UPDATE ON THE IMPACT OF THE COVID-19 EPIDEMIC
Update on the impact of the Covid-19 epidemic
Bagnolet, 15 April 2020
An update by Infotel on the effects on its activity from the Covid-19 epidemic.
Impact on activity
The Covid-19 epidemic and the related confinement measures have had a moderate impact on Infotel’s activity so far.
Infotel has been able to continue providing services to the majority of its clients while also implementing the necessary measures to protect its employees.
The impacts on its activity vary according to the activity sector:
- In Banking/Insurance (36.2% of the 2019 revenue of the Services activity), none of the Group’s projects have been deferred or cancelled. Certain clients in this sector have even signed new contracts to strengthen intervention by Infotel’s teams in this particular environment.
- In Services/Transport (21.2% of the 2019 revenue of the Services activity), Air France-KLM has, at present, halted nearly 90% of its activity and therefore has virtually suspended most services. In 2019, Air France-KLM accounted for 6.3% of the Group’s full-year revenue.
- In Industry, and in aerospace in particular, the stoppage by Airbus of half of its production has led to a freeze on services in April. Activity should resume gradually from May.
In terms of employment, Infotel took immediate steps in view of the situation: remote working by almost all staff, short-time work, use of holiday leave and days off under the 35-hour work week, reduction of some outsourcing, a freeze on recruitment and youth training programmes.
Objectives pending revision
Given the expected economic slowdown and the uncertainties around the pandemic, Infotel, after an excellent start to the first quarter, anticipates a decline in activity in the second quarter but is unable for now to provide an estimate of its effects as they will depend on how long the confinement measures remain in place and the pace at which activity resumes around the country. Consequently, and for as long as visibility remains at this uncertain level, the Group cannot provide specific revenue and profitability objectives.
Thanks to a very solid financial position, with zero financial debt and net cash at the end of the 2019 financial year of €74.6 million, Infotel has the necessary resources to get through this crisis. Nevertheless the Board of Directors has decided that it will no longer propose a dividend of €1.60 per share for the 2019 financial year. A new dividend proposal will be submitted to the Shareholders’ Meeting of 20 May 2020.
General meeting behind closed doors
Given the uncertainties resulting from the current context linked to Covid-19, the General Meeting of May 20, 2020 at 2:30 p.m. will be held at the registered office, without the physical presence of the shareholders.
Publication of Q1 2020 revenue: 20 May 2020
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 revenue of €248.4m in 2019 and employs over 2,500 people.