ALLGEIER SE Driving Technology
Half-yearly Financial Report
as of June 30, 2023
Allgeier SE supports digital transformation with full range of software and IT services
Allgeier SE is one of Germany's leading technology companies for digital transformation: The fast-growing group guides its clients through the challenges of digital transformation to ensure their future success. Allgeier has a broad and stable customer base of global corporations, high-performing medium -sized companies and public sector clients at all federal levels. To its more than 2,000 customers, Allgeier offers a fully comprehensive software and IT services portfolio ranging from high-end software development to business efficiency solutions to support the digitization and transformation of business-critical processes. In doing so, Allgeier achieves breakthroughs towards new digital business models, defines strategic priorities and implements groundbreaking software
and IT services projects with high flexibility and scalability to shape agile and intelligent organizations for the digital age. The two group segments Enterprise IT and mgm technology partners employ more than 3,500 salaried staff at a total of 53 locations worldwide in the DACH region, France, Spain, Portugal, Poland and the Czech Republic, as well as in India, Vietnam and the USA. In fiscal year 2022, Allgeier generated sales of EUR 480 million in continuing operations. According to the Lünendonk® List 2022, Allgeier is one of the leading IT service companies in Germany. Allgeier SE is listed on the Regulated Market of the Frankfurt Stock Exchange in the General Standard (WKN A2GS63, ISIN DE000A2GS633). Further information can be found at www.allgeier.com
Contents
General Economic and Industry Conditions | 13 |
Segment Performance | 20 |
Report on Financial Performance | 26 |
Risks and Opportunities of Future Development | 27 |
Risks | 27 |
Opportunities | 35 |
Research and Development | 38 |
Human Resources | 38 |
The Allgeier Share | 40 |
Outlook | 42 |
Half-yearly Financial Report 2023 (unaudited) | |
in Accordance with Section 115 WpHG | 44 |
Consolidated Statement of Financial Position | 44 |
Consolidated Statement of Comprehensive Income | 46 |
Consolidated Statement of Cash Flows | 54 |
Consolidated Statement of Changes in Equity | 56 |
Segment Reporting | 58 |
Other Notes | 60 |
Supplementary Report | 62 |
Responsibility Statement | 64 |
Legal Notice | 64 |
Financial Calendar • Imprint | 65 |
2
3 |
Company and Key Indicators at a Glance
Company and
Key Indicators
at a Glance
Further information and the company's latest news can be found at www.allgeier.com.
Key Group indicators1 | H1 2023 | H1 2022 | Change in percent5 |
Revenue | 241.5 | 228.5 | 5.7% |
Gross profit | 78.7 | 70.3 | 12.0% |
EBITDA | 22.1 | 25.8 | -14.5% |
Adjusted EBITDA2 | 24.4 | 24.9 | -2.2% |
EBIT | 10.2 | 12.9 | -20.5% |
EBT | 6.3 | 9.9 | -36.2% |
Profit or loss for the period3 | 4.2 | 6.3 | -33.5% |
Earnings per share (EUR) | 0.12 | 0.72 | -83.3% |
Adjusted earnings per share (EUR) | 0.43 | 0.99 | -56.6% |
June 30, 2023 | December 31, 2022 | Change in percent5 | |
Total assets4 | 493.1 | 513.8 | -4.0% |
Equity | 180.0 | 181.3 | -0.7% |
Permanent employees | 3,510 | 3,329 | 5.4% |
1Continuing operations in accordance with IFRS, figures in EUR million (unless stated otherwise) 2EBITDA before extraordinary effects or effects relating to other periods
3Not including gains and losses on disposal
4Prior-year figures restated
5Percentages calculated using non-rounded figures
Company and Key Indicators at a Glance
Q1 2022 | 112.1 | |||||
Q2 2022 | 116.7 | |||||
Q3 2022 | Revenue | |||||
122.8 | ||||||
EUR million |
Q4 2022 128.7
Q1 2023 124.3
Q2 2023 117.2
0 | 30 | 60 | 90 | 120 | 150 |
Q1 2022 | 11.5 | |||||
Q2 2022 | 14.4 | |||||
Q3 2022 | 15.3 | EBITDA | ||||
EUR million | ||||||
Q4 2022 21.2
Q1 2023 | 12.0 | ||||||||||
Q2 2023 | 10.1 | ||||||||||
0 | 4 | 8 | 12 | 16 | 20 | 24 |
Q1 | 2022 | 11.3 | ||||||||||||||
Q2 2022 | 13.6 | |||||||||||||||
Q3 2022 | 16.6 | Adjusted EBITDA* | ||||||||||||||
EUR million | ||||||||||||||||
Q4 2022 | 20.0 | |||||||||||||||
Q1 | 2023 | |||||||||||||||
12.5 | ||||||||||||||||
Q2 2023 | 11.9 | |||||||||||||||
0 | 4 | 8 | 12 | 16 | 20 | 24 |
All figures for 2023 relate to the Group's continuing operations; the figures for the 2022 fiscal year have not been restated. *EBITDA from continuing operations before extraordinary effects or effects relating to other periods
4 | 5 |
Letter from the Management Board
Letter from the Management Board
Dear Shareholders
and Business Partners of Allgeier SE,
