SYZYGY AG: SYZYGY GROUP confirms record sales: sales up by 17 per cent to EUR 70.6 million.

Bad Homburg (pta027/30.03.2023/12:17) -
* Sales of EUR 70.6 million, increase of +17 per cent or EUR 10.5 million year-on-year
* Operating income of EUR 6.2 million, corresponding to an operating EBIT margin of around 8.8 per cent
* Goodwill written down in the amount of EUR 11.4 million due to the sharp rise in interest rates leading to higher discount rates
* Proposed dividend for 2022 financial year: EUR 0.22 per share (+10 per cent compared to previous year)
* Outlook for 2023: Sales growth of around 6–8 per cent with an EBIT margin of around 9–10 per cent

The SSYZYGY GROUP confirms provisional figures and record sales: sales increased by 17 per cent in 2022 to reach EUR 70.6 million, with operating profitability (EBIT margin) of 8.8 per cent. The sales figures for 2022 are the highest ever recorded by the SYZYGY GROUP. Operating income before goodwill write-downs was EUR 6.2 million.

The Germany segment posted a significant increase in sales, up 14 per cent to EUR 55.0 million, with an EBIT margin of 10 per cent. This core market thus accounts for almost 78 per cent of sales.

The international companies continued to perform well. In the UK & US segment, sales increased by 16 per cent to reach EUR 9.9 million, combined with an EBIT margin of 14 per cent. Sales in Poland were up 25 per cent at EUR 6.0 million, with an EBIT margin of 13 per cent.

All the subsidiaries in the SYZYGY GROUP thus contributed both to sales growth and to operating profit.

Largely due to the sharp rise in interest rates, which resulted in higher discount rates, the SYZYGY GROUP wrote down goodwill in the amount of EUR 11.4 million. This led to the one-off posting of negative EBIT of EUR -5.2 million and to negative net income of EUR -7.4 million. The SYZYGY GROUP's operational viability, cash flow and dividend strategy are unaffected by these effects.

In 2023, the SYZYGY GROUP will make strategic acquisitions a higher priority, with the aim of expanding its portfolio of services. Operating cash flow of EUR 12.6 million, the high equity ratio of 46 per cent and the company's strong credibility provide the necessary foundation for this strategy.

"I am delighted that we were able to close out 2022 with a record result. Our organic sales growth shows that we have successfully positioned ourselves in these markets. We are currently experiencing rapid growth in AI tools that will give huge impetus to the digital and creative market. I see many exciting new opportunities to expand our portfolio and offer clients innovative services," said Franziska von Lewinski, CEO of the SYZYGY GROUP.

Proposed dividend for the 2022 financial year

Based on the earnings performance in the 2022 financial year, the Management Board and Supervisory Board will propose a dividend of EUR 0.22 per share at the Annual General Meeting scheduled for July 11, 2023. This represents an increase of EUR 0.02 or 10 per cent compared with the previous year.

Forecast

The SYZYGY GROUP expects organic sales growth of around 6–8 per cent in the 2023 financial year, combined with an EBIT margin in a range between 9 and 10 per cent.

The full annual report for 2022 will be available from March 31, 2023 at www.syzygy-group.net/investors ( http://www.syzygy-group.net/investors ).

About the SYZYGY GROUP

The SYZYGY GROUP has around 600 specialists dedicated to digitisation of brands and business processes. Together, we build long-lasting customer relationships through better digital experiences.The SYZYGY GROUP was established in 1995 and has a presence across four countries in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw. As a public company, SYZYGY AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since 2000. The SYZYGY GROUP includes leading consultancy and implementation partner for marketing and sales transformation SYZYGY , enterprise technology specialist SYZYGY Techsolutions , performance marketing and media specialist SYZYGY Performance , VR specialist SYZYGY Xrealities , strategy consultancy diffferent and design studio Ars Thanea . The SYZYGY GROUP companies support clients such as BMW Motorrad, Bosch, the German government, Commerzbank, Consorsbank, Deliveroo, Eucerin, Frankfurt Book Fair, Fisker, Hymer, Kyocera, Lufthansa, Mazda, Mercedes-Benz, Miles & More, MINI Deutschland, mobile.de, o2, PayPal, Porsche, Volkswagen, Wempe and Wirex.

(Ende)