Sales Q1 2008: €116.6m (+12%)
EBIT Q1 2008: €2.2m (+40%)
EBITDA Q1 2008: €4.1m (+30%)
April 29, 2008. The S&T Group achieved remarkable results in Q1 2008: Overall sales rose 12% to €116.6m, and sales in the Business Solutions area rocketed an outstanding +55%. EBIT increased to €2.2m. EBITDA also rose by +30% to €4.1m. S&T stock performed well despite challenging market conditions – in March the share price rose +7.4% to outperform all other shares of the ATX Prime Index. The outlook for the 2008 financial year remains unchanged: S&T anticipates sales of between €560m and €580m, and EBIT of between €15m and €17m.
S&T: IT consulting and solutions business records +55% growth in Q1
EBIT up 40%
A boom in IT consulting and solutionsThe IT consulting and solutions area of the business recorded particularly outstanding results in the 1st Quarter of 2008 – rising 55% to €34.6m. By 2010, the company plans to generate more than 60% of its sales from both this and the Managed Services business areas. S&T’s results reflect the expectations of market experts – the German Association for Information Technology, Telecommunications and New Media (BITKOM) published a survey in April 2008 that highlighted strong demand for IT services. Current public discussion of the value of IT has also led to full order books in the consulting area. Many CIOs and IT decision makers need support when it comes to introducing transparent evaluation systems, structures and processes with which they can demonstrate and communicate IT’s positive contribution to the bottom line.
In addition, S&T is one of the leading ERP/SAP consulting and implementation partners in Central and Eastern Europe, as well as in the German-speaking countries. Growth in the Business Solutions area of the company can be attributed to numerous successful ERP and SAP projects, as well as Business Intelligence contracts, throughout S&T countries. For example, S&T implemented a modern SAP system for the Serbian Direct Trade and Direct Group – the project was worth more than half a million euros. In Russia, S&T optimized Danone’s analysis and reporting system as part of a large and comprehensive project. Meanwhile S&T Romania was named as the country’s leading ERP provider in a report by Pierre Audoin Consultants that was published at the beginning of the year.
Multi-million euro contracts in the Managed Services area“Particularly in the DACH region, we have achieved a good market position by assuming responsibility for the servicing of entire IT areas,” explains Rosner. Numerous large contracts in this area in Q1 led to an organic sales growth of 18% to €23m. One contract alone was worth €1.8m: The S&T Group was contracted by ISS Facility Services to manage the planning, implementation and servicing of a data center, as well as the IT setup for 450 workstations and 140 printers at 51 ISS locations.
In addition, January saw S&T begin work on the implementation of a multi-million euro Managed Desktop Service contract in 14 countries for OMV. Rosner: “IT managers are acknowledging the challenge of gradually having to develop IT into a business partner rather than simply a service provider. For this reason, many companies are increasingly entrusting the commodity end of their IT operations to an external service provider so that they can concentrate on strategic IT aspects.” As expected, Q1 also saw the Enterprise Systems business unit with sales of €59m demonstrating robust and profitable performance.
S&T Stock: No. 1 in ATX Prime Market in MarchDespite the negative influence of ongoing turbulence on stock exchanges throughout the world, a 7.4% increase in March saw S&T outperforming all other shares of Austria’s ATX Prime Index. Rosner: “Our stock remains attractive – particularly compared with other IT shares.”