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Author: Katharina Grimme
Austrian systems integrator Systems Integration & Technology Distribution (S&T) has announced its results for H1 FY2006. The company reported revenues of €205.8m, up 46% on the same period in the previous year. EBIT grew by 143% to €6.1m and EBITDA rose by 75% to €8.9m compared to H1 2005.
Business Solutions, the higher-margin IT consulting and project-management operation, grew revenues 70% to €45.4m (22% of total sales). The Managed Services operation generated revenues of €34.2m, up 17%. Combined, the services divisions now account for 39% of total sales, while this share was only 25% in the same period last year.
Enterprise Systems, the hardware-intensive operation, grew 51% to €121.3m (59% of total revenues). The small medical equipment business fell 9% to €4.8m.
Comment: Another set of very healthy results, illustrating that S&T has fully integrated its acquisitions (five during 2005) and is continuing on its growth path. It is well on its way to achieving the targets set for the full year: revenues in excess of €400m and an EBIT above €10m for 2006. Moreover, with a war chest of €50m, further acquisitions in Central and Eastern Europe are on the cards.
For S&T, the acquisition-driven strategy to build out its services and software solutions business is proving successful. S&T announced it will continue to focus on its core industries in the future: financial services providers, power utilities, manufacturing and telecommunications. The recently-opened nearshoring centre in Romania will also be used to expand the company's portfolio of software solutions.
The recovery of the project services market, coupled with continued growth of the Central and Eastern European markets puts S&T in a good position to establish itself as a key IT services player in these regions.
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