Sales of EUR 64.2 million and EBIT of EUR 5.5 million – dividend proposal of EUR 0.20

Frank Ladner (CTO), Erwin Greiner (CFO)

Frank Ladner (CTO), Erwin Greiner (CFO)

The figures for 2019 as confirmed by the Supervisory Board and the auditors confirm that the SYZYGY Group generated sales of EUR 64.2 million, representing a slight decline of around 2 per cent compared to the previous year. The core German market again saw solid growth, with sales of approximately EUR 50 million and a very strong EBIT margin of 15 per cent. In contrast, international sales were down EUR 5 million at around EUR 14 million. The restructuring of the UK business had a negative impact of EUR 1.0 million on the financial year.

The Management Board and Supervisory Board have decided to propose a dividend of EUR 0.20 per share for the 2019 financial year at the Annual General Meeting. This represents a substantial cut to the dividend which takes account of earnings performance and the current market environment.

Leading economists believe that the coronavirus pandemic will result in a recession in the markets served by the SYZYGY Group. Changes in our clients’ spending behaviour will lead to a downturn in sales, the extent of which is currently difficult to estimate. Based on the information available to date, SYZYGY AG expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.

 

Bad Homburg, 27 March 2020