KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Germany’s leading management consultanting firm for business transformation and process optimization exceeded the sales threshold of 160 million euros in the business year 2016/2017 and again grew faster than the market. The high level of dynamic growth, particularly derived from new projects abroad, results from the acquisition of additional market shares. The strong industry focus and the high pace of implementation by the Rapid Transformation Method provided the growth drivers for the group of companies also in the business year 2016/2017.

On the basis of the audited results for the business year 2016/2017, Group sales rose to 160.3 million euros (previous year 144.9 million euros). The previous year-figure was, therefore, exceeded by 15.4 million euros or 10.6 %. This increase is primarily due to the acquisition of transformation projects with major customers from retail and the consumer goods industry. The operating result before interest and taxes (Group EBIT) increased by 11.2 % or 2.5 million euros to 24.8 million euros compared with 22.3 million euros in the previous year.

The average utilization rates for KPS consultants continued to remain stable at a very high level of nearly 100 % during the business year 2016/2017. On a sector comparison, KPS ranks among the absolute leaders with this outstanding rate. The order backlog along with incoming orders were consistently strengthened during the reporting period. The current order volume therefore has an estimated scope of around 18 months, subject to the assumption that the current projects generally projected over several years are completed in accordance with the contractual terms.

Internationalization as growth driver

With the acquisition in Scandinavia in the year under review and the acquisition in Spain, which took effect in the current financial year 2017/2018, the KPS Group has succeeded in further expanding its leading market position in Europe in the area of business transformation and process implementation for retail and the consumer goods industry.

“By combining the best aspects of both the digital and analog worlds, we help our customers to take their business model to the next level of industrialization: broad-based digitalization. Our track record over recent years demonstrates that we occupy an outstanding position in the marketplace with our clear sector focus and our rapid pace of implementation. This success is evidenced by continuous growth in sales and earnings above-market average. Alongside the German-speaking region of Germany, Austria and Switzerland (D-A-CH region), successes in driving our internationalization strategy forward have also played a role. Soon we will have had a presence in Scandinavia for ten years, and we are very proud of the consistent consolidation of our position there last year and the complementary expansion in Spain at the beginning of the current business year,” commented Leonardo Musso, Board Member of KPS AG.

Robust financial structure results of operations

On 30 September 2017, liquid assets amounted to 6.7 million euros (previous year 12.6 million euros) due to investments in fixed assets and acquisitions of companies. The Group equity ratio improved to 64.3 % (previous year: 61.4 %) during the business year 2016/2017. This provides KPS with a very good financial platform for additional organic growth and acquisitions.

Outlook: KPS is committed to further acquisitions and expansion of personnel in 2017/2018

KPS AG made a successful start to the new business year. The performance of sales and earnings was in line with expectations in the first quarter of 2017/2018. Against this background, the Executive Board and the Management of KPS have an overall positive assessment on the position of the Group. Based on the current plans of the company, the Executive Board expects an increase in sales to a projected figure of 160-170 million euros and EBIT of 23–26 million euros for the current business year 2017/2018. To this end, comprehensive investments in the area of personnel expansion and career development are planned.

Dividend proposal increased by 6 % per share

On the basis of the successful development in the business year 2016/2017 and the positive business performance in the first quarter of 2017/2018, the Supervisory Board and the Executive Board will propose to the Annual General Meeting on 23 March 2018 the payment of a dividend amounting to 35 eurocents per share (previous year: 33 eurocents per share).

The complete Annual Report 2016/2017 is available for download on the Internet at www.kps.com. The figures for the first quarter 2017/2018 will be published on 16 February 2018.

Unterföhring, 31 January 2018

The Executive Board

About KPS

KPS is Europe’s leading transformation partner for companies wanting to radically realign their business models to make them customer centric and implement innovative processes and technologies within a very short time window. KPS works with companies from many different industries and delivers all of our products and services from one source, from strategic realignment and sector-specific process chains right through to implementing cutting-edge technologies.

KPS AG
Betastrasse 10H
85774 Unterföhring
Germany
Tel.: +49 (0) 89 356 31-0
Fax: +49 (0) 89 356 31-3300
Email: isabel.hoyer@kps.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Freihamer-Strasse 2
82166 Gräfelfing/Munich
Germany
Tel.: +49 (0) 89 898 272-27
Email: sh@crossalliance.de
Web: www.crossalliance.de