BRAIN FORCE HOLDING AG
BRAIN FORCE reports on its positive development in the first half-year 2010/11
BRAIN FORCE HOLDING AG / Key word(s): Half Year Results BRAIN FORCE reports on its positive development in the first half-year 2010/11 BRAIN FORCE HOLDING AG (Vienna Stock Exchange: BFC, Reuters: BFCG), a leading IT service company with business operations in Austria, Germany, Switzerland, Italy, the Netherlands, Czech Republic, Slovakia and the USA reports today about the positive development of the company in the first half of the 2010/11 fiscal year (October 1, 2010 to March 31, 2011). In the second quarter, BRAIN FORCE generated revenue growth of 3% to EUR 16.86 million compared to the prior-year quarter, the first year-on-year increase since 2008. The total revenue of EUR 33.90 million in the first six months of 2010/11 was 9% below the prior-year level. However, this decline is largely attributable to three strategic transactions carried out in the previous fiscal year. On an organic basis revenues only fell slightly by 2% in the first half-year, which is exclusively due to a cash-flow and revenue-oriented policy. ‘Following an economically difficult phase lasting two years, we were able to generate a positive operating EBIT both on a Group level and in all regions’, says CEO Michael Hofer, pleased at the half-year business results announced today. ‘On the one hand, we managed to convert the increased sales pipeline into measureable results and most recently also in revenue growth. On the other hand, the restructuring implemented in the last two years was responsible for the significant improvement in earnings. The free cash flow and order intake also developed in a solid way, which gives me reason for optimism with respect to the upcoming quarters,’ Michael Hofer adds. Due to its rigorous cost management and the implemented restructuring measures, BRAIN FORCE succeeded in improving its operating EBITDA before non-recurring expenses and income by 24% to EUR 1.10 million, despite a revenue decline of EUR 3.50 million in absolute terms (organically/adjusted decline of ‘only’ EUR – 0.78 million). Operating EBIT rose from EUR -0.68 to +0.01 million, and was positive in all regions, both in the first half-year as well as in the second quarter. From an organic perspective, adjusted for changes in the consolidation range, the Group’s operating EBIT could even be improved by close to EUR 1 million. ‘It is gratifying that the improved operating result and the further optimization of working capital enabled our cash flow from operating activities to rise by EUR 3.52 to 2.25 million’, says CFO Thomas Melzer, emphasizing the positive development. The free cash flow amounted to EUR 1.62 million in the first half-year, enabling the company to reduce the net debt to EUR 7.63 million and increase its cash position to EUR 4.53 million. Equity of the BRAIN FORCE Group as at March 31, 2011 totaled EUR 18.55 million, and the equity ratio was at a solid level of 37%. The target of the BRAIN FORCE Group for the 2010/11 fiscal year remains unchanged, i.e. to generate a positive operating result. ‘The developments in the first half-year show that we are on the right track to achieve this goal. This assessment is supported by the current order volume of EUR 19.42 million, considerably higher than in the previous periods. I assume that the recent positive development of the company should ultimately also be reflected in the price of the BRAIN FORCE share’, Michael Hofer concludes. The First Half-Year Report is immediately available for downloading on the company’s Website at www.brainforce.com.
1- Adjusted for non-recurring expenses and income Note: No non-recurring expenses or income arose in the first half-year 2010/11, whereas restructuring expenses of EUR 1.97 were incurred in the comparable prior-year period, and a book gain of EUR 6.33 million was reported. These effects are not included in the operating results (operating EBITDA and EBIT). This explains the EBITDA decline in the first six months from EUR 5.25 to 1.10 million, and the EBIT drop from EUR 3.68 to 0.01 million. End of Corporate News 12.05.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | BRAIN FORCE HOLDING AG | |
Karl-Farkas-Gasse 22 / 4. OG | ||
A-1030 Wien | ||
Österreich | ||
Phone: | +43 (0) 1 2630909-0 | |
Fax: | +43 (0) 1 2630909-40 | |
E-mail: | investorrelations@brainforce.com | |
Internet: | www.brainforce.com | |
ISIN: | AT0000820659 | |
WKN: | 919331 | |
Listed: | Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) | |
End of News | DGAP News-Service |
123757 12.05.2011 |