Plenum AG

Earnings Release • Mar 24, 2004

News Details

Corporate | 24 March 2004 20:30

plenum AG: profitable in 2003

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– plenum AG: profitable in 2003 – EBITDA: EUR 1.2 million (2002: EUR -1.1 million) – Consolidated net income of EUR 0.2 million (2002: net loss of EUR 10.7 million) – Revenues in line with forecasts at EUR 40.3 million (2002: EUR 47.5 million) plenum AG closed financial year 2003 with a positive consolidated result. The early adaptation of the Company’s cost structure and the focusing of its service profile resulted in a profit in 2003, even though revenues decreased as expected. If the IT services and communications market continues to recover, plenum forecasts in general a positive business development for 2004. Results for financial year 2003 The plenum Group achieved its main goal in the past financial year. The Company generated a profit in 2003 on the basis of earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 1.2 million (previous year: loss of EUR 1.1 million), and consolidated net income of EUR 0.2 million (previous year: loss of EUR 10.7 million). Earnings per share therefore improved from a loss of EUR 1.11 in 2002 to EUR 0.02 in 2003. plenum succeeded in doing this because it systematically geared its business from an early stage to the continued difficult economic situation. The FOKUS program that plenum launched at the beginning of 2003 was designed to focus the Company’s management on strengthening its core competencies and further optimizing its cost structure. The 15% decline in revenues to EUR 40.3 million (previous year: EUR 47.5 million) was in line with the Company’s forecasts for the year. Cash and cash equivalents also developed as expected, amounting to EUR 8.1 million at the end of the year (2002: EUR 13.3 million), and therefore remain at a high level. Liabilities to banks remained marginal at EUR 0.1 million. Outlook plenum is generally optimistic about financial year 2004. However, the Management Board remains cautious with regard to short-term economic developments and their effect on plenum’s business. This optimism is vindicated by the Company’s booked business – which amounted to EUR 10.6 million at the balance sheet date. After the end of the previous year, the duration of the development work for the Phoenics project was extended until December 31, 2004. Through a close dialog between IT managers and plenum’s management, the Company will be able to continue tailoring its services to the needs of major groups in 2004, particularly in the financial services industry. These customers are looking more and more intesively for ways of reducing their in-house IT and communications staff and at the same time ensuring access to cost-effective, specialist expertise at any time. plenum has developed a set of tools known as “Dynamic SourcingTM” which, in particular, substantially reduce customer risks from outsourcing projects, offshoring to India or nearshoring to Latvia, for example. As a result of the plenum Group’s improved cost structure and its capacity utilization was still relatively low in financial year 2003, future revenue growth will lead to a disproportionately strong rise in earnings. Further information on plenum’s business development can be found in the Company’s 2003 Annual Report, which will be published at http://www.plenum.de from March 25, 2004. plenum AG company profile plenum AG is a provider of innovative and high-quality IT and communications solutions and has extensive consulting expertise. It helps customers develop IT strategies and implement projects in the IT environment. plenum’s service chain for communications solutions ranges from consulting, through creation of an idea that is geared to strategic goals, down to the development of the goals-driven solution, across all media instruments. plenum currently employs around 270 people and generated revenues of EUR 40.3 million in fiscal year 2003. The IT and communications service provider is listed in the “Prime Standard” segment of the Frankfurt Stock Exchange (Xetra: PLE; WKN (German Securities Code Number): 690100; ISIN: DE0006901002). For further information, please contact: Hubert Sand plenum AG Head of Corporate Communications Tel. + 49 (0) 611 – 98 82 – 0 Fax: + 49 (0) 611- 98 82 – 152 e-mail: aktie@plenum.de end of message, (c)DGAP 24.03.2004 ——————————————————————————– WKN: 690100; ISIN: DE0006901002; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 242030 Mär 04