GFT Group posts strong revenue and earnings growth for financial year 2014 – guidance exceeded

GFT Group posts strong revenue and earnings growth for financial year 2014 – guidance exceeded

  • Consolidated revenue up 38 percent to EUR 365.32 million
  • Earnings (EBITDA) improved by 69 percent to EUR 34.64 million
  • GFT division boosts revenue by 60 percent
  • Admission to TecDAX index

Stuttgart, 5 March 2015 – The GFT Group today announced its preliminary and unaudited figures for the financial year 2014. With an increase in consolidated revenue of 38 percent to EUR 365.32 million (prev. year: EUR 264.29 million), the company displayed dynamic growth and exceeded its revenue target for 2014 by EUR 5.32 million. The significant year-on-year increase in revenue resulted from the strong organic growth of the GFT division with its solutions for the banking sector as well as from company acquisitions in Italy (Sempla, 2013) and the UK (Rule Financial, 2014). Revenue generated in the UK – the GFT Group’s largest sales market – was doubled to EUR 121.81 million (prev. year: EUR 61.02 million). In the USA, revenue rose by 146 percent to EUR 26.17 million (prev. year: EUR 10.62 million). The need to comply with government legislation regulating the banking industry has led to strong demand for IT consulting and services. Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 69 percent to EUR 34.64 million (prev. year: EUR 20.49 million) and were thus EUR 2.64 million above target. Pre-tax earnings (EBT) rose by 55 percent to EUR 27.07 million (prev. year: EUR 17.52 million) and were EUR 1.07 million better than expected. Compared to the previous year, earnings per share improved from EUR 0.52 to EUR 0.76. On 4 March 2015, Deutsche Börse decided to include the GFT share in its TecDAX index of leading tech stocks below the DAX.

Dedicated to delivering IT services for the finance sector, the GFT division raised revenue by 60 percent to EUR 279.22 million (prev. year: EUR 174.04 million). Adjusted for the revenue contributions of companies integrated into this division – GFT Italia (formerly Sempla) EUR 45.79 million (prev. year: EUR 21.77 million) and Rule Financial EUR 38.39 million (prev. year: EUR 0.00 million) – GFT generated organic growth of 28 percent. The GFT division’s contribution to consolidated revenue rose to 76 percent (prev. year: 66 percent). Earnings (EBT) of the GFT segment improved by 50 percent to EUR 28.07 million (prev. year: EUR 18.68 million), representing an operating margin of 10.1 percent (prev. year: 10.7 percent).

With its services for the staffing of technology projects, the emagine division achieved revenue of EUR 86.09 million – 5 percent down on the previous year (EUR 90.23 million). At the same time, however, EBT improved by 54 percent to EUR 1.66 million (prev. year: EUR 1.08 million). The operating margin rose to 1.9 percent (prev. year: 1.2 percent). With its aim of focusing on the growth strategy of the GFT division, the GFT Group began evaluating the strategic options for its emagine division in the fourth quarter of 2014. An investment bank has been commissioned to identify potential investors.

“Compliance and digitisation in the banking sector are the current growth drivers for our business,” says Ulrich Dietz, CEO of GFT Technologies AG. “Our many years of close partnership with leading financial service providers in Europe and America form the basis for the success of our core business. We know the requirements of our clients and their markets. Our innovation strategy is tailored precisely to these needs. What’s more, our acquisitions over the past few years fit really well with current market developments. This gives us a solid foundation for stable growth also in the years ahead.”

Headcount grows to over 3,200

As of 31 December 2014, the GFT Group had 3,248 full-time employees – representing growth of 54 percent or 1,137 persons compared to the prior-year figure (31 December 2013: 2,111 full-time employees). The increase was due to the acquisition of Rule Financial as well as to numerous hirings caused by high capacity utilisation, in particular at nearshore development centres in Spain (up 274 to 1,320) and Brazil (up 97 to 283).

Stable dividend

The Executive Board and Supervisory Board of GFT Technologies AG decided yesterday to propose a dividend of EUR 0.25 (prev. year: EUR 0.25) for the financial year 2014 at the Annual General Meeting on 23 June 2015. This corresponds to a dividend payout of EUR 6.58 million (prev. year: EUR 6.58 million).

Additional key data

In the fourth quarter of 2014, the GFT Group generated revenue of EUR 110.12 million (prev. year: EUR 78.85 million) and pre-tax earnings of EUR 7.88 million (prev. year: EUR 6.31 million). On 31 December 2014, the GFT Group had cash and securities of EUR 38.25 million (31 December 2013: EUR 48.63 million). The equity ratio on 31 December 2014 amounted to 33 percent (31 December 2013: 42 percent).

Outlook

The GFT Group anticipates a further positive development of business in 2015 and forecasts year-on-year revenue growth to EUR 425 million. The Executive Board expects EBITDA to improve to EUR 44 million for the year as a whole with an increase in EBT to EUR 31 million.

We know the requirements of our clients and their markets. Our innovation strategy is tailored precisely to these needs. What’s more, our acquisitions over the past few years fit really well with current market developments. This gives us a solid foundation for stable growth also in the years ahead.”
Ulrich Dietz CEO
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In EUR million

01.01. - 31.12.2014

01.01. - 31.12.2013

Key figures (unaudited) in accordance with IFRS
(deviations possible due to rounding differences)
 

Revenue

365.32 264.29

EBITDA

34.64

20.49

EBIT

28.08 17.65

Earnings before taxes (EBT)

27.07 17.52

Net income

19.95 13.63

Earnings/share acc. to IAS 33 in EUR

0.76 0.52

Equity ratio as of 31.12 in percent

 33

42

Employees (full-time) as of 31.12

3,248

2,111

Current Press Release

GFT Group posts strong revenue and earnings growth for financial year 2014 – guidance exceeded

Annual Report 2014

Balance sheet

Balance sheet, income statement and cash flow statement

Key figures GFT Group

Key figures GFT Group Fiscal Year 2014

Segment reporting

Segment Report as at 31 December 2014

Current Press Release

GFT Group posts strong revenue and earnings growth for financial year 2014 – guidance exceeded

Annual Report 2014

Balance sheet

Balance sheet, income statement and cash flow statement

Key figures GFT Group

Key figures GFT Group Fiscal Year 2014

Segment reporting

Segment Report as at 31 December 2014

Photo Ulrich Dietz (2170 kb)