DGAP-News: SNP SE Achieves Progress in Software Strategy and Expects Profitable Growth in 2018

2018. március 28., szerda, 20:52

DGAP-News: SNP Schneider-Neureither & Partner SE / Key word(s): Final Results/Forecast

SNP SE Achieves Progress in Software Strategy and Expects Profitable Growth in 2018

28.03.2018 / 20:52

The issuer is solely responsible for the content of this announcement.

SNP | Corporate News

SNP SE Achieves Progress in Software Strategy and Expects Profitable Growth in 2018

2017 Consolidated Financial Statements:

- Group revenue increases to EUR 122.3 million (previous year: EUR 80.7 million)

- Investments in growth result in operating margin loss:

- EBIT (non-IFRS*, adjusted for exchange rate effects): EUR 4.7 million (previous year: EUR 6.9 million)

- EBIT (IFRS): EUR -0.5 million (previous year: EUR 6.9 million)

- Earnings per share of EUR -0.47 (previous year: EUR 0.95)

2018 Outlook:

- Group revenue is expected to increase to between EUR 150 million and EUR 155 million

- Positive operating earnings margin (EBIT margin) in the mid-single-digit percentage range

Heidelberg, March 28, 2018 - SNP SE continued to pursue its successful growth trend in the 2017 fiscal year and achieved significant strategic objectives. As the company reported today upon presenting its annual report for 2017, SNP has reached a new dimension of growth both in terms of its revenue and also its internationalization and its market position. Concretely, in the 2017 fiscal year SNP exceeded the EUR 100 million revenue threshold for the first time, while the company"s number of employees increased from 712 to in excess of 1,300. New market potential was opened up in 2017 through corporate acquisitions in Poland and South America.

Dr. Andreas Schneider-Neureither, Chairman of the Board of Directors and CEO of SNP SE:

"SNP"s prospects for the future and its market potential are excellent. Today, we have a presence in all of the commercially relevant regional markets. With our software portfolio, the core of our business model, we are well on the way to becoming the global standard for data transformation. We have everything that we need in order to enable our customers to benefit from the opportunities of digitalization. After having declared growth to be a strategic priority for a limited period of time - particularly in terms of market presence and the development of manpower - in the second half of 2017 we began to adjust our software and sales strategy. We have expanded our software portfolio and are aligning it even more strongly with the global sales opportunities. We are thus establishing the basis for an improvement in our profitability. The fourth quarter of 2017 was the strongest quarter in the company"s history in terms of revenue, with a significant increase in software revenue. This shows that we are on the right track in order to profitably maintain our strategic growth trend of the past few years on a long-term basis."

The 2017 Fiscal Year in Detail:

For the 2017 fiscal year, SNP is reporting Group revenue of EUR 122.3 million, corresponding to a year-over-year increase of 51.6%. Aside from acquisition-related revenue growth, decisive factors were the sustained very good order situation as well as good capacity utilization given a significantly higher order backlog.

The initial consolidations of the corporate acquisitions had a material impact on revenue growth in the 2017 annual financial statements. Of the total revenue increase of EUR 41.7 million, the acquired companies accounted for EUR 35.0 million. Adjusted for this acquisition effect, organic revenue growth was EUR 6.7 million, or approximately 8%.

On the segment side, the Professional Services business segment contributed EUR 98.3 million (previous year: EUR 66.6 million) to revenue. Revenue of EUR 24.0 million (previous year: EUR 14.0 million) came from the Software division (incl. maintenance).

With regard to earnings, the 2017 fiscal year was shaped by extraordinary factors and growth costs which resulted in an operating margin loss. In addition, revenue from software licensing from SNP"s in-house products fell short of expectations.

Operating earnings (EBIT; non-IFRS, adjusted for exchange rate effects) amounted to EUR 4.7 million (previous year: EUR 6.9 million). The EBIT figure based on IFRS is EUR -0.5 million (previous year: EUR 6.9 million). The EBIT margin (non-IFRS, adjusted for exchange rate effects) is thus 3.8% (previous year: 8.5%); the EBIT margin (IFRS) is -0.4% (previous year: 8.5%).

Forecast for 2018

As in previous years, it is assumed that, in the current fiscal year, revenue will not be evenly distributed over the quarters and that the second half of the year will be much stronger. Overall, the Management expects Group revenue of between EUR 150 million and EUR 155 million in the 2018 fiscal year and an operating earnings margin (EBIT margin) in the mid-single-digit percentage range.

The 2017 Annual Report published today can be downloaded from the SNP website at https://www.snpgroup.com/en/investor-relations/financial-publications/financial-reports/2018/.

*To improve the comparability of the company on the capital market, for the first time SNP SE is also reporting non-IFRS performance indicators. These adjusted performance indicators are not determined on the basis of IFRS accounting standards and are therefore non-IFRS performance indicators. The following expenses have not been included in our disclosures concerning operating expenses (non-IFRS): acquisition-related expenses, incidental acquisition costs, expenses associated with the change of legal form to become a European stock corporation and expenses for share-based payment transactions.


About SNP

SNP SE supports organizations in adapting their business models and using new technologies. SNP software and services facilitate the implementation of business or technical modifications to business applications.

CrystalBridge(R) and SNP Transformation Backbone(R) with SAP Landscape Transformation are the world"s leading software suite for data transformations that automatically analyzes, implements and tracks changes to IT systems. As a result, they offer clear qualitative advantages, while significantly reducing the time and expense involved in transformation projects. The SNP Group has over 1,350 employees worldwide.

Headquartered in Heidelberg, the company generated revenue of approximately EUR 122 million in the 2017 fiscal year. SNP"s customers are global corporations from all industries. SNP was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705). Since 2017, the company has operated as a European stock corporation (Societas Europaea/SE).

Further information is available at www.snpgroup.com

Investor Relations Contact:

Marcel Wiskow

Tel: +49 6221 6425-637

Fax: +49 6221 6425-470

Email: investor.relations@snpgroup.com


28.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: SNP Schneider-Neureither & Partner SE

Dossenheimer Landstraße 100

69121 Heidelberg

Phone: +49 6221 6425 637
Fax: +49 6221 6425 470
E-mail: investor.relations@snpgroup.com
Internet: www.snpgroup.com
ISIN: DE0007203705
WKN: 720370
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

End of News DGAP News Service

670079  28.03.2018 

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