Plenum AG

Earnings Release • Nov 22, 2005

News Details

Ad-hoc | 22 November 2005 08:00

plenum AG: The refocusing strategy is being consistently implemente

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— plenum AG: The refocusing strategy is being consistently implemented – Results forecast confirmed – Revenues in strategic areas develop uneven – Revenues in 2005 are slightly below expectations – Cash levels as of 30th. September at EUR 6.4 million Wiesbaden, 22. November 2005 plenum AG has consistently driven forward the refocusing strategy presented at the start of the year. plenum is again concentrating on consulting areas and the solution of strategic issues, which require the targeted deployment of innovations in IT, business processes and market communication. The organisational adjustments within the company are largely completed and the new positioning has been met with posi-tive feedback in the market. Thus, after a strong first quarter, where the new orders in the Management Consulting and the Systems segment without Phoenics profited from 2004 deferments, and after a weaker second quarter the new orders in the third quarter were again above revenue level. In total the level of new orders were at around 5 % above revenues after the first nine months. Compared to the end of 2004 this means an increase in order backlog in this area of around 16 %. The revenues, at around EUR 22.3 million, particularly show after the first nine months the anticipated impact of the significant reduction in activities in the Phoenics project. In comparison with the previous year (EUR 31.4 million) revenues dropped by around 29 %. Relative to the previous quarter (EUR 8.2 million) revenues in the third quarter dropped by 30 % to EUR 5.7 million. With TEUR -984 net results in the third quarter 2005, there are as anticipated total group losses of around EUR 2.6 million after nine months in the financial year 2005. The business trend in plenums strategic areas showed a somewhat uneven course in the nine months after the refocusing strategy was announced: The success in the high margin growth area IT-Strategy has clearly exceeded expectations, the trend in the classical consulting areas IT-Efficiency and IT-Architecture is according to plan. But, contrary to the expectations of the managing board, the expansion of the business in the Customer Relationship Management / eBusiness area requires more sales effort and time than previously estimated. In the Agency business the positioning could be reinforced by two significant awards and several important new clients. The somewhat weaker revenue trend – contrary to expectations in August – is attributed to weak orders for media services and has little impact on earnings. The trend in labor-based revenues however was according to expectations. Against the background of these trends, the managing board anticipates a higher reduction in revenues for the current financial year than was determined in August. From today’s perspective, revenues totalling around EUR 27.5 million (original expectation: EUR 28.5 million) will be reached. Primarily due to the welcome trend in the high margin area IT-Strategy and the usually low margins of the media busi-ness, this has no impact on the results forecast. Furthermore the managing board continues to anticipate a deficit of EUR 3.4 million for the financial year 2005. The levels of cash and cash equivalents rose as of 30th September 2005 relative to the end of the second quarter by TEUR 803 to around EUR 6.4 million. Relative to 31st December 2004 (EUR 6.6 million), this means an almost stable level. The complete third quarter report 2005 can be found under http://www.plenum.de as of 23th November 2005. plenum AG Hagenauer Straße 53 65203 Wiesbaden Deutschland ISIN: DE0006901002 WKN: 690100 Listed: Geregelter Markt in Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Hannover und München End of ad hoc announcement (c)DGAP 22.11.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Further information Hubert Sand Head of Corporate Communication plenum AG Tel.: + 49 (0) 611 – 98 82 – 0 Fax: + 49 (0) 611 – 98 82 – 1 50 e-mail: aktie@plenum.de Information and explanations of the issuer on this ad hoc announcement: This announcement contains statements relating to the future, which are based on current expecta-tions, estimates, predictions and projections as well as assumptions made by the management of plenum AG. Such statements especially encompass statements on plans, strategies and projections. Words such as “expect”, “probably”, “provisionally” and similar expressions characterise such future oriented statements. These statements are not a guarantee for future results and risks, uncertainties and assumptions, which are sometimes difficult to predict. Thus the actual consequences and results could differ significantly from the future oriented statements. End of message (c)DGAP