Restructuring and group reorganisation are paying off: provisional figures for 2018 indicate that the SYZYGY Group achieved a rise in sales of 8 per cent to EUR 65,3 million. The core German market saw growth of 16 per cent. Operating income was the highest in the company’s history.
Operating income increased by around 48 per cent to EUR 6,1 million. The operating margin improved by 1.5 per cent points, thus approaching the target of 10 per cent. Financial income amounted to EUR 0,5 million, meaning that total net income after taxes will be around EUR 5,0 million (+18%). Earnings per share will be approximately EUR 0.36. The company has liquid funds of EUR 22 million.
Due to the strong cash position, the Management Board and Supervisory Board have decided to propose a dividend of EUR 0.40 per share for the 2018 financial year at the Annual General Meeting scheduled for June 7, 2019. This represents sustained dividend growth over a period of more than ten years.
The positive performance is partly the result of systematically expanding business with existing clients throughout the Group. The level of new business, especially in the 4th quarter of 2018, is another key factor. There were project wins from major companies such as Daimler Financial Services, Deutsche Bahn, Huawei, PayPal, the Polish Football League (PZPN), Porsche and Viega.
“Even though we are slightly below our sales forecast due to Brexit-related exchange rate losses, SYZYGY is on a solid growth path. This is also reflected in the operating margin. Positive integration of our acquisitions is strengthening cross-selling and will boost organic growth in 2019 through significant new business. This year, we will continue to concentrate on our core German business and intensify interdisciplinary cooperation. Our success in 2018 was a strong, cross-discipline team effort and this positive trend is set to continue in 2019,” commented Lars Lehne, Chairman of the Management Board of SYZYGY AG.
The SYZYGY Group will remain focused on expansion in its core German market in 2019, with integration of the service portfolio to create end-to-end solutions playing an important role. In Munich, the company will shortly open the first SYZYGY Campus, where for the first time all disciplines will work together on client projects at one location.
Due to the strong level of new business and high number of enquiries, SYZYGY expects 2019 to see another increase in sales in the high single-digit range. Operating income (EBIT) is expected to rise slightly ahead of sales.
The full annual report for 2018 will be available from March 29, 2019 at http://ir.syzygy.de