GROUPE STERIA : First half 2008 Revenue : EUR 878.7m - Overall growth +35.6%

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Revenue for H1 2008 increased by 35.6% to EUR 878.7m. Excluding perimeter and currency effects, revenue in H1 2008 was nearly the same as in H1 2007 (-0.5%).

Order entry accelerated during the second quarter and allowed H1 2008 to post a robust ratio of order entry to revenue of 1.08.

The targeted stable operating margin rate1 in H1 2008 compared to H1 2007 should be significantly exceeded2.

The integration of Xansa continues to be in line with the initial objectives and the banking covenants as of June 30 2008 were well within the levels which were originally defined2.

H1 2008 consolidated revenue

EURm H1 2007 H1 2008 Growth
Revenue 647.9 878.7 35.6%
Change in perimeter +254.7
Impact of currency changes -19.7
Pro forma revenue 882.9 878.7 -0.5%

H1 2008 revenue by geographic zone

EURm H1 2007* H1 2008 Organic growth
France 267.0 261.2 -2.2%
United Kingdom 394.7 376.9 -4.5%
Germany 106.2 120.4 13.4%
Other Europe 115.0 120.2 4.5%
Total 882.9 878.7 -0.5%

H1 2008 revenue by business line

EURm H1 2007* H1 2008 Organic growth
Outsourcing & BPO 348.0 345.7 -0.7%
Consulting and Systems Integration 534.9 533.0 -0.4%

* Revenue on constant currency and accounting basis (base 2008)


Activity in Q2 2008

Q2 2008 revenue by geographic zone

EURm Q2 2007* Q2 2008 Organic growth
France 132.0 131.3 -0.5%
United Kingdom 196.2 183.3 -6.6%
Germany 55.1 62.0 12.4%
Other Europe 59.8 63.6 6.4%
Total 443.1 440.2 -0.6%

* Revenue on constant currency and accounting basis (base 2008)

The Group's consolidated revenue in Q2 2008 increased by +33.1% (-0.6% on a like-for-like basis). Due to the acceleration in order entry during Q2 2008, all geographic zones posted a ratio of order entry to revenue above 1 at the end of the first half. Overall for the consolidated group, this ratio came to 1.08 as of June 30 2008. This should result in organic revenue growth during the second half of 2008.

The United Kingdom continues to be totally in line with the integration plan. As expected, the Q2 2008 revenue reflects the termination of the "Learning and Skills Council" and "My Travel" contracts as well as the fact that two contracts initially planned for Q1 2008 were postponed, and were signed in June. At the end of June, all of the Xansa contracts due for renewal since the acquisition date have been renewed. Trading was brisk: new orders were strong in June and the pipeline, which represented more than 2.6 times annualised revenue as of June 30, is robust. This suggests a buoyant trend in order entry over the second half of the financial year.

In France, where the company is still engaged in the programme launched in 2007 to move into higher value-added businesses and towards a more industrial production model, revenue in the second quarter (-0.5%) showed a clear improvement on the two previous quarters (-3.3% in Q4 2007 and -3.8% in Q1 2008). During the second quarter, France entered a dynamic that should mean a return to robust revenue growth in the second half of 2008.

In Germany, growth continued at a particularly strong pace and revenue increased by 12.4% in Q2 2008. There was also a good ratio of order entry to revenue of 1.14 as of June 30 2008.

In the other Europe zone, organic growth in revenue was 6.4% in Q2 2008 with an especially robust performance in Scandinavia, +16.5% after restating for the sale of the payment terminal business in 2007.

Outlook

In H1 2008, the target of achieving a stable operating margin1 ratecompared to H1 2007 should be significantly exceeded2.

Efficient cash flow management in H1 2008 resulted in an improved performance in net free cash flow3 compared to H1 2007. As a result, banking covenants on medium term debt as of June 30 2008 should be well within the established limits: below 2.3 for net debt/Ebitda2 (maximum=2.75) and above 5 for Ebit/net financial charges2(minimum=3.75)

Next publications/meetings: H1 2008 results on August 29 2008 after the market close; Information meeting on Monday, September 1st 2008 at 11.30am in Steria's offices.

 

1Before amortisation of intangible assets arising from business combinations
2Unaudited figures
3Cash flow less changes in Working Capital Requirements, Capital expenditure net of disposals, restructuring and other financial or non current cash flow

Steria is listed on Euronext Paris, Eurolist (Compartment B)
ISIN Code: FR0000072910, Bloomberg Code: RIA FP, Reuters Code: TERI.PA
CAC MID&SMALL 190, CAC MID 100, CAC Soft&CS, CAC Technology
General Index SBF 120, SBF 250, SBF 80, IT CAC, NEXT 150
For more information, please go to our Internet site: http://www.steria.com

 

Press Relations:
Isabelle GRANGE
Tel: +33 (0)1 34 88 64 44/+33 (0)6 15 15 27 92
Isabelle.grange@steria.com
Investor relations:
Olivier PSAUME
Tel: +33 (0)1 34 88 55 60/+33 (0)6 17 64 29 39
olivier.psaume@steria.com
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