Resumption of organic growth in Germany in the second quarter.
Competitive economic environment in France.
Second-quarter revenue: organic growth of 5.0% to ¤220.1 million.
- AKKA Technologies recorded revenue of ¤220.1 million in the second quarter of 2014, an increase of 4.7% compared with the revenue of ¤210.3 million recorded in the second quarter of 2013. At constant scope of consolidation and exchange rates,* growth was 5.0%.
- As anticipated, growth in the second quarter helped offset the decline in the first quarter, which was caused by delays in contracts early in the year. In total, organic first-half revenue grew by 1.0% compared with the first half of 2013.
- After the decline in Q1, the French activities posted organic revenue growth of 2.2% in the second quarter to ¤ 111.0 million.
- The German activities grew in Q2 after reaching a point of inflection in the first quarter. They recorded revenue of ¤77.2 million in the second quarter, an increase of 7.7% compared with Q2-2013.
- International operations continue to enjoy sustained growth (+8.9% in Q2 at constant scope of consolidation and exchange rates, and +7.8% over the first half as a whole).
|(¤ million)||Q2-2014||Q2-2013||% change||% change
|International (excluding Germany)||31.8||29.9||+6.3%||+8.9%|
* Restated from currency impact.
Q2-2014 revenue by region
- France recorded a 2.2% increase in Q2-2014 revenue to ¤111.0 million. This growth helped offset the decline in the first quarter. In total, the revenue of the French activities amounted to ¤224.2 million in the first half, the same level as in H1-2013. However, the delay of a large project with a Russian customer and the persistently demanding economic environment are expected to weigh on growth and margins in 2014.
- Germany recorded revenue growth of 7.7% to ¤77.2 million, driven mainly by significant growth in revenue with the Group's biggest customer, Daimler. This performance confirms the improvement observed during previous quarters, and which is expected to continue in the coming quarters. It is the result of the improvement of MBtech's competitiveness and performance achieved through the PACT 17 transformation plan, which also resulted in a 10% increase in billing rates compared with Q1-2013.
- Revenue from international activities (excluding Germany and France) amounted to ¤31.8 million, an increase of 6.3% compared with the second quarter of 2013. At constant scope of consolidation and exchange rates, growth was 8.9%. In total, international operations reported revenue growth of 7.8% during the first half. As was the case during the first quarter, many countries experienced growth of more than 10%. They included the Middle East, whose growth potential is high thanks to aircraft modifications and certification, Spain, despite a troubled economic environment, China, driven by restructuring carried out in 2012 and 2013, and Turkey, which is reaping the benefits of diversification.
2014 and medium-term outlook
- As announced, Q2 marked the resumption of organic growth after a first quarter affected by delays in contracts early in the year. It also marked the return to growth of the German activities.
- Maurice Ricci, Chairman and CEO of the Group, said: "The second quarter saw an acceleration of the improvement in the operating performance of the German activities. This improvement is expected to continue in the coming quarters. It confirms the pertinence of the acquisition of MBtech and success of the work done to reshape the Group's activities, carried out as part of PACT 17."
- The challenging economic environment and the delay of a large contract with a Russian customer are expected to weigh on the operating performance of the French activities in 2014. However, the positive trend in revenue in Germany and internationally allow the Group to confirm its objective of achieving a slight increase in revenue over 2014 as a whole.
Very confident about its expansion plans for the Group, management confirms its medium-term target of ¤100 million in operating income* without compromising its financial equilibrium.
* Operating income calculated before non-recurring items and expenses related to stock options and bonus shares.
Next releases: Interim 2014 earnings, on 17 September 2014 after trading.
Q3-2014 revenue, on 13 November 2014 after trading.
"The best way to predict the future is to invent it.
Let's share our passion for technology."
AKKA Technologies is an international Group with nearly 11,000 employees working in Europe, America and Asia. Its experts serve in the field of innovation, assisting large manufacturing and tertiary services companies in the full range of their innovation processes and in the lifecycle of their products, from initial studies to the start of large-scale production.
With AKKA Research, the Group boasts its own research centre, dedicated to innovation and the anticipation of future technologies. AKKA Technologies' centres of excellence work throughout Europe on international work packages, offering unique expertise in key areas: Systems Engineering, Product Engineering, Process Engineering, Engineering Support, Embedded and Electronics Systems, Information Systems and Consulting.
Its ability to carry out large transnational projects, which represent real strategic challenges for its customers, makes AKKA Technologies a key leader in Technology Consulting and Engineering.
After 30 years of growth in the service of innovation, AKKA Technologies, listed in Paris since 2005, today (2013) generates revenue of ¤879 million.
AKKA Technologies is listed on Euronext Paris TM - Segment B - ISIN code: FR0004180537.
CAC® Small, CAC® Mid & Small, CAC® All-Tradable, CAC® All-Share indices
For more information, please visit www.akka.eu
In case of discrepancy between the French and English versions of this press release, only the French version should be deemed valid.
|AKKA Technology contacts
Tel.: +33 4 7892 6083
Tel.: +33 4 7218 0497
Investor Relations & Corporate Development
Tel.: +33 1 5669 2652
Tel.: +33 4 7218 0493
Change at constant scope and exchange rates*
|International (excluding Germany)||29,6||31,8||61,4|
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|AKKA TECHNOLOGIES||Euronext Paris||42.97 (c)||4.83%||19 914|