Stuttgart, 9 August 2010 – GFT Technologies AG can look back on an encouraging first six months of 2010. Both revenue and earnings before taxes (EBT) were ahead of growth expectations and underline the strong upturn in business activity. At EUR 4.64 million, earnings before taxes were 68 percent up on the previous year (EUR 2.76 million). There was year-on-year growth in revenue of 9 percent to EUR 114.68 million (prev. year: EUR 105.07 million). The Services division in particular succeeded in significantly expanding its activities in the UK, Spain and the USA, raising segment revenue by 30 percent and almost doubling segment earnings. “Following a strong first quarter, we were able to maintain the dynamic development in the following months,” states GFT’s CEO Ulrich Dietz. In view of the strong order position and more stable economic climate, the company expects significant growth in revenue and earnings in 2010. GFT has thus raised its earnings forecast to EUR 10 to EUR 11 million and now expects revenue to reach EUR 240 million. “Our strategy of focusing on the financial sector and the global placement of engineers and IT specialists is proving successful. We see tremendous growth potential in both areas over the coming years,” says Dietz.


Revenue: growing demand in financial sector; high growth rates in UK, Spain and USA

In the first six months of 2010, the GFT Group generated total revenue of EUR 114.68 million – 9 percent more than in the same period last year. Compared to revenue of EUR 54.43 million in the first quarter of 2010, revenue in the second quarter grew by 11 percent to EUR 60.25 million. This positive development can largely be ascribed to the Services division, which reported year-on-year growth in segment revenue of 30 percent to EUR 56.21 million in the first six months of 2010 (prev. year: EUR 43.32 million). This development was mostly driven by strong demand from the financial sector. In addition to outsourcing services, which help financial institutes create more flexible cost structures, there was also increased demand for IT solutions for corporate and investment banking. There were exceptionally high growth rates in the UK, Spain and the USA. Revenue generated by clients in the UK leapt by 73 percent, while revenue in Spain was up 48 percent and in the USA by 77 percent. The gradual improvement in the economic climate was not felt to the same extent by the Resourcing division. The segment generated revenue of EUR 58.44 million (prev. year: EUR 61.74 million) in the first six months. Restrained demand for freelance IT specialists was felt in particular in the field of Resource Management, whose clients are mainly in the industrial sector. Revenue in this field was 10 percent down on the previous year at EUR 28.44 million (prev. year: EUR 31.79 million). The Group’s Third Party Management business, however, benefited from the recovery of the financial sector and succeeded in keeping revenue stable at EUR 30.00 million (prev. year: EUR 29.96 million).


Earnings: significant year-on-year increase of 68 percent and growth of 86 percent on previous quarter

As of 30 June 2010, earnings before taxes of the GFT Group amounted to EUR 4.64 million and thus exceeded the prior-year figure of EUR 2.76 million by 68 percent. Compared to the past quarter, this growth in earnings was even more apparent: following EBT of EUR 1.62 million in the first quarter of 2010, earnings in the second quarter climbed to EUR 3.02 million. This corresponds to quarter-on-quarter growth of 86 percent. The Services division made the largest contribution to total earnings in the first six months of 2010. The segment almost doubled earnings to EUR 4.01 million (prev. year: EUR 2.10 million), benefiting in particular from a gradual return to stability in the financial sector and a resulting increase in demand. The Resourcing division accounted for EUR 0.86 million of Group earnings (prev. year: EUR 0.99 million).


Further key figures: solid balance sheet structure, increased headcount

Net income for the period ending 30 June 2010 amounted to EUR 3.28 million and was thus up EUR 1.69 million on the prior-year figure of EUR 1.59 million. Earnings per share improved to EUR 0.13 in this period under review compared to EUR 0.08 for the same period last year. There was an increase in cash, cash equivalents and securities, which amounted to EUR 26.44 million as of the balance sheet date (prev. year: EUR 24.90 million). On 30 June 2010, the GFT Group had 1,209 employees – 235 persons more than on the same date last year. The Group has thus already achieved its aim of raising headcount to 1,200 by year-end. There are plans to hire a further 100 employees by the end of the year.

In line with the Group’s strategic focus on the Resourcing and Services divisions, GFT sold the Software segment on 17 May 2010. The disposed Software division is no longer included in the current key financial figures.


Outlook: revenue and earnings forecast for 2010 as a whole upgraded

“There has been a noticeable return to stability in our client markets; demand is picking up again. We expect that our positive business development will continue to gather pace in the second half of the year,” explains GFT’s CEO Ulrich Dietz. According to Dietz, the financial sector’s high propensity to invest will continue in the remaining months and will have a positive impact on the GFT Group’s order position. In addition to outsourcing services and solutions for corporate and investment banking, increased demand is also expected for intelligent IT solutions which help banks with the implementation of regulatory compliance. The GFT Group also expects growth potential from the expansion of its Resourcing business, which has added the international placement of engineers. “With our portfolio of services, we are well positioned on the market and will continue to strive for sustainable growth in 2010,” states Ulrich Dietz.

Key figures in accordance with IFRS 5:

 

Key figures acc. to IFRS in EUR million	01.01.-30.06.2010	01.01.-30.06.2009
Revenue	114.68	105.07
EBITDA	4.92	3.15
EBIT	4.35	2.51
Earnings before taxes (EBT)	4.64	2.76
Net income from continued operations as of 30.06.	3.55	2.14
Earnings per share acc. to IAS 33 in EUR	0.13	0.08
Equity ratio in percent	58	60
Number of employees as 30.06	1,209	974