EQS-News: DATAGROUP hits upper end of guidance based on preliminary figures for FY 2023/2024

• Total revenue up 6.0 % to EUR 527.6m in FY 2023/2024
• Continuing strong development in CORBOX core business
• Revenues continue to grow on a quarterly basis: Total revenue exceeds prior year by 14.8 % in Q4 2023/2024, organic growth c. 8.0 %
• EBIT of EUR 45.8m in FY 2023/2024 also at the upper end of guidance
• EBIT margin of 8.7 % is characterized by investments in future technologies as scheduled
• Comprehensive package of measures resolved to increase shareholder value

Pliezhausen, 21 November 2024. DATAGROUP SE (WKN: A0JC8S) today publishes the preliminary results for fiscal year 2023/2024. In the past fiscal year, DATAGROUP has grown revenue by 6.0 % to EUR 527.6m based on its successful CORBOX core business, which represents the upper end of the revenue guidance of EUR 510-530m. This also includes revenue from the companies acquired in the last fiscal year. Organic revenue growth was some 1 % higher than in fiscal year 2022/2023.

The fiscal year was characterized by a strong fourth quarter, in which revenue was up 14.8 % yoy, and c. 8 % organically. Operating earnings also hit the upper end of guidance with EBITDA of EUR 80.4m (guidance: EUR 77-81m) and EBIT of EUR 45.8m (guidance: EUR 43-46m). In total, contracts in a volume of EUR 26m were concluded with 33 new customers. Cross- and upselling resulted in revenue of EUR 24.0m with 52 customers, which is also a new record.

Revenues stood at EUR 527.6m in the past fiscal year based on preliminary figures, which is 6.0 % above the prior-year level (EUR 497.8m). Alongside the strong core business, this performance has also been driven by the three acquisitions of conplus, iT Total and ISC Innovative Systems Consulting. Organic growth was about 1 %. Gross profit increased disproportionately by 9.1 % to EUR 372.3m (PY EUR 341.2m).

Commenting on the results, Andreas Baresel, CEO of DATAGROUP, says: “That we can grow organically in a challenging market environment shows the strength of our business model and clearly differentiates us from competition. Some 80 % of all customer contracts are long-term in nature based on our modular CORBOX IT services suite. This ensures planning certainty and security on both sides. In the last fiscal year, we have achieved a record order intake totaling EUR 50m in new business as well as cross- and upselling, a magnitude never seen before. This will be reflected in continued revenue growth over the next quarters as well. This is why I am very optimistic about the 2024/2025 fiscal year just started.”

Investments in the future are already paying off

Investments in the three future fields of cyber security, AI and cloud have burdened earnings in the fiscal year as scheduled. Operating earnings before taxes, interest, depreciation and amortization (EBITDA) still increased slightly to EUR 80.4m (PY: EUR 80.2m), the EBITDA margin was 15.2 % (PY: 16.1 %). Earnings before interest and taxes (EBIT) amounted to EUR 45.8m which also slightly exceeds the prior-year level (PY: EUR 45.3m), the EBIT margin was 8.7 % (PY: 9.1%). The earnings development therefore is at the upper end of expectations.

These investments in the future are already paying off: EEW Energy from Waste, a leading company in thermal recycling, has chosen DATAGROUP as IT outsourcing partner. One of the key elements of the cooperation is to establish modern cloud solutions which offer a flexible and scalable IT infrastructure, creating an important basis for the company’s digital transformation. In the field of cyber security, DATAGROUP has demonstrated its expertise in the education sector amongst others: Universities in North Rhine-Westfalia rely on customized security solutions to protect their academic and administrative IT systems from growing threats. Messe München has also extended its strategic partnership with DATAGROUP and increasingly puts its trust in innovative cyber security solutions, which are the foundation of secure and smooth operations in a trade fair world that is becoming ever more digitized. This exemplifies how the strategic focus on topics of future relevance such as cloud technologies and cyber security adds sustainable value for DATAGROUP’s customers and, at the same time, further strengthens the competitiveness of DATAGROUP.

Balance sheet development and cash flow

In FY 2023/2024, the balance sheet total increased to EUR 537.4m (30.09.2023: EUR 465.3m). The equity ratio stood at 28.6 % at the balance sheet date (30.09.2023: 31.7 %). Liquid funds increased significantly to EUR 36.6m (30.09.2023: EUR 21.9m).

Net debt was EUR 139.1m at the end of the fourth quarter compared to EUR 112.6m at the end of the fiscal year on 30.09.2023. This increase was primarily driven by the three acquisitions in FY 2023/2024. Accordingly, the net debt to EBITDA ratio is 1.7 (30.09.2023: 1.4). The cash flow continues to be solid at a cash flow from operating activities of EUR 58.9m (PY: EUR 46.7m).

COMPREHENSIVE PACKAGE OF MEASURES RESOLVED TO INCREASE SHAREHOLDER VALUE

To increase shareholder value, the Management Board and Supervisory Board of DATAGROUP have resolved upon a comprehensive package to increase shareholder value. This includes a share buyback of up to 9.79 % of the share capital. DATAGROUP also examines the spin-off of digitalization subsidiary Almato at a ratio of 1:1. The company believes that the measures above will significantly contribute to shareholder value. For this reason, the company wishes to deviate from its previous dividend policy and suspend the dividend for FY 2023/2024. Instead of the previous year's dividend volume of EUR 12.5m, up to EUR 34.4 million will be returned indirectly to shareholders through the share buyback. According to the company, the higher value of Almato AG would increase the group’s total value for shareholders, as DATAGROUP shareholders would receive one Almato share for each existing DATAGROUP share at a ratio of 1:1. DATAGROUP also plans to switch from the Scale segment to the m:access segment of the Munich Stock Exchange. The company will retain the usual transparency level. For more detailed information, please refer to the related press release from 16 November 2024: https://www.datagroup.de/news/datagroup-beschliesst-umfangreiches-massnahmenpaket-zur-steigerung-des-shareholder-value/

Invitation to the Conference Call on 21 November 2024

Two conference calls with Andreas Baresel, CEO/CFO, on the preliminary FY 2023/2024 results will be hosted today, 21 November 2024.

Please register at:

10 a.m.: German-language investor & press call:
https://montegaconnect.de/event/r6u00pqeivrqz1yl55wm43eq8zshmol0

3 p.m.: English-language investor & press call:
https://montegaconnect.de/event/1qf6xd30pyeiwysvg7e5mktfshe26me2

About DATAGROUP

DATAGROUP is one of the leading German IT service providers. Some 3,500 employees at locations across Germany design, implement, and operate IT infrastructures and business applications. With its CORBOX product, DATAGROUP is a full-service provider, supporting global IT workplaces for medium and large enterprises as well as public authorities. DATAGROUP is growing organically and through acquisitions. The acquisition strategy is particularly noted for its optimal integration of new companies. DATAGROUP is actively participating in the consolidation process with its “buy and turn around” and its “buy and build” strategy.
www.datagroup.de

PRESS / Investor Contact

Anke Banaschewski
Investor Relations & Unternehmenskommunikation
anke.banaschewski@datagroup.de