Click here to close now.

SYS-CON MEDIA Authors: Lori MacVittie, Peter Silva, Liz McMillan, Jason Bloomberg, Carmen Gonzalez

Blog Feed Post

GFT Group exceeds 2013 revenue and earnings targets: pre-tax earnings up 45 percent

  • Consolidated revenue up 15 percent to EUR 264.29 million

  • GFT division raises revenue by 44 percent

  • Dividend increase to EUR 0.20 per share proposed

Stuttgart, 5 March 2014 - GFT Technologies AG today announced its preliminary and unaudited financial figures for the financial year 2013. With 15 percent growth in consolidated revenue to EUR 264.29 million (prev. year: EUR 230.69 million), the company exceeded its revenue target for 2013 by EUR 4.29 million. This substantial year-on-year increase in revenue resulted from the strong organic growth of the GFT division with its solutions for the banking sector and from the acquisition of the Italian consultancy Sempla S.r.l.. Pre-tax earnings (EBT) also surpassed the company's expectations with growth of 45 percent to EUR 17.52 million (prev. year: EUR 12.11 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 53 percent to EUR 20.49 million (prev. year: EUR 13.35 million).

The GFT Group comprises the two operating divisions GFT (formerly GFT Solutions) and emagine. Dedicated to delivering IT solutions for the finance sector, the GFT division posted revenue growth of 44 percent to EUR 174.04 million (prev. year: EUR 121.05 million). Adjusted for the revenue contribution of Sempla totalling EUR 21.77 million, GFT posted organic growth of 26 percent. This positive trend was mainly driven by the division's IT solutions for investment banking and its compliance solutions for growing regulatory requirements in the finance sector. Project business relating to the introduction of the Single Euro Payment Area (SEPA) also played a key role in driving growth. The company's German and UK operations posted particularly strong revenue increases.

The earnings contribution of the GFT division rose by 53 percent to EUR 19.63 million (prev. year: EUR 12.86 million) with a corresponding improvement in the operating margin to 11.3 percent (prev. year: 10.6 percent). Increased capacity utilisation and an adjustment of the remaining purchase price for Asymo AG were chiefly responsible for the disproportionately strong increase in earnings compared to revenue. "We steadily improved our performance in the GFT division over the year, enabling us to exceed even the upgraded revenue and earnings targets from mid year," says Ulrich Dietz, CEO of GFT Technologies AG.

On the UK success, GFT UK's Managing Director, Christopher Ortiz expanded: "GFT UK saw amazing growth in the areas of regulatory and big data projects in the Capital Markets space in 2013. But the work is just beginning with 2014 continuing the strong growth and need for expert business and IT consulting services."

With its services for the staffing of technology projects, the emagine division posted revenue of EUR 90.23 million - 18 percent down on the previous year (EUR 109.54 million). This decline in revenue resulted mainly from the planned discontinuation of its low-margin Third Party Management (TPM) business. As a result, the TPM business contributed just EUR 3.46 million (prev. year: EUR 18.57 million) to segment revenue. Segment earnings of the emagine division were burdened by expenses for its realignment, especially in the first six months. Following an upturn in the third quarter, the division was able to achieve full-year earnings of EUR 1.06 million (prev. year: EUR 2.32 million).

GFT Group improves EBITDA by 53 percent
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the GFT Group rose by 53 percent to EUR 20.49 million (prev. year: EUR 13.35 million). The EBITDA result includes tax-free income of EUR 2.42 million from expected remaining purchase prices (prev. year: EUR 2.63 million) for an acquisition in 2011. Earnings before taxes (EBT) amounted to EUR 17.52 million and were thus 45 percent up on the previous year (EUR 12.11 million). The operating margin before taxes improved by 1.4 percent points, from 5.2 percent in the previous year to 6.6 percent. In the past financial year, the GFT Group generated net income of EUR 13.63 million, corresponding to year-on-year growth of 63 percent (EUR 8.34 million). Undiluted earnings per share amounted to EUR 0.52 in 2013 (prev. year: EUR 0.32). The calculated tax ratio was 22 percent, compared to 31 percent in the previous year.

