Outlook

For the financial year 2024/25, All for One expects solid growth despite a recessionary period in Europe, with a strong focus on sustainable and increasing profit­ability. Following the restructuring in 2023, the company will focus on further developing a cross-country and cross-portfolio matrix organisation to further expand and scale the business model.

Overall, the level of investment is expected to decrease slightly in the 2024/25 financial year, as the focus is on intensifying the transformation offering, moving to the cloud, improving processes and further increasing profit­ability. However, should attractive opportunities for inor­ganic growth arise, these would be exploited.

Digital transformation remains one of the key topics of corporate focus, leading to increased investment in IT modernisation, cloud transformation and new technologies. . IT moderni­sation, cloud transformation, process auto­mation, data analytics, artificial intelligence, regulatory requirements and cybersecurity are key areas of focus on CIO agendas. Despite the current political and economic challenges, forecasts for 2025 expect sales to increase by between 4.3% and 12.6% depending on the market segment, with the cloud business and IT outsourcing expected to grow more strongly (souces: Lünendonk, Aug 2024; SITSI Market Research, May 2024; Market insights by statista 2024; Bitkom e.V., Jun 2024).

In terms of sales, industry (share of 34%) continues to be the largest customer group in the German IT services market, followed by the financial sector (share of 17.7%). The public sector (share of 9.6%) shows a need to catch up in the context of digitalisation, but has been somewhat dampened due to the current reduction in household budgets (sources: Lünendonk, Jul 2024; Cap Gemini IT Trends 2024).

Continuous growth in the IT services market is also ex­pected in All for One Group's other main markets in the coming years. For financial year 2025, the IT services market in Austria is expected to grow by 3.9%, in Switzer­land by 4.0% and in Poland by 6.0% (sources: SITSI Mar­ket Research, PL market figures, Feb 2024, CH market figures, May 2024, AT market figures, May 2024).

With increasing digital transformation and automation, the IT services market continues to grow as the global demand for technology services increases. New requirements due to digital and cloud transformation increase complexity and demand timeliness, scaling, security, high availability and automation in the software lifecycle. Managed cloud services are becoming increasingly important, as are cybersecurity, release management, integration of new applications and flexible IT alignment (sources: Lü­nendonk, Aug 2024; Statista IT Ser­vices: market data & analysis, Jul 2024).

The medium-term outlook of robust organic growth in the mid-single-digit percentage range has been fundamentally confirmed. The management board had assumed that the EBIT margin before M&A effects (non-IFRS) would exceed the 8% threshold sustainably by the 2025/26 financial year. However, due to the current heightened geopolitical situation and associated temporary customer restraint, as well as sustained changes within the Customer Experience product area of the LOB segment, the management board now expects this threshold to be exceeded only in the 2026/27 financial year.