Nine-month results for S&T AG: successfully on plan

Dienstag 05. November 2013

Austria

S&T AG (www.snt.at) has performed according to plans during the first nine months of financial year 2013.
Revenues for the third quarter came to EUR 80.7 million (previous year: EUR 74.1 million)
Larger new orders total leads to expectation of strong fourth quarter and of growth in 2014

S&T AG (www.snt.at) has performed according to plans during the first nine months of financial year 2013. Revenues for the third quarter came to EUR 80.7 million (previous year: EUR 74.1 million), raising the nine-month total to EUR 238.3 million (previous year: EUR 232.3 million).

Cost-cutting measures undertaken manifested themselves in the figures on results. EBITDA for the third quarter came to EUR 4.4 million (previous year: EUR 3.7 million), bringing the nine-month total to EUR 12.5 million (previous year: EUR 10.9 million). Consolidated income in the third quarter increased to EUR 2.1 million (previous year: EUR 1.8 million), boosting the results for the first three quarters to EUR 6.2 million (previous year: EUR 5.2 million). These results expressed themselves in the key indicators of profitability, which registered growth of between 15% and 19% vis-à-vis the previous year. The weak margins prevailing in the Products business depressed the third quarter's overall gross margin and results. These margins resulted from individual commissions. Corresponding effects are not expected to persist in the fourth quarter. The third quarter was also encumbered by the costs of introduction of SAP at “legacy Quanmax”. The Appliances segment more than met the targets set for it. It registered a net income of EUR 5.3 million (previous year: EUR 2.9 million). This rise was attributable to increases in the gross margins borne by proprietary-developed “software as a product” items. This success was accompanied by the lackluster revenues achieved from appliances themselves. The Services segment was able to return to form. The segment registered in the third quarter a EUR 2.5 million (4.7%) rise in business done in eastern Europe.

The assets, financial and liquidity situation of the company remained stable. As of September 30, 2013, S&T's liquid funds came to EUR 34.2 million (31.12.2012: EUR 29.9 million). The equity increased to EUR 66.5 million (31.12.2012: EUR 64.0 million).

At EUR 94 million, S&T's orders on hand were up 19% over those at September 30, 2012. Management is maintaining its forecast for financial year 2013 as a whole: that consolidated income will rise 25%. This will be accompanied by a slight rise in revenues. The orders pipeline came to EUR 301 million as of September 30, 2013, an increase of 40% over the previous year's EUR 204 million. Caused by the NSA wiretapping scandal, increasing concerns as to the security of data are enlivening business. The company is set to register another year of strong growth in 2014.