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KPS AG publishes Annual Report 2015/2016 – sales and earnings once more at record level

Unterföhring/Munich, 31 January 2017 – KPS AG presents its Annual Report for the year 2015/2016 today. Final Group figures confirm the provisional figures published on 16 January 2017. The sales threshold of 140 million euros was significantly exceeded. Consolidated sales rose to 144.9 million euros (previous year 122.9 million euros). Group EBIT went up to 22.3 million euros (previous year 18.6 million euros). Equity ratio at 61.4 % (previous year 58.0 %). Dividend proposal of 33 eurocents per share (previous year 30 cents). 

KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Germany’s leading management consulting firm for business transformation and process optimization, succeeded in significantly outperforming its own objectives by breaking through the sales threshold of 140 million euros in the business year 2015/2016 and once again achieving record figures for sales and earnings.

According to the audited results for the past business year, consolidated sales increased to 144.9 million euros (previous year 122.9 million euros). The value for the previous year was therefore exceeded by 22 million euros or 17.9 %.

The increase in Group EBIT was even more striking. The operating result before interest and taxes (Group EBIT) also achieved a record value at 22.3 million euros (previous year 18.6 million euros) and went up by 3.7 million euros or 19.9 % compared with the previous year. The EBIT margin was therefore further improved from 15.1 % to 15.4 %. In the business year 2015/2016, 1.5 million euros were capitalized for own work. The Group net result rose to 19.3 million euros during the year under review after the year-earlier amount of 18.0 million euros. The earnings per share also rose to 0.55 euros (previous year 0.53 euros) as a consequence.

The average utilization rate of KPS consultants stabilized to a very high level at virtually 100 % over the entire business year 2015/2016. This meant that the already excellent capacity utilization from the previous year was once again achieved. In a sector comparison, KPS ranks among the absolute leaders in the field with this rate. The order backlog along with incoming orders were consistently stabilized during the year under review. The current order volume therefore has an estimated scope of around 18 months subject to the assumption that the current projects generally projected over several years are completed in accordance with the contractual terms.

Internationalization and digital transformation projects define the business year

The acquisition of transformation projects with prestigious customers from retail and the consumer goods industry have made a significant contribution to the positive sales and results of operations. “We have know-how, processes and technologies based on our sector focus in our “toolbox”. These enable our customers to roll out digital transformation projects fast. After projects have been successfully completed, clients are in a position to remain agile, and respond efficiently and rapidly to new challenges. The progress in implementing our strategy of internationalization and the consistent industrialization of our innovative consulting approach were undoubtedly the two most important highlights of the past year,” commented Leonardo Musso, Member of the Executive Board of KPS AG.

Strong financial platform for additional growth

On 30 September 2016, liquid assets amounted to 12.6 million euros (previous year 6.5 million euros). During the course of the business year 2015/2016, the equity ratio (Group) improved to the current level of 61.4 % (previous year 58.0 %). This puts KPS on an outstanding financial platform for further growth.

Outlook: KPS plans further growth in the business year 2016/2017

KPS AG has made a successful start to the business year 2016/2017. The sales and earnings performance continued to be successful during the first quarter of the new business year. Against this background, the Executive Board and the Management of KPS assess the situation of the company as being very positive overall. The Executive Board anticipates an increase in Group sales to a projected figure of 160 million euros and an EBIT of 25 million euros in the current business year 2016/2017

The forecast is based on facts and projections about future business and economic developments known to us today, and there is a risk that the projected sales and earnings targets may not be achieved if there are any destabilizing factors.

Dividend proposal increased by 10 % per share

On the basis of successful performance during the business year 2015/2016 and the positive development during the first quarter of the current business year, the Supervisory Board and the Executive Management will propose to the Annual General Meeting being held on 7 April 2017 the appropriation of a dividend amounting to 33 eurocents per share (previous year 30 eurocents per share).

The complete Annual Report 2015/2016 can be downloaded from the Internet at https://www.kps.com.

Unterföhring, 31 January 2017

The Executive Board

About KPS

KPS is Europe’s leading management consulting firm for business transformation and process implementation in the retail and wholesale industries. The company offers end-to-end strategy and process consulting, with long-standing implementation expertise in ERP, e-commerce and CRM. KPS customers profit from the vast project experience and deep sector knowledge of its consultants, enabling them to drive omnichannel and digital transformation projects in particular to rapid success. With its proprietary Rapid Transformation® methodology, KPS has cut project turnaround times by up to 50 percent and set new standards in efficiency and transparency.

Founded in 2000, KPS employs about 700 consultants at its corporate headquarters in Munich with five additional locations throughout Germany and branch offices in Denmark, the Netherlands, Switzerland and the US. KPS plans to expand its market position in the retail and consumer goods sectors in the coming years through pioneering projects in all aspects of digital transformation.

For more information, see www.kps.com.

Important note: This notification contains forward-looking statements based on the assumptions and estimates of the corporate management of KPS AG. Although management is of the opinion that these assumptions and estimates are accurate, actual future developments and results may differ considerably from these assumptions and estimates due to a variety of factors. These factors may include things such as changes in the overall economic environment, exchange rates and interest rates as well as changes in both the market and the competitive environment. KPS AG provides no guarantee and accepts no liability for future developments and the actual results achieved in the future matching the assumptions and estimates expressed in this interim report.

KPS AG
Betastrasse 10H
85774 Unterföhring
Germany
Tel.: +49 (0) 89 356 31-0
Fax: +49 (0) 89 356 31-3300
Email: isabel.hoyer@kps.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Freihamerstrasse 2
82166 Gräfelfing/Munich
Germany
Tel.: +49 (0) 89 898 272-27
Email: sh@crossalliance.de