DATAGROUP with record turnover and profit – Guidance exceeded again

EQS-News: DATAGROUP SE / Key word(s): Annual results
DATAGROUP SE: DATAGROUP with record turnover and profit – Guidance exceeded again
22.11.2022 / 08:08 CET/EST
The issuer is solely responsible for the content of this announcement.

DATAGROUP with record turnover and profit – Guidance exceeded again

Pliezhausen, November 22, 2022. DATAGROUP SE (WKN: A0JC8S) today publishes its preliminary results for the financial year 2021/2022 and once again delivers record results. Turnover increased EUR 56.7m or 12.8 % in EUR 501.4 million during the year under review (AP: EUR 444.7 million) and exceeded the guidance of EUR 480m – EUR 500m. Total revenue reached EUR 128.6 million in the fourth quarter, corresponding to an increase of 12.9 % (IS SCARED 113.9m). EBITDA increased by EUR 9.2m or 13.6 % in EUR 76.5m (AP: EUR 67.3 million) for the full year, which was also above EUR’s forecast 72m – EUR 75m.

STRONG REVENUE GROWTH

Turnover again increased significantly in the fourth quarter by 12.9% to 128.6 million euros (previous year: 113.9 million euros). Compared to the previous financial year, DATAGROUP’s turnover increased by 56.7 million euros or 12.8%, from 444.7 million euros to 501.4 million euros.

The full consolidation of URANO Informationssysteme GmbH (“URANO”) and dna Gesellschaft für IT Services GmbH (“dna”), acquired the previous year, as well as the initial consolidation of Cloudeteer and the IT group Hövermann contributed to the growth In income[1].

In particular, the activity of the fully integrated entities of DATAGROUP developed very positively. The demand for CORBOX IT services increased significantly compared to the 2020/2021 financial year, while the demand for consulting services, for example in the SAP environment, was equally encouraging. The first consolidation of Cloudeteer, a cloud-native start-up with expertise in all areas of public cloud and its own software solutions, and Hövermann IT Gruppe, which was acquired this year, also contributed to the evolution of results. The latter offers IT services and IT consulting for small and medium-sized companies, mainly based in North Rhine-Westphalia and Lower Saxony. As an SAP Gold certified partner, the company has exceptional expertise in SAP Business One.

The share of services in turnover remained at a very high level of 80.9% (previous year: 84.4%). New business, upsells and contract renewals reached a new all-time high; 20 new CORBOX contracts were signed during the past financial year, 20 contracts were extended, 34 existing customers extended or renewed their contracts.

VERY GOOD EVOLUTION IN RESULTS WITH SIGNIFICANT IMPROVEMENT IN THE MARGIN

During the 2021/2022 financial year, EBITDA amounted to €76.5 million compared to €67.3 million the previous year (+13.6%). Efficiency measures from previous years have now resulted in a record EBIT of EUR 41.5 million after EUR 28.7 million the previous year (+44.7%). The EBITDA margin of 15.2% was slightly above the 15.1% level of the previous year, while the EBIT margin improved significantly by +1.9% points to 8.3% after 6.4 % the previous year, bringing the medium-term ambition of 9% EBIT within reach.

The financial result includes non-recurring special effects of 2.2 million euros, which are dominated by a final allocation of the purchase price. Net income amounted to 22.0 million euros after 20.7 million euros the previous year. The restructuring measures implemented in the year just ended had particular tax implications, resulting in an increase in the tax rate from 22.4% in the previous year to 40.0 % during the period under review. We assume that the tax rate will be significantly lower in the coming years.

“Despite another difficult macro-economic year, characterized by the war in Ukraine and the resulting rise in energy prices, DATAGROUP achieved another record year. This once again proves the durability of the CORBOX Service as a Product approach. We generate recurring revenue and good margins with this standardized service portfolio, which we are continuously developing and focusing on the needs of German companies in the Mittelstand,” says Andreas Baresel, CEO of DATAGROUP. “The increased productivity of our central supply units leads to a significant improvement in the operating EBIT margin and helps us to meet the challenges of the current economic environment”, continues Andreas Baresel.

THE CHANGE IN THE BALANCE SHEET REFLECTS THE SOLIDITY OF THE GROUP’S FINANCING

Certain previous year balance sheet items were adjusted due to the final purchase price allocation of a company acquired the previous year. Compared to the restated figure for the previous year of 463.0 million euros, the balance sheet total increased to 483.6 million euros in the financial year 2021/2022. The increase in the balance sheet total is mainly due to the initial consolidation of the newly acquired companies during the financial year just ended.

The equity ratio improved significantly, from 20.3% the previous year to 26.4%. This positive evolution is mainly explained by the good results as such and the revaluation of provisions for pensions, which are accounted for directly in shareholders’ equity. Based on investments of approximately €35.9 million in the above transactions, net debt decreased from €116.6 million to €109.3 million. Amounts due to banks remained unchanged at EUR 78.2 million. Cash and cash equivalents amounted to €47.0 million compared to €44.1 million at the balance sheet date of the previous year. “The Group’s financing is guaranteed for the long term and provides sufficient headroom for new investments in acquisitions,” comments Oliver Thome, CFO, on the solid development of the balance sheet. “Our long-term financing with loans in the form of promissory notes with a total volume of 69 million euros and maturities of up to seven years guarantees us a low interest rate”, continues Oliver Thome.

For the year ended September 30, 2022, management intends to propose to the Annual General Meeting a dividend in line with the historical dividend policy with a payout ratio of approximately 40% of net profit. The annual general meeting for the 2021/2022 financial year is scheduled for March 9, 2023.

OPERATING CASH FLOW INCREASES TO AN ALL-TIME HIGH

The evolution of operating cash flow is particularly satisfactory. This increased by EUR 20.3 million or 40.5% from EUR 50.0 million to EUR 70.3 million, mainly due to the substantial increase in the operating result . At the same time, CAPEX decreased compared to the previous year: investments in tangible and intangible fixed assets amounted to 8.8 million euros compared to 11.0 million euros the previous year. The investment rate rose from 2.5% of turnover the previous year to 1.8% during the financial year just ended.

About DATAGROUP

DATAGROUP is one of Germany’s leading IT services companies. Around 3,500 employees across Germany design, implement and operate IT infrastructures and business applications such as SAP. With its CORBOX product, DATAGROUP is a full-service provider, supporting global IT workstations for medium and large companies as well as public authorities. The company is growing both organically and through acquisitions. The acquisition strategy stands out in particular for its optimal integration of new companies. DATAGROUP actively participates in the consolidation process of the IT services market with its “buy and turn around” strategy and its “buy and build” strategy.

Contact for more information

DATAGROUP SE
Claudia Erning
Wilhelm-Schickard-Str. seven
72124 Pleizhausen

T +49 7127 970-015
Telephone +49 7127 970-033
[email protected]

[1] DATAGROUP acquired 24% of Cloudeteer shares in June 2020 and obtained an option on an additional 76% of the company’s shares. In October 2022, DATAGROUP increased to 51%. The company has been fully consolidated since October 1, 2021. First consolidation of Hövermann IT Group since May 01, 2022.

22.11.2022 CET/CEST Broadcast of a Corporate News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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