2014 First half Results: increase in revenues and margins

2014 First half Results: increase in revenues and margins

Turnover: 75.9 M€ (+5.9%)
Operating margin: 10.3% (+1.3 bps)
Net margin: 6.6% (+0.3 bps)

Bagnolet, August 27, 2014

M€, at June 30 2014 2013 Δ 2014 / 2013
Turnover H1 75.9 71.6 +5.9%
Services 72.4 67.0 + 8.0 %
Software 3.5 4.6 -24.6%
Personnel expenses 35.2 33.0 +6,8%
External expenses 30.6 28.9 +5,7%
Depreciation, amortization and provisions (1.3) (2.2) Ns
Current operating income
as % of turnover
7.8
10.3%
6.4
9.0%
+21.7%
+1.3 pts
Income Taxes 2.6 2.7 -1.5%
Net income (Group share)
as % of turnover
5.0
6.6%
4.5
6.3%
+10.8%
+0.3 pts

Strong growth in first semester

In the first half, Infotel achieved a turnover of € 75.9 million, a wholly organic growth of 5.9% from the first half of 2013.

The Services division (95% of total turnover) makes in the first half revenues of € 72.4 million, up 8%, marking the outperformance of this activity in its market (Syntec Numérique forecasts growth of 1.2% in consulting and services in 2014).

The Software division (5% of total turnover) makes in the first half revenues of € 3.5 million, of which the decrease is due to the comparison with a record IBM royalties in the first quarter 2013.

Strong profitability, up

Current operating income came in the first half of 2014 to € 7.8 million (+ 21.7% compared to the first half of 2013), an operating margin of 10.3% against 9.0% in the first half of 2013. This increase is the result of the relevance of the Infotel business model: optimized management of service centers for large accounts belonging to all economic sectors, mastery of project development and expenses, low out of contract rate (2.2% on average in the first half) and quality of responses by Infotel teams to customer issues, on functional and technical levels (from mainframe to big data and mobile).

Net income (Group share) for consolidated companies in first half stood at € 5.0 million, up 10.8% (against € 4.5 million in the first half of 2013), representing a net margin of 6.6% against 6.3% in the first half of 2013.

A very strong financial structure

Infotel’s financial position remains very strong. The Group’s equity amounted to € 51.8 million (against € 45.7 million at 30 June 2013) and the Group has no debt. Cash position is important to € 26.8 million at June 30, 2014, an increase of € 1.1 million compared to December 31, 2013, and after the payment of dividends.

Confidence to the end of 2014

The second half is under the sign of continuity: the outlook is strong, the new business signed in the first half will see the development of new service centers, and prospecting activities for software, both in France and abroad should bear fruit.

Given the strong performance for the first half 2014, Infotel is confident about its objectives of growth and stable margins for the current year. These guidances will be updated on September 17, 2014.

Upcoming events:
Analysts meeting and press release: September 17, 2014
Publication of Q3 2014 turnover: October 29, 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.