Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, William Schmarzo, Elizabeth White, tru welu

News Feed Item

GFT Group Continues its Growth in First Half of 2014

STUTTGART, Germany, August 7, 2014 /PRNewswire/ --


  

  • Consolidated revenue up 37 percent to EUR 156.74 million  
  • Pre-tax earnings more than doubled to EUR 11.13 million  
  • Business with investment banks in UK and USA key growth driver 

The GFT Group continued its growth course in the first half of 2014 with an increase in revenue of 37 percent to EUR 156.74 million (prev. year: EUR 114.19 million). Adjusted for the revenue contribution of Sempla acquired in mid-2013 (now GFT Italia) amounting to EUR 22.53 million, the GFT Group achieved organic growth of 18 percent. The GFT Group enjoyed particularly strong revenue growth of 61 percent to EUR 41.70 million in the UK (prev. year: EUR 25.94 million) and the USA, where revenue rose by 96 percent to EUR 8.42 million (prev. year: EUR 4.29 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved to EUR 13.61 million (prev. year: EUR 6.09 million) in the first six months. Pre-tax earnings were also more than doubled to EUR 11.13 million (prev. year: EUR 5.50 million). With earnings after tax of EUR 7.32 million (prev. year: EUR 4.36 million), earnings per share rose to EUR 0.28 (prev. year: EUR 0.17).  

The UK-based international Business and IT consultancy Rule Financial Ltd. was acquired on 26 June 2014. Due to the transaction date shortly before month-closing, the company is not yet included in the consolidated income statement - it is included, however, in the balance sheet and headcount figures.

Dedicated to delivering IT services for the finance sector, the GFT division raised revenues by 65 percent to EUR 114.07 million in the first half of 2014 (prev. year: EUR 69.14 million). Adjusted for the revenues of GFT Italia included in this division, GFT posted revenue growth of 32 percent. This encouraging organic growth resulted mainly from the ongoing progress in business with investment banks, as well as from projects for the implementation of banking compliance regulations. The GFT division's share of consolidated revenue rose to 73 percent (prev. year: 61 percent).

In the first six months of 2014, the pre-tax earnings contribution (EBT) of the GFT segment rose by 72 percent to EUR 11.78 million (prev. year: EUR 6.86 million), corresponding to an increase in the operating margin to 10.3 percent (prev. year: 9.9 percent). Compared to revenue, this disproportionately strong rise in earnings resulted mainly from increased capacity utilisation and economies of scale.

With its services for the staffing of technology projects, the emagine division achieved revenue of EUR 42.66 million - 5 percent down on the previous year (EUR 45.04 million). The division's share of total Group revenue fell to 27 percent (prev. year: 39 percent). Despite lower revenues, a greatly improved operating margin of 2.1 percent (prev. year: 0.1 percent) helped raise earnings to EUR 0.89 million (prev. year: EUR 0.06 million).

"The strong progress of our IT services for investment banks was a key growth driver in the first six months," says Ulrich Dietz, CEO of GFT Technologies AG. "We expect that growing compliance requirements will continue to necessitate heavy investments in IT. The acquisition of Rule Financial has greatly strengthened our position in this field - both from the client and employee perspective. We are now represented in London by around 230 highly skilled Business and IT consultants and have more than tripled headcount in the USA to over 70. The acquisition of Rule has also provided us with two cost-efficient nearshore development centres in Poland - making us well equipped for further growth."  

Headcount grows to around 3,000  

As of 30 June 2014, the number of full-time employees of the GFT Group almost doubled to 2,983 (including 662 FTE Rule Financial) compared with the previous year (30 June 2013: 1,503). This was due to the acquisition of Sempla in mid-2013 and of Rule Financial, as well as to numerous hirings at the development centres in Spain and Brazil due to high capacity utilisation.

