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ER - SNP Schneider-Neureither & Partner AG: Strong growth in first half of 2011

Company: SNP Schneider-Neureither & Partner SE Date: 2011-07-28 Language: English Register to download
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 News Details

Corporate | 28 July 2011 07:59

#   

SNP Schneider-Neureither & Partner AG: Strong growth in first half of 2011

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

28.07.2011 / 07:59

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Press Release


SNP AG: Strong growth in first half of 2011

  - Group sales grew year on year by 24% to EUR 11.94 million (prior year:
    EUR 9.61 million)
  - Improved EBIT of EUR 1.41 million (prior year: EUR 1.36 million),
    despite expansion in sales team and increased extraordinary expenses
  - Earnings per share amounted to EUR 0.86 after six months (prior year:
    EUR 0.81)
  - Board confirms outlook for 2011


Heidelberg, 28 July 2011 - SNP Schneider-Neureither & Partner AG (ISIN
DE0007203705), listed on the General Standard of the Frankfurt Stock
Exchange, could accelerate its growth in the first half of the current
fiscal year. Revenue increased year on year by around 24%, reaching its
highest half-year value in the company's history. The first half of 2011
was positively influenced by significant license revenues for the SNP
standard software for SAP transformations, SNP Transformation Backbone(R)
(SNP T-Bone). Despite the investments in expanding the market success of
SNP T-Bone and one-time extraordinary expenses in the first quarter,
operating earnings after six months were higher than the previous year.


Software business continuing to grow

In the second quarter of 2011, the SNP group generated a sales growth over
the previous year of around 23% to EUR 6.34 million (prior year: EUR 5.14
million). Group sales rose in the first six months to EUR 11.94 million
(prior year: EUR 9.61 million), representing an increase of around 24%
compared to the previous year. Both the business area of
'Software-related-Services' and 'Software' achieved double-digit growth
rates with 21% and 34% respectively. The revenue share of the 'Software'
segment rose to around 25% (prior year: approx. 23%) and amounted to EUR
2.98 million (prior year: EUR 2.23 million), whereby the proportion of
software licenses increased to EUR 2.04 million and the proportion of
maintenance contracts from software sales in previous quarters grew to EUR
0.95 million (prior year: EUR 1.60 and EUR 0.63 million respectively).
Especially in the second quarter this included significant revenues from
the sale of the SNP T-Bone software. Revenues from consulting services
('Software-related-Services' segment) increased over six months to EUR 8.96
million (prior year: EUR 7.38 million) and contributed about 75% towards
consolidated sales.


Earnings above prior year despite expansion in sales team and extraordinary
expenses

The net income was substantially affected in the first two quarters by the
personnel costs of EUR 6.86 million (prior year: EUR 5.5 million), which
were around 25% higher compared to the previous year, due to the expansion
of personnel to 177 employees as of 30 June 2011 (prior year: 165
employees) and extraordinary expenses recorded in the first quarter
relating to severance payments to the departing CFO in May. Higher
miscellaneous operating expenses associated with international expansion
and increased marketing expenses also had a limited effect on results.

In spite of increased expenses, the half-year operating profit (EBITDA) was
approximately 7% above the previous year at EUR 1.73 million (prior year:
EUR 1.62 million) as a result of strong sales growth and the EBITDA margin
reached 14.5% (prior year: 16.8%). At EUR 1.41 million (prior year: EUR
1.36 million), the profit before interest and taxes (EBIT) was at
approximately the same level as in the previous year. The EBIT margin fell
to 11.8% after six months (prior year: 14.2%). After the first quarter was
influenced by extraordinary expenses (EBIT margin in Q1 2011: 8.4%), the
EBIT margin normalised again in the second quarter to 14.8% (EBIT margin in
Q2 2010: 14.2%).

Consolidated net income after minority interests of EUR 0.97 million for
the first six months of the 2011 fiscal year also met the level of the
previous year (prior year: EUR 0.91 million). This corresponds to an
operating margin of 8.1% (prior year: 9.5%). The earnings per share were at
EUR 0.86 (diluted and undiluted), and last year it was EUR 0.81 for each.


