Munich, 02 February 2018 – KPS AG publishes its Annual Report for 2016/2017 today along with information about the forecast for 2017/2018. Group sales increase in the business year 2016/2017 to 160.3 million euros (previous year: 144.9 million euros). Group EBIT goes up to 24.8 million euros (previous year: 22.3 million euros). The equity ratio is 64.3 % (previous year: 61.4 %). Dividend proposal per share goes up by 6 % to 35 eurocents (previous year: 33 eurocents).
KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Germany’s leading management consulting firm for business transformation and process optimization exceeded the sales threshold of 160 million euros in the business year 2016/2017 and again grew faster than the market. The high level of dynamic growth, particularly derived from new projects abroad, results from the acquisition of additional market shares. The strong industry focus and the high pace of implementation by the Rapid Transformation Method provided the growth drivers for the group of companies also in the business year 2016/2017.
On the basis of the audited results for the business year 2016/2017, Group sales rose to 160.3 million euros (previous year 144.9 million euros). The previous year-figure was, therefore, exceeded by 15.4 million euros or 10.6 %. This increase is primarily due to the acquisition of transformation projects with major customers from retail and the consumer goods industry. The operating result before interest and taxes (Group EBIT) increased by 11.2 % or 2.5 million euros to 24.8 million euros compared with 22.3 million euros in the previous year.
The average utilization rates for KPS consultants continued to remain stable at a very high level of nearly 100 % during the business year 2016/2017. On a sector comparison, KPS ranks among the absolute leaders with this outstanding rate. The order-backlog along with incoming orders were consistently strengthened during the reporting period. The current order volume therefore has an estimated scope of around 18 months, subject to the assumption that the current projects generally projected over several years are completed in accordance with the contractual terms.
Internationalization as growth driver
With the acquisition in Scandinavia in the year under review and the acquisition in Spain, which took effect in the current financial year 2017/2018, the KPS Group has succeeded in further expanding its leading market position in Europe in the area of business transformation and process implementation for retail and the consumer goods industry.
“By combining the best aspects of both the digital and analog worlds, we help our customers to take their business model to the next level of industrialization: broad-based digitalization. Our track record over recent years demonstrates that we occupy an outstanding position in the marketplace with our clear sector focus and our rapid pace of implementation. This success is evidenced by continuous growth in sales and earnings above-market average. Alongside the German-speaking region of Germany, Austria and Switzerland (DACH region), successes in driving our internationalization strategy forward have also played a role. Soon we will have had a presence in Scandinavia for ten years, and we are very proud of the consistent consolidation of our position there last year and the complementary expansion in Spain at the beginning of the current business year,” commented Leonardo Musso, Board Member of KPS AG.
Robust financial structure results of operations
On 30 September 2017, liquid assets amounted to 6.7 million euros (previous year 12.6 million euros) due to investments in fixed assets and acquisitions of companies. The Group equity ratio improved to 64.3 % (previous year: 61.4 %) during the business year 2016/2017. This provides KPS with a very good financial platform for additional organic growth and acquisitions.
Outlook: KPS is committed to further acquisitions and expansion of personnel in 2017/2018
KPS AG made a successful start to the new business year. The performance of sales and earnings was in line with expectations in the first quarter of 2017/2018. Against this background, the Executive Board and the Management of KPS have an overall positive assessment on the position of the Group. Based on the current plans of the company, the Executive Board expects an increase in sales to a projected figure of 160-170 million euros and EBIT of 23–26 million euros for the current business year 2017/2018. To this end, comprehensive investments in the area of personnel expansion and career development are planned.
Dividend proposal increased by 6 % per share
On the basis of the successful development in the business year 2016/2017 and the positive business performance in the first quarter of 2017/2018, the Supervisory Board and the Executive Board will propose to the Annual General Meeting on 23 March 2018 the payment of a dividend amounting to 35 eurocents per share (previous year: 33 eurocents per share).
The complete Annual Report 2016/2017 is available for download on the Internet at www.kps.com. The figures for the first quarter 2017/2018 will be published on 16 February 2018.
The press release contains forward-looking statements which are based on certain assumptions and estimates made by the company management of KPS AG. Even if the company management is of the opinion that these assumptions and estimates are appropriate, the actual future development and the actual future results may deviate substantially from these assumptions and estimates on account of a variety of different factors. These factors may include, for example, changes in the macroeconomic situation, exchange rates, interest rates, and changes in market development and changes in the competitive situation. KPS AG does not guarantee that the actual results achieved in future will be in accordance with the assumptions and estimates made in this press release and does not assume any liability in this respect.