EQS GROUP AG
DGAP-Ad-hoc: EQS Group AG / Key word(s): Strategic Company Decision EQS Group AG expands strategic focus to Governance, Risk & Compliance business segment Extensive EUR8 million investment program until 2020, leading to higher revenue growth beginning in 2019 - Financing primarily from cash flow - Lower non-IFRS EBIT for 2017 - Suspension of dividend payments for 2017 financial year expands scope for investment Munich - September 26, 2017 The Management Board of EQS Group AG (ISIN: DE0005494165) has, with the approval of its Supervisory Board, made the strategic decision to expand its core business by adding the adjacent Governance, Risk & Compliance (GRC) business segment, aimed exclusively at developing cloud-based solutions. As a result, EQS is undertaking both an investment offensive to transform the Group into a technology company, as well adjusting the Group's financial plan. The Group's planning foresees expenses of EUR 2.2 million by year's end. A further EUR5.8 million of investment for the expansion of the cloud business is planned until 2020. A proposal to suspend dividends for the 2017 financial year in order to broaden the Group's investment scope will be put forth at the Annual General Meeting. A capital increase is not planned. Investment funds will primarily serve to expand additional software developer resources. Andreas Gerst (48) holds the newly-created position of CTO. Andreas has years of management experience in software development. Most recently, he served as CTO & Vice President Pre-Sales for Central Europe at CA Technologies. The cloud-based POLICY MANAGER - a software solution to help companies meet their legal requirements mandated by new data protection regulations in Europe (GDPR) and the USA (NY Cybersec. Reg.) - will be the core of the new business segment. Digital workflows will both map comprehensive reporting obligations and documentation requirements, as well as manage consent for data processing. Companies face substantial financial penalties for failing to adhere to these new regulations. The Management Board expects revenues of EUR31.2 to EUR32.5 million for the 2017 financial year. Sales growth of 10-15% is expected for the 2018 financial year and is expected to increase to 15-20% beginning in 2019. EBIT before one-off acquisition costs, purchase price allocation, and scheduled depreciation (non-IFRS) will decrease to EUR2 to EUR2.3 million (previously EUR3.6 to EUR3.9 million) as a result of the investment program undertaken in 2017. The Management Board will explain its strategic decision beginning at 3:00 p.m. (CEST) in today's telephone conference which will be broadcasted live online at www.eqs.com. More information: Receive news from EQS Group AG free of charge on your mobile device: via DGAP News App directly to your AppleWatch or iPhone (http://newsapp.dgap.de/).
About EQS Group EQS Group is a leading international technology provider for Digital Investor Relations, Corporate Communications and Compliance. More than 8,000 companies worldwide trust EQS's products and services to securely, efficiently, and simultaneously fulfil complex national and international disclosure and compliance requirements, and to reach stakeholders globally. The EQS COCKPIT, a cloud-based platform, digitally maps the workflows of IR, Communications and Compliance Officers, communicates with the company's website, and distributes company releases via one of the most important global newswires. With additional products such as websites, IR tools, digital reports, and webcasting solutions, EQS Group is a digital single source provider. EQS Group was founded in Munich, Germany in 2000 and has developed from a start-up to an international group with offices in the world's key financial markets. The group employs more than 350 professionals globally.
Contact:
André Marques
26-Sep-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | EQS Group AG |
| Karlstr. 47 | |
| 80333 Munich | |
| Germany | |
| Phone: | +49(0)89 210298-0 |
| Fax: | +49(0)89 210298-49 |
| E-mail: | info@eqs.com |
| Internet: | www.eqs.com |
| ISIN: | DE0005494165 |
| WKN: | 549416 |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Munich (m:access), Stuttgart, Tradegate Exchange; Open Market (Scale) in Frankfurt |
| End of Announcement | DGAP News Service |
612891 26-Sep-2017 CET/CEST
