CANCOM SE — Earnings Release 2004

Feb 3, 2005

News Details

Corporate | 3 February 2005 19:06

Cancom IT Systeme AG announces preliminary figures for 2004

Ad hoc announcement §15 WpHG preliminary figures for the 2004 financial, capital increase Cancom IT Systeme AG announces preliminary figures for 2004 Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— CANCOM IT Systeme AG : clear growth in sales and profits during 2004 – 8 percent organic growth to EUR 206.8 million in 2004 – Results take a strong positive turn – Further improvement of balance sheet structure – Positive outlook for 2005 Jettingen-Scheppach, Germany, 3 February 2005 – The preliminary figures for the 2004 financial year show, subject to certification by the auditor, that the CANCOM Group has realised 8 percent organic growth in Group sales from EUR 192.1 million in 2003 to EUR 206.8 million in 2004 as a result of its continuous good business performance. Group earnings before interest, taxes, depreciation and amortisation (EBITDA) have quadrupled compared with last year from EUR 0.2 million to EUR 2.8 million. Although negative Group earnings before interest and taxes (EBIT) of EUR -18.1 million were reported in 2003, partly due to special write-offs, a return to the profit zone was evident in 2004 when EBIT totalled EUR 1.3 million. After adjustment for the aforementioned special write-offs, Group EBIT for the 2003 financial year would have been EUR -2.5 million. Group EBIT has thus improved substantially compared with the previous year’s figure, even after adjustment for these special effects. Group net income for the year improved markedly from EUR -22.1 million to EUR 0.2 million. In comparison to the reporting date in 2003 the operating cash flow increased by EUR 3.8 million to EUR 4.5 million at 31 December 2004. Cash and cash equivalents amounted to EUR 7.2 million at 31 December 2004. The balance sheet ratios at 31 December 2004 have also improved noticeably since last year. Current liabilities due to banks were paid off in full over the course of the year, with the exception of the current portion of long-term debt. At the same time, the equity ratio has increased from 36.5 percent at 31 December 2003 to 41.7 percent at 31 December 2004. In light of positive developments in the Apple market, the reduction of the investment backlog in the IT sector that has now begun and the successful takeover of ECS Computer Partner GmbH on 1 January 2005, the Executive Board is anticipating growth in Group sales to at least EUR 245 million in the financial year of 2005. At the same time it is likely to have a disproportionately positive effect on Group EBITDA and an increase to at least EUR 4.8 million is expected. Accordingly, Group EBIT should be at least EUR 3.3 million. CANCOM IT Systeme AG today implemented a capital increase through non-cash contributions, subject to the exclusion of subscription rights, against 263,330 shares from the authorised capital. The issue price was EUR 3.038 each. If you have any queries, please contact: Armin Blohmann Investor & Public Relations Phone: +49 (0)8225 996 1051 Fax: +49 (0)8225 996 4 1051 E-mail to: armin.blohmann@cancom.de CANCOM IT Systeme AG Messerschmittstraße 20 89343 Jettingen-Scheppach Germany ISIN: DE0005419105 WKN: 541910 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart End of ad hoc announcement (c)DGAP 03.02.2005 031836 Feb 05