The figures for 2020 as confirmed by the Supervisory Board and the auditor indicate that the SYZYGY GROUP generated sales of EUR 55.5 million, representing a decline of around 14 per cent compared to the previous year.
Operating income (EBIT) came in at EUR 4.0 million, leading to a slight reduction in the SYZYGY GROUP’s EBIT margin from 8.6 per cent to 7.2 per cent. Financial income was EUR -0.7 million, meaning that total net income after taxes is EUR 2.1 million. This corresponds to earnings per share of EUR 0.15.
Core German market
A sharp drop in sales in the second quarter of 2020 was followed by a strong recovery, resulting in sales of EUR 45.5 million. This represents a decline in sales of 8 per cent, but with continuing high profitability as demonstrated by a 14 per cent EBIT margin. Within the segment, the technology division grew significantly, while the consulting business reported a drop in sales.
International
International sales were down EUR 4.6 million at around EUR 10.0 million. Although the operating results of SYZYGY London and SYZYGY New York were negative over the full year, positive operating results were generated in the fourth quarter and continued on a stable basis in 2021. The Polish subsidiary posted a drop in sales of approximately 10 per cent. In December 2020, SYZYGY Poland acquired a major new client for e-commerce-related work, meaning that the business prospects for 2021 are positive.
Outlook
SYZYGY AG expects sales growth of around 10 per cent in the 2021 financial year, combined with an EBIT margin in the high single-digit range, representing a significant increase in profitability. The expected sales growth will be delivered by all units, both national and international, with all segments contributing proportionately to profitability.
“Digital transformation is accelerating and affecting almost every aspect of business and daily life. Digital services and products are becoming even more of a priority for clients, consumers and businesses. The SYZYGY GROUP sees this as a great opportunity: we bring people and brands together by creating compelling digital experiences and products that are perfectly matched with needs,” said CEO Franziska von Lewinski.
Due to the COVID-19 pandemic, this year’s Annual General Meeting, scheduled for May 28, 2021, will be held as a virtual event without the physical presence of the shareholders. The Management Board and Supervisory Board had already decided at the end of January to propose a dividend of EUR 0.15 per share at the Annual General Meeting.
