- favourable year-end operating and financial result
- result after taxes increased by 10.8 million EUR
- focus on the core competences Engineering and IT
- Technology Strategy 2006+ Product Lifecycle Management
In the financial year 2005 the company developed favourably in all areas. The streamlining measures initiated in the previous year proved very effective. The new structure of the investment portfolio has shown positive results.
Sales and earnings trend
In 2005 the group sales increased by 1.9% or 1.8 million EUR to 96.5 million EUR. All results registered were back in the black in 2005:
- The operating result increased by 4.4 million EUR from -2.1 million EUR in 2004 to +2.3 million EUR in 2005.
- The financial result rose by 4.9 million EUR from -0.8 million EUR in 2004 to +4.1 million EUR in 2005.
- The result before taxes climbed by 9.3 million EUR from -2.9 million EUR in 2004 to +6.4 million EUR in 2005.
- The result after taxes surged by 10.8 million EUR from -6.1 million EUR in 2004 to +4.7 million EUR in 2005. The tax expenditure decreased from 3.1 million EUR to 1.7 million EUR as in 2004 value adjustments of deferred tax assets had become necessary due to a decrease in the corporate income tax.
- The result for the year increased by 9.7 million EUR from -5.5 million EUR in 2004 to +4.2 million EUR in 2005.
- The earnings per share rose by 1.61 EUR from -0.91 EUR in 2004 to 0.7 EUR in 2005.
Net worth and financial position
The balance-sheet total as at the end of the financial year increased by 4.9% or 4.3 million EUR to 91.0 million EUR. The long-term assets rose by 11.4% or 4.5 million EUR to 44.0 million EUR (investments and intangible assets increased by 5.5 million and EUR 1.3 million EUR, respectively; associated companies decreased by 2.0 million EUR). The short-term assets declined by 0.5% to 47.0 million EUR (accounts receivable increased by 1.6 million EUR; cash and cash equivalents decreased by 1.9 million EUR). The profit for the year led to an increase in equity by 4.2 million EUR to 49.4 million EUR (equity ratio 54% vs. 52% in 2004). The investments of other shareholders rose by 0.7 million EUR to 11.5 million EUR, the long-term liabilities increased by 0.5 million EUR to 9.8 million EUR. The short-term liabilities dropped by 1.1 million EUR to 20.3 million EUR.
Cash flow statement
A cash flow from operating activities of 5.1 million EUR was registered in 2005 (8.0 million EUR in 2004). The cash flow from investing activities amounted to 6.9 million EUR (unchanged from 2004), while the cash flow from financing activities totalled 0.1 million EUR (1.6 million EUR in 2004). In total the cash and cash equivalents decreased by 1.9 million EUR or 6.0% to 29.4 million EUR.
The two-pillar core competence scheme of the investment portfolio
Based on the methodical preparatory work performed at the BEKO Institut für Humaninformatik (Institute for Human Informatics), the overall trend in the IT and engineering services industry was subject to an in-depth analysis and restructuring measures were taken. The tripartite investment scheme with the pillars “Customer Care”, “Systems Care” and “Data Care” was condensed into a bipartite system.
The new core competence scheme comprises the segments “Engineering Services”, in which all industry-related services of the production segment are bundled, and the competence field “Information Technology” embracing all IT services of the administrative segment. This new scheme is more in line with current market expectations than the previous data-technology-oriented system, which was rather difficult to communicate.
Product Lifecycle Management (PLM) as the technology strategy of the future
PLM is a permanent process allowing enterprises to develop, adjust and administer products and services over their entire life cycles. PLM becomes a key focus as a result of the integration and convergence of technical and commercial data for all those involved in product development, manufacturing and sales.
As a system integrator, BEKO HOLDING AG will take advantage of the synergies between the core competences “Engineering” (Caxx technologies) and “Information Technology” (software development, SAP support, IT outsourcing) and intensify its PLM support activities in the future. By combining the two competences, the foundation is laid for the BEKO Group’s successful growth in the next years.
Future development
For the year 2006 the Managing Board expects sales between 118 and 120 million EUR and – subject to the application of the IFRIC 4 Interpretations to AC-Service AG – an EBIT of 3.7 to 4 million EUR. The Managing Board will call on the subsidiaries to realise existing synergy potentials, which have been enhanced by the acquisition of All for One Gmbh. As a result of the intensified cooperation among the subsidiaries, the technology strategy will increasingly focus on Product Lifecycle Management (PLM).
It is the aim of BEKO HOLDING AG to become Central Europe’s market leader in PLM support.
For more details on individual results see the online Annual Report 2005 at www.beko.eu.
