Results 2007: Record year

Results 2007: Record year

Operating margin: 10.7%

Bagnolet, 13 March 2008

In €M 2007 2006 Δ 2007 / 2006
Turnover: 84.39 70.28 + 20.%
Ordinary Operating Income* 9.05 6.31 + 43.4%
In % of turnover 10.7% 9.0% + 1.7 pt
Recurring Operating Income 6.12 4.59 + 33.2%
Ordinary Net Profit* 6.22 4.26 + 46.0%
In % of turnover 7.4% 6.1% + 1.3 pt
Consolidated Net Profit 3.30 2.55 + 29.4%

* Ordinary profit = expenses related to assignment of free shares in H1 2006 (€ 1.7 M) and H2 2007 (€ 2.9 M)

Excellent results 2007

After closing the year with turnover growth (entirely organic) of more than 20%, surpassing its upward revised target of € 83 M, Infotel published excellent results for 2007.

Excluding expenses related to the assignment of free shares, operational profitability and net profitability increased respectively to 10.7% and 7.4% of turnover, an increase of 1.7 point and 1.3 points compared to 2006.

With this second consecutive year showing a strong increase in activity and profitability, the Board of Directors decided to assign a second section of the free share plan voted by Shareholders’ Meeting on 23 May 2006 to three main managers of the company, responsible for creating this value, for a total amount of € 2.9 M (53,385 shares).

An exceptional dividend level: 3.5 euros per share

The Board of Directors proposed to the Shareholders’ Meeting of 29 May 2008 the payment of a dividend of 1.5 euro per share (+ 50%).
Given the excellent results in 2007, it will be also proposed this year an exceptional dividend payment of 2 euros per share, giving the total distribution of 3.5 euros per action, as opposed to 1 euro a year before.

Forecast for 2008: Growth above market

In 2008, Infotel will continue its sustainable growth strategy via three development lines:

  1. Expansion of its geographical network: the creation of Infotel Luxembourg at the start of 2008 is a first stage in the group’s internationalisation process. In line with its status as top-level strategic partner, Infotel will continue to accompany its key accounts in France and abroad with new installations and/or partnerships.
  2. Sales conquest: Infotel uses several instruments to develop its client portfolio, strengthening its sales team, launching new offerings related to database management or areas associated with archiving, and developing the services offered to existing customers.
  3. Global HR management: Infotel has managed to increase loyalty among young talent that the Group needs to carry out its development strategy. To do this, it has implemented a multi-channel recruitment plan that combines training sessions, co-opting, a work placement policy, and from 2007, a contest designed to attract graduates from leading universities.

In a dynamic sector where its foundations are well focused (development of Web interfaces and online services), Infotel will continue to display in 2008 growth above market, as well as an increase in profitability.

2008 falls within its strategic development plan for a turnover of € 120 M by 2010, thanks to a combination of organic growth and external growth: the Group has a solid financial structure (€ 30 M equity without any financial debt), and a net cash of close to € 19 M at the end of 2007.

Next meeting:
Publication of Q1 2008 turnover: 16 April 2008 (after trading)

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (ISIN code FR0000071797), Infotel is positioned at the forefront of technology innovation for companies, offering database and web application solutions. Infotel develops its expertise around two core divisions: IT services and high-tech software. In 2007, Infotel achieved a turnover of € 84.4 M.