Additional key data 

Rule Financial was included in the consolidated financial statements of the GFT Group for the first time on 30 June 2014. The figures are preliminary and only contain the balance sheet figures. Due to the Rule acquisition, cash and cash equivalents fell to EUR 25.52 million as of 30 June 2014 (31 December 2013: EUR 48.63 million). Equity amounted to EUR 87.98 million on 30 June 2014 and was thus EUR 0.83 million above the year-end figure of 31 December 2013 (EUR 87.15 million). Total assets as of 30 June 2014 were up EUR 66.93 million to EUR 273.31 million (31 December 2013: EUR 206.38 million), of which EUR 33.96 million resulted from initial consolidation of Rule Financial. Due to the increased balance sheet total, the equity ratio decreased to 32 percent as of 30 June 2014 (31 December 2013: 42 percent).

Outlook 

On the announcement of its acquisition of Rule Financial, the GFT Group adjusted its revenue and earnings guidance for the financial year 2014 stated in the Annual Report 2013. As a result of the acquisition, the GFT Group expects additional revenue of around EUR 42 million in the second half of 2014. This increases the GFT Group's revenue expectations for the financial year 2014 to around EUR 352 million (previously EUR 310 million). The annual forecast for EBITDA has been upgraded by EUR 1.50 million to EUR 29.50 million (previously EUR 28.00 million). The GFT Group's forecast for EBT remains unchanged at EUR 23.00 million. The earnings guidance stated above is subject to the final purchase price allocation in connection with the acquisition of Rule Financial.

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.-30.06.2014 01.01.-30.06.2013
                             Revenue            156.74            114.19
                              EBITDA             13.61              6.09
                                EBIT             11.40              5.36
         Earnings before taxes (EBT)             11.13              5.50
           Net income for the period              7.32              4.36
    Earnings/share acc. to IAS 33 in
                                 EUR              0.28              0.17
                                            32 percent        42 percent
                        Equity ratio      (30.06.2014)      (31.12.2013)
      Employees (full-time) as of 30
                                June             2,983             1,503

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, the GFT Group's innovation platform, offers international startups, technology pioneers and established companies access to a global network. 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. Founded in 1987, the GFT Group is represented in eleven countries by its 3,000 employees. The GFT Group is listed on the Frankfurt Stock Exchange (Prime Standard).

 

Contact:
Felix Jansen, External Communications
GFT Technologies AG
Filderhauptstr. 142, 70599 Stuttgart
T +49-711-62042-115
[email protected]

 


http://www.gft.com
 


SOURCE GFT Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
SYS-CON Events announced today that EnterpriseDB (EDB), the leading worldwide provider of enterprise-class Postgres products and database compatibility solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. EDB is the largest provider of Postgres software and services that provides enterprise-class performance and scalability and the open source freedom to divert budget from more costly traditiona...
The multi-trillion economic opportunity around the "Internet of Things" (IoT) is emerging as the hottest topic for investors in 2015. As we connect the physical world with information technology, data from actions, processes and the environment can increase sales, improve efficiencies, automate daily activities and minimize risk. In his session at @ThingsExpo, Ed Maguire, Senior Analyst at CLSA Americas, will describe what is new and different about IoT, explore financial, technological and re...
Andi Mann has been serving as Conference Chair of the DevOps Summit since its inception. He is one of the world's recognized leaders in DevOps, and continues to be one of its most articulate advocates. Here are some recent thoughts of his in an interview we conducted in the run-up to the DevOps Summit to be held June 9-11 at the Javits Center in New York City. When did you first start thinking about DevOps and its potential impact on enterprise IT? Andi: I first started thinking about DevOps b...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between confe...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
The web app is Agile. The REST API is Agile. The testing and planning are Agile. But alas, Data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes which force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software orga...
The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database. In his session at 16th Cloud...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not ...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discuss how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Speaker Bios Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has b...
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, will analyze how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining B...
There is no question that the cloud is where businesses want to host data. Until recently hypervisor virtualization was the most widely used method in cloud computing. Recently virtual containers have been gaining in popularity, and for good reason. In the debate between virtual machines and containers, the latter have been seen as the new kid on the block – and like other emerging technology have had some initial shortcomings. However, the container space has evolved drastically since coming on...