DGAP-News: SNP SE posts double-digit growth - acquisitions support positive development

Corporate News

SNP SE posts double-digit growth - acquisitions support positive development

- Group sales increase to €121.7 million after nine months (+14.5% year-on-year)

- Acquisitions strengthen growth momentum

- EBIT improves to €1.8 million (9M 2020: €0.3 million)

- Order intake declines by -5.8%, order backlog: +38.0%

- Sales and earnings expectations for 2021 specified

Heidelberg, October 28, 2021 - SNP SE, (ISIN: DE0007203705), a leading global provider of solutions for digital transformation processes and software-based data migrations, has reported a significant increase in revenue after nine months of the current fiscal year. Accordingly, Group revenue increased by 14.5% year-on-year to €121.7 million (9M 2020: €106.3 million). The Service segment in particular made a significant contribution to this growth. In addition, the acquisitions of the two Heidelberg-based companies EXA AG and Datavard AG, which are initially allocated significantly to this segment, had a positive impact. The Software segment, which benefited significantly from large-volume partnership agreements in the previous year, grew again by 3.5% despite the high level of the same period 2020, thus increasing sales to €36.7 million (9M 2020: €35.5 million). The operating result (EBIT) for the Group improved to €1.8 million in the same period (9M 2020: €0.3 million). In addition to the increased sales level, the improvement is also attributable to consistent cost management. At €-0.6 million, the result for the period remained at the level of the previous year (9M 2020: €-0.6 million).

"We are pleased with the pick-up in revenue growth, which reflects our operational clout and underlines that we are on the right track overall," said Michael Eberhardt, CEO of SNP SE. "We enter the last quarter of the year with a high order backlog and are confident that we will achieve our annual targets as planned."

Order entry declined by -5.8% to € 131.6 million in the first nine months of the current fiscal year (9M 2020: €139.7 million). This includes €7.7 million from the acquisitions of EXA AG and Datavard AG. In organic terms, the figure therefore declined by -11.3%. The decrease is mainly due to large-volume partnership agreements concluded last year and the associated high level of the previous year. Since the beginning of the year, new partnerships have predominantly been concluded without a predefined volume, with the result that sales and earnings contributions from these contracts are only recognized in profit or loss at a later date. This has led to a corresponding shift in the timing of new order entry.

The Software segment accounted for €43.6 million or around 33% of order intake (previous year: €57.3 million or around 41%). This corresponds to a decline of around -24% and is the result of a strong prior-year period in which various partnership agreements with multi-year software contingents were concluded. The acquisitions of EXA AG and Datavard AG contributed €2.0 million to order intake in the Software segment.

The Service segment accounted for €88.0 million or around 67% of order intake (previous year: €82.4 million or around 59%), an increase of 7%. This figure includes € 5.7 million from the acquisitions of EXA AG and Datavard AG. As EXA's business model is essentially software-related services, the segment allocation is currently under review.

As of September 30, 2021, the order backlog amounted to €135.5 million, compared with €110.8 million as of December 31, 2020, of which a total of €12.3 million is attributable to the acquisitions of EXA AG and Datavard AG.

As of September 30, 2021, the number of employees in the SNP Group increased to 1,762, mainly due to the consolidation of Datavard AG and EXA AG; as of December 31, 2020, the total number of employees was 1,463.

Outlook specified

Management specifies the previous outlook for the full year 2021, according to which consolidated sales in the range of €170 million to €180 million (previously €170 million to €190 million) and EBITDA between €18 million and €22 million (previously €18 million to €24 million) are now expected to be achieved. Management has also specified the expected EBIT margin, taking into account the effects of purchase price allocation (PPA amortization), at 5% to 7% (previously 5% to 8%). Order intake in 2021 is still expected to be significantly higher than in the previous year.

Indicators:

 

Order Entry and Order Backlog:

Further details are available in the full interim report published under:
https://www.snpgroup.com/en/financial-publications

About SNP

SNP is a world-leading provider of software for managing complex digital transformation processes. Instead of traditional IT consulting in the ERP environment, SNP offers an automated approach using specially developed software: The Data Transformation Platform CrystalBridge(R) and the SNP BLUEFIELDTM approach allow companies to restructure and modernize their IT landscapes much more quickly and securely as well as migrate to new systems or cloud environments more securely. This gives customers clear qualitative advantages while at the same time reducing their time and costs.

The SNP Group has around 1,600 employees worldwide. The company is headquartered in Heidelberg, Germany, and generated revenues of around € 144 million in the 2020 fiscal year. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705). Since 2017, the company has been trading as a European company (Societas Europaea/SE).

More information is available at www.snpgroup.com

Contact SNP:


Marcel Wiskow

Director lnvestor Relations

Telefon: +49 6221 6425-637

E-Mail: [email protected]

Peter Verclas

Telefon: +49 6221 43550-11

E-Mail: [email protected]