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- Preliminary 2016 results: all key figures increase, 100% of targets achieved
- Revenues climbs 6.2% to EUR 203.0 million
- EBITDA improves by 1.6% to EUR 27.2 million
- Consolidated net income increases by 66.5% to EUR 6.2 million
- FP will propose dividend of 16 cents
- Free cash flow of EUR 4.6 million significantly positive
- Further growth in revenues and EBITDA anticipated for 2017
Berlin, 2 March 2017. According to preliminary results, Francotyp-Postalia Holding AG, an expert in secure and efficient communication, saw significant growth in the 2016 fiscal year and exceeded the EUR-200-million revenues mark for the first time. At the same time, the company improved its return on revenues and generated positive free cash flow again. Rüdiger Andreas Günther, CEO of the FP Group, explained: “We saw dynamic growth in 2016 and are showing strength in all divisions.” The company has achieved all its targets for 2016 and even exceeded these in some cases. Günther explained: “Three assumptions have been slowing down our company for years: the market for franking systems is shrinking, FP is unable to achieve further growth in the core business and digitization will happen overnight. All of these assumptions are nothing more than a myth. With the good figures that have been given today, we are showing the potential that lies in our company.”
Growth in the core business with franking systems
According to preliminary results, the FP Group’s revenues rose by 6.2% to EUR 203.0 million in 2016. All divisions contributed to this increase. Revenues with franking systems was driven by higher product sales and improved by roughly 2% to EUR 125.9 million. The company posted higher growth rates in the software business at 4% to EUR 14.2 million. In particular, the Mail Services segment also posted growth of 17% to EUR 62.8 million. Negative exchange rate effects of EUR 2.3 million prevented an even stronger rise in revenues.
Consolidated net income and earnings per share rise significantly
Despite a negative exchange rate effect of EUR 1.1 million, EBITDA improved to EUR 27.2 million compared to EUR 26.8 million in the previous year according to provisional calculations. EBIT rose significantly to EUR 9.7 million after EUR 9.0 million in 2015. According to preliminary results, consolidated net income performed even better and jumped to EUR 6.2 million compared with EUR 3.7 million in the previous year. As a result, earnings per share rose to EUR 0.36 compared with EUR 0.22 in 2015. The Management Board and Supervisory Board therefore intend a dividend of 16 cents per share for the 2016 fiscal year according to the communicated dividend policy. Consolidated net income benefited particularly from an improvement in interest income thanks to higher interest income from finance leases and success with the improvement of the tax rate as part of the FP FIT programme. Günther explained: “We have kept our promises and significantly reduced the high tax rate.”
The increase in free cash flow also underlines the company’s good performance in 2016. According to preliminary results, this control parameter, which is important for the FP Group, improved to EUR 4.6 million after negative free cash flow of -EUR 1.4 million in 2015. Investments in the acquisition of 49% non-controlling interests in IAB and the increase in finance leases to boost sales and retain customers thereby had an impact of EUR 4.9 million on free cash flow.
FP CEO Günther said: “2016 was a good year. But we are going to be even better. We have also set ourselves ambitious goals. Last year, we demonstrated our ability to deliver. In the next two years, we will build the foundations to achieve more profitable growth with our ACT growth strategy and FP FIT.” In November 2016, the company presented its FP FIT measures to the public in order to increase its implementation expertise and efficiency in all areas in addition to the new ACT growth strategy.
FP expects profitable revenues growth
2017 will be shaped by the continued implementation of ACT and FP FIT. Günther explained: “We will not leave one stone unturned. But we will also need time to implement our plans.” This is why the FP Group expects a slight increase in revenues and EBITDA on the assumption that exchange rates remain unchanged. Based on high investments in the modernisation of the product portfolio in previous years, the FP Group expects amortisation and depreciation to rise in 2017. Despite a slight increase in investments for ACT and FP FIT, the company expects an adjusted free cash flow at a similar level to last year. Günther explained: “In the years to come, we will release the forces that drive growth within the FP Group with ACT.” The company aspires to generate revenues of around EUR 250 million and an EBITDA margin of 17% in 2020. At the moment, the EBITDA margin is 13%..
|in million Euro|
|Consolidated net income||6.2||3.7||66.5%|
|Earnings per share|
Free cash flow