24. March 2020 | Corporate News
– Corona virus measures and simultaneous increased time requirements due to the first-time audit of the annual financial statements by new auditors KPMG lead to a postponement of the publication date.
– Due to changed application of IFRS standard for revenue recognition (principal-versus-agent classification) final financial results for 2019 will show changes compared to preliminary figures.
Munich, Germany, 24 March 2020 – The Executive Board of CANCOM SE today decided to postpone publication of the annual financial statements and annual report for the CANCOM Group and CANCOM SE until 28 April 2020. The original date was 30 March 2020. The main reason for the delay in the preparation process was the difficult circumstances regarding availability and reconciliations during the preparation of the annual financial statements due to the spread of the corona virus. These circumstances came on top of the already increased time requirements in connection with the first-time audit of the annual financial statements by the auditors of the auditing company KPMG, who were newly elected at last year’s Annual General Meeting.
The initial audit resulted in reclassifications in the revenue recognition in connection with the so-called principal-versus-agent classification. In this rule, IFRS uses different criteria to assess whether the selling company, i.e. CANCOM, may show revenue in the full amount of the actual invoice to the customer (principal), or whether the company is classified as an agent and may only show a reduced value as revenue (agent, so-called net presentation). While CANCOM has so far shown revenue as the principal in the amount actually invoiced, a change in the assessment of agent status has been made in the 2019 annual financial statements resulting in a reduced revenue figure.
As a result, the CANCOM Group’s consolidated revenue for the 2019 financial year is expected to be EUR 1.55 billion (published preliminary figure: EUR 1.64 billion). The figure for the prior year 2018 will change as well to EUR 1.31 billion (previously: EUR 1.38 billion). The EBITDA (adjusted) as well as the EBITDA according to IFRS is expected to be reduced in an amount between two and three percent compared to the preliminary figures published before. On the other hand, the EBITDA margin (adjusted) of the CANCOM Group will probably increase slightly.
Other key financial figures such as cash flow, working capital or balance sheet ratios will not be significantly affected by the change in the revenue recognition.
The CANCOM Group’s full annual report for 2019, including the forecast for 2020, will be published on 28 April 2020 on www.cancom.de in the Investors section.
As a Digital Transformation Partner, CANCOM accompanies companies into the digital future. CANCOM helps customers to reduce the complexity of their IT and to expand their business success through the use of state-of-the-art technology. To meet the IT needs of companies, organizations and the public sector in a holistic way, CANCOM offers tailor-made IT from A to Z from a single source.
The CANCOM Group’s IT solutions portfolio includes consulting, implementation, services and the operation of IT systems. Customers benefit from CANCOM’s extensive expertise and a holistic and innovative portfolio that covers the IT requirements of companies for successful digital transformation. As a hybrid IT integrator and service provider, the company provides a range of services and solutions that includes business solutions and managed services such as cloud computing, analytics, enterprise mobility, IT security, hosting and as-a-service offerings.
The more than 4,000 employees of the internationally active CANCOM Group worldwide and an efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium, Great Britain and the USA, among other countries. The CANCOM Group is managed by Rudolf Hotter (CEO) and Thomas Stark (CFO). The headquarters of the company is in Munich. CANCOM generates annual sales of around 1.6 billion euros and the Group’s parent company CANCOM SE is listed on the Frankfurt Stock Exchange in the MDAX and TecDAX (ISIN DE0005419105).