Letter from the Management Board
As of the end of the first half of 2023, we again wish to offer a brief commentary on business performance from the Management Board's perspective:
The current year began with gratifyingly stable development in the first quarter, which allowed us to achieve double-digit growth as against the same period of the previous year in both revenue and earnings. Despite the mixed general economic situation in the first half of the year, the demand side would have allowed even better growth that we were sadly unable to fully exploit on the supply side on account of our limited capacity. An unusually high level of absence due to illness, which began in the fall of 2022 and continued into May, both limited our performance capability and increased our costs. The ongoing recruitment of new personnel remains
an ongoing challenge in light of the skills shortage. Fortunately, inflation did not significantly erode our gross margins.
In the second quarter in particular, we continued our ongoing transformation towards higher Group-wide gross profit. We once again reduced revenue with low gross profit - even slightly more than originally planned. The reduction will amount to four percent of our revenue volume over 2023 as a whole. This business will be more than compensated for by higher revenue in other business areas, hence we will achieve net growth overall in the year as a whole.
We expect to see good performance in the second half of the year. We will improve our internal cost base predominantly with the measures already initiated. The goal is to achieve the
higher margin level planned for the second half of the year. The projection for the year as a whole is in line with the guidance that we published for 2023.
We are continuing to invest in shaping our portfolio with the aim of increasing gross profit and augmenting highly sought- after specializations, such as the cloud, cybersecurity, open source software development or low-code, and of course the integration of AI into software solutions. This is being achieved by working on organic development and by securing new companies for the Allgeier Group. In July 2023, we acquired SDX AG in Frankfurt, a specialist for software development and cloud technology in the field of Microsoft Azure. The new team members will enrich and energetically expand our Microsoft operations. As in many other areas as well,
there are enormous business opportunities in this field. Despite some challenging conditions, we anticipate consistently high demand for our services in support of the digital transformation of business processes for our corporate clients and administrative processes for our public sector clients. We are thus looking ahead optimistically to the second half of the year and beyond.
Yours,
Hubert Rohrer | |
Member of the | Member of the |
Management Board | Management Board |
6 | 7 |
Interim Management Report on H1 2023 | Interim Management Report on H1 2023 | |
Interim Management Report on H1 2023
General information
From January 1, 2023, the Allgeier Group reports deferred taxes on temporary differences arising from accounting for leases. The changes were made retroactively to January 1, 2022, to ensure comparability with the previous year. The resulting restatements are shown in separate columns in the statement of financial position and the statement of comprehensive income. All figures below relate to the Group's continuing operations.
Allgeier SE increases revenue by 6 percent and gross profit by 12 percent in first half of 2023
Allgeier SE generated revenue growth of 6 percent in the first half of 2023 (January 1, 2023, to June 30, 2023) with a strong increase in gross profit. This growth was driven by stable demand from the market. Adjusted EBITDA reached the same level as the previous year on account of the higher cost base year-on-year, which was geared towards more growth. In the second quarter of 2023 in particular, growth was more modest than planned in personnel services as a result of the ongoing active reduction of business with low gross margins. This mainly affected the months of April and May, while business performance in June again led to year-on-year double- digit growth in revenue, gross profit and EBITDA. The internal cost base will be adjusted accordingly for the second half of the year and beyond, in part by way of the measures already implemented.
8 | 9 |
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Disclaimer
Allgeier SE published this content on 30 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2023 15:53:09 UTC.
