SNP SE achieves double-digit growth: acquisitions support growth

SNP SE achieves double-digit growth: acquisitions support growth

SNP SE recorded a significant increase in sales after nine months of the current financial year. […]

SNP SE, (ISIN: DE0007203705), a leading global provider of solutions for digital transformation processes and software-based data migrations, recorded a significant increase in sales after nine months of the current financial year.

Thereafter, Group sales increased by 14.5% year-on-year to EUR 121.7 million (9M 2020: EUR 106.3 million). The Service segment in particular contributed significantly to this growth. In addition, the acquisitions of the two Heidelberg companies EXA AG and Datavard AG, which are initially assigned to this segment, had a positive impact.

Despite the high level of the previous year, the Software segment, which was able to benefit significantly from large-volume partnership agreements in the previous year, again grew by 3.5% and thus increased sales to € 36.7 million (9M 2020: € 35.5 million). The Group’s operating result (EBIT) improved to EUR 1.8 million in the same period (9M 2020: EUR 0.3 million). In addition to the increased sales level, the improvement is also due to consistent cost management. At €-0.6 million, the result for the period remained at the previous year’s level (9M 2020: € -0.6 million).

“We are pleased with the increasing sales growth, which reflects our operational clout and underlines that we are on the right track overall,” says Michael Eberhardt, CEO of SNP SE. “We are entering the last quarter of the year with a high order backlog and are confident of achieving our full-year targets as planned.“

Order intake declined by -5.8% to 131.6 in the nine months of the current financial year (9M 2020: € 139.7 million). This includes € 7.7 million from the acquisitions of EXA AG and Datavard AG. Organically, the value fell by -11.3%. The decline is mainly due to large-volume partnership agreements concluded last year and the high level of the previous year. Since the beginning of the year, new partnerships have mostly been concluded without a predefined volume, so that sales and earnings contributions from these contracts will only be recognized in earnings later. This leads to a corresponding time shift in order intake as well.

The Software segment accounts for €43.6 million or around 33% of order intake (9M 2020: €57.3 million or around 41%). This corresponds to a decline of around -24% and results from a strong prior-year period in which various partnership agreements with multi-year software quotas were concluded. The acquisitions of EXA AG and Datavard AG contributed €2.0 million to order intake in the Software segment.

The Service segment accounts for €88.0 million or around 67% of order intake (9M 2020: € 82.4 million or around 59%), which corresponds to an increase of 7%. This includes € 5.7 million from the acquisitions of EXA AG and Datavard AG. Since the business model of EXA is essentially software-related services, the segment assignment is currently under review.

The order backlog as of September 30, 2021 was € 135.5 million; after € 110.8 million as of December 31, 2020. Of this, a total of € 12.3 million is attributable to the acquisitions of EXA AG and Datavard AG.

As of September 30, 2021, the number of employees in the SNP Group increased to 1,762, which is primarily due to the consolidations of Datavard AG and EXA AG; as of December 31, 2020, there were a total of 1,463 employees.

Forecast concretized

Management has specified the previous forecast for the full year 2021 and now expects consolidated sales in the range of € 170 million to € 180 million (previously € 170 million to € 190 million) and EBITDA between € 18 million and € 22 million (previously € 18 million to € 24 million). Management has also specified the forecast EBIT margin to between 5% and 7% (previously between 5% and 8%), taking into account the effects of purchase price allocation (PPA depreciation). Order intake in 2021 is expected to remain well above the previous year.

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