SinnerSchrader: Dividend Increased 67%
Edison | Nov 28, 2016 08:01AM ET
Sinnerschrader O.N. (DE:SZZG) expects another year of double-digit revenue growth and margin improvement in FY17, underpinned by the Audi AG (F:NSUG) win. This confidence is reflected in the 67% increase in the dividend to 20c. This should provide strong support to the shares which, on an FY17e P/E of 16x, trade in line with SZZ’s wider peer group, although still at a discount to closest German peer Syzygy.
A year of progress
FY16 was a year of progress at SinnerSchrader, which took the decision to exit its underperforming adtech platform and focus resources on its core agency businesses. It continues to consolidate its position as one of Germany’s leading agencies, delivering c 13% underlying revenue growth in FY16, as well as announcing a landmark deal when it was selected by Audi as its worldwide digital lead agency. The protracted Audi pitch process, the impact of trialling new project management techniques (agile scrums) and the ongoing impact of a tight labour market affected efforts to improve profitability. However, despite these factors EBITA margins still increased to 10% (from 9.3%) on a continuing basis.
SinnerSchrader - Dividend increased 67%
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