Nemetschek: Earnings per share up by 35 %
"The favorable business figures show that we are pursuing the right strategy. International growth and the expansion of our technology leadership are the most important aspects", said CEO Gerhard Weiß at today's press briefing on annual results. Nemetschek has further expanded its position abroad and, among other things, convinces with innovations in the areas of determining quantities and costs and mobile solutions.
The company's shareholders are also to benefit from the positive development at Nemetschek. The managing board and supervisory board will propose a dividend payment of 0.65 euros at the annual general meeting on May 23, 2006.
Strong growth in foreign sales
In 2005, sales improved to 98.8 million euros (previous year: 96.6 million euros). Q4, which is traditionally strong in terms of sales, accounted for approximately 30 % of overall sales for the year. International sales rose by 9.2 % to 52.4 million euros (previous year: 48.0 million euros). In the past fiscal year, Nemetschek achieved about 53.0 % of its sales with customers outside Germany - primarily in western European countries and North America. Domestically, Nemetschek generated sales of 46.4 million euros (previous year: 48.6 million euros).
In the Design business unit, sales were 74.1 million euros (previous year: 71.6 million euros). With around three-quarters of the group's sales, Design is the largest business unit in the Nemetschek group and has its own sales companies and partners in a total of 142 countries. Sales of 12.6 million euros were achieved in the Build business unit (previous year: 12.5 million euros), and 5.5 million euros in the Manage business unit (previous year: 6.5 million euros). In the New Business Opportunities (Multimedia) business unit, sales increased to 6.5 million euros (previous year: 6.0 million euros).
Sharp rise in operating result and net income
Rising sales and stable costs in 2005 led to a better operating result of 13.1 million euros (previous year: 7.8 million euros). Goodwill amortization amounting to 3.2 million euros did not apply in 2005 due to the changed accounting regulations IFRS 3. The operating result before goodwill amortization (EBITA) in 2005 amounted to 13.1 million euros (previous year: 11.0 million euros, +18.6 %). Net income (group shares) rose by 34.7 % to 11.7 million euros (previous year before goodwill amortization: 8.7 million euros). The earnings per share thus amount to 1.21 euros (previous year before goodwill amortization: 0.90 euros).
Equity ratio: far above average at 59.5 %
In the 2005 fiscal year, the Nemetschek group once again achieved a very positive cash flow for the period. It amounted to 17.3 million euros (previous year: 15.7 million euros). Following a dividend payment of 19.3 million euros in May 2005, the liquid assets at the end of the year were 29.0 million euros (previous year: 39.0 million euros). The balance sheet structure is also very solid. The equity ratio remained at the very high level of 59.5 % (previous year: 68.5 %).
Market: growth through innovations
The managing board attributes the success of the past years primarily to Nemetschek's technology leadership. "Information technology from Nemetschek supports the entire life cycle of buildings and real estate and all the associated business processes. These seamlessly tailored IT solutions are our unique selling point. Nemetschek is thus the strategic IT partner for all companies confronted with the complex processes in the construction and real estate industry", explained Weiß. The new 2006 product generation is on the market - including Allplan, Germany's most widely-used design software (CAD) and forward-looking solutions for more efficient costing. Furthermore, the company has developed new mobile solutions, which have already won innovation prizes at international exhibitions such as BATIMAT in Paris. Gerhard Weiß: "With these innovations we are establishing the foundations for further growth".
Shareholders: ongoing dividend policy
For the second time in a row, Nemetschek wants to pay a dividend to its shareholders and thus have them participate in the positive development of the fiscal year. The managing board and supervisory board will propose a dividend payment of 0.65 euros at the annual general meeting on May 23, 2006. "In future too, Nemetschek plans to include shareholders in the success of the company with ongoing dividend payments", says CEO Gerhard Weiß. The success of the company is also reflected in the share price: between the beginning of 2005 and today the share price has risen by almost 70 %. Berenberg Bank, HypoVereinsbank and Sal. Oppenheim have been publishing regular analyst reports covering Nemetschek stock since 2005. All three institutions recommend the purchase of the share.
Outlook: Further internationalization and acquisitions
According to experts, demand in the software industry in the field of AEC (Architecture, Engineering, Construction) is set to rise worldwide. "We will exploit these favorable underlying conditions to bring Nemetschek further forward. Our aim is to achieve sales in excess of 100 million euros in 2006 and an EBITDA margin of 20 %", explained Gerhard Weiß. Liquid assets from operative activities are to rise by 10 million euros per year. On an international level, the group is striving for more growth, in particular at Nemetschek North America, the western and eastern European subsidiaries as well as at MAXON.
In the coming years, further acquisitions, particularly in the Manage business unit, and strategic partnerships will follow. Weiß: "This year, we will consistently pursue our strategy of the past months." The acquisition of the Belgian SCIA International in February 2006 is an important step towards more internationalization. Since then, Nemetschek is number one in Europe for integrated civil engineering software (CAD / CAE). With the purchase of the remaining 25 % in the Austrian ING.AUER - Die Bausoftware GmbH in fiscal 2005, Nemetschek rounded out its profile in the Build business unit.
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