SYZYGY AG: SYZYGY Group confirms preliminary figures for 2024: Operating result on target with an EBIT margin of 8 per cent

– Net sales of around EUR 70 million in line with expectations

Bad Homburg (pta017/28.03.2025/12:56 UTC+1)

• Operating result (before goodwill amortisation) increases to EUR 5.7 million (+39 percent compared to the previous year) with an operating EBIT margin of 8 percent
• Net sales of EUR 69.4 million (-3 per cent compared to the previous year)
• Core market Germany: Net sales of EUR 56.4 million (-2 per cent compared to the previous year) with an operating EBIT margin of 12 per cent
• UK and US segment: sales of EUR 5.1 million (-39 per cent compared to the previous year) with an operating EBIT margin of 2 per cent
• Poland segment: Net sales of EUR 8.2 million (+34 per cent compared to the previous year) with an EBIT margin of 12 per cent
• Goodwill amortisation in the amount of EUR 16.6 million
• Net income of EUR -13.2 million, earnings per share of EUR -0.99
• Positive operating cash flow of EUR 9.6 million
• Liquidity reserves increased from EUR 4.0 million to EUR 5.0 million, bank liabilities reduced from EUR 3.5 million to EUR 1.0 million.
• No dividend distribution for 2024
• Outlook for 2025: declining sales in the high single-digit percentage range and an EBIT margin of around 7 per cent.

Despite a challenging economic environment, the SYZYGY Group significantly increased its operating profitability in the 2024 financial year. While net sales were 3 percent down on the previous year at EUR 69.4 million, the operating result (EBIT before goodwill amortisation) increased by 39 per cent to EUR 5.7 million. The operating EBIT margin thus rose to 8 per cent, up 2 percentage points on the previous year. Consistent cost discipline and targeted efficiency improvements contributed significantly to this result.

In Germany, net sales were 2 percent down on the previous year at EUR 56.4 million; the EBIT margin was 12 percent. While SYZYGY and SYZYGY Techsolutions grew dynamically and SYZYGY Performance remained stable, capacities were adjusted at diffferent. The core market of Germany proved robust and contributed 81 per cent to total sales.

In the UK and the US, net sales decreased by 39 percent to EUR 5.1 million due to the loss of a major client. Thanks to cost-cutting measures introduced at an early stage, the SYZYGY UK nevertheless achieved an EBIT margin of 2 percent. In contrast, Ars Thanea and SYZYGY Poland recorded strong growth. Net sales increased by 34 percent year-on-year to EUR 8.2 million, with an EBIT margin of 12 percent.

"We are continuing to focus on optimising our service portfolio, our ability to integrate into our client partners' ecosystems and strategic efficiency gains through the use of AI," comments Frank Wolfram, CEO of SYZYGY AG.

Due to the difficult market environment in Germany and the decline in net sales in the UK, goodwill amortisation amounts to EUR 16.6 million, resulting an EBIT (including goodwill amortisation) of EUR -11.0 million. The financial result is negative at EUR -0.6 million, meaning that the consolidated result before taxes amounts to around EUR -11.6 million. With a tax charge of around EUR 1.6 million, this results in earnings after tax of around EUR -13.2 million, or earnings per share of EUR -0.99.

No dividend payment for the 2024 financial year:
SYZYGY AG's general objective is to allow its shareholders to participate appropriately in the company's economic success and to distribute dividends. Despite a solid liquidity position and a strong operating cash flow, a dividend payment for the 2024 financial year is not possible due to the negative consolidated net income and the negative retained earnings in SYZYGY AG's statutory financial statements. The aim for 2025 is to distribute a significant portion of the consolidated net profit generated.

Strategic outlook 2025

In 2025, the SYZYGY Group is focussing on sustainable profitability and targeted growth in strategic future fields. While the economic environment remains challenging, particularly in the core market of Germany, the Group is increasingly focussing on higher efficiency, technological innovations and the development of new business areas.

"We are focussing on expanding our partnerships and our strategic initiatives in the public sector and AI, which we expect to stimulate growth," Frank Wolfram, CEO of SYZYGY AG, summarises

At the same time, SYZYGY is focusing on an optimised cost structure and synergies within the Group in order to ensure long-term stability and competitiveness.

Forecast 2025

The SYZYGY Group anticipates a decline in sales in the high single-digit percentage range and an EBIT margin of around 7 per cent for the 2025 financial year.

The full 2024 Annual Report will be available at www.syzygy-group.net/investors from 31 March 2025 (in German language).

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