SNP: Solid Numbers and a Positive Outlook
Dear Reader,
The medium-sized software specialists SNP have had an eventful few months. At the beginning of November, the founder and CEO, Dr. Andreas Schneider-Neureither, died suddenly and unexpectedly. This caused SNP stock to fall significantly, but it quickly began to recover.
Additionally, SNP recently released their preliminary numbers for 2020. Before I examine these newest figures and the broader perspective, let me quickly introduce SNP as a company. I'm sure not all readers here are familiar with it.
SNP: The company and the business model
SNP was founded in 1994 by the late Dr. Andreas Schneider-Neureither, and has been a public company since 2000. It supports organizations in modernizing their business models and using new technologies. SNP's software and services make it easier to implement economic or technical changes in business processes.
SNP's customers include global companies from every industry and some of the largest companies in the world. SNP is globally active and has already seen over 10,000 international projects to completion for its many well-known customers.
Across industries, the central factors to succeeding in competition include digital transformation and the ability to react quickly to changes in the business environment. SNP supports companies as they consolidate their IT landscapes and adjust quickly and economically to new conditions.
Preliminary numbers for 2020
SNP (full name: SNP Schneider-Neureither & Partner SE) made 37 million euros in revenue and had an EBIT of about 1 million euros in the 4th quarter of 2020, based on preliminary numbers. For the 2020 business year, that gives them a total revenue of about 143 million euros, about the same as the previous year.
The means they were largely able to meet revenue expectations. The EBIT for the 2020 business year was about 1 million euros, which is a slightly positive margin. They were unable to meet expectations for an EBIT margin in the mid-single-digits.
This is due in large part to a potential partner contract with a leading international IT service provider that, contrary to expectations, didn't materialize, as well as a project being moved from the 4th quarter of 2020 into 2021. Incoming orders at the end of last year were at a high 185 million euros—more than their yearly revenue.
Positive outlook for 2021
Due to increasing investment readiness across the world, SNP expects revenue growth reaching up to between 160 and 180 million euros for the 2021 business year. They are aiming for an EBIT margin of between 5 and 8%, depending on the course of global measures to combat COVID-19.
If they reach these goals, SNP stock will have even more upward potential. In the medium term, I find the stock very exciting. The digital revolution will continue to progress, and the software and services of the Heidelberg-based company will be more and more in demand.
Dr. Gregor Bauer
No comments:
Post a Comment