Corporate News: SYZYGY confirms provisional figures: sales of EUR 64.2 million and EBIT of EUR 5.5 million – proposed dividend EUR 0.20
- Group sales EUR 64.2 million (-2 per cent compared to previous year)
- Operating income EUR 5.5 million (-9 per cent compared to previous year)
- Net income EUR 4.2 million (-17 per cent compared to previous year)
- Proposed dividend EUR 0.20
- Outlook for 2020: sales down by 10 to 20 per cent and positive EBIT margin in the mid single-digit range
- Annual General Meeting postponed to 2nd half of 2020
The figures for 2019 as confirmed by the Supervisory Board and the auditor indicate that the SYZYGY Group generated sales of EUR 64.2 million, representing a slight decline of around 2 per cent compared to the previous year. The core German market again saw solid growth, with sales of approximately EUR 50 million and a very strong EBIT margin of 15 per cent. In contrast, international sales were down EUR 5 million at around EUR 14 million. The restructuring of the UK business had a negative impact of EUR 1.0 million on the financial year.
Operating income (EBIT) came in at EUR 5.5 million, leading to a slight reduction in the Group’s EBIT margin from 9.2 per cent to 8.6 per cent. Financial income was slightly negative at EUR -0.3 million, meaning that total net income after taxes will be around EUR 3.5 million. Earnings per share are EUR 0.26.
The Management Board and Supervisory Board have decided to propose a dividend of EUR 0.20 per share for the 2019 financial year at the Annual General Meeting. This represents a substantial cut to the dividend; it takes account of earnings performance and the current market environment.
Leading economists believe that the coronavirus pandemic will result in a recession in the markets served by the SYZYGY Group. Changes in our clients’ spending behaviour will lead to a downturn in sales, the extent of which is currently difficult to estimate.
Based on the information available to date, SYZYGY AG expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.
|Sales (kEUR)||64,243||65,816||- 2 %|
|EBIT (kEUR)||5,497||6,067||- 9 %|
|EBIT margin||8.6 %||9.2%||-0.6 pp|
|Financial income (kEUR)||- 303||470||n.a|
|Net income (kEUR)||3,540||4,890||- 28 %|
|Earnings per share (EUR)||0.26||0.35||- 26 %|
The full annual report for 2019 (English language) will be available from April 14, 2020 at http://ir.syzygy.de