Francotyp-Postalia Holding AG, the multi-channel provider for mail communication and the first accredited De-mail provider, again increased its sales and profit for the 2014 financial year according to preliminary calculations. The Management Board and Supervisory Board therefore intend to propose a doubling of the dividend for the last financial year to 16 cents, following on 8 cents in 2013. Hans Szymanski, Spokesman for the FP Group's Board: "We have promised our shareholders regular participation in the company's success. And despite all the challenges, 2014 was a successful year."
Increase in recurring revenues
In a challenging environment the FP Group was able to increase its revenues to EUR 170.4 million in 2014 following EUR 168.9 million in the previous year, according to preliminary calculations. The declining exchange rate of the Euro against the US dollar, especially in the fourth quarter of 2014, led to a neutralisation of the negative exchange rate effects from the first half of 2014.
Recurring revenues increased to EUR 139.4 million compared with EUR 136.9 million the year before. This revenue comes from the consolidation and software business and service, teleporto and consumables for around 234,000 franking machines worldwide as well as the leasing of franking machines. The trend towards leased machines continued unabated in 2014. At EUR 31.0 million, however, revenue from product sales was slightly below the level for the previous year of EUR 32.0 million. Szymanski noted: "Although the growing leasing business requires short-term investments, it does secure our installed base and provides recurring revenues for the medium and long term."
According to preliminary calculations, the company increased its EBITDA result for 2014 to EUR 23.1 million compared with EUR 22.2 million in the previous year. As the result of planned higher depreciation for leased machines, EBIT was EUR 9.9 million following EUR 10.4 million in the previous year. Consolidated net income increased to EUR 5.1 million following EUR 4.9 million in 2013. Free cash flow was EUR -5.3 million, due to planned high investments mostly in leasing markets such as the USA, and the launch of new franking systems,
FP Group anticipates further profitable growth
Notwithstanding continued expansion of the leasing business and the related but declining investments in the traditional business area, the FP Group expects the current financial year's free cash flow to be significantly improved and positive again. At the same time, the company has targeted revenues between EUR 173 and 177 million, and EBITDA of EUR 24 to 25 million. This amount does not yet include any one-time expenses of around EUR 1 million for the realignment of customer service in Germany. Given the growing importance of remote maintenance, which in particular was enabled by the successful introduction of PostBase and the new PostBase Mini, together with declining repairs, the company plans a customer-oriented modernisation of its service operation as announced some time ago.
The FP Group will introduce PostBase Mini in many markets during the current financial year. It is also planned to extend the range of services associated with digital solutions. FP already offers long term archiving and encryption of digital documents, as well as solutions for the use of De-Mail. Szymanski says: "FP combines analogue and digital solutions for mail management and thus opens great possibilities for businesses to optimise their processes. This is the trend of the future. Based on our solid traditional business with franking machines, this gives us considerable potential for profitable growth – and opportunity to pay attractive dividends as a result."
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