Allgeier, the Germany-based IT solutions and staffing firm, reported on 5 November revenue of €335 million for the first nine months of the 2024 financial year, down 7.7% from the prior year.

The company said the third quarter of 2024 was still characterised by the special situation in the area of public-sector clients. The delayed implementation of digitalisation projects significantly impacted the third quarter, particularly in the group’s segment publicplan.

Allgeier said revenue generated in the third quarter was more than €4 million lower than expected, which resulted in a negative impact on EBITDA of approximately €2.5 million.

Apart from the situation with publicplan, the Allgeier Group otherwise achieved its earnings targets in the third quarter of 2024 as expected.

“It is very encouraging that business in the public sector at our group company mgm technology partners already picked up noticeably during the third quarter,” the company stated in a press release.

Adjusted EBITDA was €37 million, approximately €6 million below forecasts. If the special situation in the area of public-sector clients had been additionally adjusted for, adjusted EBITDA would have been above €45 million in the first nine months of 2024 and thus ahead of its forecasted result. In the first nine months of 2023, adjusted EBITDA was €40 million.

Outlook

For the fourth quarter, publicplan expects a negative impact on revenue of approximately €5 million and a negative impact on EBITDA of approximately €3 million compared to the half-year forecast.

Otherwise, the Allgeier Group expects stable business development.

Revenue for the fourth quarter of 2024 is expected to be in the range of €120 to €125 million. Adjusted EBITDA for the fourth quarter is expected to be in the range of €18 to €19 million. Without the extraordinary charge, the expectation in terms of adjusted EBITDA would be between €21 and €22 million. In the fourth quarter of 2023, adjusted EBITDA stood at €21 million.

For the full year 2024, this translates into consolidated revenues between €455 and €460 million and adjusted EBITDA in the range of €55 to €56 million, corresponding to an operating profit margin of around 12%. Excluding the exceptional charges from the public sector for the full year 2024, the expected adjusted EBITDA would be €67 million.

The group’s reported EBITDA for the 2024 financial year is expected to be in the region of €60 million (previous year: €58 million).

Allgeier shares closed on 5 November at €14.15, up 1.07% on the day. The company has a market cap of €161.76 million.