DGAP-News: q.beyond AG / Key word(s): Conference
q.beyond specifies equity story in greater detail
2020-11-17 / 08:45
The issuer is solely responsible for the content of this announcement.
*q.beyond specifies equity story in greater detail*
*- Further specification of "2020plus" growth strategy*
*- Revenue growth averaging 17% to 18% in Cloud & IoT business and 14% to
15% in SAP business leads to revenues of &euro 200 million in 2022*
*- Repeated record levels of new orders confirm growth trajectory*
*Cologne, 17 November 2020* - q.beyond AG, which resulted from the
rebranding of QSC AG in mid-September, took the "Deutsches
Eigenkapitalforum" equity fair as an opportunity to present its updated
"2020plus" growth strategy. The IT service provider has for the first time
shown in detail which contributions its segments of "Cloud & IoT" and "SAP"
will each make to enable it to reach its targets for 2022. For 2022,
q.beyond has budgeted revenues of &euro 200 million, an EBITDA margin of
more than 10% and sustainably positive free cash flow.
*Scalable business model*
According to this more detailed planning, in the years ahead the Cloud & IoT
business will boost its revenues by an average of 17% to 18% a year to
around &euro 145 million in 2022 and generate a segment margin of 18% to
20%. The SAP segment will increase its revenues by an average of 14% to 15%
a year to around &euro 55 million and achieve a segment margin of 14% to 15%
in 2022. Less administrative expenses, this will produce a double-digit
EBITDA margin. "Our business model is scalable and our organisational
structures are already in place. As our revenues grow, this will become ever
more clearly visible", stressed q.beyond's CEO Jürgen Hermann.
q.beyond aims to generate sustainably positive EBITDA for the current fourth
quarter of 2020 already. From the fourth quarter of 2021, it plans to
generate sustainably positive free cash flow as well. The company has
maintained its course even during the current coronavirus crisis. It has
increased its revenues for five consecutive quarters and expects to see
double-digit growth in the fourth quarter of 2020.
*Highly plannable business thanks to 75% recurring revenues*
q.beyond is securing this ongoing profitable growth by consistently
implementing its "2020plus" growth strategy. It is focusing on its three
growth markets of Cloud, SAP and IoT and has benefited, particularly in
recent months, from great demand among SMEs for digital workplaces and
matching Cloud solutions. As a general rule, the company concludes
multi-year contracts, meaning that a high share of revenues, namely around
75%, is of a recurring nature.
q.beyond's well-focused portfolio of services has been outstandingly well
received by the market. At &euro 52.3 million, new orders in the third
quarter of 2020 set another new record. Comments Hermann: "We are proud of
what we have achieved since selling Plusnet as of 30 June 2019: Access to
attractive markets, forward-looking products, a clear sector focus, fresh
branding, new management structures - and a well-stocked pipeline." With
liquid funds of around &euro 50 million, the company had substantial
resources available, also for external growth, while its equity ratio of
more than 70% provided stability while also opening up opportunities for
further development. New high-profile customers and cooperations were
offering additional tailwind. "Today, q.beyond stands for full-service IT
along the whole of the digital value chain. No isolated solutions, but
everything from a single source: flexible, scalable and adaptive, and all on
a basis of partnership between SMEs."
*q.beyond as attractive growth stock*
The past five quarters had shown the capital market how the new company was
reliably gaining traction, implementing its strategy step by step and
credibly meeting all its communicated growth targets. The transformation in
q.beyond from a service provider focusing on telecommunications to a pure IT
service provider formed the basis for the equity story. Relates Hermann:
"Our core activities as a Cloud and IoT integrator and an S/4HANA pioneer
harbour enormous potential which, now that our realignment is complete,
q.beyond is ideally positioned to exploit."
A further crucial factor involved offering integrated and innovative
solutions, which currently also included the StoreButler as an all-in-one
package for digitalised stores and the IIoT starter kit as a digital
connector for existing industrial machinery. "Our SME customers want
practical answers - and those are specific one-stop solutions that we can
provide in customised form thanks to our longstanding sector expertise, our
proximity to customers and also the growing share of IP in our value chain."
On the occasion of the "Deutsches Eigenkapitalforum", Hermann stresses: "Our
figures for the past five quarters show just how successful q.beyond has
been in repositioning its business. Reaching EBITDA break-even on schedule
will offer further proof." Consistent with this, analysts regularly covering
q.beyond have currently set target share prices averaging &euro 1.79. Three
analysts - Bankhaus Lampe, Commerzbank and Stifel (formerly MainFirst) -
have issued buy recommendations for q.beyond shares to their customers and
set target prices of up to &euro 2.25.
*Share programme aligns interests of shareholders and executive*
To underpin this development, the management has just recently acquired a
further 1 million shares in the company. This voluntary acquisition of
shares by q.beyond's executives on their own account entitles them to
participate in a newly incepted share programme based on a target share
price of at least &euro 2.80 by the end of 2022. Explains Hermann: "Our
executives are absolutely convinced by our new alignment and, like me
myself, willing to invest substantial sums of their own money in q.beyond
shares." The aim of this programme was to directly align the interests of
shareholders and executives. "The clear commitment shown by our executives
sends out an equally clear and credible signal to our shareholders: q.beyond
is on track! We will continue to grow, and that in both our segments, and
thus sustainably boost the company's value."
q.beyond's presentation at Deutsches Eigenkapitalforum 2020 can be
downloaded here: www.qbeyond.de/en/ir-publications 
This Corporate News contains forward-looking statements that are based on
current expectations and forecasts on the part of the management of q.beyond
AG with regard to future events. Due to risks or erroneous assumptions,
actual events may deviate materially from these forward-looking statements.
*About q.beyond AG:*
q.beyond AG is the key to successful digitalisation. We help our customers
find the best digital solutions for their business and then put them into
practice. Our strong team of 900 people accompanies SME customers securely
and reliably throughout their digital journey. We are experts in Cloud, SAP
q.beyond AG results from the rebranding of QSC AG in September 2020. With
nationwide locations and its own certified data centres, it is one of
Germany's leading IT service providers.
Head of Investor Relations/Mergers & Acquisitions
T +49 221 669-8724
F +49 221 669-8009
2020-11-17 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Company: q.beyond AG
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1148573
End of News DGAP News Service
(END) Dow Jones Newswires
November 17, 2020 02:45 ET (07:45 GMT)