DGAP-News

GESCO: 2016/2017 impacted by non-recurring effect, significant growth expected for 2017/2018

DGAP-News: Gesco AG / Key word(s): Final Results/Final Results GESCO: 2016/2017 impacted by non-recurring effect, significant growth expected for 2017/2018 29.06.2017 / 07:30 The issuer is solely responsible for the content of this announcement.

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·       2016/2017 sales and earnings figures in line with the

amounts previously published on a preliminary basis

·       Portfolio Strategy 2022 is being implemented

·       Significant growth expected in financial year 2017/2018

·       Supervisory Board is to be expanded

 
Wuppertal/Finnentrop, 29 June 2017 - GESCO Group, an association of small and medium-sized industrial companies, is reporting on an eventful financial year 2016/2017 (1 April 2016 to 31 March 2017) at its annual accounts press conference today, and forecasts significant growth for financial year 2017/2018. Crucial strategic steps were taken within the scope of the Portfolio Strategy 2022, which was approved in early 2016, for a return to profitable growth for the GESCO Group. The portfolio was rounded out by the Pickhardt & Gerlach Group, a leading processor of strip steel, which was acquired at the start of 2017. The stake in Protomaster GmbH, which had negatively impacted Group net income in previous years, was put up for sale in February 2017. The company performed a 1:3 share split in December 2016 and raised equity of some EUR 20 million through a capital increase in February 2017.  

 

In operating terms, the GESCO Group reported stable development in financial year 2016/2017, an increase in incoming orders, a slight decline in sales and a significant decline in earnings marked by a negative non-recurring effect. The final figures correspond to the preliminary sales and Group's net profit after minority interest figures announced on 24 May 2017. Incoming orders rose by 3.2 % to EUR 498.7 million in the reporting period, compared to EUR 483.2 million in the previous year. Group sales totalled EUR 482.5 million (previous year: EUR 494.0 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 49.7 million (EUR 53.3 million). Earnings before interest and taxes (EBIT) were significantly impacted by the non-recurring effect of EUR 6.6 million in impairment losses associated with the planned sale of Protomaster GmbH, falling from EUR 31.5 million to EUR 22.1 million. Group net income after minority interest totalled EUR 7.9 million (EUR 16.1 million). Cash flow from ongoing business activity improved significantly, rising by 55.5 %, from EUR 27.0 million to EUR 41.9 million.