EQS-Adhoc: Allgeier SE increases sales by 6 percent and value added by 12 percent in the first half of 2023

Munich, August 03, 2023 – Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) achieved revenue growth of 6 percent in the first half of 2023 (January 01, 2023 - June 30, 2023) according to preliminary figures and disproportionately increased gross profit. This growth was driven by a stable demand from the market. Adjusted EBITDA reached the level of the previous year. The reason for this is the increased cost base compared with the previous year, which was geared to more growth. Growth was more subdued than planned, particularly in the second quarter of 2023 in the personnel services business. The reasons for this lie in an actively pursued further reduction of low value-added business. This mainly affected the months of April and May, while business development in June again showed double-digit year-on-year growth in sales, gross profit and EBITDA. The internal cost base will be adjusted accordingly for the second half of the year and subsequent periods, partly as a result of measures already implemented.

Business performance of continuing operations in the first half of 2023

In total, revenue from continuing operations of the Allgeier Group increased by 6 percent to EUR 241.5 million in the first six months of 2023 compared with the first half of 2022 (previous year: EUR 228.5 million). Gross profit (defined as total operating performance less cost of sales and personnel expenses directly attributable to sales) increased in this period by 12 percent to EUR 78.7 million (previous year: EUR 70.3 million), corresponding to a gross margin of 32.1 percent (previous year: 30.4 percent). Adjusted EBITDA (earnings before depreciation, amortization and impairment losses on property, plant and equipment, interest and taxes, adjusted for extraordinary items and items relating to other periods) decreased by 2 percent to EUR 24.4 million (previous year: EUR 24.9 million). The adjustments include in particular extraordinary costs for the adjustment of the internal cost base in the amount of EUR 0.6 million. EBITDA (earnings before interest, taxes, depreciation and amortization) fell by 15 percent to EUR 22.1 million in the reporting period (previous year: EUR 25.8 million) after the extraordinary items. EBIT (earnings before interest and taxes) amounted to EUR 10.2 million (previous year: EUR 12.9 million).

*Continuing operations according to IFRS, figures in EUR million (unless otherwise stated)

Business performance of continuing operations in the second quarter of 2023

In the second quarter of 2023 (April 01, 2023 - June 30, 2023), the Allgeier Group increased its revenue in continuing operations slightly by 1 percent year-on-year to EUR 117.2 million (previous year: EUR 116.5 million). In the same period, gross profit increased by 18 percent to EUR 39.1 million (previous year: EUR 33.1 million). The gross margin increased to 33.4 percent (previous year: 28.4 percent). Adjusted EBITDA decreased to EUR 11.9 million (previous year: EUR 13.6 million), corresponding to a margin of 10.2 percent. EBITDA decreased to EUR 10.1 million (previous year: EUR 14.3 million). EBIT was EUR 4.0 million (previous year: EUR 7.8 million).

Key balance sheet data as of June 30, 2023

The Group’s equity remained virtually unchanged at EUR 180 million at the balance sheet date of June 30, 2023 (December 31, 2022: EUR 180 million). The Allgeier Group had cash and cash equivalents of EUR 45 million at the end of the second quarter of 2023 (December 31, 2022: EUR 87 million). The Group's net financial liabilities at the balance sheet date amounted to EUR 139 million, of which EUR 42 million were liabilities under rental and lease agreements (December 31, 2022: EUR 106 million, of which EUR 43 million were liabilities under rental and lease agreements). Current and non-current financial liabilities decreased to EUR 142 million at the end of the first half of 2023 (December 31, 2022: EUR 150 million). Total assets amounted to EUR 493 million as of June 30, 2023 (December 31, 2022: EUR 513 million).

Outlook for the second half of 2023

In the second half of the year, Allgeier SE expects business to develop in line with the previous planning and guidance for this period. In particular, correspondingly higher EBITDA margins are expected. The main reasons for this are that the cost adjustment measures already implemented are taking effect as of the second half of the year and that software revenues are regularly generated to a greater extent at the end of the year, thus ensuring higher profit margins. For the full year 2023, Allgeier SE expects a development within the range of the guidance published for 2023.

Notes

The 2023 half-year financial report of Allgeier SE will be published on August 15, 2023 and can then be viewed at www.allgeier.com.

All figures stated have been prepared in accordance with IFRS, are preliminary and have not been audited.

It should also be noted that disclosures for periods after June 30, 2023 represent expectations of the Management Board based on assumptions and estimates. Future actual developments and future actual results may deviate from these assumptions and estimates. Allgeier SE provides no guarantee and assumes no liability that future developments and future actual results will be consistent with the assumptions and estimates expressed in this ad hoc announcement.

This document contains supplementary financial key figures - not precisely defined in relevant accounting frameworks - which are or may be so-called alternative performance measures. These supplementary financial measures may be of limited use as an analytical tool and should not be used in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks in assessing the financial position, financial performance and cash flows of Allgeier SE. Other companies that present or report alternative performance measures with a similar title may calculate them differently and therefore they may not be comparable. For more information on the alternative performance measures used by Allgeier SE, please refer to the Annual Report 2022.

Contact:

Allgeier SE
Corporate Communications & Investor Relations
Dr. Christopher Große
Einsteinstrasse 172
81677 Munich
Tel.: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-mail: [email protected]
Web: www.allgeier.com

Allgeier SE is one of Germany’s leading technology companies for digital transformation: The fast-growing group guides its clients through the challenges of digital transformation to ensure their future success. Allgeier has a broad and stable customer base of global corporations, high-performing medium-sized companies and public sector clients at all federal levels. To its more than 2,000 customers, Allgeier offers a fully comprehensive software and IT services portfolio ranging from high-end software development to business efficiency solutions to support the digitization and transformation of business-critical processes. In doing so, Allgeier achieves breakthroughs towards new digital business models, defines strategic priorities and implements groundbreaking software and IT services projects with high flexibility and scalability to shape agile and intelligent organizations for the digital age. The two group segments Enterprise IT and mgm technology partners employ more than 3,500 salaried staff at a total of 53 locations worldwide in the DACH region, France, Spain, Portugal, Poland and the Czech Republic, as well as in India, Vietnam and the USA. In fiscal year 2022, Allgeier generated sales of EUR 480 million in continuing operations. According to the Lünendonk® List 2022, Allgeier is one of the leading IT service companies in Germany. Allgeier SE is listed on the Regulated Market of the Frankfurt Stock Exchange in the General Standard (WKN A2GS63, ISIN DE000A2GS633). Further information at: www.allgeier.com