On 29 July 2010, the Supervisory Board of Group Steria SCA examined the consolidated accounts submitted by the General Management.
First half 2010 consolidated results
|First half||2009||2010||Total growth||Organic growth
At constant perimeter and currency
% of revenue
|Attributable net income
% of revenue
|Underlying4 attributable net income||¤m||28.8||33.2||+15.2%|
|Underlying4 diluted earnings per share||¤||0.91||1.02||+11.9%|
|Net financial debt||¤m||239.9||209.9|
First half 2010 consolidated revenue
|Change in consolidation scope||-|
|Change due to currency effect||15.3|
|Pro forma revenue||820.7||832.1||1.4%|
First half 2010 revenue by geographic zone
|¤ million||H1 2009*||H1 2010||Organic
First half 2010 revenue by business line
|Outsourcing and Business Process Outsourcing||308.3||324.8||5.4%|
|Consulting and Systems Integration||512.4||507.2||-1.0%|
Second quarter 2010 revenue by geographic zone
* Like-for-like revenue (basis 2010)
Second quarter 2010 activity
Group revenue increased by 1.4% on a like-for-like basis in the first half 2010. During the second quarter 2010, activity was stable, with consolidated revenue amounting to ¤417.5m (-0.1% like-for-like versus the second quarter 2009).
At constant currency, new orders recorded a strong rise of 17.6% in the second quarter 2010, leading to a total increase of 3.2% in the first half 2010 versus the first half 2009.
At 30 June 2010, the ratio of new orders to consolidated revenue stood at 1.13 (similar to the 1.12 at 30 June 2009). In the Consulting and Systems Integration activities the ratio was 1.0 at 30 June 2010.In the United Kingdom , excluding currency, the trend in second quarter revenue exceeded initial expectations at -3.9% versus the second quarter 2009. The quarter was notably characterised by the signature, in June 2010 with the Cleveland Police Authority, of one of the largest contracts ever won by the Group for an inital amount of ¤211m over 10 years. This contract to provide an extensive range of services (IT, back office BPO, business line BPO) consolidates, in the short term, the prospects for the Group's activity in the UK public sector. It also illustrates the potential opportunities in the United Kingdom and counterbalances the risks linked to the UK government's budgetary constraints. Driven by the Cleveland Police Authority contract, new orders increased year on year by 26.9% in the second quarter 2010. At 30 June 2010, the ratio of new orders to revenue amounted to 1.31. In France, the improving trend seen in the past few quarters was confirmed and even saw a marked acceleration in growth. After organic growth of 2.6% in the first quarter, the second quarter showed organic growth of 4.9%. This good performance was accompanied by some major commercial successes together with growth in new orders and the pipeline which increased by 5.7% and 10.2% respectively during the first half 2010 versus the first half 2009. In Germany, in an environment marked by signs of an improvement, the Group confirmed the positive orientation of its activities. Organic growth was 3.0% during the first half with an organic growth rate of 1.3% in the second quarter, thanks to a positive dynamic in the energy and banking sectors where the Group continues to win market share. Other Europe saw like-for-like revenue growth of 1.9% in the first half 2010. It should be noted that the second quarter 2010 was characterised, in Spain, by a significant reduction in the rate of revenue decline. Scandinavia maintained a positive organic growth rate over the quarter (+0.8%) despite a very unfavourable comparison basis (organic growth of +20.6% in the second quarter 2009).
First half 2010 results
The first half continued to be characterised by a difficult price environment, together with a return to a tight recruitment market.
In this difficult environment, the Group pursued its efforts to increase productivity and internal efficiency, enabling it to post a first half 2010 operating margin2 (taking into account the abolition of the business tax in France) of 6.9%.
Net restructuring costs, amounting to ¤3.8m during the first half 2010, were limited to 0.5% of the Group's revenue.
The financial result of ¤-9.7m (versus ¤-12.9m in the first half 2009) included a reduction in net cost of financial debt.
During the first half 2010, the tax charge declined by ¤3.4m to ¤11.0m. This should be compared with a high first half 2009 comparison basis and includes ¤3.5m of the new Contribution on Added Value of Enterprises tax (CVAE) in France.
In total, attributable net income saw a significant increase from ¤15.9m in the first half 2009 to ¤25.2m in the first half 2010 (+58.4%), enabling a 1.0 percentage point increase in the net income to 3.0% of consolidated revenue.
Lastly, thanks to continued efficient cash flow management during the first half 2010, net financial debt was reduced by ¤30.0m versus 30 June 2009 to ¤209.9m. Net financial debt thus represented 28.8% of consolidated shareholders' equity at the end of the first half compared with a ratio of 39.5% at 30 June 2009.
Within a contrasting environment, the Group expects for the full year 2010 like-for-like revenue growth and confirms its objective5 in terms of operating margin2 rate.
2010 interim results information meeting on 30/07/2010 at 11:30am.
This meeting will be relayed by webcast on www.steria.com (investors section)
Next publication: Third quarter 2010 revenue
Monday 15 November 2010 after the market close.
