DGAP-News: Serviceware SE: Serviceware reports a significant disproportionate increase in the adjusted EBITDA for the first half-year 2018/2019

Press Release

Serviceware reports a significant disproportionate increase in the adjusted EBITDA for the first half-year 2018/2019

- Sales revenues plus 21.3%

- Adjusted EBITDA plus 27.0% and adjusted EBIT plus 26.2%

- Strategic growth strategy is successful

- Full-year forecast is confirmed in all respects

Bad Camberg, 26 July 2019. Serviceware SE ("Serviceware", ISIN DE000A2G8X31) has recorded a significant disproportionate increase in the adjusted EBITDA and the adjusted EBIT with rising sales revenues during the first half-year 2018/2019 (1 December to 31 May) and has, above all, reached its strategic growth objectives. Sales revenues for the reporting period increased by 21.3% to EUR 32.8 million after EUR 27.0 million during the prior year period. The EBITDA, adjusted for the expenditure involved in the programme for the acceleration of future growth, rose by 27.0% to EUR 4.1 million after EUR 3.2 million during the prior year period. The adjusted EBIT increased by 26.2% from EUR 3.1 million to EUR 3.9 million. The subsidiary SABIO, taken over last year under strategic aspects, has made for the first time a slightly positive contribution to the consolidated result during the reporting period after two years in deficit.

Programme for the acceleration of growth on schedule

For the achievement of its long-term growth objectives Serviceware has implemented with the funds from the 2018 IPO, as is known, a programme for the acceleration of future growth. During the first half-year 2018/2019 a total of EUR 2.7 million was invested as planned on the EBITDA level and recognised as expense. This sum included investments in internationalisation, temporary integration costs within the framework of inorganic growth and the orientation towards a strategic key account business as well as other costs and amortisations related to acquisitions. The non-adjusted EBITDA, taking into account these expenses, amounted to EUR 1.4 million after EUR 2.3 million a year before and the EBIT was at EUR 0.9 million after EUR 2.2 million during the prior year period. The growth driver for sales revenues was Software as a Service (SaaS), which amounted to EUR 12.5 million and was 70.0% above the prior year level.

Strategic achievements

On a Group level, 82 new customers were gained during the first half-year 2018/2019, a development which was also supported by the knowledge management specialist SABIO, with a double digit number of new customers, including a large European universal bank. Furthermore, it has been possible to leverage cross-selling potentials between the individual modules of the integrated Enterprise Service Management (ESM) platform of Serviceware amongst the customers. The integration of SABIO into the Serviceware Group was almost completed during the reporting period. At the same time the headcount expansion and the internationalisation of Serviceware continued to be pushed. In Great Britain, the current target headcount was reached within three quarters after the market entry. In Sweden, the Netherlands and Spain Serviceware has likewise continued its international expansion and approaches customers with increasing intensity. Serviceware assumes that the activities can be increasingly transformed into economic success during the coming quarters. On a Group level, the headcount rose as at the last day of the half-year to 408 after 293 employees a year before.

The revamping of our brand presence, through which the one-stop shop positioning of Serviceware becomes even more visible for customers, has made good progress. The roll-out has started and first feedback from the market has been positive. Consequently, Serviceware assumes that the brand presence and strategy will provide a highly effective support in sales and at the competitive differentiation.

Extension of the Integrated ESM Platform through the acquisition of cubus AG

The further extension of the ESM platform and the inorganic growth have been expedited by Serviceware through the takeover of cubus AG. The additional Corporate Performance Management / Business Intelligence module of the platform was acquired following a structured process through an extensive market screening in the first half-year immediately after the end of the reporting period. In the meantime the synchronisation of sales activities, the launch of technical integration and the leveraging of synergies have begun. First joint customer appointments have already taken place; the first system integration has been completed successfully and potential cost savings will probably already be possible during the second half-year 2019.

Continuation of profitable growth during the full year

Based on the positive first half-year, the ongoing dynamic market development and the further improved own market position, Serviceware continues to forecast a total rise in sales revenues of at least 15 to 30% for the full fiscal year. As far as the unadjusted result is concerned, a moderate increase is to be achieved versus the prior period for the full year, despite the current high- expenditure expansion phase.

The interim financial report 2018/2019 is available for downloading on www.serviceware.se in the Investor Relations section.

About Serviceware SE
Serviceware is a leading provider of software solutions for digitising and automating service processes that enterprises can use to improve their service quality and efficiently manage their service costs. The unique integrated and modular ESM platform consists of the proprietary software solutions helpLine (Service Management), anafee (Financial Management), Careware (Field and Customer Service Management), SABIO (Knowledge Management) and cubus (Corporate Performance Management / Business Intelligence). Serviceware has more than 800 customers from a wide range of industries, including nine DAX-listed companies and four of the seven largest German companies. The company is headquartered in Bad Camberg, Germany. Serviceware has more than 400 employees. You can find more information at www.serviceware.se.

Media Relations
edicto GmbH
Axel Mühlhaus
Tel. +49(0) 69/905505-52
Email: Serviceware@edicto.de