|By PR Newswire||
|August 7, 2014 01:30 AM EDT||
STUTTGART, Germany, August 7, 2014 /PRNewswire/ --
- Consolidated revenue up 37 percent to EUR 156.74 million
- Pre-tax earnings more than doubled to EUR 11.13 million
- Business with investment banks in UK and USA key growth driver
The GFT Group continued its growth course in the first half of 2014 with an increase in revenue of 37 percent to EUR 156.74 million (prev. year: EUR 114.19 million). Adjusted for the revenue contribution of Sempla acquired in mid-2013 (now GFT Italia) amounting to EUR 22.53 million, the GFT Group achieved organic growth of 18 percent. The GFT Group enjoyed particularly strong revenue growth of 61 percent to EUR 41.70 million in the UK (prev. year: EUR 25.94 million) and the USA, where revenue rose by 96 percent to EUR 8.42 million (prev. year: EUR 4.29 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved to EUR 13.61 million (prev. year: EUR 6.09 million) in the first six months. Pre-tax earnings were also more than doubled to EUR 11.13 million (prev. year: EUR 5.50 million). With earnings after tax of EUR 7.32 million (prev. year: EUR 4.36 million), earnings per share rose to EUR 0.28 (prev. year: EUR 0.17).
The UK-based international Business and IT consultancy Rule Financial Ltd. was acquired on 26 June 2014. Due to the transaction date shortly before month-closing, the company is not yet included in the consolidated income statement - it is included, however, in the balance sheet and headcount figures.
Dedicated to delivering IT services for the finance sector, the GFT division raised revenues by 65 percent to EUR 114.07 million in the first half of 2014 (prev. year: EUR 69.14 million). Adjusted for the revenues of GFT Italia included in this division, GFT posted revenue growth of 32 percent. This encouraging organic growth resulted mainly from the ongoing progress in business with investment banks, as well as from projects for the implementation of banking compliance regulations. The GFT division's share of consolidated revenue rose to 73 percent (prev. year: 61 percent).
In the first six months of 2014, the pre-tax earnings contribution (EBT) of the GFT segment rose by 72 percent to EUR 11.78 million (prev. year: EUR 6.86 million), corresponding to an increase in the operating margin to 10.3 percent (prev. year: 9.9 percent). Compared to revenue, this disproportionately strong rise in earnings resulted mainly from increased capacity utilisation and economies of scale.
With its services for the staffing of technology projects, the emagine division achieved revenue of EUR 42.66 million - 5 percent down on the previous year (EUR 45.04 million). The division's share of total Group revenue fell to 27 percent (prev. year: 39 percent). Despite lower revenues, a greatly improved operating margin of 2.1 percent (prev. year: 0.1 percent) helped raise earnings to EUR 0.89 million (prev. year: EUR 0.06 million).
"The strong progress of our IT services for investment banks was a key growth driver in the first six months," says Ulrich Dietz, CEO of GFT Technologies AG. "We expect that growing compliance requirements will continue to necessitate heavy investments in IT. The acquisition of Rule Financial has greatly strengthened our position in this field - both from the client and employee perspective. We are now represented in London by around 230 highly skilled Business and IT consultants and have more than tripled headcount in the USA to over 70. The acquisition of Rule has also provided us with two cost-efficient nearshore development centres in Poland - making us well equipped for further growth."
Headcount grows to around 3,000
As of 30 June 2014, the number of full-time employees of the GFT Group almost doubled to 2,983 (including 662 FTE Rule Financial) compared with the previous year (30 June 2013: 1,503). This was due to the acquisition of Sempla in mid-2013 and of Rule Financial, as well as to numerous hirings at the development centres in Spain and Brazil due to high capacity utilisation.