Order backlog remains strong - incoming orders above the prior year

The order situation of the SNP group remains on a high level. Thus, the
order backlog as of 30 June 2011 was EUR 9.5 million and maintained the
level of 31.12.2010 (EUR 9.5 million); the comparable figure as of 30 June
2010 was slightly higher at EUR 9.9 million, however more was billed in the
first half of 2011. The high order backlog resulted both from direct sales
as well as from partner sales. Incoming orders for the first half of 2011
are significantly higher than the same period, i.e. the first half, of
2010.


Financial and assets situation

The equity ratio remained constant during the first half of the year at
72.6% (31 December 2010: 72.6%). Cash flow from operating activities
improved significantly compared to the same period in the prior year and
after six months was at EUR 0.76 million (prior year: EUR -0.86 million).
This was due to significantly lower payments for taxes and bonuses compared
to the previous year. Compared to 30 June 2010, the cash and cash
equivalents increased by EUR 0.89 million, despite the sales growth-related
increase in receivables from goods and services (30 June 2010: EUR 2.81
million). Cash and cash equivalents as of 30 June 2011 amounted to EUR 3.7
million after dividend payouts of EUR 1.70 per share.


Sales performance confirms expectations of the Executive Board - outlook
stable

Due to the positive order situation, the Executive Board forecasts group
sales growth to continue to be at least 20% over 2010 (EUR 22.1 million).
Industry-wide, the second half of the year is traditionally stronger than
the first half in terms of revenue. The Executive Board expects the EBIT
margin for the full year to be flat versus the previous year at around 20%.
The Executive Board expects, moreover, that the revenue share of the
'Software-related-Services' segment will increasingly move in favour of the
'Software' segment.

In the first half of the year, SNP achieved the expected initial sales
success of SNP T-Bone and sees the demand for the solution continuing to
grow strongly. The successful reference projects that were completed both
with partners and by SNP confirm the growth strategy. Thanks to the SNP
strategy of internationalisation, in addition to German-speaking markets,
further target markets with great growth opportunities have been opened.
The development of SNP T-Bone into a comprehensive transformation platform
is the focus of the coming months. This will also require additional
investment in further innovations in the future.

With the increasing market penetration of SNP T-Bone, as well as the
expansion and the progressive internationalisation of sales, the management
believes that revenue growth will accelerate further in the future. Thanks
to recent investments in expansion and innovation, the resulting economies
of scale and the rising proportion of software sales to total sales, the
Executive Board is also committed to a significant improvement in earnings
in the future.


About SNP

SNP AG, headquartered in Heidelberg, is a leading provider of software and
software-related services for transformations of SAP systems, such as they
are required in the course of corporate restructuring or technological
innovations. For the adaptation of the IT landscape - known as Business
Landscape Transformation(R) - SNP offers the world's first standardised
software, with SNP Transformation Backbone(R).

SNP AG was founded in Heidelberg in 1994 and currently employs
approximately 190 people at ten locations in Germany, Austria, Switzerland,
the United States and South Africa. SNP serves both international and
national clients and benefits from experience gained through more than
1,300 successfully completed projects. In the 2010 fiscal year SNP AG
generated sales of around EUR 22 million. The company is listed on the
General Standard of the Frankfurt Stock Exchange.

Further information can be found at www.snp-ag.com


End of Corporate News

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28.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language:    English                                             
Company:     SNP Schneider-Neureither & Partner AG               
             Dossenheimer Landstraße 100                         
             69121 Heidelberg                                    
             Germany                                             
Phone:       06221-6425-111                                      
Fax:         06221-6425-20                                       
E-mail:      investor.relations@snp-ag.com                       
Internet:    www.snp-ag.com                                      
ISIN:        DE0007203705                                        
WKN:         720370                                              
Listed:      Regulierter Markt in Frankfurt (General Standard);  
             Freiverkehr in Berlin, Hamburg, Stuttgart           
 
 
End of News    DGAP News-Service  
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