PIRONET NDH shows double-digit growth but lower EBIT
Turnover increased by a good 11.7% from 13.6 million EUR to 15.2 million EUR and once again set a new record for the first 3 months of the financial year. Growth was seen in both the area of IT services and that of software. However, the growth in the high-margin software business was not enough to compensate for the increased costs. Considerable increases were seen in the area of sale-related costs (+13.4% to 9.1 million EUR), amortisation (+ 43.6% to 1.9 million EUR) and marketing costs (+14.8% to 2.9 million EUR) as part of the current market offensive. Therefore, the EBIT dropped from 0.3 million EUR to 0.1 million EUR. The financial result also recorded a fall. Income from interest and investments decreased giving -0.2 million EUR after 0.21 million EUR in the previous year. On balance, this gave EBT of -0.1 million EUR following 0.5 million EUR. Investments shot up from 1.9 million EUR in the previous year to 4.7 million EUR. A large part of this concerned the stake in IT company indatex Services for Finance and Insurance AG based in Starnberg, which has cost around 1,6 million EUR to date. Although cash flow rose considerably by 29% to 3.1 million EUR, it was not enough to finance the investments made. As a result, liquid asset holdings fell by 1.6 million EUR to 18.8 million EUR as against the end of 2008. This results in 1.29 EUR per share. PIRONET NDH continues to operate without liabilities to banks.
In the 1st quarter, PIRONET NDH held a 40% share in indatex, founded in 2000. With indatex AP, this company provides an online platform for the automation of business processes between independent agents/broker companies and financial service providers primarily from the insurance sector. PIRONET NDH has built up the leading platform in the area of trading with the SA2 Worldsync and is now aiming to also achieve the same position in the finance sector with indatex. Currently, indatex is still running at a loss. We expect it to break even over the course of next year.
Our targets for 2009 remain unchanged. We want to grow at a stronger rate than the market and will do everything in our power to record a profit. To do so, it is essential that our market offensive reaches all areas and particularly pushes up software sales considerably.
PIRONET NDH AG
PIRONET NDH (established in 1995) offers innovative solutions for the creation, synchronization and distribution of digital content of all kinds, as well as for the optimization of internal and external business processes. The company's main areas of expertise include consulting and conceptual services, software products and the operation of business-critical infrastructures and applications. The listed technology firm is based in Cologne and employs over 400 people across several branches and offices throughout Europe. Its clients include both medium-sized companies and international corporate groups.
Further information at: http://www.pironet-ndh.com