EQS Group AG has significant jump in sales in 2016
EQS Group AG has significant jump in sales in 2016 High growth rates at home and abroad dividend remains constantMunich - 04.04.2017
EQS Group AG (ISIN: DE0005494165) ended the 2016 financial year with a significant jump in sales and achieved a new revenue record for the seventh consecutive year. The Group achieved a 42% increase in sales, up to EUR26.06 million. EBIT before one-off acquisition costs, purchase price allocation and scheduled depreciation of acquired customer bases (non-IFRS) rose by 10% to EUR3.28 million. Adjusted net income for the year amounted to EUR1.44 million. Adjusted earnings per share were to EUR0.96. For the period October - December, the Group generated sales of EUR8.04 million (+54%). Adjusted EBIT decreased by 7% to EUR1.31 million. The adjusted group net profit amounted to EUR929,000 (+69%), resulting in an adjusted earnings per share of EUR0.53 (+ 13%) for the fourth quarter of 2016.
The EQS Group AG Management and Supervisory Boards will propose a dividend payment of EUR0.75 per share at the Annual General Meeting on May 17, 2017, as they have in previous years.
Achim Weick, founder and CEO of EQS Group AG explains, "2016 was another successful step on EQS Group's path to becoming the world's leading cloud provider for digital investor relations. We are constantly focused on producing cutting edge solutions for companies who are facing the challenges that the three mega trends of digitization, regulation and globalization pose. Our focus on these areas will drive us to grow profitably and create lasting value for our shareholders for many years to come."
The new European Market Abuse Regulation that took effect in the second half of the year significantly boosted sales in the domestic market. The new regulation expands ad hoc obligations to a considerably larger group of listed companies and mandates expanded, comprehensive insider regulations. As a result, EQS developed the INSIDER MANAGER tool as a standard workflow solution for complying with these increased mandatory ad hoc and insider rules for investor relations departments in Germany. INSIDER MANAGER is now in demand by companies throughout Europe.
EQS Group AG's majority takeover of ARIVA.DE AG in the second half of 2016 led to the subsidiary being consolidated into EQS financial statements for the first time, thereby raising sales and EBIT. For its part, ARIVA.DE AG contributes a high level of sales dynamics in regulatory services, due in large part to the pan-European introduction of basic information sheets for financial products in accordance with the PRIIP regulation.
In total, EQS Group AG saw a 38% increase in sales in Germany, up to EUR20.38 million, of which EUR4.75 million accounted for consolidated sales of ARIVA.DE AG.
EQS Group AG's strategic market position has improved significantly in 2016, not least due to its accelerated international expansion. The Group is now represented on all major capital markets with its own staffed offices. With its entry into United States and its new subsidiary in the United Arab Emirates (UAE), EQS Group AG has completed its expansion to all global financial centers.
Foreign business accounted for 22% of overall sales in 2016, up from 20% the previous year. All foreign subsidiaries contributed to this increase. Revenues from foreign companies rose by 57% to EUR5.68 million. These established offices achieved double-digit growth rates.
The Asian subgroup EQS Asia Ltd achieved an increase in sales of 18% to EUR2.58 million in the 2016 financial year. Losses compared to the previous year were significantly reduced. In Switzerland, revenues rose by 176% to EUR2.15 million as a result of the acquisition of Tensid AG. Our Russian subsidiary increased sales by 10% to EUR724,000 despite a market environment which remains difficult.
EQS Group AG's expanding international networks are transforming the company to new dimensions. Our successful growth strategy both at home and abroad is firmly founded on investments in organization and processes as well as in the development of new cloud products. Despite high sustained investment, non-IFRS EBIT in Germany only decreased by 5%, amounting to EUR3.57 million. Non-IFRS EBIT abroad improved significantly to EUR-289,000 (down from EUR-786,000). Against the backdrop of faster expansion, these improvements underscore the fact that EQS Group AG's foreign markets offer great potential and that the company's products are being built into a sustainable, highly profitable business.
Outlook: Further Growth in 2017
As result of its international growth strategy, the Executive Board of EQS Group expects double-digit growth in sales in 2017 of between 20% and 25%, up to between EUR31.2 million and EUR32.5 million. At the same time, further expansion and expansion expenditures amounting to around EUR1 million will be incurred for 2017, but adjusted EBIT is also expected to increase by 10% to 20%, up to between EUR3.6 million and EUR3.9 million.
Management will present the results at 11:00 am (CET) in today's telephone conference, broadcasted live online at www.eqs.com.
Key figures (IFRS) FY 2016 FY 2015 +/- Revenues (in EUR mn) 26.06 18.38 +42% Non-IFRS* EBIT (in EUR mn) 3.28 2.98 +10% EBIT (in EUR mn) 2.66 2.36 +13% Non-IFRS* Group Earnings (in EUR mn) 1.44 1.41 +3% Group Earnings (in EUR mn) .81 1.13 -28% Non-IFRS* Earnings per Share (EUR) .96 1.20 -20% Earnings per Share (EUR) .43 .96 -55% Operating Cash Flow (in EUR mn) 3.47 3.64 -5% Liquid funds (in EUR mn) 6.61 3.61 +83% Employees (average of the reporting period) 260 182 +43%
* Non-IFRS key figures before amortization of acquired customer bases, purchase price allocation and acquisition expenses
The figures for 2016 are audited.
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About EQS Group
EQS Group is a leading international technology provider for Digital Investor Relations. More than 8,000 companies worldwide trust EQS's products and services to securely, efficiently, and simultaneously fulfil complex national and international disclosure and compliance requirements to the global investment community.
The heart of the technology is the EQS COCKPIT, a cloud-based IR workflow platform, which digitally maps the work processes of IR Officers, streamlining them for maximum efficiency. Special modules maintain IR websites contents (CMS), contact data (CRM) and insider data as well as access to global investor data and proprietary monitory and analytics functions. The EQS COCKPIT platform is connected to the company's website in order to guarantee integrated workflows.
The EQS COCKPIT also provides access to one of the most important financial newswires, over which more than 20,000 financial and corporate releases are distributed annually. In Germany, all DAX companies trust EQS Group's DGAP service as the main institution to comply with legal and regulatory submission and publication requirements.
As a digital single source provider, EQS Group also develops IR and corporate websites and apps, creates digital financial and sustainability reports, and performs corporate audio and video transmissions.
EQS Group was founded in Munich, Germany in 2000 and has developed from a start-up into an international concern with offices in the world's key financial markets. In addition, the group holds the majority interest in ARIVA. DE AG and employs more than 300 professioals.
Head of Investor Relations
Tel.: +49 89-21029833
Mobile: +49 175-5250009
04.04.2017 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.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: EQS Group AG Karlstr. 47 80333 Munich
Germany Phone: +49(0)89 210298-0 Fax: +49(0)89 210298-49 E-mail: firstname.lastname@example.org Internet: www.eqs.com ISIN: DE0005494165 WKN: 549416 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich (m:access), Stuttgart, Tradegate Exchange; Open Market (Scale) in Frankfurt End of News DGAP News Service