NECKARSULM/FRANKFURT (dpa-AFX) - The IT service provider Bechtle expects further growth after an increase in profits last year despite a gloomy economic outlook. Revenue and earnings are expected to increase "significantly" this year and the pre-tax margin should remain more or less stable, as the MDax company announced in Neckarsulm on Friday. "Significant" at Bechtle means an increase of between five and ten percent. In the afternoon, the share rose to an almost two-year high.

The share price gained almost 7 percent to 52.16 euros. The share was last more expensive in March 2022. The free cash flow in the fourth quarter was particularly strong, wrote analyst Michael Briest from the major Swiss bank UBS. Bechtle achieved a record figure from day-to-day business, said CEO Thomas Olemotz at a press conference in Frankfurt. The Group was able to achieve noticeable improvements in trade receivables in particular, but also in the reduction of inventories.

Some analysts had feared that Bechtle would hardly be able to increase its earnings this year. However, Olemotz is confident despite the challenging economic situation. "The economic tension at the beginning of 2024 is clearly noticeable," said the manager. However, the situation should gradually improve over the course of the year, particularly in the second half. The willingness of SMEs to invest should then also improve again, he said. However, this is not a hard condition for achieving the forecast for the year.

Last year, Bechtle increased its profit by almost six percent to 265.5 million euros. The dividend is to rise by five cents to 0.70 euros per share. Bechtle had already presented data on revenue and earnings at the beginning of February. Revenue climbed by 6.5 percent to 6.4 billion euros. The pre-tax profit grew by 6.8 percent to 374.5 million euros. The corresponding margin remained stable at 5.8 percent.

The e-commerce division, in which Bechtle trades in IT equipment, performed worse. In view of the uncertain economic environment, medium-sized companies had increasingly postponed projects to equip workplaces, said Olemotz. Revenues and earnings in the division declined.

However, Bechtle was able to score in the business of setting up and managing IT systems and networks. Even without acquisitions, the company achieved double-digit percentage growth here. In addition to cloud projects, services relating to networks and IT security also performed well. Bechtle expanded its business with public-sector clients and major international customers in particular.

Bechtle has always made steady acquisitions. Last year, the company made seven deals to expand its business in the UK, the Netherlands, Switzerland, Spain, France and Germany. Currently, the focus is more on Southern Europe, said Olemotz. Portugal, like Spain, is an attractive market, and Bechtle is not yet as strong as it would like to be in Italy. The company is also occasionally looking at Eastern Europe. In the long term, there is also the question of entering the US market, said the manager. In general, the prices for takeover candidates are "still at a high level."

In the field of artificial intelligence, Bechtle is currently in the process of developing possible uses for customers in order to be able to sell corresponding products. In general, customers are very open to such topics. Large customers tend to be more open-minded than medium-sized companies./men/mne/mis