Allgeier : achieves significant sales and earnings growth in the first half of 2018

Allgeier achieves significant sales and earnings growth in the first half of 2018

07/20/2018

Munich, July 20, 2018 - According to preliminary figures, Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) achieved sustained growth in sales and significant earnings growth in the first half of 2018 (January 1, 2018 - June 30, 2018) in continuing operations in line with the forecast for 2018.

Business development in the second quarter of 2018

In the second quarter of 2018 (April 1, 2018 - June 30, 2018) the Group recorded a 23 percent year-on-year increase in sales from continuing operations to EUR 173 million (previous year: EUR 141 million). At EUR 12.4 million, preliminary adjusted Group EBITDA (EBITDA before effects that are classified as extraordinary or not related to the accounting period) in continuing operations was 160 percent above the previous year's result (previous year: EUR 4.8 million). The increase in earnings is in line with the Group's forecast for the current year. Preliminary Group EBITDA in the second quarter amounted to EUR 9.3 million in continuing operations (previous year: EUR 4.7 million), an increase of 99 percent over the same period last year. Preliminary consolidated EBIT (earnings before interest and taxes) from continuing operations amounted to EUR 6.3 million in the same period (previous year: EUR 1.4 million).

Business development in the first half of 2018

Overall, preliminary Group sales from continuing operations in the first half of 2018 rose by 20 percent compared with the first six months of 2017 to EUR 328 million (previous year: EUR 274 million). Preliminary adjusted Group EBITDA for the period amounted to EUR 20.0 million in continuing operations (previous year: EUR 9.3 million), corresponding to an increase of 114 percent compared with the same period of the previous year. Preliminary Group EBITDA from continuing operations grew by 61 percent to EUR 16.0 million (previous year: EUR 10.0 million). The preliminary consolidated EBIT of continuing operations amounted to EUR 10.1 million (previous year: EUR 3.8 million).

In addition, the Group generated a total profit of approx. EUR 2.0 million from the sale of Allgeier Medical IT GmbH, Freiburg, at the end of March 2018. In the first quarter of 2018, Allgeier Medical IT GmbH generated total revenues of EUR 0.7 million and EBITDA of EUR 39 thousand, which are reported under discontinued operations.

In June 2018, Allgeier signed a purchase agreement to acquire 100 percent of the shares in Objectiva Software Solutions, Inc. based in San Diego, California, USA. The company is expected to be consolidated into the Group in July 2018.

Key balance sheet data as of June 30, 2018

Preliminary consolidated equity amounted to EUR 130 million as of the balance sheet date June 30, 2018 (December 31, 2017: EUR 122.8 million). According to preliminary figures, the Allgeier Group had liquid funds of EUR 70 million at its disposal at the end of the second quarter of 2018 (December 31, 2017: EUR 53.0 million). According to preliminary figures, financial liabilities rose to EUR 140 million (December 31, 2017: EUR 108.8 million) as of June 30, 2018 - including EUR 120.5 million in non-current financial liabilities (December 31, 2017: EUR 95.4 million).

The preliminary balance sheet total at the end of the second quarter of 2018 was EUR 387 million (December 31, 2017: EUR 337.9 million).

Outlook for the second half of 2018

According to current planning, the Executive Board expects continuing growth in sales and earnings in the second half of 2018. Including the consolidation of Objectiva Software Solutions from July 2018, sales in continuing operations are expected to increase by 25 to 30 percent in the second six months of 2018 compared with the same period of the previous year according to Group planning.

All IFRS figures mentioned are preliminary. All prior-year figures relate to continuing operations. The half-year financial report 2018 of Allgeier SE will be published on August 30, 2018 and can then be viewed at www.allgeier.com