GFT Technologies : launches industrial client drive and lowers guidance for 2017

Due to the ongoing volatility of the finance sector, the GFT Group is expanding its sector focus to industrial clients and raising its related capital expenditure. In addition, increased cost savings made by two clients in the field of investment banking during the fourth quarter have led to a reduction in the company's revenue and earnings guidance for the financial year 2017.

GFT is lowering its revenue guidance for 2017 as a whole by EUR 10.00 million to EUR 415.00 million (previously EUR 425.00 million). Earnings will be burdened by a squeeze on margins from the reduced revenue forecast, a lower level of capacity utilisation and higher than previously expected restructuring costs. Moreover, GFT is investing more heavily in the expansion of its digital solution portfolio focused on industrial clients. The company is now planning to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 34.00 million in 2017 (previously EUR 42.00 million). Guidance for pre-tax earnings (EBT) has been downgraded from EUR 26.00 million to EUR 18.00 million.

According to preliminary calculations, GFT generated revenue of EUR 316.52 million in the first nine months of 2017 (9M/2016: EUR 314.28 million). Preliminary EBITDA amounted to EUR 29.10 million (9M/2016: EUR 34.00 million) with EBT of EUR 16.68 million (9M/2016: EUR 23.71 million).

For the financial year 2018, GFT expects more stable business with its two major clients on a par with the fourth quarter of 2017, further dynamic revenue growth from digital solutions for the finance sector, and initial revenue from industrial clients. Investment to expand the company's range of digital solutions will be raised noticeably. Nevertheless, GFT expects that EBITDA in 2018 will increase to EUR 39.00 million and EBT to EUR 25.00 million due to the lack of negative special items. All in all, the company anticipates revenue of EUR 415.00 million in 2018.

GFT still plans to reach its medium-term guidance with revenue growth to EUR 800.00 million and an EBITDA margin of around 12 percent in 2022.

Further information on the key figures in this ad-hoc disclosure can be found on GFT's website at www.gft.com/performancemeasures.

The final results for the first nine months of 2017 will be published as previously announced on 9 November 2017.