2016 annual results: another strong year

2016 annual results: another strong year

Revenue: €190.5 million
Operating margin: 11.4%
Dividend: €1 per share (proposed at the General Meeting of May 31, 2017)

Bagnolet, March 15, 2017

The Board of Directors, in its meeting of March 15, 2017, approved the annual financial statements for fiscal year 2016.

In € million at December 31,
(Audited accounts)
2016 2015 Variation
Consolidated revenue 190.5 174.6 +9.1%
– Services 181.9 167.0 +8.9%
– Software 8.6 7.6 +13.3%
Personnel expenses 87.9 79.0 +11.3%
External expenses 73.7 69.9 +5.5%
Depreciation, amortization and provisions (3.5) (3.1) ns
Current operating income
in % of revenue
21.8
11.4%
19.8
11.3%
+10.1%
EBITDA 28.8 25.6 +12.7%
Income tax (7.6) (7.1) +7.3%
Net income, Group share
in % of revenue
13.7
7.2%
12.9
7.4%
+6.0%

Growth led by the Services division

On a global IT services market that grew by an estimated 2.8% in 2016 (source: Syntec Numérique), Infotel posted a revenue of €190.5 million, representing fully organic growth of 9.1% from 2015.

The Services division was up 8.9% to €181.9 million, benefiting from continued momentum in service centres at most major clients, and particularly in the Banking and Services sectors, with ongoing projects at Banque de France, Banque Populaire, Caisse d’Epargne, BNP Paribas, EPO, Airbus and Air France.

The figure for the Software division, at €8.6 million, includes €5.3 million in royalties from IBM.

Income up; operating profitability still strong

Current operating income amounted to €21.8 million vs €19.8 million one year earlier, an increase of 10.1% with operating profitability of 11.4%.

This strong performance was supported by solid cost control: expenses were largely stable in 2016 at 79.6% of revenue, compared to 79.5% in 2015.

The inter-contracts rate remained low at 2.1% for the full year.

Net income Group share came in at €13.7 million, up 6.0%, generating a high net margin amounting to 7.2% of revenue.

Solid financial structure

With shareholders’ equity increasing to €72.5 million and no financial debt, the Group’s financial situation is very solid. The Group’s cash position was €51.3 million at December 31, 2016, an increase from €47.0 million at the end of 2015.

Proposed dividend: €1 per share

The Infotel Board of Directors will propose the payment of a dividend of €1 per share for 2016 to the General Meeting of May 31, 2017. This proposed dividend reflects the excellent performance posted for the year as well as management’s renewed confidence in the outlook for 2017. It will bring the dividend payout ratio to 48.5% of net income.

Outlook

Confident in its outlook for 2017, Infotel continues to post business growth and strong operating profitability.
According to its new strategic plan, Infotel aims to double in size in the next five years by consolidating acquisitions while continuing to outperform the market and maintaining strong operating profitability.

Next events:
General Meeting: May 31, 2017 (afternoon)
Publication of Q1 revenue: May 31, 2017 after market close.

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. Infotel posted a revenue of €190.5 million in 2016 and employs over 2,000 people.