029 Group SE

Earnings Release • Nov 30, 2001

News Details

Ad-hoc | 30 November 2001 08:01

Ges. f. Network Training english

Nine-month sales and EBIT fail to match last year’s results Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Radical restructuring aimed at restoring the company’s profitability Nine-month sales and EBIT fail to match last year’s results Stuttgart, November 30, 2001. Stuttgart-based GFN AG, which is listed on the Ger-man stock exchange’s Neuer Markt, generated sales of DM 49.3 million during the first nine months of the year – a drop of 12 percent compared with the same period last year (DM 56.3 million). Earnings before interest, taxes, depreciation and amortization (E-BITDA) fell to minus DM 4.9 million (previous year: plus DM 0.9 million) and the results of ordinary business activities dropped to minus DM 10.1 million compared with minus DM 4.2 million in the year 2000. On the reporting date, September 30, 2001, the company’s cash and cash equivalents amounted to DM 10.6 million. The GFN Group employed 230 staff on September 30, 2001 compared with 228 at the end of the year 2000 and 237 people on June 30, 2001. For the year 2001 as a whole, the Board anticipates a decline in sales of around 15 percent and results to be significantly lower than last year. The UPGRADE.2002 restructuring program launched in September is expected to lay the groundwork for the company’s successful future development. Measures designed to cut costs and boost productivity have been adopted and largely implemented. GFN is confident that these measures will enable the company to bring about an improvement in results of around DM 7 million next year. Although the first quarter of the year 2002 is expected to be weak, the company anticipates returning to profitability in the second half of the year. end of ad-hoc-announcement (c)DGAP 30.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Results suffered not only from the general economic malaise, but also from sluggish corporate business in what is traditionally a weak third quarter. The situation was also compounded by a dramatic reduction in the number of schemes supported by public employment offices as well as the cancellation of several previously approved measures. A 300 percent increase in sales of evening and weekend seminars also failed to compensate for the decline in sales in other areas. Our e-learning business has developed more slowly than originally expected. GFN has consequently adjusted its growth objectives while continuing to be convinced of the success of this modern form of learning. The Board responded to poor business performance by implementing its UPGRADE.2002 restructuring initiative in September. By trimming personnel expenses by around 10 percent as well by closing locations, rationalizing its use of office space and performing profitability analyses, the company aims to reduce both excess capacity and fixed costs. Central management of resources should also enable the company to tap into significant potential cost savings. Optimum deployment of trainer capacities within the training program will reduce our need for external trainers. The company should also be able to obtain improved conditions by centralizing trainer sourcing. These and additional measures are expected to improve the company’s results by around DM 7 million in the forthcoming fiscal year. GFN is also watching the current process of market adjustment carefully and aims to seize the opportunity this development presents to consolidate its position as the leading provider of education and training services on the market. GFN AG is the partner for IT training, e-learning, consulting and coaching in Germany for companies and organizations of whatever size in every sector of business and industry throughout Germany. With its broad product portfolio covering security, software development, Java and Microsoft training, GFN is Germany’s largest manufacturer-independent education and training certifier. Detailed information about the restructuring program can be found in the company’s nine-month interim report. A full report of business performance during the first nine months of the fiscal year 2001 can be found in the Internet at http://www.gfn.de (Investors). ——————————————————————————– WKN: 587980; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Hannover und Stuttgart 300801 Nov 01