CENIT AG
CENIT AG: Management and Supervisory Board propose the suspension of the dividend – CENIT records slight sales decline in the first quarter of 2020
CENIT AG / Key word(s): Dividend/Quarter Results Stuttgart, May 12th, 2020 – Due to the negative impact of the COVID 19 pandemic on the overall economic development, the Management and Supervisory Board will propose to the Annual General Meeting on July 2, 2020 that the dividend payment for the 2019 fiscal year should be suspended. This measure is intended above all to further strengthen the financial stability and flexibility of CENIT AG. During the first three months, CENIT group generated sales revenues of EUR k 39,228 (prior year: EUR k 41,238/-4.9%). Sales revenues in CENITs consulting and services segment decreased by -8.3% to EUR k 11,594 (prior year: EUR k 12,639). Sales of third-party software increased by approx. -5.6% to EUR k 23,724 (prior year: EUR k 25,136). Sales proceeds from CENIT’s proprietary software increased from EUR k 3,401 to EUR k 3,640 (7.0%). The gross profit (operating output less cost of materials) amounted to EUR k 20,064 (prior year: EUR k 20,814, representing a decrease of -3.6%. CENIT achieved EBITDA of EUR k 2,338 (prior year: EUR k 2,306/1.4%) and EBIT of EUR k 805 (prior year: EUR k 844/-4.7%). Results per share were EUR 0.06 EUR (prior year: 0.07 EUR). Orders Development Asset and Financial Situation Employees Annual General Meeting and dividend Considering the effects of the coronavirus pandemic on the business activities and liquidity of CENIT AG, the Management Board and Supervisory Board have reviewed the original proposal for the appropriation of profits published in the Annual Report 2019 and the prospect of continuing the current dividend policy. After careful consideration, they have agreed that, in the interest of strengthening the company’s stability in view of the economic and financial challenges that are expected in the current business year, a dividend payment is not appropriate at present. Outlook This will also have a significant impact on the business development of CENIT AG in 2020, especially since the majority of our customers belong to the automotive and aerospace industries, which are currently suffering particularly from the shutdown and production downtimes. As it is not possible to estimate neither the duration nor the further spread of the pandemic, we are unable to make a reliable sales and earnings forecast at present. We hope that the economic situation will recover by the middle of the second half-year 2020. Please visit CENIT’s homepage for the full 3 Months Report 2020: www.cenit.com/reports.
12-May-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | CENIT AG |
Industriestraße 52 – 54 | |
70565 Stuttgart | |
Germany | |
Phone: | +49 (0)711 78 25 – 30 |
Fax: | +49 (0)711 78 25 – 4000 |
E-mail: | aktie@cenit.de |
Internet: | www.cenit.com |
ISIN: | DE0005407100 |
WKN: | 540710 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1041793 |
End of Announcement | DGAP News Service |