029 Group SE

Earnings Release • Aug 29, 2001

News Details

Ad-hoc | 29 August 2001 07:30

Ges. f. Network Training english

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Half-year sales and earnings down on figures for same period last year / restructuring announced Tail-off in economic activity impacts GFN Following results in the first quarter which were up on those for the same period last year, a weak second quarter depressed GFN AG’s half-year sales down to DM 35.5 million compared with DM 38.1 million half-year sales in 2000. The main reason cited by the Neuer Markt-listed IT training specialist for the failure to match its planned sales is the strikingly low level of business activity currently affecting the German economy. Many companies have responded to the present situation by making cutbacks which have also hit the IT industry. GFN has also been adversely affected by the cancellation of numerous official employment promotion schemes and the situation has been compounded by the failure of e-learning to fulfill anticipations. As a service provider carrying personnel-intensive payroll costs, unforeseen sales losses mainly impact directly on revenues. As a result the company’s earnings before interest, tax, depreciation and amortization (EBITDA) fell to minus DM 1.8 million following plus DM 1.4 million in the previous year. Results of ordinary business activities dropped to minus DM 5.2 million (previous year: minus DM 2.0 million) and earnings per share were minus DM 0.85 compared with minus DM 0.38 last year. On March 31, 2001, the company commanded liquid funds of DM 13.2 million; this had risen to DM 13.5 million at the end of the first six months of 2001. In the field of IT training and continuing professional development, including e-learning, GFN generated sales of DM 32.6 million (previous year: DM 34.6 million). Around DM 2.9 million of sales originated from our IT services compared with DM 3.5 million last year. On the reporting date June 30, 2001, the GFN Group employed a workforce of 237 compared with 228 at the end of last year and 225 on June 30, 2000. As the general economic downturn has persisted beyond the second quarter, the company’s forecasts assume that sales in the current fiscal year will not match those achieved last year and that it will report negative EBITDA at the end of the year. Owing to this unsatisfactory situation, the Board has decided to implement far-reaching restructuring measures within the GFN Group and is currently working on an extensive action plan. end of ad-hoc-announcement (c)DGAP 29.08.2001 ——————————————————————————– WKN: 587980; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Hannover und Stuttgart 290730 Aug 01