DGAP-News

GFT Technologies SE: GFT exceeds guidance and expects further growth and significantly improved earnings in 2021 - Seite 3

Compared to 2019, revenue generated by fast-growing technologies increased by 44 percent and accounted for 42 percent of GFT's total revenue. The 86 percent growth in business with cloud solutions was once again particularly encouraging.

Earnings below previous year, but still above guidance

Key earnings figures in the financial year 2020 were mainly burdened by the Covid-19 pandemic and fell short of the prior-year results. The underutilisation of capacity resulting from the pandemic was countered above all by restructuring measures. Expenses planned at the beginning of the year for the expansion of sales activities and technology expertise in order to prioritise revenue growth led to further burdens on earnings. As a result, adjusted EBITDA fell by 11 percent year on year to EUR 42.52 million (2019: EUR 47.91 million). Compared to the previous year, EBT decreased by 25 percent to EUR 14.11 million (2019: EUR 18.73 million). Net income was down 27 percent at EUR 9.94 million (2019: EUR 13.66 million).

Additional key data: significant headcount growth, strong cash position

The dynamic development of business in Latin America was mainly responsible for the 14 percent increase in the GFT Group's headcount (full-time equivalents) to 5,986 (31 December 2019: 5,242 employees). Cash flow from operating activities amounted to EUR 60.25 million and was thus well above the prior-year level (2019: EUR 36.18 million). The increase is mainly due to working capital effects. Cash and cash equivalents rose to EUR 70.87 million (31 December 2019: EUR 56.14 million). The equity ratio of 31 percent (31 December 2019: 31 percent) reflects the GFT Group's consistently solid capital and balance sheet structure. Due to the reduction of financial debt, GFT's net debt fell strongly to EUR -31.35 million (31 December 2019: EUR -58.80 million).

Outlook: further revenue growth and significant earnings growth expected in 2021

The GFT Group anticipates a strong increase in EBT as well as revenue growth in all sectors in 2021. Outside its top-2 clients, GFT expects the growth trend to continue with an increase in revenue of 15 percent. GFT will continue to drive its diversification strategy, resulting in a further reduction in the proportion of total revenue from the top-2 clients to 16 percent (2020: 21 percent).