TechniData sales up 15 percent in 2005
Markdorf 08. Mai 2006
+++ Total operating performance rises to Euro 42.7 million +++ Strongest growth at US subsidiary +++ Pre-tax group profit Euro 3.4 million +++ Order book up by 30 percent +++ Workforce increased +++ Strategic expansion of products and services
TechniData AG increased total operating performance for 2005 by 15 percent to Euro 42.7 million. The company earned pre-tax profits of Euro 3.4 million, thus producing annual net profits of Euro 2.1 million with a pre-tax yield of 8.1 percent.
At Euro 8.3 million, license revenue yielded the greatest increase, now accounting for almost 20 percent of total operating performance. Sales from consulting and development business reached Euro 22.9 million – an increase of 8 percent compared to the previous year. This figure accounts for 53 percent of total operating performance. Maintenance and outsourcing services by the Group generated sales of Euro 8.1 million. TechniData expects to increase total operating performance further in 2006 as the order book at the end of 2005 was already up 30 percent on the end of the previous year.
The TechniData Compliance for Products (CfP) solution for the high-tech and automotive industry, which was launched onto the market in May last year, also contributed in boosting sales. The software is being used by companies such as Carl Zeiss, Molex, and Solectron, enabling them to avoid the usage of hazardous substances when manufacturing their products and to adhere to environmental regulations such as RoHS (Restriction of Hazardous Substances).
US market drives growth
A large proportion of the growth in sales was achieved in the USA. Sales there climbed by Euro 3.3 million to Euro 11.5 million, an increase of 41 percent over last year. 'Our strategy to expand our US subsidiary is taking hold. Business on the North American market has developed beyond expectations', comments Jürgen Schwab, CEO at TechniData AG, adding: 'We are expecting the US market to provide stimulus to the industry.'
Staff numbers increased
The results and performance-based EULE remuneration system has produced positive results in each of the three years since it was introduced. A total bonus of Euro 1.2 million was distributed among employees. In 2005 the total number of staff rose by 45 to 386 and further recruitment is planned for the current year.
Strategic expansion of products and services
On October 1, 2005 TechniData acquired all the shares in GWU GmbH and on May 1, 2006 the company was renamed TechniData BCS. The company undertakes compliance activities relating to national and international environmental regulations. Such activities include, for example, drawing up safety data sheets and classification for the transport of dangerous goods. Customers of TechniData BCS include two of the leading German automobile manufacturers.
According to Dr. Thomas Wrede, CFO at TechniData, 'The acquisition ensures access to a market that offers above-average growth rates. The high standard of specialist and technical know-how our employees offer provides a great opportunity to further expand this area of business.'
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