SOLUCOM : H1 2014/15 revenues up 13% - Operating income on ordinary activities up 15% - Priority on growth despite still difficult market conditions

information fournie par Actusnews •25/11/2014 à 19:00

On 24 November 2014, Solucom's Board of Directors met to approve the Group's 2014/15 interim financial statements for the six-month period ended 30 September 2014, the details of which are summarised below. The Statutory Auditors have performed a limited review of the Group's interim financial statements.

At end-September 2014/15, Solucom reported 13% growth in consolidated interim revenues to €73.7m. On a like-for-like basis, excluding the contributions from Lumens Consultants and Trend Consultants, organic growth came out at 10% over the six-month period.

This solid first-half performance has put the Group ahead of schedule with regard to its full-year guidance despite a more difficult-than-expected market environment.

All sectors of activity reported growth during the first six months of the year. Growth was notably sustained by certain major client accounts in the banking sector which are actively pursuing their digital transformation programmes.

Operating indicators solid but visibility limited
Solucom pursued its active recruitment strategy throughout the first half of the financial year making for an increase in headcount levels to 1,374 employees at the end of the period, versus 1,327 at end-March 2014.

The activity ratio came out at 83%, stable on full-year 2013/14.

Prices edged up slightly reaching an average of €715 over the six-month period, although it should be noted that this increase was slower than expected.

The order book narrowed from 3.2 months at end-March 2014 to 3.0 months at the interim stage, underscoring the fact that visibility is limited.

Operating income on ordinary activities up 15%
Operating income on ordinary activities in H1 2014/15 increased 15% on the year-earlier level to €7.6m, making for an operating margin on ordinary activities of 10.3%, versus 10.2% in H1 2013/14, in line with the Group's full-year guidance.

Group share of net income also advanced 15% to reach €4.3m over the six-month period, implying a net margin of 5.8%.

Net cash of €15.7m at end-September 2014
Thanks to the company's solid cash-flow generation capacity and its tight client management strategy, Solucom's gross cash position remained high, coming out at €19.1m at the interim stage with net cash of €15.7m, versus €16.6m at end-March 2014 and €8.7m at end-September 2013.

Priority on growth
Trading conditions in Solucom's markets over the past few months have been less favourable than expected and the economic outlook has taken another turn for the worse. Budgets are still under tight control and pressure on prices shows no sign of letting up.

Nevertheless, the company remains confident that demand will gradually pick up. The integration of digital technologies and the changes they engender are in fact key elements required in the corporate-transformation process.

In this context, Solucom is banking on achieving its growth targets. In addition, the company is maintaining its recruitment and intensive sales-investment objectives and also plans to pursue its targeted acquisition strategy designed to strengthen its value offering, as the recent acquisition of Audisoft Oxéa illustrates. Solucom also considers to carve out footholds in new countries abroad.

Full-year growth targets raised
On the back of the Group's first-half growth performance and the consolidation of Audisoft Oxea since 1 ^st November 2014, Solucom has raised its full-year growth objective from 8% to 12%.

In terms of margins, the Group is maintaining its operating margin on ordinary activities objective of between 11% and 13%, including the consolidation of Audisoft Oxea. This target range could however come under increased strain due to the market conditions to which Solucom is exposed and the Group's priority on growth.

Solucom listing on the EnterNext ^© PEA-PME 150 index
Solucom was recently listed on the new "EnterNext ^© PEA-PME 150" index, launched on 17 November. Listing on this index, which comprises 150 small and mid caps selected among the most liquid companies eligible to benefit from the French government's PEA-PME share savings plan, offers Solucom increased visibility with institutional and individual investors alike.

Next publication: 21 January 2015 (after market close), publication of Q3 2014/15 revenues.

About Solucom
Solucom is a management and IT consulting firm.

Solucom's customers are among the top 200 large companies and public bodies. For them, Solucom is capable of mobilizing and combining the skills of 1,300 staff members.

Our mission statement? To place innovation at the heart of business lines, target and steer transformations that are sources of added value, and turn the information system into an actual asset designed to serve corporate strategies.

Solucom is listed on Euronext Paris and Solucom shares are eligible for the 'PEA-PME' scheme.

The consulting firm has been granted the innovative company award from BPIFrance.

All our news on: www.solucom.fr

Annex 1: consolidated income statement at 30/09/14

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Annex 2: Consolidated balance sheet as at 30/09/14

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Annex 3: change in consolidated cash position as at 30/09/14

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