KOBLENZ (dpa-AFX) - The software provider Compugroup, which specializes in medical practices and hospitals, has disappointed with its business figures despite the prospect of further growth and more operating profit. In the final quarter, the Koblenz-based company suffered a severe setback in its day-to-day business and at the bottom line. Sales fell more sharply in the last three months than experts had already expected due to high comparative figures in the same period of the previous year. The Group also slipped into the red due to restructuring costs and a significant increase in personnel expenses. The share price fell sharply.

The SDax-listed share had started to recover in recent weeks following the multi-month low in December, but the share price was unable to build on this with the new results and outlook. The share price fell by 13% to EUR 34.80 after the start of trading and trading was automatically interrupted at times due to strong fluctuations. The share is already a long way from the highs of over 80 euros during the coronavirus pandemic.

Analyst Knut Woller from Baader Bank spoke of weaker-than-expected results in the fourth quarter. Although he and the market expect a further increase in the operating margin, it is unlikely to be enough to achieve the 27% forecast by management in 2025.

The company announced on Wednesday that earnings before interest, taxes, depreciation and amortization adjusted for special effects are expected to increase to between 270 and 310 million euros this year. Analysts surveyed by the Bloomberg news agency expected a figure in the middle of the range.

In terms of turnover, Group CEO Michael Rauch continues to assume that digitalization in the healthcare sector will drive business. Revenue is expected to climb by four to six percent on its own, i.e. excluding exchange rate effects and acquisitions and disposals of parts of the company. Experts also have this in mind.

Last year, the software group benefited from a high order backlog in the hospital business. Revenue in the hospital division grew at a double-digit rate. Business in the largest division, which focuses on doctors' surgeries, was not as buoyant, growing only slightly. In the practice software and health data divisions, the company fell short of the growth targets set for the segments.

Overall, turnover increased by five percent to 1.19 billion euros according to preliminary figures. The operating result rose by 13 percent to 265 million euros. The corresponding profit margin increased by 1.6 percentage points to 22.3 percent.

In the fourth quarter, however, turnover fell by five percent. Compugroup attributes this to the strong business with software upgrades relating to digitization in the healthcare sector (so-called telematics infrastructure) in the same period of the previous year. The upgrades had generated high sales in the data networking division (CHS) in particular. Business with healthcare data will be reported in the practice division (AIS) in future.

In addition, the company recorded restructuring costs for personnel expenses of EUR 26 million in the last three months of 2023, which led to a reported quarterly loss of EUR 15.5 million. For the year as a whole, net profit fell by over a third to 46.9 million euros. Personnel costs increased significantly. Compugroup will present its detailed annual report on March 28./men/mne/stk