EANS-News: GESCO strengthens balance sheet during the recession and expects growth

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Subtitle:  2009/2010 figures fall within forecast
 A high level of equity and sufficient liquidity
 Strong start to the new financial year: Incoming orders up 43 %

Wuppertal (euro adhoc) - Wuppertal, 29 June 2010 - The SDAX listed investment
holding company GESCO AG is announcing its results for financial year 2009/2010
(1 April 2009 - 31 March 2010) at its annual accounts press conference today. As
expected, figures at the end of the year showed a decrease in sales and earnings
but also a stronger balance sheet. The company is forecasting growth for the new
financial year 2010/2011. The number of incoming orders already went up
considerably in the first quarter.

While the previous year still showed the effects of an economy that had been
lively until autumn 2008, financial year 2009/2010 was dominated by recession -
the effects of which GESCO Group, like many others, was unable to escape. At the
end of 2008, the Group already took preventive action by implementing cost
saving programmes and starting various sales and innovation campaigns. Total
Group sales in financial year 2009/2010 dropped from EUR 378.4 million to EUR
277.7 million. Earnings before interest and taxes (EBIT) amounted to EUR 16.5
million compared to EUR 38.9 million in the previous year. Group net income
after minority interest reached EUR 8.9 million (previous year: EUR 21.6
million). Earnings per share according to IFRS came to EUR 2.95 (EUR 7.16).
These figures fell within the forecast published in June 2009.

GESCO Group closed the crisis year with an exceptionally strong balance sheet
structure. The equity ratio now amounts to 42.7 %, liquid assets to EUR 26.9
million and the debt ratio is comfortably low with a ratio between net
liabilities to banks and EBITDA of 1.7. In addition, goodwill poses just a small
risk to the company´s finances, as it totals only 6.4 % of equity.

For the first time, the Group´s staff of 1,733 includes the 42 employees of
Georg Kesel GmbH & Co. KG, acquired in April 2009. On the previous year´s
reporting date, GESCO Group employed 1,795 people.

The Executive Board and Supervisory Board will propose a dividend of
EUR 1.30 per share to the Annual General Meeting on 2 September 2010. The
Company distributed EUR 2.50 per share in the previous year.

In view of the improved economic situation, the company is forecasting Group
sales between EUR 290 million and EUR 320 million and Group net income after
minority interest of between EUR 9 million and EUR 11 million, corresponding to
earnings per share according to IFRS between EUR 2.98 and EUR 3.64, for the new
financial year 2010/2011 (1 April 2010 - 31 March 2011).

Business livened up considerably in the first quarter of financial year
2010/2011, which comprises the operating months January to March for the Group´s
subsidiaries. Incoming orders came to EUR 87.8 million, up
42.9 % on the same quarter in the previous year (EUR 61.4 million), and with EUR
76.8 million, sales were 4.3 % higher than in the previous year
(EUR 73.6 million).

Dr. Hans-Gert Mayrose, member of the Executive Board, on the company´s outlook:
"GESCO has come through the crisis rather well compared to others. We naturally
lowered our costs considerably, but we did not "save the group to death" either.
Our subsidiaries have retained their full supply capacities and some have gained
new customers and tapped into new markets. Although there are still economic
risks, there are plenty of signs pointing to an upturn at present."

The complete Annual Report is available online at www.gesco.de.

About GESCO AG

GESCO AG is a financial holding for a group of industrial SMEs. It acquires
successful, established niche providers, mainly in the form of a business
succession agreement, with the objective of retaining long-term involvement in
the companies while developing their business. GESCO AG is listed on the Prime
Standard and SDAX and offers private and institutional investors the opportunity
of accessing SMEs.

Investor Relations / Public Relations • Oliver Vollbrecht
Phone: +49 (0)202 24820 - 18 • Fax: +49 (0)202 24820 - 49
E-mail: [email protected] • Internet: www.gesco.de

Further inquiry note:
Oliver Vollbrecht
Leiter Investor Relations
T.: +49(0)202 24820 18
[email protected]
end of announcement euro adhoc
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issuer: GESCO AG
Döppersberg 19
D-42103 Wuppertal
phone: +49(0)202 24820 0
FAX: +49(0)202 24820 49
mail: [email protected]
WWW: http://www.gesco.de
sector: Economy, Business & Finance
ISIN: DE0005875900
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

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