The good news keeps pouring in: Today Nemetschek reported its final figures for 2010 and tweaked its guidance for 2011. Back in February, the company had forecast a 10% organic growth rate for 2011, which the company today said it will achieve by “driv[ing] forward with its internationalization activities. Furthermore, both the group’s subsidiary companies and the Nemetschek holding company have planned substantial investments in 2011 to develop web-capable software solutions and to be able to offer new services over the internet in the future.”
The tweak is to the earnings forecast. 2011 is apparently going well, and “[w]ith sales revenues at the expected level, Nemetschek will achieve an operating result (EBITDA) of around €40 million for the year as a whole… In view of the falling interest charges, the net income will thus increase to over €20 million
This is good, because the company’s earlier forecast had set the expected net income at €19 million to €21 million, while analysts were expecting €22 million.
Today’s news also included a bit that delighted analysts and investors. The revenue growth and resulting profitability and cash flow led the company’s managing board and supervisory board have decided to propose doubling the dividend to €1.00 at the annual general meeting in May. According to CEO Ernst
Homolka, “Now is the right time for our shareholders to participate substantially in the success of the company”.
So far, all signs for 2011 are pointing in the right direction. It’s hard to believe given all of the info still coming out about 2010, but the first quarter of 2011 ends this week, and the reporting cycle begins anew.