GECI INTERNATIONAL : Annual Results 2016-2017 ENG
Paris, July 31, 2017 - 7:30 pm
2016-17 FULL-YEAR EARNINGS
- Strategic transition year focused on the subsidiaries' redeployment
- Net income affected by significant non-recurring items
- Financial structure further strengthened in 2017
At the Board meeting on July 28, 2017, the Directors reviewed and approved the annual financial statements for FY 2016-16 ended March 31, 2017.
The consolidated financial statements at March 31, 2017 for the GECI International Group ("the Group") include a full year of business for Eolen, compared with eight months the previous year (Eolen Group integrated in August 2015), and nine months of business for ETUD Integral, acquired at the end of June 2016.
|€M||March 31, 2017||
March 31, 2016
March 31, 2016
|Current operating income||(1.28)||0.96||(1.40)|
|Pre-tax current operating income||(5.68)||0.20||(1.38)|
|?Consolidated net income||(6.38)||0.47||(0.51)|
|Net income (Group share)||(5.75)||0.01||0.05|
During FY 2016-17, the Group continued moving forward with its strategy to redeploy the Eolen companies, adjusting its positioning around strong value-added markets. The Group has set itself a target to consolidate its position on its longstanding markets and extend its range of solutions. Internationally, the Group has continued to expand its operations, particularly with its Brazilian and South African subsidiaries, which have achieved promising levels of development with their sales, while further strengthening their visibility.
Alongside this, at the end of June 2016, the Group acquired ETUD Integral, a company specialized in design, engineering and prototypes for the automotive and transport sectors in particular. This subsidiary is enabling the Group to further strengthen its range of services, particularly with new solutions for urban and interurban mobility, including international markets.
At March 31, 2017, the Group is reporting revenues of €24.3 million, with 17% generated internationally. The breakdown of the Group's operations between its various markets is as follows: 25% for engineering, 52% for IT and telecoms, and 23% for finance. At end-March 2017, the Group had a total of 440 employees in France, Brazil and South Africa.
Current operating income
Current operating income reflects the efforts made in terms of: i/ integrating and putting in place a new strategy for ETUD Integral, ii/ turning around the Eolen companies' business and repositioning them, and iii/ investing in dedicated commercial and recruitment resources for the deployment of the Group's solutions.
In this context, current operating income is negative, coming in at €(1.3) million, compared with a positive result of €1.0 million for the previous financial year. ETUD Integral, which was acquired during the year, contributed €(0.4) million.
Net income (Group share) shows a €(5.7) million loss, after virtually breaking even at March 31, 2016. This result factors in several non-recurring items, including: i/ over €2 million of provisions for contingencies and liabilities, linked in particular to tax inspections concerning the Eolen companies, ii/ €1.7 million of provisions for the impairment of goodwill for ETUD Integral, iii/ a €0.5 million writedown of customer relationships, and iv/ €1.3 million for a readjustment of deferred taxes.
After factoring in earnings for the year, shareholders' equity (Group share) represents €(5.9) million, compared with €(1.9) million the previous year. At March 31, 2017, the Group's net debt came to €(12.3) million, with €0.7 million of cash and cash equivalents.
The capital increases relating to, on the one hand, the issue of free equity warrants ("BSA warrants") decided on by the General Meeting on March 29, 2016, and on the other hand, the financing based on bonds that can be redeemed in cash and/or converted into new and/or existing shares ("ORNANE bonds") decided on by the General Meeting on July 28, 2017, are expected to further strengthen the Group's financial position.
In particular, this financing set up with the ORNANE bond issue will enable the Group to restructure its financial debt and support its development. It will also enable it to cover its net working capital requirements.
The Group is continuing to move forward with its commercial deployment, focused on expanding its client base and further strengthening the quality of its offers. Alongside this, it is continuing to reorganize its operations with a view to achieving a financial balance by reducing its operating costs.
The Group is looking to capitalize on opportunities for development in engineering, telecoms and IT. With its highly complementary and innovative expert capabilities, the Group is supporting major industrial firms, SMEs and startups, ensuring the success of their digital transition and designing smart services and solutions.
- Annual financial report on July 31, 2017
- 2017-18 first-quarter revenues on August 14, 2017
- General Meeting in September 2017
About GECI International: Smart Solutions for a Smart World
The GECI International Group, created in 1980, has established itself as a high-tech engineering specialist. Today, GECI International is targeting high-growth, strong value-added market segments, focusing in particular on engineering, IT, telecommunications and smart products and services. With its world-renowned credibility for advisory services, its expertise and its ability to deploy the most qualified skills, GECI International is supporting businesses with their digital transition and their efforts to design and develop new smart services and solutions.
GECI International - French limited company (société anonyme) with capital of €720,419.36
Registered office: 48 bis Avenue Kléber - 75116 Paris - France - Paris trade and companies register: 326 300 969
GECI International is listed on the regulated market Euronext Paris - Compartment C
ISIN (shares): FR0000079634 - GECP
ISIN (equity warrants): FR0013141249 - GECBS
Tel: +33 (0)1 44 34 00 20
Tel: +33 (0)1 53 65 68 68
 The proforma data are to be understood as if the EOLEN Group had been acquired on April 1, 2015. ETUD Integral has been included in the GECI International Group's accounts since it was acquired on June 21, 2016.
 At end-June 2017, 12,098,440 BSA warrants, representing 53.16% of the potential maximum total, had been exercised, with 12,098,440 new shares created and a total gross subscription of €725,906.40. 10,662,399 BSA warrants may still potentially be exercised before October 7, 2017.
 On December 19, 2016, the Group issued, followed by an amendment signed on February 15, 2017, €1 million of ORNANE bonds, combined with BSA warrants within a global maximum commitment of €10 million. A first tranche of ORNANE bonds, representing 100 of the 1,000 ORNANE bonds (unit value of €10,000), and 877,192 BSA warrants have been issued. By end-May 2017, all the 100 ORNANE bonds issued had been converted, with 3,211,392 new shares created. The Extraordinary General Meeting on July 28 approved the resolutions making it possible to increase the ORNANE bond issue to €10 million. This operation was approved by the French financial markets authority (AMF) on June 30, 2017.
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