Headcount grows by 52 percent to 2,111
Due to the positive development of business and high utilisation of capacity, headcount at the Spanish development centres was increased by 19 percent to 1,046 during the reporting period. The acquisition of Sempla raised headcount in the GFT division to 1,968 (prev. year: 1,239). All in all, the number of full-time staff employed by the GFT Group increased by 52 percent to 2,111 (prev. year: 1,386) as of 31 December 2013.

Increased dividend
In view of the encouraging development of business, the Executive Board will recommend that the Supervisory Board proposes an increase in the dividend for 2013 of 33 percent to EUR 0.20 (prev. year: 0.15 Euro) per share at the Annual General Meeting on 27 May 2014. This would correspond to a total dividend payout of EUR 5.27 million (prev. year: EUR 3.95 million).

Additional key data
In the fourth quarter of 2013, the GFT Group generated revenue of EUR 78.85 million (prev. year: EUR 56.08 million) and pre-tax earnings of EUR 6.31 million (prev. year: EUR 4.31 million). On 31 December 2013, the GFT Group had cash and cash equivalents of EUR 48.62 million (prev. year: EUR 40.42 million) and EUR 20.88 million after deduction of financial liabilities (prev. year: EUR 40.42 million).

Outlook
The GFT Group expects business to make further progress in 2014 and anticipates year-on-year revenue growth of 17 percent to EUR 310 million. The Executive Board expects pre-tax earnings (EBT) to improve to EUR 23 million with an increase in EBITDA to EUR 28 million.

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

Key figures (deviations possible due to rounding differences)

IFRS figures in EUR million

01.01.-31.12.2013

01.01.-31.12.2012

Revenue

264.29

230.69

EBITDA

20.49

13.35

EBIT

17.66

11.79

Earnings before taxes (EBT)

17.52

12.11

Net income as of 31 December

13.63

8.34

Earnings/share acc. to IAS 33 in EUR

0.52

0.32

Equity ratio in percent

42

59

Employees (full-time) as of 31 December

2,111

1,386

About the GFT Group:
The GFT Group is a global technology partner for future digital issues - covering everything from discovering innovation to developing and implementing sustainable business models.

Within the GFT Group, GFT stands for competent consulting and reliable development, implementation and maintenance of customized IT solutions. The company is one of the world's leading IT solutions providers in the banking sector.

emagine offers companies the opportunity to staff their strategic technology projects both quickly and flexibly with capable experts. To achieve this, emagine has an international network of highly qualified IT and engineering specialists at its disposal.
CODE_n is the international innovation platform developed by the GFT Group. It provides a global network for startups, technology pioneers and established companies from around the world. It's where ideas become business.

Headquartered in Germany, the GFT Group has stood for technological expertise, innovative strength and outstanding quality for over 25 years. The GFT Group is listed on the Frankfurt Stock Exchange (Prime Standard).

Contact:
Christian Kleff
Head of Corporate Communications
GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Germany
T +49 711 62042-125
F +49 711 62042-101
[email protected]
www.gft.com

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, will answer that question citing examples, showing how to create opportunities f...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, “I can harden it against attack, but not on this timeline”; “I can make it better, but it will cost more”; “I can deliver faster, but not with these specs”; or “I can stay strong on cost control, but quality will suffer”? In the new application economy, these tradeoffs are no longer acceptable. Customers will ...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, includin...
Red Hat has launched the Red Hat Cloud Innovation Practice, a new global team of experts that will assist companies with more quickly on-ramping to the cloud. They will do this by providing solutions and services such as validated designs with reference architectures and agile methodology consulting, training, and support. The Red Hat Cloud Innovation Practice is born out of the integration of technology and engineering expertise gained through the company’s 2014 acquisitions of leading Ceph s...
The excitement around the possibilities enabled by Big Data is being tempered by the daunting task of feeding the analytics engines with high quality data on a continuous basis. As the once distinct fields of data integration and data management increasingly converge, cloud-based data solutions providers have emerged that can buffer your organization from the complexities of this continuous data cleansing and management so that you’re free to focus on the end goal: actionable insight.
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to mak...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics arc...
The free version of KEMP Technologies' LoadMaster™ application load balancer is now available for unlimited use, making it easy for IT developers and open source technology users to benefit from all the features of a full commercial-grade product at no cost. It can be downloaded at FreeLoadBalancer.com. Load balancing, security and traffic optimization are all key enablers for application performance and functionality. Without these, application services will not perform as expected or have the...