The SAP service provider plans to grow organically in the mid-single-digit range. The company is also targeting an EBIT margin of more than 8% from the 2025/26 financial year (as at September 30), adjusted for M&A effects. In the past financial year, turnover increased by 5% to EUR 511.4 million, with an adjusted EBIT margin of 6.7%.
One driver for higher profitability in the future is the change in the sales structure. The focus is increasingly on recurring monthly revenue from cloud subscriptions and associated services - i.e. software rental and supplementary services. This area has been growing at double-digit rates for years and will account for an increasingly large proportion of Group revenue. It currently accounts for 28%, compared to 18% six years ago. On the other hand, license sales from reseller activities, which are susceptible to fluctuations and currently account for 30% of total sales, are likely to decline further, explains CFO Stefan Land.
The IT service provider is benefiting considerably from the ongoing trend towards the cloud. All for One focuses primarily on medium-sized customers, which the company supports comprehensively: from migration to the cloud to software sales and individual services that provide unique selling points. Originally, the focus was on migrating the SAP infrastructure of existing customers to the cloud. However, it is interesting to note that around half of the RISE and GROW customers - SAP programs that help companies move to the cloud - are not regular customers, but completely new customers, says Land. "This shows that we are not only supporting our own customers, but are also increasingly acquiring new customers who were previously supported by other partners."
Investors are to benefit from the company's success: 40 to 50% of earnings per share (EPP) are to be distributed regularly as a dividend, says the CFO. A dividend of EUR 1.60 per share (EUR 61.60; DE0005110001) is proposed for the next payout after the Annual General Meeting (March 18). This currently corresponds to a yield of 2.6%. With a 2024/25 P/E ratio of 14 (10-year average: 22) and an expected EPS increase of around 15% this year, the All-for-One share remains attractive - also for newcomers.
In the wake of and quasi as a service provider for SAP, the conversion of numerous companies to current SAP components, which is necessary in the medium term, should ensure good figures. A solid business model, a fair valuation, good growth opportunities and, on top of that, a decent dividend convinced me.
As a leading SAP partner, All for One is benefiting from the current shift towards the cloud - and this is also reflected in the results for the past financial year.
In the 2023/24 financial year (ending September 30), All for One increased its sales by 4.8% to EUR 511.4 million. EBIT before M&A effects grew by 92.1% to EUR 34.0 million. Adjusted for the previous year's restructuring costs (EUR 8.4 million), EBIT growth amounted to a solid 29.8%. All for One thus achieved its corporate targets - sales of EUR 505 to 525 million and EBIT before M&A effects of EUR 32 to 36 million. The increase in recurring sales, which rose from EUR 266.3 million to EUR 283.2 million, is particularly positive. The ratio improved by 80 basis points to 55.4%.
CFO Stefan Land emphasized at the press conference on Monday (16.12.) that All for One will continue on its profitable growth path. In the medium term, the company is aiming for an EBIT margin of over 8% from financial year 2025/26. This compares to 6.7% in the previous year. These prospects make us confident for (DE0005110001).
