SNP SE increases revenue and profitability in the first half of the year
Heidelberg, 10. August 2021: SNP Schneider-Neureither & Partner SE, (ISIN: DE0007203705), a world-leading provider of solutions for digital transformation processes and software-based data migrations, today published its report for the first half of 2021. According to this report, consolidated revenues increased by 10.2% year-on-year to €75.2 million (H1 2020: €68.7 million). With a 24.3% increase in revenue to €23.6 million, the Software segment proved to be the strongest growth driver (previous year's revenue: €19.0 million) and currently already accounts for around one third of consolidated revenue. In the Service segment, rising consultant utilization contributed to a 4.8% increase in revenue to 52.1 million euros (H1 2020: 49.7 million euros). In addition, the acquisition of EXA AG in February of the current year had a positive impact. The operating result (EBIT) for the Group improved to -1.1 million euros in the same period (H1 2020: -4.7 million euros). This was due to both increased revenue and a more efficient cost structure. In addition, the acquisition of EXA AG in February 2021 had a positive impact on the development of revenue and earnings. Accordingly, the result for the period improved to -2.1 million euros in the first half of the year, compared to -4.2 million euros in the same period of the previous year.
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"After an initially subdued start to the year, we gained noticeable momentum in the second quarter and are pleased with an overall satisfactory first half-year. In particular, the development of our Software segment shows that we are on the right track with our strategy," says Michael Eberhardt, CEO of SNP SE. "The recent acquisition of Datavard AG will further strengthen us. We have therefore raised our Group revenue and earnings expectations for the current year."
In terms of order entry, the software segment also grew disproportionately with an increase of 12.0% to €32.7 million in the first half of 2021 (H1 2020: €29.2 million) and thus already contributes 35.6% to Group-wide incoming orders (H1 2020: 31.4%). By contrast, order entry in the Service segment declined by -6.7% to €59.2 million (H1 2020: €63.7 million) due to restrained order placement with regard to major projects. The USA and UK regions in particular fell short of expectations, while significant growth was achieved in JAPAC and Eastern Europe. Overall, order intake in the Group fell slightly by -1.0% to 91.9 million euros (H1 2020: 92.8 million euros).
The order backlog reached a value of 132.8 million euros at the end of the first half of 2021 and was thus around 30% higher than in the same period of 2020 (June 30, 2020: 102.7 million euros).
The number of employees increased to 1,576 as of June 30, 2021 (December 31, 2020: 1,463), mainly due to the acquisition of EXA AG in February 2021.
Forecast updated
With the 2020 Annual Report, SNP published its Group forecast for fiscal year 2021, but explicitly without any effects from planned M&A activities, which were difficult to calculate at the time. Now that the sales and earnings effects from the various M&A activities (acquisition of EXA AG and Datavard AG, sale of the Polish subsidiary) have become more visible, SNP has updated its sales and earnings forecast for the current fiscal year: according to this, management expects updated consolidated sales of between 170 million euros and 190 million euros (previously without M&A activities: 160 million euros to 180 million euros).
The expectation for the EBIT margin remains unchanged at 5% to 8%. This applies before effects from the purchase price allocation of Datavard AG, as these cannot be reliably determined at the present time. Immediately after the effects from the purchase price allocation have been calculated, the company will adjust and publish the EBIT margin forecast.
In order to better assess and evaluate the current development of earnings, management is establishing EBITDA as an additional Group-wide control and forecast parameter during the year. Taking into account the two completed acquisitions (EXA AG and Datavard AG) and the planned sale of the Polish subsidiary, management expects EBITDA for the current financial year to be between EUR 18 million and EUR 24 million; excluding the M&A activities, the EBITDA forecast would be between EUR 16 million and EUR 22 million.
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
