P&I: Profits rise in Q1
Wiesbaden (euro adhoc) -
EBIT margin breaks 30 per cent barrier Sales growth of 10.7 per cent
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finances
With sales of 15.6 million euros in the first quarter of fiscal 2008/2009 (April 1, 2008 to June 30, 2008), P&I Personal & Informatik AG has achieved Q1 Group operating earnings before taxes (EBIT) of 5.1 million euros, compared to 4.3 million euros year on year. The P&I Group's EBIT margin of 32.6 per cent (27.6 per cent year on year) has exceeded the 30 per cent mark for the first time. Earnings before taxes, interest, depreciation and amortisation (EBITDA) rose from 5.2 million euros to 5.6 million euros. The DFVA/SG (German Association of Financial Analysts and Investment Consultants/Schmalenbach Society) result for the Prime-Standard-listed HR software specialists based in Wiesbaden rose from 2.8 million euros to 3.7 million euros.
Despite P&I sales remaining at the previous year's level overall, the year-on-year rise in Licensing sales of 10.7 per cent has boosted the EBIT margin to this record level. As expected, following the disposal of the company's LOGA/400 business, it has not yet been possible to offset lost revenues from discontinued maintenance business against the increased revenues from growth in Licensing sales.
The 10.7 per cent year-on-year increase in Licensing sales represents a growth of 0.6 million euros, rising to 6.0 million euros with a share of total Group sales amounting to 38.4 per cent at present. This successful outcome is due to the narrowing down of the company's sales organisation to two main areas - the private and public sectors. Doing so has enabled the company to win major new strategic customers in both sectors - KISA, the local IT service provider in the German state of Saxony, Franke & Pahl, technical service providers operating in northern Germany, and the Viennese company, RZB.
Revenue of 5.1 million euros was generated in maintenance business (32.7 per cent of total sales) representing a year-on-year decline of 0.3 million euros. However, the previous year's revenues included LOGA/400 revenue amounting to 0.9 million euros.
With 4.2 million euros (previous year: 4.5 million euros) P&I attained 26.6% of its sales in the Consulting/SI business area. The slight decline in Consulting sales is part of the new strategic orientation, raising the Licensing sales share in relation to Consulting. In accordance with the new business model, the consultants are concentrating more on providing gratis, on-the-spot support for customers, leading to enhanced customer satisfaction, increased Licensing sales to existing customers and therefore greater profitability for the company.
P&I realised domestic sales of 12.3 million euros (previous year: 10.2 million euros), representing 79 per cent of total sales. International sales developed on target at 3.3 million euros (previous year: 5.4 million euros).
P&I can confirm its forecast for the whole the 2008/2009 business year: a double-digit rise in sales through organic growth and the EBIT margin established at above the level reached in the previous year. "After a successful closure to the past year, we have got off to a very satisfactory start in the new fiscal year. Our new strategic orientation is achieving excellent results." affirms a pleased Vasilios Triadis, P&I CEO. "On the agenda now is to do the investing needed for the future of the company, and to press ahead with our strategy of growing Licensing's share in overall sales, so consistently raising our profit levels long-term. We are confident that we will go on achieving our goals in the future as well."
end of announcement euro adhoc
Further inquiry note:
Andreas Granderath
+49 (0)611 7147-267
agranderath@pi-ag.de
Branche: Software
ISIN: DE0006913403
WKN: 691340
Index: CDAX, Prime All Share, Technologie All Share
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