Additional key data
Rule Financial was included in the consolidated financial statements of the GFT Group for the first time on 30 June 2014. The figures are preliminary and only contain the balance sheet figures. Due to the Rule acquisition, cash and cash equivalents fell to EUR 25.52 million as of 30 June 2014 (31 December 2013: EUR 48.63 million). Equity amounted to EUR 87.98 million on 30 June 2014 and was thus EUR 0.83 million above the year-end figure of 31 December 2013 (EUR 87.15 million). Total assets as of 30 June 2014 were up EUR 66.93 million to EUR 273.31 million (31 December 2013: EUR 206.38 million), of which EUR 33.96 million resulted from initial consolidation of Rule Financial. Due to the increased balance sheet total, the equity ratio decreased to 32 percent as of 30 June 2014 (31 December 2013: 42 percent).
On the announcement of its acquisition of Rule Financial, the GFT Group adjusted its revenue and earnings guidance for the financial year 2014 stated in the Annual Report 2013. As a result of the acquisition, the GFT Group expects additional revenue of around EUR 42 million in the second half of 2014. This increases the GFT Group's revenue expectations for the financial year 2014 to around EUR 352 million (previously EUR 310 million). The annual forecast for EBITDA has been upgraded by EUR 1.50 million to EUR 29.50 million (previously EUR 28.00 million). The GFT Group's forecast for EBT remains unchanged at EUR 23.00 million. The earnings guidance stated above is subject to the final purchase price allocation in connection with the acquisition of Rule Financial.
Detailed financial figures are available in the Investor Relations section of the GFT website at http://www.gft.com/ir.
Key figures (deviations possible due to rounding differences)
IFRS figures in EUR million 01.01.-30.06.2014 01.01.-30.06.2013 Revenue 156.74 114.19 EBITDA 13.61 6.09 EBIT 11.40 5.36 Earnings before taxes (EBT) 11.13 5.50 Net income for the period 7.32 4.36 Earnings/share acc. to IAS 33 in EUR 0.28 0.17 32 percent 42 percent Equity ratio (30.06.2014) (31.12.2013) Employees (full-time) as of 30 June 2,983 1,503
About the GFT Group:
The GFT Group is a global technology partner for future digital issues - covering everything from discovering innovation to developing and implementing sustainable business models.
Within the GFT Group, GFT stands for competent consulting and reliable development, implementation and maintenance of customized IT solutions. The company is one of the world's leading IT solutions providers in the banking sector.
emagine offers companies the opportunity to staff their strategic technology projects both quickly and flexibly with capable experts. To achieve this, emagine has an international network of highly qualified IT and engineering specialists at its disposal.
CODE_n, the GFT Group's innovation platform, offers international startups, technology pioneers and established companies access to a global network. It's where ideas become business.
Headquartered in Germany, the GFT Group has stood for technological expertise, innovative strength and outstanding quality for over 25 years. Founded in 1987, the GFT Group is represented in eleven countries by its 3,000 employees. The GFT Group is listed on the Frankfurt Stock Exchange (Prime Standard).
Felix Jansen, External Communications
GFT Technologies AG
Filderhauptstr. 142, 70599 Stuttgart
SOURCE GFT Group
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 30, 2015 03:00 AM EST Reads: 506
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 30, 2015 02:00 AM EST Reads: 446
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 30, 2015 02:00 AM EST Reads: 447
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 30, 2015 12:00 AM EST Reads: 449
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 30, 2015 12:00 AM EST Reads: 418
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 29, 2015 06:00 PM EST Reads: 236
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 29, 2015 04:00 PM EST Reads: 255
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 29, 2015 02:00 PM EST Reads: 487
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 29, 2015 01:00 PM EST Reads: 358
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 29, 2015 12:45 PM EST Reads: 422
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 29, 2015 12:30 PM EST Reads: 427
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 29, 2015 12:00 PM EST Reads: 529
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 29, 2015 11:45 AM EST Reads: 333
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 29, 2015 11:30 AM EST Reads: 276
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 29, 2015 10:00 AM EST Reads: 206