Mensch und Maschine Software SE discloses preliminary 2016 figures
High profit gain and strong cash flows
- Gross margin +8.2% / EBIT +46% / Net profit +68%
- Proprietary software/services driving business
Wessling, February 13, 2017 – Strong organic growth of proprietary software and services, mainly in the CAM, BIM and PDM areas, and strict cost discipline helped Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, hit a new gross margin record in 2016, significantly increase operating and net profit and achieve strong operating cash flows.
According to preliminary figures, sales amounted to approx. EUR 167 mln (PY: 160.38 / +4.1%), while gross margin climbed to a new record of approx. EUR 91.4 mln (PY: 84.52 / +8.2%), with a strong contribution of approx. EUR 44.7 mln (PY: 39.58 / +13%) from M+M Software. Gross margin from VAR business was approx. EUR 46.7 mln (PY: 44.94 / +4%), thereof approx. EUR 25.7 mln (PY: 22.10 / +16%) from M+M services. All in all, gross margin from proprietary software and services grew by more than 14% to approx. EUR 70.4 mln (PY: 61.68), while due to the current transition from license sale to a rental model the gross margin from resale of Autodesk software fell to approx. EUR 21.0 mln (PY: 22.84 / -8%).
Operating profit EBITDA before depreciation, amortization, interest and taxes grew to a disproportionate EUR 15.7 mln approx. (PY: 12.81 / +23%), with approx. EUR 10.6 mln (PY: 8.21 / +29%) coming from Software and approx. EUR 5.1 mln (PY: 4.60 / +10%) from the VAR Business. Due to significantly lower PPA amortisation the EBIT increase was even higher: Group EBIT climbed to approx. EUR 12.4 mln (PY: 8.47 / +46%). Operating yield increased to approx. 9.4% (PY: 8.0%) for EBITDA and approx. 7.4% (PY: 5.3%) for EBIT.
Net profit after minority shares jumped by approx. 68% to approx. EUR 6.5 mln (PY: 3.87), or 40 Cents (PY: 24) per share. Adjusted by the non-cash items PPA amortization and deferred taxes amounting to approx. EUR 1.6 mln (PY: 2.28) or 10 Cents (PY: 14) per share, net profit amounted to approx. EUR 8.1 mln (PY: 6.15) or 50 Cents (PY: 38) per share.
Operating cash flows were approx. EUR 14.6 mln or approx. 90 Cents per share. The previous year’s EUR 14.73 mln included a EUR 3 mln non-recurring amount. Purely operating, cash flows thus exceeded the strong previous year's level, making a dividend increase to 35 Cents (PY: 25 / +40%) very likely.
M+M CEO Adi Drotleff is particularly pleased with M+M’s proprietary business: ‘More than 14% organic growth in proprietary software and service is really exceptional. With high earnings increases and strong cash flows in 2016, we made another significant step towards our mid-term EPS target of more than one Euro.’
Attention: The final audited 2016 figures, which will be disclosed in the accounts press conference on March 13, 2017, can differ from the preliminary figures.