2016 First Half Results: Growth and profitability

2016 First Half Results: Growth and profitability

Turnover: + 10.4%
Current operating income: + 12.9%

Bagnolet, September 15, 2016

The Board, which met September 14, 2016 approved the financial statements for the first half of 2016.

€M, at June 30 (Audited accounts) H1 2016 H1 2015 Variation
H1 Turnover 95.41 86.43 + 10.4%
– Services 91.23 82.28 + 10.9%
– Software 4.18 4.15 + 0.7%
Personnel expenses 44.44 39.63 + 12.1%
External expenses 37.08 34.52 + 7.4%
Depreciation, amortization and provisions (1.78) (1.52) ns
Current operating income
- as % of turnover
10.29
10.8%
9.12
10.5%
+ 12.9%
Income tax (3.57) (3.31) + 7.6%
Net income Group share
- as % of turnover
6.68
7.0%
5.99
6.9%
+ 11.7%

Strong contribution of the Services division

On a global IT services market with 2.6% estimated growth in 2016 (source Syntec Numérique), Infotel has recorded a turnover of € 95.41 million, an entirely organic growth of 10.4% compared to the first half of 2015.

The Services division increased by 10.9% to € 91.23 million thanks to the ramp-up of several specific service centers in the Banking / Finance (Banque de France, i-BP, IT IS, BNP Paribas Personal Finance – Cetelem , etc.).

The Software division, to € 4.18 million, includes € 2.39 million royalties from IBM.

Results growth and high level of operational profitability

Current operating income amounted to € 10.29 million against € 9.12 million a year earlier, an increase of 12.9% with an operating margin of 10.8%.

This performance is linked to maintaining a stable level of expenses: personnel expenses accounted for 46.6% of revenues in the first half 2016 and subcontracting expenses amounted to 33,9%.

The inter-contracts rate, still low, is 2.3% over the period.

Net income Group share stood at € 6.68 million, up 11.7% thereby generate a high net margin to 7.0% of sales.

Strong financial structure

With shareholders’ equity increasing to € 65.62 million and no debt, the Group’s financial position is very strong. Group cash in H1 was up to € 42.84 million against € 33.24 million in H1 2015. This increase is the result of a good working capital management.

2016 outlook

Infotel had set a target of € 200 million turnover at the end of 2016 integrating an external growth over the year. Given the low probability of completion of an acquisition by the end of the year, the target of € 200 million will not be thus achieved in 2016.
The Group has focused since the beginning of the year on a high level of profitability and confirms the continued growth in activity in the second half associated with equivalent margin levels reached in the 1st half of 2016.
Finally, Infotel intends to pursue its acquisition strategy with the search for new targets whose characteristics are consistent with the Group’s ambitions.

Upcoming event:
Publication of Q3 Turnover: October 26, 2016 after market

About Infotel

Listed on Compartment B 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 € 175 million turnover in 2015 Infotel has a staff of over 2,000.