Outlook

Given its outstanding position in the SAP environment and the optimisations and improvements that were put in place last year, the management board continues to expect the Group to reap above-average benefits from a growing market for IT consulting and services. Which should, in turn, translate into further sales growth and greater profitability.

As things stand at present, presuming a continued robust and steady stream of incoming orders and a stable and broad customer base and based on the growth rates predicted for the IT consulting and services market, the management board of All for One Group expects sales to be between EUR 505 million and EUR 525 million in financial year 2023/24 (2022/23: EUR 488.0 million). EBIT before M&A effects (non-IFRS) is predicted to be in a range between EUR 32 million and EUR 36 million (2022/23: EUR 17.7 million).

In light of the above, the management board is also confirming its medium-term outlook. All for One Group expects robust organic sales growth over the coming years in the mid-single-digit percentage range (depending partly on future inflation levels) that will be supplemented by inorganic growth in areas of the portfolio offering future promise. The EBIT margin before M&A effects (non-IFRS) is expected to reach a range of 7% to 8% as early as financial year 2024/25.

In light of the global uncertainty prevailing in the markets, it is again difficult at present to offer a medium-term outlook.

All for One Group is budgeting for robust organic sales growth over the coming years in the mid-single-digit percentage range (depending on future inflation levels, among other things) that will be supplemented by inorganic growth in areas of the portfolio offering future promise. The EBIT margin before M&A effects (non-IFRS) is expected to be in a range between 7% and 8% by the financial year 2025/26.

At the start of the year 2022, inflation – together with the uncertainty surrounding the Russia-Ukraine conflict and the further progress of the pandemic – is dampening the expectations of IT service providers with regard to any dynamic development of the market. Nevertheless, the need for digital and IT spending is expected to continue to grow. Unlike the outlook for the economy as a whole, forecasts for the year 2023 expect sales to increase by between 4% and 12%, depending on the market segment (sources: Lünendonk, Jul 2022; SITSI Market Research, May 2022; Bitkom e.V., Jul 2022).

Transformation-related topics such as cybersecurity and information security will be dominant in the years 2023 and 2024. 84% of all German companies are making every effort to safeguard their corporate networks against attacks and theft with particular focus on cloud trans­formation, IT modernisation and process efficiency.

Given the shortage of experts, entire work packages are increasingly being awarded to IT providers such as All for One Group, especially projects focusing on software development and managed services. As a strategic service partner, in-depth understanding of industries and target groups is crucial, as are a broad portfolio of IT products and services and the appropriate expertise. The ability to independently deliver end-to-end-projects is also crucial (source: Lünendonk, 2022).