H1 2017: a solid
set of results
-
Revenues: €1,151.8m (+11.4%
reported and +5.4% economic[1] growth vs. H1 2016)
-
EBIT: €105.2m (+16.6% vs. H1
2016)
-
40 bps EBIT margin expansion
driven by gross margin performance and cost control
-
Net income from continued
operations: €54.1m (+6.7% vs. H1 2016)
-
Improved cash generation: Free
Cash Flow[2] -€8m in H1 2017, vs. -€36m in H1 2016
Commenting on the Group's H1 2017
results, Altran Chairman and Chief Executive Officer Dominique
Cerutti declared: "Altran experienced a solid
first half of 2017, both in terms of business growth and increased
profitability while absorbing the adverse effect of working days.
We are pleased to report this strong performance, as it was
achieved while actively transforming our Group. Market patterns
confirm the industry scenario anticipated in Altran 2020.
Ignition and we are ahead in executing our
transformation."
All reported figures exclude
discontinued US utilities business, which, as announced in the Q2
2017 revenues publication, is non-core and which Altran has decided
to divest. Therefore, this business is treated as discontinued
operations, as per IFRS5 rule.
| (in millions of euros) |
H1 2017 |
H1 2016 |
% |
| Revenues |
1,151.8 |
1,034.3 |
+11.4% |
|
Gross margin[3] |
314.4 |
281.8 |
+11.6% |
| As a % of revenues |
27.3% |
27.2% |
|
|
Indirect costs/SG&A |
(209.2) |
(191.6) |
+9.2% |
| Operating income on ordinary activities (EBIT) |
105.2 |
90.2 |
+16.6% |
| As a % of revenues |
9.1% |
8.7% |
|
| Other
operating income and expenses |
(11.5) |
(10.4) |
|
| Thereof restructuring costs |
(7.3) |
(5.5) |
|
| Intangible
assets amortization |
(2.2) |
(2.1) |
|
| Operating income |
91.5 |
77.7 |
+17.8% |
| Financial
result |
(14.1) |
(6.4) |
|
| Income
tax |
(23.1) |
(20.6) |
|
| Equity
share in net income of associates |
(0.2) |
0.0 |
|
| Net income before discontinued operations |
54.1 |
50.7 |
+6.7% |
| Net
profit/loss on discontinued operations |
0.6 |
1.0 |
|
| Minority
interests |
0.0 |
(0.1) |
|
| Net income (Groupshare) |
54.7 |
51.6 |
+6.0% |
| EPS (in euros) |
0.32 |
0.30 |
+6.7% |
Results
Altran reported robust H1 2017
revenues of €1,151.8m vs €1,034.3m in H1 2016
(up 11.4%), representing organic[4]
growth of 4.9% and economic growth of 5.4%.
The Group's gross
margin stood at €314.4m, to 27.3% of revenues vs. the prior
year's level of 27.2%, more than offsetting the effect of the lower
number of working days. This performance is consistent with the
invoicing rate remaining at a level comparable to last year's.
SG&A as a
percentage of revenues decreased to 18.2% in H1 2017 vs. 18.5% in
H1 2016, on the back of a very tight cost management in conjunction
with strong business growth.
The Group's operating income on ordinary activities (EBIT) came in at €105.2m, representing 9.1% of
revenues, or a 40bps increase compared to H1 2016 when the EBIT (at
€90.2m) was 8.7% of revenues. This increase was driven both by
revenue performance and cost control.
The Group's non-recurring expenses amounted to €11.5m compared to
€10.4m last year, and are largely attributable to restructuring
expenses (€7.3m vs. €5.5m last year).
H1 2017 financial result of
-€14.1m (compared to -€6.4m in H1 2016) reflects some one-offs this
semester.
Thanks to these favorable
elements, the Group's net income from continued
operations advanced from €50.7m in H1 2016, to €54.1m in H1
2017, representing a 6.7% growth.
Cash and debt
The Group's working capital
requirement is positively impacted by the 2016 shift of invoicing
(one time event).
At the end of H1 2017, the Group's
free cash flow has significantly improved to
-€8m, vs. -€36m at end-June 2016.
The Group's net
debt came out at €384.6m in H1 2017, versus the year-earlier
level of €217.2m and €209.6m at end-December 2016, in line with the
recent acquisitions.
At the end of H1 2017, the Group
had available cash of €395m, vs. €423m at
end-June 2016, after the €42m shareholder distribution.
Outlook
The market patterns confirm the industry scenario
anticipated in Altran 2020. Ignition and the
Group is ahead in executing its business model transformation.
This improvement in our economic model shows in
the Group's strong H1 2017 performance and should translate into a
full year 2017 performance broadly in line with our long-term
objectives.
.
Additional information
Altran's Board of Directors met on 6 September
2017 to approve the H1 2017 financial statements. The Statutory
Auditors have performed a limited review of the Group's H1 2017 and
H1 2016 financial data.
The Group's semi-annual report
will be available on the Company website www.altran.com on
September 7th, 2017.
Financial calendar
27 October 2017: Q3 2017 revenues
About Altran
As a global leader in Engineering and R&D services (ER&D),
Altran offers its clients a new way to innovate by developing the
products and services of tomorrow. Altran works alongside its
clients on every link in the value chain of their project, from
conception to industrialization. For over thirty years, the Group
has provided its expertise to key players in the Aerospace,
Automotive, Defence, Energy, Finance, Life Sciences, Railway, and
Telecom sectors, among others. In 2016, the Altran group generated
revenues of €2.120bn. With a headcount of more than 30,000
employees, Altran is present in more than 20 countries.
www.altran.com
Contacts
Altran
Group
Albin Jacquemont
Executive Vice-President and CFO
Tel: + 33 (0)1 46 41 71 89
albin.jacquemont@altran.com
Stéphanie
Bia
Group Vice-President Investor Relations
Tel: + 33 (0)1 46 41 72 01
stephanie.bia@altran.com
Marine
Boulot
Group Vice-President Communications
Tel: + 33 (0)1 46 41 71 73
marine.boulot@altran.com
Press relations -
Shan
Candice Baudet Depierre, directeur conseil
Tel: +33 (0)1 44 50 51 71
candice.baudetdepierre@shan.fr
Follow us on
Twitter:
@Altran
#Altran2020
DISCLAIMER
This press release contains forward-looking
statements (as defined in the United States Private Securities
Litigation Reform Act, as amended) based upon current management
expectations. Numerous risks, uncertainties and other factors
(including, risks relating to: government legislation affecting our
businesses; competition; our ability to manage rapid technological
change in the industries in which we compete; litigation risks,
labour issues; unanticipated costs from disposals or restructuring)
may cause actual results to differ materially from those
anticipated, projected or implied in or by the forward-looking
statements. Many of the factors that will determine our future
results are beyond our ability to control or predict. These
forward-looking statements are subject to risks and uncertainties
and, therefore, actual results may differ materially from our
forward-looking statements. You should not place undue reliance on
forward-looking statements which reflect our views only as of the
date of this presentation. We undertake no obligation to revise or
update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
[1] Organic growth adjusted for working days effect
[2] FCF = (EBIT + D&A + non-cash P&L) - non-recurring
items +/- WCR - Tax paid - Capex
[3] The gross margin is made up of the difference between the
operating income (revenues and other operating income) and the
consultants/projects costs
[4] Growth at constant forex and perimeter
PR H1 2017 Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ALTRAN TECHNOLOGIES via Globenewswire