SinnerSchrader : PLEASING FIRST FINANCIAL QUARTER OF 2016/2017 / EBITA IMPROVED BY MORE THAN 50 PER CENT OVER PREVIOUS YEAR / WELL-FILLED ORDER BOOKS BACK UP REVENUE FORECAST

13.01.2017, 8:28

SinnerSchrader got the 2016/2017 financial year off to a successful start. In the first quarter (1 September to 30 November 2016), the Group generated net revenue of 13.3 million euros, an operating result (EBITA) of around 1.3 million euros and net income of 0.9 million euros. While the increase in revenue appears to be restrained at just under 0.5 million euros or 3.6 per cent over that of the previous year, the EBITA and net income have improved by more than 50 per cent in comparison to the figures for the first quarter of 2015/2016.
Business volume experienced only slight growth in the quarter of the report because the cooperation with Audi that started in July 2016 was still being established. However, due to the further expansion of the cooperation and positive developments in other important client relationships, at the end of the first business quarter the order books of the SinnerSchrader Group are already well-filled for the rest of the 2016/2017 financial year. Furthermore, with its unique combination of platform and content expertise, SinnerSchrader acquired its first client from the pharmaceuticals industry in the quarter under review.
The good development of the business perspective goes hand in hand with a pleasing development of profitability. The operating margin improved from 6.5 per cent in the previous year to 9.6 per cent in the first quarter of 2016/2017. The operating result (EBITA) thus increased by a good 0.4 million euros or more than 52 per cent in comparison to the previous year. After tax, the rise in the EBITA was reflected in the net income with an increase by a good 0.3 million euros, resulting in the net earnings dynamics to be even higher at 58 per cent. In the quarter of the report, the earnings per share reached 0.08 euros, following 0.05 euros in the previous year.
On the basis of the development of business in the first quarter of 2016/2017, which slightly exceeded internal planning, SinnerSchrader is confident that it will achieve its forecast for the financial year: revenue of more than 56 million euros, EBITA in the range of 5.8 to 5.9 million euros and net income of at least 4 million euros, or 0.35 euros per share.
Until the end of November 2016, the operating inflow of funds was modest at 0.1 million euros. SinnerSchrader believes that this effect, familiar from previous years, is due to the year-end planning of many major clients. The amount of liquid funds therefore fell slightly in comparison to the level as at 31 August 2016, to 6.0 million euros on 30 November 2016. However, at the end of December it was once again in the double-digit range for the first time in many years.
The shareholders' equity ratio reached 61.0 per cent as at 30 November 2016, an increase of 1 percentage point over the last balance sheet date. One year earlier, the ratio was 54.4 per cent. On 30 November 2016 the Company had 518 employees.
The Management Board and the Supervisory Board have proposed to the Annual General Meeting, to be held on 26 January 2017, the payment of a dividend of 0.20 euros per share from the profit earned in the preceding 2015/2016 financial year. The dividend will be paid from the tax deposit account, making it tax-free for private individuals with minor holdings.
The full report of the SinnerSchrader Group for the first business quarter of 2016/2017 can be found at http://www.sinnerschrader.ag/en/reports.