MUNICH (dpa-AFX) - IT service provider Cancom expects significant growth in the current year in a difficult environment. CEO Rüdiger Rath sees the company on track for the coming years following a number of cost-cutting and efficiency measures. The company made progress last year, particularly in terms of cash inflow from operating activities. The SDax group intends to keep the dividend stable. The share price rose after the start.

The stock gained 1.8 percent to 27 euros in the morning. Its performance in recent weeks had been rather subdued. While rival Bechtle has gained a good six percent so far this year, Cancom investors still have to cope with a drop of around eight and a half percent. The Stoxx Europe 600 Technology sector index has also outperformed Cancom.

In the first half of the year, the development should still be subdued, wrote expert Martin Comtesse from investment house Jefferies on the prospects for the new year. For the rest of the year, however, the mood in the economy should improve and demand should pick up again. The sales outlook is slightly better than analysts had expected on average.

Revenue is expected to increase from 1.52 billion euros in the previous year to between 1.75 and 2.0 billion euros, as the company announced in Munich on Thursday. Earnings before interest, taxes, depreciation and amortization should rise to between 130 and 155 million euros. This would be an increase of up to a third compared to the previous year. Analysts had previously predicted figures at the lower end of the forecast range.

In the previous year, the operating result (EBITDA) climbed by a good ten percent to around 116 million euros. The increase was thus lower than the increase in turnover, which was boosted by acquisitions - Cancom referred to special charges. CEO Rath spoke of the introduction of new software systems last year and the completion of the savings and efficiency program.

The consolidated net profit attributable to shareholders rose from 30.8 to 36.8 million euros. As expected, Cancom intends to keep the dividend stable at 1.00 euro per share./men/nas/mis