Consulting and Services Drive Growth
+21% Sales and +53% EBIT in Q4
Sales 2007: 524 Million Euros (+14%)
EBITDA 2007: ~20 Million Euros (+13%)
EBIT 2007: ~13 Million Euros (+7%)
S&T Closes its Business Year 2007 with a Record Quarter
Sales increased in the fourth quarter by 21% and the EBIT by 53%. According to the company's preliminary annual results, total sales increased by 14% and the EBIT by 7%. 45% of sales are now generated with consulting and services, a field which will be consequently developed further. For 2008, S&T is expecting sales of 560 to 580 million Euros and an EBIT of 15 to 17 million Euros.
In the 4th quarter of 2007, S&T achieved sales of 172 million Euros and an EBIT of ~6.9 million Euros, making it the most successful quarter in the company’s history. In total during 2007, S&T generated sales of 524 million Euros (+14%) and thereby produced a result considerably above expectations. In addition, S&T achieved its aim of growing significantly more than the market. Consultancy and services provided some 45% of the sales, in 2006 they produced some 37%. In 2010, S&T wants to generate 60% of its
business in this area.
EBIT Target Reached: 13 Mill. EurosThe Earnings before Interest and Taxes, Depreciation and Amortization (EBITDA) provided a particularly pleasing picture, increasing by 13% to around 20 million Euros. The company also achieved its EBIT goal of ~13 million Euros (+7%). The number of employees increased in 2007 by 37% to 3,150. 653 of these came by way of the takeover of IMG - more than 200 were new recruitments.
Share Price Rises Considerably: +18%Despite the difficulties in the stock market, the S&T share has performed at the end of the year 2007 with +18% higher than at the beginning of the year 2007. S&T concluded the stock exchange year 2007 with a market capitalization of 167 million Euros, compared with 140 million Euros at the beginning of the year.
Business Solutions Sales Increases by 60%The Business Solutions and Managed Services sectors were intensively developed and brought in the desired results. The sales in the Business Solutions area grew by 60% in 2007 to 150 million Euros. In the meantime S&T has become a leading SAP consultant in Central and Eastern Europe (CEE) and in the DACH region (Germany, Austria and Switzerland). In the Managed Services sector, S&T experienced an organic growth of 16% to 87 million Euros. S&T has established itself above all as a supplier of Managed
Desktop Services and was awarded several million-Euro projects. Combined, these two sectors together make up 45% of total sales. In the Enterprise Systems sector, S&T concentrated in 2007 primarily on high margin contracts, which, in turn, generated further service projects. As expected, the Enterprise Systems sector developed constantly to produce sales of 287 million Euros.
2008: Earnings in Double Figures ExpectedS&T's order pipeline is well filled – the company will continue, also by means of further acquisitions, with its undiminished growth. For 2008, S&T expects sales of 560-580 million Euros and an EBIT of 15-17 million Euros, thereby continuing to grow significantly more than the market.
Issuer: S&T System Integration & Technology Distribution AG
Telephone: +43 1 367 80 88 0
Fax: +43 1 367 80 88 1099
Exchange: Vienna stock exchange
Indices: ATX Prime, ViDX, WBI
XETRA Vienna: SNT