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- Revenue increase of 88.5% compared with previous year to EUR 115.7m
- Rise in EBIT of 186% on the previous year to EUR 9.5m
Aragon AG published its preliminary results for financial year 2007 today. The revenue increase from EUR 61.4m in 2006 to EUR 115.7m in 2007 corresponds to a rise of 88.5% and impressively confirms the success of the Group s buy-and-build strategy.
In 2007, the company achieved a year-on-year increase in gross margin of 108% from EUR 17.1m to EUR 35.7m, more than doubling the figure. Thus gross margin improved by almost 3 percentage points to 30.8% of revenues (previous year 27.9%).
Earnings before interest and tax (EBIT) in accordance with IFRS came in up 186% from EUR 3.3m to EUR 9.5m, which represents an EBIT margin of 8.2% (previous year 5.4%). EBIT has therefore almost tripled. This positive growth is attributable, in particular, to the scalable business model of Aragon, with the company s total costs rising at a disproportionately low rate of 89.4% in relation to gross margin (+108%).
Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose significantly to EUR 10.7m (previous year EUR 4.2m), representing an EBITDA margin of 9.3% (previous year 6.8%).
Earnings per share for financial year 2007 amounted to EUR 0.88 (previous year EUR 0.32), an increase of 177.5% which corresponds to a Group net profit after minority interests of EUR 5.5m.
It is particularly pleasing that the positive results were achieved by the combined effort of all Aragon business units. The Retail Sales unit continues to be the strongest segment however, partly due to its long history, and made the most substantial revenue contribution with EUR 78.2m (previous year EUR 55.7m). In addition, the wholly-owned Aragon subsidiary, Jung, DMS & Cie. AG, exceeded the EUR 1bn product sales mark for the first time in 2007. With EBITDA of EUR 7.9m, the Retail Sales unit contributes a share of around 75% to the Group s EBITDA.
The EBITDA recorded by the Retail Sales unit would have been EUR 0.5m higher but for the fact that Aragon subsidiary Inpunkto Finanz GmbH reduced Group net profit by a loss in this amount. Since it is unlikely that Inpunkto will break even in the short term, the Management Board of Aragon has decided to discontinue operations of Inpunkto. The company will be wound up and will no longer contribute negatively in the future. As a result, the Aragon Group now exclusively comprises profitable business units.
The successful performance of the Banking & Banking Services unit also continued in the first full year since its establishment. On the strength of its white label services, biw Bank für Investments und Wertpapiere AG increased the number of customers to 45,111 as of 31 December 2007 (previous year 21,693) and executed more than 3 million securities orders in 2007. With EBITDA of EUR 2.7m (previous year kEUR 150), the bank is already making a substantial contribution to Group net profit.
In line with expectations, the Institutional Sales unit developed successfully following Aragon s move in 2007 to increase its shareholding in Fundmatrix AG to 71%. With a share of only 1.3% of total sales, the smallest segment s EBITDA margin of more than 45% represents an above average contribution to the Group s earnings position. The division generated EBITDA of EUR 0.7m.
The Aragon management is highly satisfied with the successful business performance achieved in 2007 and has put in place the conditions for the company s sustained growth in future. The brokerage business has been further strengthened through the acquisition of the GAMAX broker pools in Germany and Austria. At the same time, the majority shareholding in the Compexx Finanz Group has provided Aragon with a significant presence in the market for structured sales.
For 2008, the Management Board expects the company to continue on its successful growth course, with a progressive level of diversification. In 2008, growth will be driven especially by regulatory changes and the introduction of a new capital gains tax. The Management Board will closely monitor developments at the newly acquired Compexx Group. The structured sales market is undergoing a specific process of change, which represents considerable opportunities for Aragon.
The company s annual report will be published on 15 April 2008.
The Annual General Meeting of Aragon AG will be held in Mainz, Germany on 2 June 2008.
- Revenue increase of 88.5% compared with previous year to EUR 115.7m
- Rise in EBIT of 186% on the previous year to EUR 9.5m
Aragon AG published its preliminary results for financial year 2007 today. The revenue increase from EUR 61.4m in 2006 to EUR 115.7m in 2007 corresponds to a rise of 88.5% and impressively confirms the success of the Group s buy-and-build strategy.
In 2007, the company achieved a year-on-year increase in gross margin of 108% from EUR 17.1m to EUR 35.7m, more than doubling the figure. Thus gross margin improved by almost 3 percentage points to 30.8% of revenues (previous year 27.9%).
Earnings before interest and tax (EBIT) in accordance with IFRS came in up 186% from EUR 3.3m to EUR 9.5m, which represents an EBIT margin of 8.2% (previous year 5.4%). EBIT has therefore almost tripled. This positive growth is attributable, in particular, to the scalable business model of Aragon, with the company s total costs rising at a disproportionately low rate of 89.4% in relation to gross margin (+108%).
Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose significantly to EUR 10.7m (previous year EUR 4.2m), representing an EBITDA margin of 9.3% (previous year 6.8%).
Earnings per share for financial year 2007 amounted to EUR 0.88 (previous year EUR 0.32), an increase of 177.5% which corresponds to a Group net profit after minority interests of EUR 5.5m.
It is particularly pleasing that the positive results were achieved by the combined effort of all Aragon business units. The Retail Sales unit continues to be the strongest segment however, partly due to its long history, and made the most substantial revenue contribution with EUR 78.2m (previous year EUR 55.7m). In addition, the wholly-owned Aragon subsidiary, Jung, DMS & Cie. AG, exceeded the EUR 1bn product sales mark for the first time in 2007. With EBITDA of EUR 7.9m, the Retail Sales unit contributes a share of around 75% to the Group s EBITDA.
The EBITDA recorded by the Retail Sales unit would have been EUR 0.5m higher but for the fact that Aragon subsidiary Inpunkto Finanz GmbH reduced Group net profit by a loss in this amount. Since it is unlikely that Inpunkto will break even in the short term, the Management Board of Aragon has decided to discontinue operations of Inpunkto. The company will be wound up and will no longer contribute negatively in the future. As a result, the Aragon Group now exclusively comprises profitable business units.
The successful performance of the Banking & Banking Services unit also continued in the first full year since its establishment. On the strength of its white label services, biw Bank für Investments und Wertpapiere AG increased the number of customers to 45,111 as of 31 December 2007 (previous year 21,693) and executed more than 3 million securities orders in 2007. With EBITDA of EUR 2.7m (previous year kEUR 150), the bank is already making a substantial contribution to Group net profit.
In line with expectations, the Institutional Sales unit developed successfully following Aragon s move in 2007 to increase its shareholding in Fundmatrix AG to 71%. With a share of only 1.3% of total sales, the smallest segment s EBITDA margin of more than 45% represents an above average contribution to the Group s earnings position. The division generated EBITDA of EUR 0.7m.
The Aragon management is highly satisfied with the successful business performance achieved in 2007 and has put in place the conditions for the company s sustained growth in future. The brokerage business has been further strengthened through the acquisition of the GAMAX broker pools in Germany and Austria. At the same time, the majority shareholding in the Compexx Finanz Group has provided Aragon with a significant presence in the market for structured sales.
For 2008, the Management Board expects the company to continue on its successful growth course, with a progressive level of diversification. In 2008, growth will be driven especially by regulatory changes and the introduction of a new capital gains tax. The Management Board will closely monitor developments at the newly acquired Compexx Group. The structured sales market is undergoing a specific process of change, which represents considerable opportunities for Aragon.
The company s annual report will be published on 15 April 2008.
The Annual General Meeting of Aragon AG will be held in Mainz, Germany on 2 June 2008.
