Olympia Flexgroup AG
Allbecon Olympia AG: Allbecon Olympia sales growth 2007 12.6%
Allbecon Olympia AG / Final Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Highlights • Sales up 12.6% at EUR 395.4 million • EBIT 18.1% higher at EUR 12.3 million • Number of offices increased in 2007 to a total of 187 • Rebranding to Olympia Flexgroup in preparation (Düsseldorf, 24. April 2008) Allbecon Olympia AG (ISIN DE000AOLBKV8) generated Group sales of EUR 395.4 million in the 2007 financial year; this represents a growth of 12.6% over the previous year (EUR 351.1 million). Group EBIT increased by 18.1% to EUR 12.3 million in 2007. The EBIT margin was 3.1% (previous year: 3.0%). Earnings after tax increased by 136% to EUR 7.3 million. This is due to improved EBIT and one-off tax effects in 2007. Marcel Slaghekke, CEO of Allbecon Olympia AG, explains: '2007 was an exciting year for us: we completed the merger and the new listing on the Stock Exchange. We also laid the foundations for our franchise strategy and numerous process optimisations. With the additional new franchise offices that are planned now, the figures are a good basis for our continued growth.' Operating growth Allbecon Olympia AG’s operations in 2007 were significantly influenced by two factors: the integration of the two companies Allbecon and Olympia and the implementation of the Olympia strategy in the countries in which Allbecon AG was present. The focus was on the process of changing the corporate culture from a decentralised management structure to a centralised management model. This includes a consistent strategy and customer orientation, standardized work processes as well as one organisation model for all companies and branches. The franchise concept was chosen as the new sales model for new branches and the implementation of the concept was started. Allbecon Olympia has established the European Service Centre (ESC) to implement its plans. The development of management tools and primary processes which had previously been conducted locally are being centralised at the ESC. This means that the existing structures within the national operating companies can be eliminated in future. In addition, the ESC has adapted the franchise concept, which was developed in the Netherlands, to the specific legal and regulatory frameworks in Germany and Spain. This process was also initiated for the Italian and Polish markets in the second half of 2007. The company has also created new sales organisations that are designed to enhance further growth. A total of 15 new branches were opened in the 2007 financial year, including 10 franchise branches. The first franchise branch outside the Netherlands was opened in Germany. The restructuring measures have been very time-consuming and in part have taken longer than planned. The foundations for the new structure and strategy had to be strengthened. The measures taken in this context are already producing initial successes. The change in the corporate culture and ongoing standardisation will, however, remain a constant process, which will require substantial managerial resources in the current financial year. Key financials in 2007 Allbecon Olympia Group increased sales by 12.6% to EUR 395.4 million in the 2007 financial year. Sales growth, achieved in all countries, decelerated in the course of the year in line with the overall market growth. Our franchise business in the Netherlands recorded strong growth again, while our sales to large customers increased in Germany, Spain and Italy. We succeeded in expanding our market share in all countries except for Germany and Spain. Our market share in Spain remained stable. Other operating income decreased by 48% to EUR 1.2 million and consequently total revenues increased by 12.2% to EUR 396.5 million. Operating expenses increased by 12.0% to EUR 384.2 million. Personnel costs were up 13.0%, due to a higher sales volume and a larger number of internal staff, which were recruited to strengthen the national organisations and the newly established European Service Centre. The gross profit margin increased slightly from 22.2% to 22.4%. The sound improvement in the Netherlands was offset by a decline in Germany. Other operating expenses increased by 7.5% to EUR 55.6 million. Payments to franchisees grew by 25% to EUR 24.9 million. These expenses are related directly to the gross profit margin generated by the franchisees. Group EBIT (earnings before interest and tax) increased by 18.1% in 2007 to EUR 12.3 million. The EBIT margin improved from 3.0% to 3.1% of total sales in this period. Financing costs increased by 31% to EUR 5.1 million, due to higher funding requirements, increasing interest rates and costs in connection with the factoring services. Earnings after tax increased by 136% to EUR 7.3 million. Earnings per share amounted to EUR 0.37. Sales development at national level Allbecon Olympia achieves about 55% of total Group sales in the Netherlands. The Dutch operation achieved another record year in 2007 with higher sales and earnings. Sales in the Netherlands were up 14.4% at EUR 218.5 million. The franchise branches increased