The B.o.D. approves the Interim Management Report at 30th September 2011

  • 11 November 2011, 18:02

The Board of Directors of CAD IT S.p.A., leader in the Italian financial software market and quoted in the STAR segment of Borsa Italiana, today approved the Interim Management Report at 30th September 2011 which shows a growth in values and margins compared to the same period in the previous year.

The main consolidated results of the third quarter 2011 are as follows:

  • Production Value of Euro 14 million compared to Euro 13 million in the third quarter of 2010. This 8% growth in Production Value is due to a 11.5% increase in sales (from Euro 11.9 million to 13.2 million), despite a reduction in internal work capitalised under fixed assets which fell from Euro 1.1 million in the third quarter of 2010 to Euro 0.7 million in the third quarter of the current year;
  • Gross Operational Result (EBITDA) of Euro 3.3 million, corresponding to 23.5% of the Production Value, showing a growth compared to Euro 1.4 million in the third quarter of 2010 (10.8% of the Production Value);
  • Operational Result (EBIT) of Euro 2.4 million, corresponding to 16.8% of the Production Value and showing an increase compared to Euro 0.5 million in the third quarter of 2010 (3.5% of the Production Value);
  • Result of the period net of pre-third party share of Euro 2.3 million, corresponding to 16.7% of the Production Value, showing an increase compared to Euro 0.5 million in the third quarter of 2010 (3.8% of the Production Value).

The short-term Net Consolidated Financial Position at 30th September 2011 is in credit by Euro 4.5 million, in line with the amount registered at 30th June 2011, and showing an increase compared to the Euro 4.2 million registered at 31st December 2010.

In order to give a complete report, below are the main consolidated results of the first nine months of 2011:

  • Production Value was equal to Euro 40.2 million compared to Euro 39 million in the same period of the previous year. This 3.2% growth in Production Value is due to a 4.4% increase in sales (from Euro 35.9 million to 37.4 million), despite a reduction in internal work capitalised under fixed assets which fell from Euro 3.2 million in the first nine months of 2010 to Euro 2.6 million in the first nine months of the current year;
  • Gross Operational Result (EBITDA) of Euro 5.7 million, corresponding to 14.1% of the Production Value, showing a growth compared to Euro 3.4 million in the first nine months of 2010 (8.8% of the Production Value);
  • Operational Result (EBIT) of Euro 3 million, corresponding to 7.4% of the Production Value, showing a growth compared to Euro 0.5 million in the first nine months of 2010 (1.4% of the Production Value);
  • Result of the period net of pre-third party share of Euro 3.1 million, corresponding to 7.8% of the Production Value, showing a growth compared to Euro 0.8 million in the same period of the previous year (2.1% of the Production Value).

Despite the difficult market situation, a significant increase in revenues deriving from the sale of new software and services has been registered both at a quarterly and a financial period level. This positive outcome is due to research and development activities in which the company has always believed and invested. The operative results have also improved following cost optimisation strategies, particularly in regard to reducing third party service expenditure.

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Furthermore, the CAD IT Board of Directors hereby reports that it authorised a merger project today between companies controlled entirely by CAD IT S.p.A. in a bid to simplify and reorganise the company, reduce administration costs and generate financial efficiency.

Further information on the details of the operation are given below.

The CAD S.r.l. Board of Directors (“Absorbing Company”), SGM S.r.l., Bit Groove S.r.l. and NetBureau S.r.l. (“Absorbed Companies”), companies entirely controlled by CAD IT S.p.A., have drawn up a project to absorb SGM S.r.l., Bit Groove S.r.l. and NetBureau S.r.l. into CAD S.r.l..

The merger project will be presented to the Shareholder Meetings of the respective controlled companies participating in the operation within November 2011.

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