DGAP-News: QSC expects double-digit revenue growth in 2020
DGAP-News: QSC AG
/ Key word(s): Preliminary Results/Forecast
QSC expects double-digit revenue growth in 2020 - Revenues budgeted to rise by at least 13% to more than € 143 million Cologne, 2 March 2020. QSC AG is pressing ahead with its successful development by concentrating on SME digitalisation and with key focuses on Cloud, SAP and IoT applications. Since selling its telecommunications business in the middle of 2019, the Company has consistently increased its revenues from quarter to quarter. As already announced on 3 February 2020, QSC met all of its targets forecast for the 2019 financial year: Revenues amounted to € 238.0 million, EBITDA to € 140.3 million and free cash flow to € 136.4 million. The successful sale of Plusnet as of 30 June 2019 led to extraordinary income and an inflow of liquidity. Following this sale, the Company fundamentally revised and updated its planning. Based on preliminary calculations, this resulted in a goodwill write-down of € 14.2 million. Furthermore, the new planning led to a deferred tax charge expected to amount to € 8.8 million. Based on preliminary calculations and accounting for these factors, consolidated net income amounted to € 73.5 million. The Management Board will propose the distribution of a dividend of 3 cents per share once again for approval by the Annual General Meeting on 20 May 2020. In the current financial year, QSC is continuing to consistently implement its "2020plus" growth strategy. Based on strong new orders figures, the Company has budgeted revenue growth of at least 13% to more than € 143 million. At the same time, it will continue to invest in its future growth, develop new digital services and recruit additional software experts and further S/4HANA specialists. The Company has therefore budgeted EBITDA of up to € -5 million and a free cash flow of up to € -16 million. QSC will generate sustainably positive EBITDA from the fourth quarter of 2020 once again. One important aspect of the "2020plus" growth strategy also involves a clear focus on the three key industries of retail, manufacturing and energy. Company CEO Jürgen Hermann names the targets for this strategy: "In 2022, QSC will generate revenues of € 200 million, a sustainably positive free cash flow and an EBITDA margin of more than 10%". High new orders create superb basis for substantial revenue growth The growth budgeted for the current financial year is particularly based on growth in Cloud Services, the introduction of SAP S/4HANA and the use of sensor technology in IoT solutions. The new orders of € 133 million received in the 2019 financial year provide a strong foundation for the expected double-digit revenue growth, not least as 75% of revenues are recurring. QSC is increasingly offering its solutions on an "as-a-service" basis. "That enables us to grow our business quickly and also makes it scalable. And that scalability is exactly what we aim to expand further", stressed the CEO. QSC particularly aims to boost its software and technology competence, not least by making targeted acquisitions, and is currently reviewing further investments in start-ups and established specialists. The Company acquired a stake in aiXbrain, a specialist for deploying artificial intelligence in industry, in November 2019 already. The most important key figures for the 2019 financial year*
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02.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | QSC AG |
Mathias-Brüggen-Straße 55 | |
50829 Cologne | |
Germany | |
Phone: | +49-221-669-8724 |
Fax: | +49-221-669-8009 |
E-mail: | [email protected] |
Internet: | www.qsc.de |
ISIN: | DE0005137004 |
WKN: | 513700 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 986853 |
End of News | DGAP News Service |
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986853 02.03.2020