their sales even more than the company’s own branches. In Germany, Allbecon Olympia increased sales by 8.7% to EUR 76.6 million. Sales growth is not in line with market growth in Germany, however. On the one hand, we devoted a great deal of management resources on the internal restructuring of our Group in Germany. On the other hand, we did not fully implement price increases that the market would have justified. Furthermore, we are still underrepresented in the fast-growing business with major customers. Allbecon Olympia generated sales of EUR 82.6 million in Spain and Portugal. This corresponds to an increase of 6.6% over the previous year. The company succeeded in increasing sales by 53% in Italy, from EUR 8.6 million to EUR 13.2 million. We did not open any new offices. Sales of the existing offices were increased, hereby creating a more stable basis for our Italian company. A second office was opened in the Polish capital of Warsaw. Allbecon Olympia achieved sales growth of 40% to EUR 1.5 million in Poland. Decisions to open two new offices and to establish Polish franchise and account management organisations were taken at the end of the year. Sales in Switzerland increased by 21% to EUR 2.9 million. Balance sheet and cash flows The balance sheet total increased by EUR 8.6 million EUR 152.7 million as per 31 December 2007. Equity increased by EUR 6.3 million to EUR 45.4 million as per 31 December 2007. Equity amounted to 29.7% of the balance sheet total on 31 December 2007 (31 December 2006: 27.1%). The interest bearing liabilities in the balance sheet decreased by EUR 5.2 million to EUR 46.6 million. Taking into account the prepayments made by ING Commercial Finance relating to the receivables sold in Germany and Spain, net financial debt increased by EUR 4.6 million to EUR 54.3 million. The increase is attributable to the expansion of the company’s operations and the development of the Group, the payment of the merger costs (which were already incurred to some extent in 2006, but were not paid for the most part until 2007) and the acquisition of minority interests. Following the refinancing, which was completed in June 2007, liabilities amounting to EUR 21.0 million are classified as long term liabilities (2006: EUR 7.3 million). The current interest bearing liabilities decreased by EUR 23.2 million. The cash flow from operating activities amounted to EUR 15.7 million. The cash flow from investing activities amounted to EUR -7.2 million. EUR 2.3 million are attributable to the acquisition of minority interests in Group companies. A further EUR 3.7 million result form the increase in tangible and intangible assets. The cash flow from financing activities amounted to EUR –6.0 million. Cash and cash equivalents increased by EUR 2.6 million to EUR 4.7 million on 31. December 2007. Outlook In 2008 we will continue to develop and implement our centralized management model. The introduction of a centralized finance and HR system is also planned. The further optimisation of the franchise concept as well as national adaptation and successful implementation of the concept in all the countries in which we operate are further important goals. The rebranding to one uniform Olympia brand throughout the Group is another key issue, which is planned to be completed by August 2008. The change in the company’s name to Olympia Flexgroup AG is part of this process. We expect the business to continue to develop positively in 2008, depending on general economic developments. Earnings for the first quarter of 2008 will be depressed by a lower number of working days and a number of non-recurring temporary factors, such as the transition to the BZA collective agreement and the establishment of the ESC. The branch network throughout Europe is planned to increase to about 350 offices by the end of 2010. Sales are planned to increase to EUR 550 to 600 million in 2010 and EBIT margin is planned to increase to 4 – 5% of sales. About Allbecon Olympia AG Allbecon Olympia AG is a European personnel services company with operations in seven countries that has its headquarters in Düsseldorf, Germany. The enterprising spirit that is driven by the franchise concept makes Allbecon Olympia a committed partner for its staff and customers. Our objective is to create valuable temporary employment relationships between our employees and our customers. The Allbecon Olympia network consists at the present time of almost 200 offices in Germany, Italy, the Netherlands, Poland, Portugal, Spain and Switzerland, with about 18 000 employees. Allbecon Olympia is listed in the General Standard at Frankfurt Stock Exchange. Press inquiries: Kirchhoff Consult AG Ulla v. Blittersdorff Tel. +49 40 60 91 86 34 Fax +49 40 60 91 86 71 E-mail: ulla.v.blittersdorff@kirchhoff.de 24.04.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Allbecon Olympia AG Zollhof 4 40221 Düsseldorf Deutschland Phone: +49 (0)211 86 29 86-0 Fax: +49 (0)211 86 29 86-99 E-mail: ir@allbecon.de Internet: www.allbecon.de ISIN: DE000A0LBKV8 WKN: A0LBKV Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
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