently high demand for freelance IT specialists in all countries.
Demand for IT experts and engineers was particularly strong in the
industrial sector. This had a positive impact on the segment's Resource
Management business, which continued to gather pace in the period under
review with revenue growth of 44 percent to EUR 64.68 million (prev. year:
EUR 45.07 million). In its Third Party Management business, the segment
raised revenue by 19 percent to EUR 56.73 million. Due to the expansion of
Resourcing activities - above all via the successful acquisition of new
customers - there were significant increases in revenues generated in
Germany and France: Germany posted year-on-year growth of 15 percent, while
revenue in France climbed by 67 percent.

Despite the clear tendency in September for finance sector clients to
postpone their investments, the Services division was able to keep segment
revenue firm at EUR 86.26 million (prev. year: EUR 86.14 million). Stable
revenue from outsourcing services and long-term projects in the field of
core banking solutions more or less compensated for the weaker demand for
IT solutions in corporate and investment banking. Following dynamic growth
in the first half of the year, revenue generated in the UK and USA returned
to the prior-year level in the period under review. There was slight growth
in revenue of 9 percent generated with clients in Spain. In Switzerland,
there was a significant increase in revenue of 91 percent. In addition to
the acquisition of Asymo AG in June 2011, this strong growth resulted from
the successful expansion of activities by both divisions during the
reporting period.

EBT: slight year-on-year growth; operating result burdened by lower revenue
of Services division

In the period under review, earnings before taxes reflected the uncertainty
of the financial markets which led to falling revenues from corporate and
investment banking clients. In the first nine months of 2011, the GFT Group
achieved an EBT result of EUR 9.05 million (prev. year: EUR 8.76 million).
Falling revenues placed a burden on the operating result of the Services
division. Segment earnings remained almost unchanged from the previous year
at EUR 7.40 million (prev. year: EUR 7.71 million). Increased segment
revenue and successful measures to raise efficiency helped boost earnings
of the Resourcing division by 73 percent in the period under review to
reach a segment result of EUR 2.66 million (prev. year: EUR 1.53 million).

Further key figures: 

Net income for the first nine months amounted to EUR 6.76 million as of 30
September 2011 and was thus EUR 0.06 million above the prior-year figure of
EUR 6.70 million. Earnings per share improved slightly to EUR 0.26 in the
period under review, compared to EUR 0.25 in the previous year. Cash, cash
equivalents and securities fell to EUR 28.16 million (prev. year: EUR 32.68
million). This was mainly due to the acquisition of Asymo AG and higher
dividend payments in June 2011. The number of employees as of 30 September
2011 amounted to 1,321. This corresponds to growth of 4 percent or 53
persons compared to the same date last year and is mainly due to the
acquisition of Asymo. In Germany, there were 288 employees at the end of
the reporting period - an increase of 9 percent over the previous year.

Outlook: new revenue and earnings targets defined for 2011 as a whole

'In a volatile third quarter, the GFT Group demonstrated that it is
flexible enough to overcome the current challenges and grasp the
opportunities which such developments offer,' says GFT's CEO Ulrich Dietz.
'Although the finance sector is currently rather reluctant to invest, there
is still a strong need for intelligent IT solutions in the field of
customer management and the implementation of compliance regulations.
Further growth opportunities are expected for our Resourcing division in
the fourth quarter. We are determined to fully utilise such opportunities
and finish our financial year 2011 strongly'. In view of a slowdown in
growth, it now seems unlikely that the company can meet the targets set at
the beginning of the year. The Executive Board has therefore defined new
revenue and earnings targets: it expects to achieve revenue of EUR 270
million and an EBT result of EUR 11 million in the current financial year.
'We will uphold our strategy of sustainable growth by means of organic
development and targeted acquisitions. We have already taken a further step
in this direction during 2011 with the acquisition of Asymo AG and the
consulting business of G2 Systems,' states Ulrich Dietz.

Detailed financial figures are available in the press section of the GFT
website at www.gft.com/ir.

Key figures in accordance with IFRS 5*:

GFT Technologies AG:

The GFT Group, headquartered in Stuttgart, Germany, is an international
provider of innovative IT solutions and services. As a strategic IT
partner, GFT supports its clients in the optimization of their business
processes through intelligent IT systems and specialists and thus
sustainably improves their competitive positions.

GFT is among the world's leading IT service providers in the financial
services sector. The company combines established technology experience
with a wide range of industry expertise, in order to develop, implement and
maintain customized IT solutions (Services division).
GFT recruits and places IT freelancers across a range of industries and
locations. It also oversees the complete management package for its
clients. The basis for this is a worldwide reserve of experts, consisting
of over 180,000 freelance IT specialists (Resourcing division).

Ulrich Dietz founded GFT in 1987 and is now CEO and principal shareholder
of the Group which, in 2010, achieved revenues of around EUR248 million. It
has over 1,300 employees at locations in seven countries. The GFT share is
listed on the Frankfurt Stock Exchange (Prime Standard: WKN 580 060, GEX).

Contact:
Andrea Wlcek 
Director Global Marketing, Media & Investor Relations
GFT Technologies AG
Filderhauptstraße 142
70599 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek@gft.com
www.gft.com 


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Language:    English                                               
Company:     GFT Technologies AG                                   
             Filderhauptstr. 142                                   
             70599 Stuttgart                                       
             Germany                                               
Phone:       +49 (0)711/62042-0                                    
Fax:         +49 (0)711/62042-301                                  
E-mail:      Investor-Relations@gft.com                            
Internet:    www.gft.com                                           
ISIN:        DE0005800601                                          
WKN:         580060                                                
Listed:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
             Stuttgart                                             
 
 
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