GFT: FY17 Consolidation, FY18 Acceleration
Edison | Mar 31, 2017 08:07AM ET
While GFT Technologies (DE:GFTG) reported FY16 revenues and EBITDA slightly ahead of our forecasts, the shares fell in response to unexpectedly weak FY17 guidance and higher than expected debt. The guidance reflected the challenging investment banking backdrop, which has been holding back profits in the UK and North America. Nevertheless, GFT’s retail banking activities remain buoyant, benefiting from digital banking projects in continental Europe, and management expects group growth to return to trend levels from FY18 on digitization strength and recovering investment banking markets. Hence, we believe the shares look attractive on c 14x our FY18 earnings.
Q4 results: Q4 organic revenue growth was 5%
Q4 revenues grew by 6% to €108.3m, including 5% organic growth and 1% from acquisitions. The growth was driven by digital banking projects in the European retail banking sector. Adjusted EBITDA slipped by 10% to €12.8m reflecting the challenging environment in investment banking. FY16 revenues grew 13% to €422.6m, representing constant currency organic growth of 12% and 3% from acquisitions, less a 2% currency headwind. End FY16 net debt was €42.1m. In addition, there are acquisition liabilities of €34.1m and a pension deficit of €8.7m.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.