TAKKT AGM resolves to increase dividend by 50 percent to EUR 0.15
Net income before minority interest up 35.6 percent
In the financial year 2004, TAKKT AG achieved currency-adjusted turnover growth of 5.8 percent, clearly exceeding its three percent growth target. This was reported by CEO Georg Gayer at this year’s Annual General Meeting. The company’s profitability also continued to improve.
TAKKT AG has strengthened its position as the leading international mail order company for office, business and warehouse equipment. The companies established in Eastern Europe in recent years developed particularly positively. “We are very satisfied that we were able to grow again in 2004 following a phase which was characterised by a difficult economic environment,” said Gayer. New and optimised catalogues and products have helped TAKKT expand its customer base by more than 100,000 businesses. According to Gayer, both the number of orders and the average order value increased.
At EUR 33.0 (24.4) million, net income before minority interest for the year was clearly up on the previous year, allowing the Group to increase its equity capital to EUR 181.1 (157.2) million. The equity ratio climbed to a record 39.6 (32.8) percent. Total assets declined by 4.6 percent to EUR 457.8 (479.9) million, mainly due to scheduled goodwill amortisation and currency effects resulting from the week US dollar. The cash flow testifies to the TAKKT Group’s excellent profitability, reaching a new record level at EUR 57.7 (50.5) million. Free cash flow also marked an all-time high at EUR 49.1 (40.7) million. “The excellent equity ratio and the good cash flow will enable us to repay borrowings as planned and to fund our growth internally,” Gayer commented on the figures.
In view of the TAKKT Group’s high profitability, the Management and Supervisory Boards proposed to increase the dividend from EUR 0.10 to EUR 0.15 per share. This proposal was accepted by a large majority of shareholders. The payout ratio is equivalent to approx. 33 percent of the net income for the year. CEO Georg Gayer emphasised that the management attaches great importance to offering the TAKKT shareholders an appropriate share in the company’s results.
The AGM marked the end of the term of office of the Supervisory Board members. All members stood for re-election and were confirmed in their positions. Professor Dr Theo Siegert, Chairman of the Management Board of Franz Haniel & Cie. GmbH, was elected to the Supervisory Board to replace Günther Hülse, who died last year.
The Annual General Meeting renews authority for the Management Board to increase authorised share capital in the amount of EUR 36.5 million. This will give the Group the flexibility that is needed for swift capital action in the case of larger acquisitions. The renewed authorisation of the Management Board to buy the company’s own shares aims in the same direction. The Management Board may purchase up to 10 percent of the company’s shares in the capital market in the next 18 months. This gives TAKKT AG additional flexibility for company acquisitions or equity investments.
In the current financial year, the TAKKT Group will continue to transfer its successful business model to other promising markets. Five new companies will start operations on three continents. The Group is particularly excited about the launch of KAISER + KRAFT China, which will mail the first catalogue in autumn 2005. This month, KAISER + KRAFT has already opened its first company in Turkey. The KWESTO brand will open up the Romanian market for the KAISER + KRAFT division, while Topdeq will make inroads into the Belgium market. Hubert, the K + K America subsidiary, will establish a company in Canada.
In the current financial year, the TAKKT Management expects to see hardly any economic stimulation in Europe and North America. Georg Gayer nevertheless expressed cautious optimism for the further course of business. TAKKT will concentrate on its expansion and continue the quality improvement process in the context of the “Perfect Service” project. “Our sound earnings and financial position forms a good basis for continued growth. We expect Group turnover to increase by at least three percent in currency-adjusted terms,” Gayer said. The capital outlay for the five new start-ups will have a moderate impact on profitability. “We nevertheless expect to achieve again an EBITA margin in excess of ten percent.”
The Annual General Meeting discharged the Management and Supervisory Boards. The shareholders also approved all other proposals made by the Management and Supervisory Boards.
Represented in more than 20 countries, TAKKT AG is the number one B2B mail order company for office, business and warehouse equipment in Europe and North America. The product range of the TAKKT subsidiaries comprises some 100,000 items from the areas business and warehouse equipment, classical and design-oriented office furniture and accessories, occupational safety products, sales promotion items for retailers, the food service industry and the hotel market.
Stuttgart, 3 May 2005
Contacts:
Georg Gayer, CEO
Phone +49 (0)711-3 46 58-201
Dr Florian Funck, CFO
Phone +49 (0)711-3 46 58-207