2013 annual results: growth and profiability

2013 annual results: growth and profitability

Growth: +6.3%
Operating margin: 10% (doubled)
Dividend: € 3.5 per share (proposed at the AGM of May 21, 2014)

Bagnolet, March 26, 2014

The Board of Directors met March 25, 2014 and approved the annual accounts for the year 2013.

M€, at 31 December (audited accounts) 2013 2012 Variation
Consolidated sales 142.7 134.3 +6.3%
– Services 134.5 127,3 +5.7%
– Software 8.2 7.0 +16,8%
Personnel expenses 66.0 (1) 62.8 +5,1%
External expenses 56.8 60.1 -5,6%
Depreciation and amortization 3.8 (2) 2.3 +65,2%
EBIT
as % of turnover
14.4
10.0%
7.0
5.3%
+106%
Income taxes (5.5) (2.6) +47%
Net income Group share
as % of turnover
9.5
6.6%
4.7
3.5%
+102%

(1) including €1.2 million CICE tax credit
(2) including €0.8 million in provisions for tax dispute (CIR)

Combined growth of the two poles of activity

In a global IT services market slightly declining (-0.3% for 2013, source Syntec Numérique) Infotel recorded a turnover of € 142.7 million, based on a wholly organic growth of 6.3%.

The Services division increased 5.7% to €134.5 million due to the rise of service centers especially among major customers of the Group.
The Software division was up 16.8% to € 8.2 million for 2013, including € 4.6 million of royalties from IBM.

Doubling of results and profitability

Current operating income doubled to reach € 14.4 million against € 7.0 million in 2012, with an operational rate of return of 10.0%, compared to 5.3% a year earlier.

This performance is due to the control of costs: personnel expenses represented 46.3% of sales in fiscal year 2013 vs. 46.8% in 2012 and subcontracting expenses decreased to 33.5% of sales in 2013 against 39.3 % in 2012.
Out of contract rate remained very low, to around 2% throughout the year.

Net income also doubled and amounted to € 9.5 million (6.6% of sales).

Solid financial structure

The good results for the year also resulted in a strong cash generation: with a cash flow of € 17.8 million and well managed working capital and investments, Infotel increased its cash by € 8.8 million in 2013 (against a consumption of € 1.8 million in 2012).
The financial position of Infotel as of December 31, 2013 is thus further strengthened with € 50.5 million in equity, no debt and cash of € 25.7 million at financial year end.

Proposed dividend of € 3.5 per share

The Board of Directors of Infotel proposes a dividend of € 3.5 per share for fiscal 2013 to be validated at the AGM of May 21, 2014. This proposal is motivated by the very good performance over the year and the renewed management confidence for 2014. The distribution rate amounts to 48.7% of net income.

Confidence for 2014

Infotel confirms its expectations for growth and stable margins this year. This is the result of the implementation of new service centers, new contracts in the field of mobile software associated with the deployment of “Big Data” applications as well as opportunities for international expansion.

Upcoming events:
General Meeting of Shareholders: May 21, 2014 afternoon
Publication of Q1 2014 revenue: May 21, 2014 after market close

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (ISIN code FR0000071797) Infotel is the Specialist of large accounts information management systems, from mobile to very large volume databases (Big Data). At the forefront of technological innovations, Infotel develops its expertise around two complementary poles: computer services and software editing. With over € 142 million turnover in 2013 Infotel has a staff of over 1,500.