“Following an economically difficult phase lasting two years, we were able to generate a positive operating EBIT both on a Group level and in all regions“, says CEO Michael Hofer, pleased at the half-year business results announced today. “On the one hand, we managed to convert the increased sales pipeline into measureable results and most recently also in revenue growth. On the other hand, the restructuring implemented in the last two years was responsible for the significant improvement in earnings. The free cash flow and order intake also developed in a solid way, which gives me reason for optimism with respect to the upcoming quarters,“ Michael Hofer adds.
Due to its rigorous cost management and the implemented restructuring measures, BRAIN FORCE succeeded in improving its operating EBITDA before non-recurring expenses and income by 24% to € 1.10 million, despite a revenue decline of € 3.50 million in absolute terms (organically/adjusted decline of “only” € - 0.78 million). Operating EBIT rose from € -0.68 to +0.01 million, and was positive in all regions, both in the first half-year as well as in the second quarter. From an organic perspective, adjusted for changes in the consolidation range, the Group’s operating EBIT could even be improved by close to € 1 million.
“It is gratifying that the improved operating result and the further optimization of working capital enabled our cash flow from operating activities to rise by € 3.52 to 2.25 million”, says CFO Thomas Melzer, emphasizing the positive development. The free cash flow amounted to € 1.62 million in the first half-year, enabling the company to reduce the net debt to € 7.63 million and increase its cash position to € 4.53 million. Equity of the BRAIN FORCE Group as at March 31, 2011 totaled € 18.55 million, and the equity ratio was at a solid level of 37%.
The target of the BRAIN FORCE Group for the 2010/11 fiscal year remains unchanged, i.e. to generate a positive operating result. “The developments in the first half-year show that we are on the right track to achieve this goal. This assessment is supported by the current order volume of € 19.42 million, considerably higher than in the previous periods. I assume that the recent positive development of the company should ultimately also be reflected in the price of the BRAIN FORCE share”, Michael Hofer concludes.
The First Half-Year Report is immediately available for downloading here.
Earnungs data | H1 2010/11 | H1 2009/10 | Chg. | ||
| in % | |||||
| Revenues | € million | 33.90 | 37.40 | -9 | |
| Operating EBITDA 1) | € million | 1.10 | 0.89 | +24 | |
| EBITDA | € million | 1.10 | 5.25 | -79 | |
| Operating EBIT 1) | € million | 0.01 | -0.68 | >100 | |
| EBIT | € million | 0.01 | 3.68 | -100 | |
| Profit before tax | € million | -1.49 | 2.49 | >100 | |
| Profit after tax | € million | -1.55 | 2.24 | >100 | |
| Employees (average) | 712 | 845 | -16 | ||
Balance sheet data | 31.3.2011 | 30.9.2010 | Chg. | ||
| in % | |||||
| Equity | € million | 18.55 | 20.11 | +4 | |
| Net debt | € million | 7.63 | 9.04 | +60 | |
| Equity ratio | % | 37 | 39 | - | |
| Gearing | % | 41 | 45 | - |
1) Adjusted for non-recurring expenses and income
Note: No non-recurring expenses or income arose in the first half-year 2010/11, whereas restructuring expenses of € 1.97 were incurred in the comparable prior-year period, and a book gain of € 6.33 million was reported. These effects are not included in the operating results (operating EBITDA and EBIT). This explains the EBITDA decline in the first six months from € 5.25 to 1.10 million, and the EBIT drop from € 3.68 to 0.01 million.
Download First Half-Year Report 2010/11