SGT German Private Equity GmbH & Co KGaA (PGH) H2 2023 earnings summary

Executive summary

• 2023 was marked by the failed closing of a major Private Equity transaction and weak fundraising, leading to the decision to exit the PE Asset Management business in early 2024.

• The company shifted its strategic focus to Artificial Intelligence, planning a rebranding and new business model for 2024.

• The year ended with a significant net loss, driven by large impairments and operational underperformance.

Financial highlights

• Revenue fell sharply to €4.8m (2022: €13.3m), missing the €15m forecast by over €10m.

• EBITDA was negative at -€7.7m (2022: +€2.6m); net loss after tax was €81.5m (2022: +€6.9m).

• Extraordinary impairments: €72.2m goodwill and €2.2m JV contract written off.

• Equity per outstanding share dropped to €1.77 (2022: €2.15).

• Cash at year-end: €1.3m; balance sheet total: €20.7m (2022: €105.8m).

Outlook and guidance

• The company will focus on AI, with a new business model and rebranding to be presented in August 2024.

• For 2024, a slight consolidated net loss is expected, with the investment segment targeting a €1m profit.