EQS-Adhoc: Allgeier SE: Business performance in the third quarter of 2024 continues to be influenced by a one-off effect in the public sector

Munich, 05 November 2024 – The revenue and earnings development of Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) in the third quarter of 2024 is still characterized by the special situation in the area of public-sector clients. The delayed implementation of digitalization projects also had a significant impact on the third quarter, particularly at our group company publicplan. The revenue generated in the third quarter was more than EUR 4 million lower than expected, which resulted in a negative impact on EBITDA of approximately EUR 2.5 million. As a result, revenue for the first nine months of the financial year was reduced by a total of approximately EUR 17 million due to the project delays. For this reason, EBITDA for the first nine months of 2024 was negatively impacted by approximately EUR 8 million.

Apart from the special situation at publicplan, the Allgeier Group otherwise achieved its earnings targets in the third quarter of 2024 as expected overall. It is very encouraging that business in the public sector at our group company mgm technology partners already picked up noticeably during the third quarter.

In the first nine months of the 2024 financial year, the group generated revenues totalling EUR 335 million. At EUR 37 million, adjusted EBITDA was around EUR 6 million below the originally planned level. If the special situation in the area of public-sector clients had been additionally adjusted for, adjusted EBITDA would have been above EUR 45 million in the first nine months of 2024 and thus ahead of the planned result. In the first nine months of 2023, adjusted EBITDA was EUR 40 million.

For the fourth quarter, publicplan expects a negative impact on revenues of approximately EUR 5 million and a negative impact on EBITDA of approximately EUR 3 million compared to the half-year forecast. Otherwise, the Allgeier Group expects a stable business development. Revenues for the fourth quarter of 2024 are expected to be in the range of EUR 120 to 125 million. Adjusted EBITDA for the fourth quarter is expected to be in the range of EUR 18 to 19 million. Without the extraordinary charge, the expectation in terms of adjusted EBITDA would be between EUR 21 and 22 million. In the fourth quarter of 2023, adjusted EBITDA stood at EUR 21 million.

For the full year 2024, this translates into consolidated revenues between EUR 455 and 460 million and adjusted EBITDA in the range of EUR 55 to 56 million, corresponding to an operating profit margin of around 12 percent. Excluding the exceptional charges from the public sector for the full year 2024, the expected adjusted EBITDA would be EUR 67 million.

For the extraordinary result of fiscal year 2024, in total a positive amount of approx. EUR 4 million is expected. In addition to extraordinary expenses for structural measures and cost reductions, the expected amount includes a positive earnings contribution from the new agreement of an earn-out provision for the subsidiary Evora. There, the departure of two of the four founders as minority shareholders and the acquisition of the minority interests by the two founders managing the company led to the conclusion of an amended shareholder agreement and an amended earn-out provision in the third quarter of 2024. As a result, the group's reported EBITDA for the 2024 financial year is expected to be in the region of EUR 60 million (previous year: EUR 58 million).

The business figures at the end of the third quarter of 2024 are presented in detail in the voluntary interim information for the Allgeier Group, which will be published on 14 November 2024.

Contact:

Allgeier SE
Investor Relations
Dr. Christopher Große
Einsteinstrasse 172
81677 Munich
Tel.: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-mail: ir@allgeier.com
Web: www.allgeier.com

Allgeier SE is a technology company for digital transformation. Allgeier Group companies guide their customers in Germany and abroad through the challenges of digital change with comprehensive software and IT services and support the digitalization and transformation of business-critical processes. With more than 2,000 customers, the broad and stable customer base consists of global corporations, high-performance medium-sized companies and public sector clients at all federal levels. The service portfolio ranges from the company's proprietary software products and high-end software development to consulting, conception and long-term support for software applications in the cloud or other environments. In the two Group segments Enterprise IT and mgm technology partners, more than 3,400 employees work at a total of 47 locations worldwide in the DACH region, France, Spain, Portugal, Poland, Czechia and the Netherlands as well as in India, Vietnam and the USA. In the 2023 financial year, Allgeier generated revenue of EUR 488 million from continuing operations. According to the Lünendonk® List 2024, Allgeier is one of the leading IT service companies in Germany. Allgeier SE is listed on the Regulated Market of the Frankfurt Stock Exchange in the General Standard (WKN A2GS63, ISIN DE000A2GS633). Further information at: www.allgeier.com

2022907  05-Nov-2024 CET/CEST