DGAP-News: SNP Schneider-Neureither & Partner SE
/ Key word(s): Annual Results/Annual Report
SNP Significantly Increases Revenue and Earnings in Fiscal Year 2021
- Group revenue in 2021 grows by 16% to EUR 167 million (2020: EUR 143.8 million)
- EBIT rises significantly to EUR 6.3 million (2020: EUR 0.8 million), EBIT margin increases by more than 3 percentage points
- Outlook for 2022: Increase revenue to between EUR 170 and 190 million and improve EBIT to between EUR 10.5 million and EUR 13 million
- Strategy program ELEVATE as a driver for profitable growth: Revenue is expected to grow to more than EUR 230 million by 2024, and the EBIT margin is expected to increase by more than 10 percentage points by 2024 compared with 2021
"The past fiscal year once again highlighted the central importance of digital transformation processes for the long-term success of companies. By developing into an innovative software company that offers additional solutions beyond digital data transformation in the areas of data management and data analytics, we are ideally positioned in this regard. The corresponding growth potential is also reflected in our positive medium-term outlook," says Michael Eberhardt, CEO of SNP SE.
Significant sales and earnings growth with successful implementation of software and partner strategy
Group revenue increased by 16.1% to EUR 167.0 million (2020: EUR 143.8 million). Of this, service revenues accounted for EUR 115.8 million or approx. 69% (2020: EUR 93.9 million or approx. 65%). At EUR 51.2 million, software revenues accounted for around 31% of group revenue (2020: EUR 49.9 million or approx. 35%). Earnings before interest and taxes (EBIT) reached EUR 6.3 million and were therefore many times higher the previous year's figure of EUR 0.8 million. The EBIT figure includes non-recurring expenses from M&A activities, exceptional legal matters, and acquisition-related amortizations of around EUR 5 million in total. As a result of the positive development of earnings, the EBIT margin also increased and reached 3.8%, compared with 0.6% in the previous year. Net income for the period rose less steeply by EUR 2.4 million to EUR 0.6 million. This is attributable to the non-recognition of deferred tax assets on losses carried forward and the amortization of deferred tax assets, primarily in the USA.
SNP successfully drove forward its software and partner strategy in fiscal year 2021. In the case of software revenues, shifts in revenue occurred, because SNP has started to conclude new contracts with partner companies exclusively without pre-agreed software quotas and without recognizing the revenue and earnings. As a result, unlike various partnership agreements in the past, the order entry and revenue no longer apply immediately after the partnership agreement is concluded, but only when the specific projects are sold to the end customer.
At EUR 192.1 million, order entry was around 4% above the previous year: EUR 128.4 million was attributable to the Service segment, EUR 57.3 million to the Software business, and EUR 6.4 million to the EXA segment. This order entry growth was especially driven by the software and partner strategy, which continues to gain market acceptance. SNP has also further expanded its global partner network. SNP now maintains contractual relationships with 37 partner companies, accounting for around 30% of the order entry in 2021.
SNP is also very well positioned in terms of capital. Compared with the end of the previous year, equity capital increased by EUR 14.5 million to EUR 102.2 million. Due to a disproportionate increase in the balance sheet total, the equity ratio reached 38.4% (2020: 42.4%).
Outlook for 2022: significant increase in revenue and EBIT margin
SNP expects positive business development in fiscal year 2022. The company expects revenues of between EUR 170 million and EUR 190 million compared with like-for-like revenues in 2021* of around EUR 160 million. Both software and service revenues are expected to contribute to this growth. With regard to the operating result, SNP expects EBIT to increase to between EUR 10.5 million and EUR 13 million (2021: EUR 6.3 million). EBITDA will increase at a higher rate than EBIT in absolute terms, mainly due to the amortization of intangible assets that were added as a result of the acquisitions made in 2021 (PPA amortization).
Strategy program ELEVATE accelerates growth and improves profitability
The SNP Group will use 2022 to continue its growth path, expand its software platform and enhance its offerings in the areas of data analytics and data management. By launching the new strategy program ELEVATE, SNP is setting the course for the medium and long-term success of the company.
The key aspects of ELEVATE are:
- Developing the company's leading position in the core transformation market
- Expanding the addressable market (portfolio and technology)
- Establishing long-term customer relationships with recurring revenues
- Achieving scalable software growth through the partner business
- Sustainably improving operating efficiency in all areas of the company
By implementing ELEVATE, the company aims to increase revenue to more than EUR 230 million by 2024. The EBIT margin is expected to increase by more than 10 percentage points by 2024 compared with 2021.
Publication of Annual Report and Compensation Report
The Annual Report 2021 and the Compensation Report 2021 are available on our website at https://www.snpgroup.com/en/financial-publications.
Details on our strategy program ELEVATE are available on our website at https://www.snpgroup.com/hubfs/Presentation_Forecast_2022_2024.pdf?hsLang=de.
* As a pro forma figure, the 2021 like-for-like revenue differs from the revenue reported for 2021 in the consolidated statement of income by adding the revenue generated by Datavard and EXA in 2021 prior to their respective acquisition dates (EUR 12.5 million) and removing the revenue generated by SNP Poland in 2021 prior to its sale (EUR 19.5 million).
SNP is a world-leading provider of software for managing complex digital transformation processes. Instead of traditional IT consulting in the ERP environment, SNP offers an automated approach using specially developed software: The Data Transformation Platform CrystalBridge(R) and the SNP BLUEFIELDTM approach allow companies to restructure and modernize their IT landscapes much more quickly and securely as well as migrate to new systems or cloud environments more securely. This gives customers clear qualitative advantages while at the same time reducing their time and costs.
The SNP Group has around 1,350 employees worldwide. The company is headquartered in Heidelberg, Germany, and generated revenues of EUR 167.0 million in the 2021 fiscal year. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705).
More information is available at www.snpgroup.com
Contact person at SNP:
30.03.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||SNP Schneider-Neureither & Partner SE|
|Speyerer Str. 4|
|Phone:||+49 6221 6425 637, +49 6221 6425 172|
|Fax:||+49 6221 6425 20|
|Listed:||Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1314975|
|End of News||DGAP News Service|