SinnerSchrader (DE:SZZG) has reported a solid finish to an excellent financial year, which saw double-digit growth in underlying revenues and EBIT margin expansion. With some significant client wins announced, most recently Haspa and Audi in July, we believe FY17 will be another strong year and see scope for continued share price appreciation. We leave forecasts unchanged.
Q4 trading in line with forecasts
Q4 results were broadly as we had expected. After three quarters of strong growth, revenues in Q4 were down slightly y-o-y (-4%). However, without the investment in Next Audience (NA), EBIT margins of 14% were well above Q415 (8.8%). For the year as a whole, this takes preliminary revenues to just over €51m, up 7% y-o-y or 13% on an adjusted basis excluding the discontinued NA venture. Full year EBIT (including NA losses) is approximately €4.5m, putting full year EBIT margins at c 9% compared to c 4% last year (c 10% excluding NA). This translates to a net profit of €3m, €0.26 per share – slightly above July’s guidance.