GFT Group (GFT)

Business description

GFT Group is a global technology services and recruitment business primarily focused on banks and insurance companies.

Share price chart

Share chart

Stock data

Market cap.€209.6m
Last close€7.960
High / Low (52 weeks)€8.4 / €3.4
Stock market listingFRA
Forecast net cash (€m)30.5
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual0.36.0123.6
Relative *(2.5)10.684.4

* % Relative to local index

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Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2012A 230.7 10.8 9.6 21.9 36.3 N/A
2013A 264.3 20.9 18.5 55.3 14.4 N/A
2014E 310.0 28.3 24.3 64.6 12.3 N/A
2015E 322.5 31.8 27.6 72.3 11.0 N/A

Last updated on 15/04/2014

Investment summary

FY13 was a buoyant year for GFT Group, as it benefited from strong demand in its solutions business, GFT. The solutions business grew 46% organically in Q4, up from 30% in Q3 and 21% in Q2, with growth driven by strong demand from investment banks as customers increasingly invest in new projects for growth. There was strong growth in the UK and Germany while GFT Italy (the rebranded Sempla, which was acquired early in Q3) gave an additional boost to revenues and has helped to lift the group's adjusted operating margins. emagine, the group's resourcing business, had a challenging year, but is showing signs of stabilising. In our view the 11x FY15e P/E and 3.2% yield look attractive given the potential to leverage market growth internationally and increase operating margins.

Last updated on 15/04/2014

Industry outlook

GFT generates the bulk of group profits through the provision of IT services, primarily to commercial and investment banks. It benefits from high levels of IT spending and complex business requirements in the financial services industry. It also benefits from favourable outsourcing trends in banking and has integrated near/farshore hubs in Spain and Brazil. Its staffing business, emagine, sources skilled IT specialists and engineering staff for technology projects in the financial and corporate sectors.

Last updated on 31/03/2014

Key management

Ulrich Dietz, Chairman & CEO
Jochen Ruetz , CFO

Company address

Filderhauptstra├če 142,
Stuttgart
70599
Germany
+49 711 62042-0
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