Appendices: consolidated income statement, consolidated balance sheet, simplified cash flow statement and operating margin2 by geographic zone at 30 June 2010.
Video interview with François Enaud, Chairman and CEO of Groupe Steria SCA: available at www.steria.com and www.Steria.fr
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
SBF 120 general index, SBF 250, SBF 80, IT CAC, NEXT 150
For more information, please visit our website: http://www.steria.com
Tel: +33 1 34 88 64 44 / +33 6 15 15 27 92
Tel: +33 1 34 88 55 60 / +33 6 17 64 29 39
Consolidated income statement at 30 June 2010
|In thousands of euros||30/06/2010||30/06/2009
|Cost of goods sold and sub-contracting costs||(149,891)||(150,135)|
|Taxes (excluding income taxes)||(8,991)||(12,176)|
|Change in inventories||36||37|
|Other current operating income/expenses||10,870||12,382|
|Net charges for depreciation and amortisation||(15,848)||(18,861)|
|Net charges for provisions||4,543||1,779|
|Net charges for current asset impairment||(525)||(424)|
|Operating margin (*)||54,803||53,504|
|% of revenue||6.6%||6.6%|
|Other operating income and expenses||(8,677)||(10,051)|
|Operating income||46,126||43 453|
|Cost of net borrowings||(5,801)||(7,255)|
|Other financial income and expenses||(3,908)||(5,597)|
|Net financial expense||(9 709)||(12 852)|
|Income tax expense||(11,036)||(14,445)|
|Share of income/(loss) of associates||(150)||(196)|
|Net income from continuing activities||25,231||15,960|
|Net income/(loss) from operations held for sale|
|Attributable net income||25,161||15,883|
|Underlying4 diluted earnings per share
( euros )
(*) After amortisation of client relationships recognised in the acquisition of Xansa representing ¤2,330K at 30 June 2010 and ¤2,268K euros at 30 June 2009
Consolidated balance sheet at 30 June 2010
|In thousands of euros||30/06/2010||31/12/2009
|Other intangible assets||69,154||66,301||67,193|
|Property, plant and equipment||75,906||74,004||79,832|
|Investments in associates||6,485||6,181||5,387|
|Other financial assets||2,238||3,977||4,343|
|Retirement benefit assets||46,342||42,230||19,073|
|Deferred tax assets||10,971||10,560||9,821|
|Other non-current assets||2,987||2,900||2,625|
|Net trade receivables and similar accounts||287,716||281,445||264,997|
|Amounts due from customers||212,081||192,025||213,423|
|Other current assets||48,588||36,017||23,408|
|Current portion of non-current assets||3,174||2,963||2,829|
|Current tax assets||24,905||27,340||19,884|
|Cash and cash equivalents||148,628||149,859||145,945|
|Non-current assets held for sale|
|Long-term borrowings (> 1 year)||276,094||270,001||330,280|
|Retirement benefit obligations||34,245||33,698||32,858|
|Provision for non-current liabilities and charges||18,282||17,529||15,045|
|Deferred tax liabilities||20,964||16,750||5,697|
|Other non-current liabilities||5,763||5,466||20,088|
|Short-term borrowings (< 1 year)||82,459||66,866||55,569|
|Provisions for current liabilities and charges||27,147||35,590||18,075|
|Net trade payables and similar accounts||145,441||148,386||151,927|
|Amounts due to clients and advances received||92,797||108,857||112,720|
|Current tax liabilities||35,041||34,900||36,935|
|Other current liabilities||271,719||265,209||252,683|
|Liabilities directly associated with non-current assets classified as held for sale|
Simplified cash flow statement at 30 June 2010
|In thousands of euros||30/06/10||30/06/09|
|Cash flow before tax||60.6||60.5|
|Change in WCR (cash elements)||-48.8||-9.0|
|Operating cash flow||4.2||41.6|
|Net industrial investment||-14.1||-9.9|
|Operating free cash flow||-15.9||27.1|
|Net financial investment||-0.1||3.9|
|Change in consolidation scope||0.0||0.0|
|Additional contribution to pension fund||-8.5||-22.8|
|Free cash flow||-22.9||-4.6|
Operating margin7 in the first half
by geographic zone
1 Auditors' limited review report published
2 Before amortisation of intangible assets linked to business combinations. In 2010, this takes into account the abolition of the Business Tax in France for which the related charge accounted in the first half 2009 was ¤3.3m. The operating margin is the Group's key indicator. It is defined as the difference between revenue and operating expenses, the latter amounting to the total cost of services provided (expenses needed to carry out projects), marketing costs and general and administrative costs.
3 Operating income includes restructuring costs, capital gains on disposals, costs incurred on share-based payments made to employees and other non-recurring income and charges.
4 Attributable net income restated, after tax, for other operating income and expenses, amortisation of intangible assets and unrecognised deferred tax assets.
5 Adjusted to the new tax classification in France
6 Of which coupon on the hybrid convertible bond: ¤8.7m at 30 June 2010 and at 30 June 2009.
7 Before amortisation of intangible assets linked to business combinations
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|GROUPE STERIA||Euronext Paris||15.46||0.00%||0|