- result after taxes increased by 10.8 million EUR
- focus on the core competences Engineering and IT
- Technology Strategy 2006+ Product Lifecycle Management
In the financial year 2005 the company developed favourably in all areas. The streamlining measures initiated in the previous year proved very effective. The new structure of the investment portfolio has shown positive results.
Sales and earnings trend
In 2005 the group sales increased by 1.9% or 1.8 million EUR to 96.5 million EUR. All results registered were back in the black in 2005:
- The operating result increased by 4.4 million EUR from -2.1 million EUR in 2004 to +2.3 million EUR in 2005.
- The financial result rose by 4.9 million EUR from -0.8 million EUR in 2004 to +4.1 million EUR in 2005.
- The result before taxes climbed by 9.3 million EUR from -2.9 million EUR in 2004 to +6.4 million EUR in 2005.
- The result after taxes surged by 10.8 million EUR from -6.1 million EUR in 2004 to +4.7 million EUR in 2005. The tax expenditure decreased from 3.1 million EUR to 1.7 million EUR as in 2004 value adjustments of deferred tax assets had become necessary due to a decrease in the corporate income tax.
- The result for the year increased by 9.7 million EUR from -5.5 million EUR in 2004 to +4.2 million EUR in 2005.
- The earnings per share rose by 1.61 EUR from -0.91 EUR in 2004 to 0.7 EUR in 2005.
Net worth and financial position
The balance-sheet total as at the end of the financial year increased by 4.9% or 4.3 million EUR to 91.0 million EUR. The long-term assets rose by 11.4% or 4.5 million EUR to 44.0 million EUR (investments and intangible assets increased by 5.5 million and EUR 1.3 million EUR, respectively; associated companies decreased by 2.0 million EUR). The short-term assets declined by 0.5% to 47.0 million EUR (accounts receivable increased by 1.6 million EUR; cash and cash equivalents decreased by 1.9 million EUR). The profit for the year led to an increase in equity by 4.2 million EUR to 49.4 million EUR (equity ratio 54% vs. 52% in 2004). The investments of other shareholders rose by 0.7 million EUR to 11.5 million EUR, the long-term liabilities increased by 0.5 million EUR to 9.8 million EUR. The short-term liabilities dropped by 1.1 million EUR to 20.3 million EUR.
Cash flow statement
A cash flow from operating activities of 5.1 million EUR was registered in 2005 (8.0 million EUR in 2004). The cash flow from investing activities amounted to 6.9 million EUR (unchanged from 2004), while the cash flow from financing activities totalled 0.1 million EUR (1.6 million EUR in 2004). In total the cash and cash equivalents decreased by 1.9 million EUR or 6.0% to 29.4 million EUR.
The two-pillar core competence scheme of the investment portfolio
Based on the methodical preparatory work performed at the BEKO Institut für Humaninformatik (Institute for Human Informatics), the overall trend in the IT and engineering services industry was subject to an in-depth analysis and restructuring measures were taken. The tripartite investment scheme with the pillars “Customer Care”, “Systems Care” and “Data Care” was condensed into a bipartite system.
The new core competence scheme comprises the segments “Engineering Services”, in which all industry-related services of the production segment are bundled, and the competence field “Information Technology” embracing all IT services of the administrative segment. This new scheme is more in line with current market expectations than the previous data-technology-oriented system, which was rather difficult to communicate.
Product Lifecycle Management (PLM) as the technology strategy of the future
PLM is a permanent process allowing enterprises to develop, adjust and administer products and services over their entire life cycles. PLM becomes a key focus as a result of the integration and convergence of technical and commercial data for all those involved in product development, manufacturing and sales.
As a system integrator, BEKO HOLDING AG will take advantage of the synergies between the core competences “Engineering” (Caxx technologies) and “Information Technology” (software development, SAP support, IT outsourcing) and intensify its PLM support activities in the future. By combining the two competences, the foundation is laid for the BEKO Group’s successful growth in the next years.
Future development
For the year 2006 the Managing Board expects sales between 118 and 120 million EUR and – subject to the application of the IFRIC 4 Interpretations to AC-Service AG – an EBIT of 3.7 to 4 million EUR. The Managing Board will call on the subsidiaries to realise existing synergy potentials, which have been enhanced by the acquisition of All for One Gmbh. As a result of the intensified cooperation among the subsidiaries, the technology strategy will increasingly focus on Product Lifecycle Management (PLM).
It is the aim of BEKO HOLDING AG to become Central Europe’s market leader in PLM support.
For more details on individual results see the online Annual Report 2005 at www.beko.eu.
