GFT Technologies SE — Earnings Release 2011

May 12, 2011

News Details

Corporate | 12 May 2011 07:09

Dynamic start to 2011 for GFT: revenue and earnings extended in first quarter

GFT Technologies AG / Key word(s): Quarter Results

12.05.2011 / 07:09

• **Revenue up 24 percent to EUR 67.30 million

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  - **Pre-tax earnings (EBT) improved by 25 percent to EUR 2.02 million

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  - Resourcing **division exploits upturn in industrial sector: revenue growth of 38 percent, earnings growth of 71 percent

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  - Services **division profiting from consistently high demand of financial sector: revenue up 9 percent, earnings raised 12 percent

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  - Group outlook 2011 confirmed: total revenue of EUR 275 million and EBT of EUR 13 million expected

Stuttgart, 12 May 2011 – GFT Technologies AG continued its positive development of the past financial year in early 2011 and closed the first quarter of 2011 with a strong increase in revenue and earnings. Revenue grew by 24 percent to EUR 67.30 million (prev. year: EUR 54.43 million); earnings before taxes (EBT) reached EUR 2.02 million and were thus 25 percent higher than in the same period last year (EUR 1.62 million). 'GFT got off to a good start in its financial year 2011. We recorded a further quarter of dynamic growth and were able to continue the positive development of 2010 across all sectors and countries,' states GFT's CEO Ulrich Dietz. He also sees further growth potential for 2011: 'Our key markets are displaying a high propensity to invest. When it comes to mobile banking applications or even new systems for risk management and customer advice, our innovative and secure IT solutions for the financial sector are just as much in demand as our international network of experts'. The GFT Executive Board therefore confirms the forecast made in the Consolidated Financial Statements 2010: for 2011, total revenue is expected to reach EUR 275 million and EBT EUR 13 million.

Revenue: both divisions on course for growth

The ongoing recovery of the economy as a whole gave a dynamic boost to the GFT Group in the period under review. Revenue grew year on year by 24 percent to EUR 67.30 million in the first quarter of 2011 (prev. year: EUR 54.43 million). The Resourcing division made a particularly strong contribution to this positive development. The growth in international demand for freelance IT specialists and engineers had a positive impact on this segment, whose clients are mostly to be found in the manufacturing industry. GFT generated revenue of EUR 38.41 million in this segment in the first three months of 2011 (prev. year: EUR 27.81 million), corresponding to growth of 38 percent. In addition to more intensive cooperation with existing clients, significant revenue gains were also achieved by winning new customers – especially in France and Germany.

The Services segment was able to build on the high level of revenue already achieved in 2010: with year-on-year growth of 9 percent, the segment generated revenue of EUR 28.89 million in the period under review (prev. year: EUR 26.62 million). This positive development was due in part to consistently high demand from corporate and investment banking clients in the UK, but also resulted from much stronger investment activity within Germany's financial sector.

The expansion of project volumes with existing clients in the Services division and the successful development of activities in the Resourcing division led to high growth rates across all markets in the first quarter: Germany posted year-on-year growth of 25 percent; revenue generated with UK clients was up 22 percent and with French clients by 54 percent. Revenue in Switzerland climbed by 63 percent.

Earnings: year-on-year growth of 25 percent

In the first quarter of 2011, earnings before taxes grew strongly by 25 percent to reach EUR 2.02 million (prev. year: EUR 1.62 million). The Services division contributed EUR 1.44 million to total earnings, achieving year-on-year growth of 12 percent (prev. year: EUR 1.29 million). There was also significant growth in EBT posted by the Resourcing sector: due to increased segment revenue and efficiency gains in its internal processes, segment earnings were up 71 percent to EUR 0.65 million (prev. year: EUR 0.38 million). The positive trend from the fourth quarter of 2010 continued into 2011: the recovery of the industrial sector led to a strong increase in demand for freelance specialists.

Further key figures: solid balance sheet structure; 14 percent increase in headcount

The GFT Group generated net income of EUR 1.35 million for the first three months ending 31 March 2011, representing growth of 16 percent over the same period last year (EUR 1.16 million). Earnings per share improved slightly to EUR 0.05 in the period under review, compared to EUR 0.04 at the end of the first quarter 2010. Due to the positive earnings situation, cash, cash equivalents and securities increased to EUR 38.27 million, representing year-on-year growth of EUR 6.95 million or 22 percent. As of 31 March 2011, GFT employed 1,307 people (prev. year: 1,149), including part-time staff calculated on a pro rata basis. This increase of 158 employees or 14 percent reflects the high utilisation of development capacity as well as the revenue growth of the previous year. The number of staff employed in Germany grew from 251 to 282 persons.

Outlook: sustainable growth expected; forecast for year as a whole confirmed

GFT's CEO Ulrich Dietz is confident about the company's prospects in financial year 2011: 'We are clearly focused on our target for 2011. Due to the high demand in relevant markets and our strictly aligned range of services, we are optimistic that we can achieve further sustainable growth. The Services segment will continue its positive business development and we expect further dynamic growth for the Resourcing segment'. Against this backdrop, the Executive Board confirms the forecast made in the Consolidated Financial Statements 2010. For 2011, it expects to achieve total revenue of EUR 275 million and earnings before taxes of EUR 13 million. 'Both our target and strategy are clear: GFT has occupied important future IT topics and will continue to offer compelling and intelligent IT solutions in 2011. Our innovative strength and the continuous improvement of our products and internal processes provide an excellent foundation for further profitable growth.'

Detailed financial figures are available in the Investor Relations section of the GFT website at http://www.gft.com/ir .

Key figures in accordance with IFRS 5 :

Key figures acc. to IFRS in EUR million	01.01.-31.03.2011	01.01.-31.03.2010
Revenue	67.30	54.43
EBITDA	2.18	1.78
EBIT	1.86	1.50
Earnings before taxes (EBT)	2.02	1.62
Net income from continued operations as of 31 March	1.35	1.16
Earnings per share from continued operations acc. to IAS 33 in EUR	0.05	0.04
Equity ratio in percent	56	59
Number of employees as of 31 March	1,307	1,149

About GFT

The GFT Group, headquartered in Germany, is an international provider of innovative IT solutions and services. Over 20 years of experience makes the company a reliable and strategic IT partner, enabling its clients to optimise their business processes through intelligent IT systems and specialists and to thus sustainably improve 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 customised 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 of the Group which, in 2010, achieved revenues of around 248 million EUR. It has more than 1,300 employees at locations in seven countries. GFT shares are listed on the Frankfurt Stock Exchange (Prime Standard: WKN 580 060, GEX). For more information please visit www.gft.com

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
	Deutschland
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

End of News	DGAP News-Service

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