SNP AG Posts Strong Fourth Quarter
- Group revenue increases by 9%
- EBIT-Margin at 20%
- Accelerated growth expected for 2011
SNP Schneider-Neureither & Partner AG (SNP) today published its preliminary figures for financial year 2010. Group revenue improved by 9% to €22.0 million (2009: €20.2 million).
Whereas Consulting revenues remained at last year's level with €16.0 million (2009: €16.0 million), Software posted a strong increase with 43% to €6.0 million (2009: €4.2 million): Licence revenues grew by 39% to 4.6 million (2009: €3.3 million), Service revenues increased by 56% to €1.4 million (2009: €0.9 million).
Due to investments in sales & marketing efforts for the new SNP Transformation Backbone® (SNP T-Bone) software, as well as the large number of new employees, the operational result (EBIT) came in below that for 2009 with €4.5 million compared to €4.7 million. Despite these large investments for the future, the EBIT margin came in at 20.0%, as compared to 23.4% for last year. The final quarter, with revenues of €6.8 million, once more had a great impact on overall results for the year. Revenues were 25% above those posted for the same period last year and 20% above those for Q3 2010.
The EBIT in the fourth quarter increased by 21% to €1.8 million (Q4 2009: €1.1 million). The near doubling of software revenues compared to last year from €1.1 million to €2.0 million contributed substantially to the increase in the operational result for the year.
Petra Neureither, CFO for SNP AG, stated, "Although we did not reach all the objectives we set ourselves for 2010 for the full 100%, we are nevertheless satisfied with our progress and results for the financial year. Important for us was the positive response from our customers and business partners to SNP T-Bone. This confirmed our expectations of the potential for the first standard software for economically or technically required adaptations of SAP landscapes and encouraged us to force ahead with investments in personnel and marketing. Even though this had an impact on the operational result for the year, we have now built the basis for dynamic revenue and profitability growth for the future. Winning T-Systems International GmbH as a further international sales and implementation partner was an additional important success on this road."
"The strong increase in revenues for the business segment Software during the second half of 2010 and which came in above our own expectations for the full year, further validated our chosen strategic direction."
During 2010, SNP has increased its number of employees by 17% to 170 (as of December 31) and has managed to benefit from the, especially at the start of 2010, favourable situation on the labour market in order to increase the internal capacity. As a general rule of thumb, it takes a new consultant six to nine months to reach productivity. At the same time, the necessity for experienced employees to assist in this process has a negative impact on their own productivity."
Dr. Andreas Schneider-Neureither, CEO for SNP AG, stated, "Even though all growth for 2010 came from the business segment Software, the outlook for 2011 for both Consulting and Software is very positive. With the strengthening of our personnel base, we now have the capacity to benefit even better from the opportunities in the market. We therefore anticipate an accelerated revenue growth for 2011 for both segments. Our objective for the year is to improve our positioning outside Germany . To achieve this, we will increase the functionality of SNP T-Bone. Internationalisation and Innovation are therefore major topics for 2011 and will be important drivers of growth.
The full results for 2010 will be published in the annual report on of March 29, 2011.
SNP Schneider-Neureither & Partner AG
SNP is a leading provider of software and software-related-services for transformations of SAP systems required in the wake of mergers and acquisitions, splits, harmonizations, or system upgrades. For these transformations of a company's IT processes, SNP offers SNP Transformation Backbone® (SNP T-Bone), the world's first standardized software that automates and comprehensively supports transformations of SAP solutions. SNP also uses this software for its unique consulting approach, Business Landscape Transformation®, which supports companies to successfully transform IT according to business changes.
In addition to its focus on transformation, SNP offers solutions for management of IT system landscapes. With its consulting approach, Business Landscape Management, SNP supports companies in optimizing the service and support processes of their SAP system landscapes.
SNP was founded in 1994 and currently employs approximately 170 employees at five locations in Germany, Austria and Switzerland. SNP serves international and national clients and has the experience of more than 1,200 successfully completed projects. In fiscal year 2010, SNP AG achieved a turnover of €22 million. The company is listed on the General Standard of the Frankfurt Stock Exchange.
For more information please visit www.snp-ag.com/en