GK Software significantly increases turnover and profits during the first 9 months, according to provisional figures

Provisional figures suggest that GK Software SE has managed to continue its growth course for the third quarter in succession, despite the global pandemic. Turnover rose by about seven percent to EUR 85.25 million (9M 2019 = EUR 79.75 million) compared to the same period in the previous year. EBITDA reached a figure of EUR 11.83 million (9M 2019 = EUR 2.61 million) and therefore increased much more significantly than turnover. The EBITDA margin (related to turnover) amounted to 13.9 percent after 9 months. The EBIT figure of EUR 5.58 million also reflected a huge improvement over the previous year (9M 2019 = EUR (4.23) million). This meant that there was a surplus for the period of EUR 2.97 million.

The basis for these results was, firstly, the programme to increase efficiency internally, which was successfully introduced, gaining six new customers overall, including two in the USA, and two existing customers opting for our core products. Three new retailers were gained in the third quarter alone. Two of these customers are based in European countries abroad and one comes from Egypt. All the new customers, including one major European food retailer, will overall account for the introduction of significantly more than 10,000 new installations during the next few years. For the first time in 2020, GK Software was also able to gain two retailers, which opted for the company’s core solutions in the form of software-as-a-service. One of these customers also selected cloud4retail after the end of the third quarter.

Developments at the subsidiary, Deutsche Fiskal, were also extremely positive; this is based on the fact that it is currently able to offer the only certified cloud solution and it has therefore been able to achieve an excellent position in the marketplace. The Management Board therefore assumes that it will achieve the upper limits of its originally envisaged market share or even exceed them. The solution was transferred to standard operations on 2 November and the company launched the start of productive operations for customers. However, a significant contribution to turnover from the fiscalisation business is not expected until 2021.

The Management Board continues to see positive signs in the 4th quarter, both in ongoing business and in the area of new sales, even if it is very difficult to assess the effects of the renewed lockdown on the signing of contracts in many countries this year. The publication of the complete report for the quarter is planned to take place on 26 November 2020.