DGAP-Adhoc: GESCO exceeds targets in 2012/2013, plans more cautiously for 2013/2014 and looks to make significant investments

Gesco AG / Key word(s): Final Results

11.06.2013 07:20

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Wuppertal, 11 June 2013 - GESCO Group, an association of industrial SMEs in
the fields of tool manufacturing/mechanical engineering and plastics
technology, reported today at its accounts press conference that financial
year 2012/2013 (1 April 2012 to 31 March 2013) had been a success,
presented more cautious planning for the new financial year 2013/2014 and
revealed its plans to make significant investments.

Business at most Group companies remained at a high level in 2012/2013
despite a slowdown in demand in the second half of the year. The portfolio
was expanded considerably in the reporting year on account of the
acquisition of three new companies; one company was sold. At EUR 439.4
million, incoming orders were nearly on par with the figure in the previous
year's period. Group sales rose by 6.0 % to EUR 440.4 million (previous
year: EUR 415.4 million). While the material expenditure ratio declined,
the personnel expenditure ratio and the share of other operating
expenditure increased. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) grew slightly by 1.1 % to EUR 51.8 million (EUR 51.2
million). Due to considerable investments in previous years as well as the
effects of the first-time consolidation of the newly acquired companies,
depreciation and amortisation rose far more rapidly than sales, reaching
EUR 14.4 million (EUR 12.1 million). As a result, earnings before interest
and taxes (EBIT) fell to EUR 37.3 million (EUR 39.1 million). With a
virtually unchanged financial result of EUR -3.5 million (EUR -3.4
million), a slightly higher taxation rate and lower minority interest,
Group net income for the year after minority interest reached EUR 20.9
million (EUR 22.5 million). The previous year's figure contained a positive
one-off effect of around EUR 0.7 million that naturally did not recur.
Earnings per share amounted to EUR 6.30. The previous year's figure of EUR
7.40 had been based on a significantly lower weighted average number of
shares due to a nearly 10 % increase in share capital at the end of
February 2012, shortly before the conclusion of the financial year.

The increase in the Group's workforce from 1,899 to 2,292 employees was
mainly due to the changes in the scope of consolidation.

Thanks to these figures, GESCO Group slightly exceeded its targets most
recently confirmed in February 2013. In line with the Group's long-standing
dividend policies calling for the distribution of around 40 % of Group net
income after minority interest, the Executive and Supervisory Boards will
propose to the Annual General Meeting on 25 July 2013 a dividend of EUR
2.50 per share. A record dividend of EUR 2.90 per share was paid in the
previous year.

In a difficult general economic environment characterised by uncertainty,
the company forecasts Group sales of EUR 435-450 million for the new
financial year 2013/2014 (1 April 2013 to 31 March 2014). Group net income
for the year after minority interest is expected to total EUR 18.5-20.5
million, with some companies reporting declining sales and margins on
account of the economic downturn, and because the newly acquired companies
will not be able to contribute their full share to Group earnings in the
first two years after acquisition due to the effects from the first-time
consolidation.

In the first quarter of the new financial year 2013/2014, which includes
the operating months January to March 2013 of the Group's subsidiaries,
GESCO Group generated incoming orders of around EUR 110 million (EUR 116.3
million) and sales of around EUR 108 million (EUR 106.8 million). At the
end of the first operating quarter, order backlog amounted to more than EUR
200 million.

In financial year 2013/2014, the company plans to invest the record figure
of more than EUR 30 million in the future development of the Group.

The complete Annual Report is available at www.gesco.de.

The video commentary by Dr. Hans-Gert Mayrose, member of the Executive
Board, on financial year 2012/2013 and the outlook can be viewed at
www.gesco.de.

The accounts press conference and analysts' meeting will be transmitted as
a live webcast (in German) on 11 June 2013, starting at 10:30 am at
www.gesco.de, where it can also be accessed at a later time within the next
twelve months.

About GESCO
GESCO Group is an association of industrial SMEs, some of them market and
technology leaders, with a focus on manufacturing/mechanical engineering
and plastics technology. As an SDAX-listed company, GESCO AG offers private
and insitutional investors acces to a portfolio of leading German
industrial SMEs.

Investor Relations / Public Relations * Oliver Vollbrecht
Phone: +49 (0)202 24820 18 * Fax: +49 (0)202 24820 - 49
E-mail: info@gesco.de * Website: www.gesco.de

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Language: English
Company: Gesco AG
Johannisberg 7
42103 Wuppertal
Germany
Phone: +49 (0)202 248200
Fax: +49 (0)202 2482049
E-mail: gesco@gesco.de
Internet: www.gesco.de
ISIN: DE000A1K0201
WKN: A1K020
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

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