The CAD IT Board of Directors approves the interim management report at 30th September 2018 and deliberates to proceed with the acquisition of the minority shares of the Spanish subsidiary DPI

The Board of Directors of CAD IT S.p.A., leader in the Italian financial software market and listed in the STAR segment of Borsa Italiana, today approved the Interim Management Report at 30th September 2018.

The main consolidated results of the third quarter 2018 are as follows:

• Production Value of Euro 15.5 million (Euro 13.8 million in the third quarter of 2017). During the three months in question, increases in internal work capitalized for the development of new products (asset increases due to internal work) came to Euro 0.7 million compared to Euro 0.9 million in the same period of the previous year;
• Gross Operational Result (EBITDA) of Euro 3.4 million (22.2% of the Production Value) compared to Euro 2.2 million registered in the third quarter of 2017 (16.2% of the Production Value);
• Operational Result (EBIT) of Euro 2.2 million, corresponding to 13.9% of the Production Value, compared to Euro 0.9 million registered in the third quarter of 2017 (6.6% of the Production Value);
• Result of the quarter, net of tax, attributable to owners of the parent of Euro 1.2 million, corresponding to 7.4% of the Production Value, compared to Euro 0.7 million registered in the third quarter of 2017 (5.0% of the Production Value).

The Group’s Consolidated Net Financial Position at 30th September 2018 is in credit by Euro 14.2 million, compared to Euro 19.0 million registered at 30th June 2018 and to Euro 0.7 million registered at 30th September 2017.                                                             

The main consolidated results of the first nine months of 2018 are outlined below:

• Production Value of Euro 47.4 million compared to Euro 43.4 million in the same period of the previous year. During the nine months in question, investment for internal work capitalized under fixed assets came to Euro 1.8 million compared to Euro 3.1 million registered in the same period of the previous year. Net sales were equal to Euro 44.7 million compared to Euro 39.8 million registered in the first nine months of 2017;
• Gross Operational Result (EBITDA) of Euro 8.7 million (18.3% of the Production Value) compared to Euro 6.8 million in the first nine months of 2017 (15.7% of the Production Value). The increase of EBITDA margin is mainly due to the increased income from sales and services partially balanced by the higher service costs, particularly referred to external collaborations carried out by an affiliate company on customer projects;
• Operational Result (EBIT) of Euro 5.0 million (10.6% of Production Value) compared to Euro 2.5 million in the first nine months of 2017, corresponding to 5.7% of Production Value. The amortization of intangible assets went from Euro 3.8 million in the first nine months of 2017 to Euro 3.1 million in the first nine months of 2018. The decrease in the amortization is mainly due to the completion of some amortization schedules on investment projects capitalized in previous financial years;
• Result of the period, net of tax, attributable to owners of the parent of Euro 3.6 million, corresponding to 7.6% of the Production Value, compared to Euro 1.9 million registered in the same period of the previous year (4.3% of the Production Value).

On 24th April 2018 CAD IT acquired 74.5% of the capital of the Spanish company DPI CAD IT ESPAÑA S.A. (former Desarrollo de Productos Informaticos S.A.) (DPI). In July 2018, CAD IT also acquired a further 40% share in the capital of the Spanish company Software Financiero Bolsa S.A. (SFB) to reach a 70% holding. Since that acquisition dates the Spanish companies are consolidated on a line-by-line basis and, therefore, the income statement and cash flow statement figures include the operations carried out between the acquisition date and 30th September 2018, while the statement of financial position figures include the balances at 30th September 2018.

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The Manager charged with preparing the company’s financial reports, Michele Miazzi, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records. Note moreover that in this press release, in addition to the conventional financial indicators required by IFRS, there are also some alternative performance indicators  in order to allow a better assessment of the economic and financial management trend. These indicators are calculated according to the usual market practices and in compliance with the previous company communications.

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The Interim Management Report at 30th September 2018 is not subject to auditing by the auditing company and will be made available to the public at CAD IT S.p.A. registered office, at Borsa Italiana S.p.A., in the Investor Relations section of the company’s internet website www.caditgroup.com and on the authorized storage mechanism for regulated information “eMarket STORAGE” at www.emarketstorage.com within the deadlines provided for by law. Written notification of such publication will be given.

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In addition the CAD IT BoD has deliberated today to proceed with the singning of the agreement for the acquisition of the minority shares of the Spanish subsidiary DPI CAD IT ESPAÑA S.A. (former Desarrollo de Productos Informaticos S.A.) (DPI), continuing its policy to expand into the European market and especially in Spain. The transaction will be completed over the next few weeks.

In April 2018, CAD IT acquired 74.5% of the capital of DPI and with this acquisition will reach 100%; the cost of acquiring 24.5% of the capital (1% of the capital is owned by DPI itself) comes to about Euro 1.2 million, of which Euro 500,000 to be paid upon signing of the agreement, Euro 500,000 in January 2019 and the balance of Euro 200,000 within April 2020.   

During the first 9 months of 2018, DPI has recorded revenues from sales and services of 2.8 million Euros, a net profit of 0.5 million Euros and active financial position of 2.5 million Euros.  

CAD IT was assisted in the transaction by lawyer José Ruiz-Cámara Bayo from MPA Legal in Madrid.