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Munich, Germany, 18 March 2015 - In the financial year 2014 CANCOM Group was able to outperform general economic growth as well as IT market growth in Germany. Compared to the previous year, Group revenues increased by 35 percent from EUR 613.8 million up to EUR 828.9 million. Growth was mainly driven by sustained demand for innovative and integrated IT solutions which had a positive impact on the development of both business segments. Gross profit of the Group grew from EUR 186.5 million up to EUR 257.7 million (+38.2 percent) resulting in an improved gross profit margin of 31.1 percent after 30.4 percent in 2013.
The focus on profitable business in the traditional IT solutions segment and on high-margin managed services in the strongly growing market segment cloud computing had a positive effect on the IT Group's results. Group EBITDA rose from EUR 33.1 million to EUR 54.6 million adjusted for one-off effects, which is equivalent to a plus of 65.0 percent and an EBITDA margin of 6.6 percent compared to 5.4 percent in 2013. Adjusted Group EBITA for 2014 was EUR 39.5 million after EUR 25.3 million in the previous year (+ 56.1 percent). The one-off effects of EUR 2.9 million in 2014 include costs due to acquisitions, restructuring costs at Group companies and one-time effects from disposal activities of former subsidiaries.
Adjusted for the one-off effects described above, CANCOM shows earnings per share from continuing operations for 2014 of EUR 1.41 thus exceeding the previous year's figure of EUR 1.22. Without the effect from amortization pursuant to IFRS for purchase price allocation (ppa) from acquisitions of EUR 10.8 million (2013: EUR 2.9 million) adjusted earnings per share from continuing operations for 2014 would amount to EUR 1.91.
Strong balance sheet and sufficient liquidity for further growth
During 2014, equity increased from EUR 162.7 million to EUR 193.8 million, resulting in a strong equity ratio of 44.1 percent as at 31 December 2014. With cash and cash equivalents of EUR 114.3 million as at the reporting date compared to EUR 77.7 million at the end of the 2013 financial year, the Group has sufficient scope to continue its profitable corporate growth both organically and through acquisitions.