Industry Summary Articles

CENIT AG was not able to repeat the success of the previous years in the 2018 financial year. Even if sales in the group rose by approx. 12 percent, EBIT fell by almost 30 percent, which is due in particular to the decline in the sale of the company's own software.

Sales of third-party software again increased by around 27 percent compared to the previous year. On the basis of the annual financial statements of CENIT Aktiengesellschaft, Stuttgart, the Management Board and Supervisory Board will propose to the Annual General Meeting on May 24, 2019 to distribute a dividend of EUR 0.60 per share.

During the 2018 business year, CENIT Group achieved total sales revenues of EUR 169,990 k (2017: EUR 151,701 k/12.1%). Sales of CENIT’s proprietary software declined by 12% at EUR 15,449 k, compared to EUR 17,559 k. Sales revenues from CENIT Consulting and Services totaled EUR 49,776 k and thus declined by 6.6% on-year (2017: EUR 51,618 k). Especially due to the acquisition of the KEONYS Group, sales of third-party software increased by around 27% to EUR 104,299 k (2017: EUR 82,362 k). 

CENIT achieved EBITDA in the amount of EUR 11,948 k (2017: EUR 15,269 k/-21.8%) and EBIT of EUR 9,028 k (2017: EUR 12,836 k/-29.7%). Earnings per share were EUR 0.73 EUR (2017: EUR 1.07 EUR/-31.8%).

Order Intake
During the 2018 business year, orders received by CENIT Group totaled EUR 177,902 k (2017: EUR 161,955 k). Orders in hand on December 31, 2018 amounted to EUR 53,389 k (2017: EUR 45,477 k).

Asset and Financial Situation
On the balance-sheet date, the company’s equity capital was EUR 39,102 k (2017: EUR 40,855 k), representing an equity ratio of 49.4% (2017: 46.8%). On the balance-sheet date, bank deposits and liquid assets totaled EUR 18,041 k (2017: EUR 23,692 k). On the other hand, there are current financial liabilities in amount of EUR 3 k (2017: EUR 3,152 k). Operative cash flow amounted to EUR 9,617 k (2017: EUR 3,917 k). In 2018, cash flow was influenced by a dividend payment to shareholders in the total amount of EUR 8,368 k and investments in the amount of EUR 3,826 k.

Employees
On December 31, 2018 CENIT Group employed 757 staff worldwide (2017: 764). Consolidated personnel expenditures during the reporting period were EUR 58,571 k (2017: EUR 53,060 k). CENIT currently provides training for 52 young professionals in a variety of occupations. Trainees include informatics and economics students from the Dual University of Baden-Württemberg (DHBW) and vocational trainees in the field of information technology. 

Dividend
The Management and Supervisory Boards will propose to the General Meeting of Shareholders on May 24, 2019 that a dividend of EUR 0.60 per share, be distributed from CENIT AG’s unappropriated profit in the amount of EUR 5,021 k. 

Outlook
An equity ratio of almost 50% places CENIT on very secure footing. This lets CENIT act as a strong and reliable partner to its customers. 

The forecast for the 2019 business year is based on sales at the previous year's level of around EUR 170,000 k and EBIT of EUR 10,000 k. 

The complete 2018 Annual Report is available in a German and English version on the CENIT homepage: www.cenit.com/reports.

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