2019

Corporate News: Slight decline in sales, profitability unchanged

 

  • Sales down by 2 per cent to EUR 31.6 million in first half of year
  • Continuing growth in core German market with 14 per cent EBIT margin
  • Operating income up marginally at EUR 2.8 million
  • Net income EUR 2.1 million
  • Outlook for 2019: sales at the previous year’s level overall, with positive business performance in Germany contrasting with a decline in international business; operating EBIT margin of 8 to 9 per cent expected

The SYZYGY Group generated sales of EUR 31.6 million in the first 6 months of the financial year. This represents a fall of 2 per cent compared to the same period in the previous year. The German core market saw continuing solid growth, with sales of EUR 23.6 million, resulting in an EBIT margin of 14 per cent.

Earnings before tax were largely unchanged over the previous year at EUR 2.8 million, while net income declined to EUR 2.1 million. Earnings per share were EUR 0.15 overall and EUR 0.07 in the second quarter.

At EUR 15.8 million, sales in the second quarter were 5 per cent below the figure for the previous quarter. Operating income (EBIT) amounted to EUR 1.4 million, corresponding to an EBIT margin of 8.6 per cent.

Liquid funds and securities declined from EUR 13.7 million to EUR 8.3 million in the reporting period. This figure includes the dividend of EUR 5.4 million paid on June 12, 2019.

The positive sales trend in the German core market was unable to offset the weaker than expected performance of the international companies. This trend will continue in the second half of the year. Overall, the somewhat softer economy, especially in the UK market, is having an adverse impact on the SYZYGY Group’s order book. Accordingly, SYZYGY AG expects sales to remain at the prior-year level in the current financial year. Restructuring charges from international operations will be somewhat higher, with the result that an operating EBIT margin of 8 to 9 per cent is expected.

Multiple new client wins in the German market suggest that performance and growth in the core market will remain strong.

  Q2-2019 Q2-2018 Change H1-2019 H1-2018 Change
Sales in kEUR 15,877 16,799 -5 % 31,566 32,223 -2 %
EBIT in kEUR 1,365 1,690 -19 % 2,807 2,794 0 %
EBIT margin 8,6 % 10.1% -1,5 pp 8.9 % 8.7 % 0.2 pp
Financial income in kEUR -10 84 n.a -18 235 n.a.
Earnings before tax in kEUR 1,355 1,774 -24 % 2,789 3,029 -8 %
Net income in kEUR 1,017 1,404 28 % 2,092 2,324 -10 %
Earnings per share in EUR 0.07 0.10 -30 % 0.15 0.17 -12 %
Operatiing cash folw in kEUR 3,048 978 n.a. -6,220 4,891 n.a.

The full six-monthly report will be available at http://ir.syzygy.de from August 2, 2018.