(New: Date of publication of the full 2023 annual report)

DORTMUND (dpa-AFX) - Following a decline in operating profit in 2023, IT service provider Adesso is aiming to improve in the new year. Despite a generally difficult economy, the outlook for the IT industry is positive, also due to the demand for digitization, the company said on Friday afternoon as part of the presentation of preliminary figures. It was only at the beginning of February that the company announced two major multi-year orders with a total volume of up to 50 million euros. The introduction of a so-called ERP software system for managing company processes should also provide a tailwind.

Adesso's share price rose and closed trading with an increase of more than 4 percent.

The management expects sales to grow at a double-digit rate in 2024. In absolute terms, it is expected to exceed 1.25 billion euros - following an increase of a good quarter to almost 1.14 billion euros last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to rise to between 110 and 130 million euros. In 2023, the SDax-listed company reached the middle of the target range lowered in the fall with an operating profit of 80 million euros. This is just under 14% less than in 2022 and around the average figure that analysts had in mind. The consensus estimate for 2024 is slightly below the middle of the range.

Despite an improved second half of the year, it was no longer possible to compensate for the weak capacity utilization in the first half of the year in particular, according to the company. In addition, license sales were weaker than expected compared to the record year 2022. The introduction of the new ERP system and additional expenses from two fixed-price projects also had a temporary negative impact.

At the same time, depreciation and interest payments increased. As a result, net profit for 2023 slumped to 3.4 million euros - compared to 28.8 million euros in the previous year. The dividend is nevertheless set to rise by 5 cents to 0.70 euros.

The full consolidated financial statements are to be published on March 25 /mis/he