First-half 2017 results
A solid performance, led by
business growth
-
Operating profit from
continuing operations before non-recurring items
(EBITA)([1])
up 36.4% to €12.0 million
-
EBITA margin from continuing
operations up 130 bps to 5.9%
-
Profit for the period: €21.8
million([2])
Paris, 11
September 2017, 5.35 p.m. (CEST) - At its meeting on 7
September 2017, the Board of Directors of Assystem S.A. (ISIN:
FR0000074148 - ASY), an international engineering group, reviewed
the Group's financial statements for the first half of 2017 (i.e.
the six months ended 30 June 2017).
On 11 May 2017,
Assystem announced that it had entered into an agreement with
Ardian to transfer its outsourced R&D division - Global Product
Solutions (GPS) - to a company that will be 60%-owned by Ardian and
40%-owned by Assystem.
In accordance
with IFRS 5, as the agreement provides for Ardian to take over
control of GPS, this business has been classified by Assystem as
held for sale for the full six months of first-half 2017. The
financial statements for the first half of 2016 have been restated
in order to facilitate year-on-year comparisons.
The full amount
of GPS's profit has been recorded under "Profit from discontinued
operations" in Assystem's consolidated financial statements for the
six-month period from 1 January 2017 to 30 June 2017.
When the control
of GPS is transferred it will be renamed Assystem Technologies
Groupe and as from that date it will be accounted for by the equity
method in Assystem's consolidated financial statements based on
Assystem's ownership interest in Assystem Technologies
Groupe.
In millions of euros |
H1 2016* |
H1 2017 |
Year-on-year change |
Revenue from continuing operations |
191.0 |
204.5 |
+ 7.1% |
Operating profit from continuing
operations before non-recurring items (EBITA) |
8.8 |
12.0 |
+ 36.4% |
% of revenue |
4.6% |
5.9% |
+ 130 bps |
Consolidated profit for the
period([3]) |
16.0 |
21.8 |
+ 36.2% |
* Restated to
facilitate year-on-year comparisons.
AnalysIS OF THE FIRST-HALF 2017
INCOME STATEMENT
Assystem's consolidated revenue
from continuing operations rose by 7.1% in the first half of 2017
(11.5% excluding the impact of the Staffing business).
Revenue for the Energy & Infrastructure business climbed 11.9% to
€175.5 million, with both of its segments (Nuclear and Energy
Transition & Infrastructures) delivering strong growth.
At €24.3 million, revenue reported
by the Staffing business was down 17.5% year
on year, reflecting the persistently difficult market conditions in
the Oil & Gas sector.
Consolidated EBITA from continuing
operations surged 36.4% in the first six months of 2017 to
€12.0 million from €8.8 million in first-half 2016, and
the corresponding margin represented 5.9% of revenue, up 130 basis
points.
Energy & Infrastructure EBITA
advanced by €4.0 million to €13.9 million, representing an EBITA
margin of 7.9%, up 160 basis points on the first six months of
2016.
Staffing EBITA decreased by €0.5
million to €0.6 million and its EBITA margin came at 2.5%, in line
with budget.
In the first half of 2017, revenue
generated by Global Product Solutions (which, in accordance with
IFRS 5, is no longer fully consolidated by Assystem) rose 13.7% to
€332.6 million.
Global Product Solutions' EBITA
increased by €5.3 million to €24.1 million, representing an EBITA
margin of 7.2% compared with 6.4% in the six months ended 30 June
2016. Both the Aerospace and Automotive sectors saw a robust
increase in their EBITA and EBITA margin figures.
After including the net
non-recurring income for the period, consolidated operating profit
from continuing operations came to €12.1 million, up 68.1% on the
€7.2 million reported for first-half 2016.
Taking into account €1.8 million
in net financial expense, a €4.1 million income tax expense and
€15.6 million in profit from discontinued operations (GPS),
consolidated profit for the period amounted to €21.8 million, of
which €6.2 million was generated by continuing operations.
Based on the Group's future
configuration, profit for first-half 2017 is estimated to represent
€12.5 million([4]).
NET DEBT
Net debt recorded in the Group's
consolidated statement of financial position amounted to €77.6
million at 30 June 2017. Out of this total, €50.1 million related
to continuing operations, after deducting the €27.5 million in
current account advances payable by GPS to entities classified as
continuing operations.
GPS's net debt totalled €16.3
million, comprising the above-mentioned €27.5 million in current
account advances less €11.2 million in external net cash. It is
planned that this €16.3 million in net debt (which mainly
corresponds to cash payments made by GPS for acquisitions in the
first half of 2017) will be transferred to Assystem Technologies
Groupe when the control of GPS is transferred to Ardian.
TIMELINE OF THE TRANSACTIONS
ANNOUNCED IN MAY 2017
On 11 May 2017 Assystem announced
that it was planning to carry out the following transactions:
-
The transfer of its GPS division to an
acquisition entity controlled on a 60% basis by Ardian and 40% by
Assystem (the "GPS Transaction") for a total of €550 million,
representing net cash proceeds of an estimated €400 million for the
Group (after deducting tax and other costs incurred in connection
with the transaction and amounts reinvested in the acquisition
entity).
-
A share buyback offer, subsequent to the GPS
Transaction, representing at least €200 million and involving a
minimum of 25% of Assystem's outstanding shares.
-
The purchase of a 5% stake in New Areva NP for
€125 million (the "New NP Investment").
The main conditions precedent for
completing the GPS Transaction have now been met and the
provisional completion date is 28 September 2017. The net cash
proceeds for the Group from the deal are still estimated at
€400 million. The subsequent share buyback offer should be
launched, as previously announced, in the fourth quarter of 2017
(subject to the AMF's approval of the note d
'information).
Concerning the New NP Investment,
an agreement has been signed early July 2017 between EDF, Areva and
Assystem, the terms and conditions of which are in accordance with
the 11 May announcement. The provisional completion date for the
transaction is still end-2017.
OUTLOOK FOR full-YEAR
2017
Assystem's full-year 2017 targets
for its new scope of consolidation are to achieve the
following:
-
organic revenue growth of around 10% at constant
exchange rates for the Energy & Infrastructure business;
-
revenue of c. €50 million for the Staffing
business;
-
a significant increase in EBITA margin;
-
net cash of around €60 million at 31 December
2017([5]).
The targets for GPS are to achieve:
2017 FINANCIAL CALENDAR
Assystem is
an international engineering group. As a key participant in the
industry for 50 years, the Group supports its clients in managing
their capital expenditure throughout the product life cycle.
Assystem S.A. is listed on Euronext Paris.
For more information please visit www.assystem.com
Follow Assystem on Twitter: @Assystem
CONTACTS
Philippe Chevallier
CFO & Deputy CEO
Tel.: +33 (0)1 55 65 03 10 |
Agnès Villeret
Investor Relations - Komodo
agnes.villeret@agence-komodo.com
Tel.: +33 (0)6 83 28 04 15
|
APPENDICES
1/ Revenue and
EBITA by division
In millions of euros |
H1 2016(1) |
H1 2017 |
Total year-on-year change |
Like-for-like change(2) |
Group |
191.0 |
204.5 |
+7.1% |
+5.2% |
Energy
& Infrastructure |
156.8 |
175.5 |
+11.9% |
+9.2% |
Staffing |
29.4 |
24.3 |
-17.5% |
-17.5% |
Other |
4.8 |
4.7 |
- |
- |
-
Restated to facilitate
year-on-year comparisons.
-
Based on a comparable scope of
consolidation and constant exchange rates.
In millions of euros |
H1 2016 |
% of revenue |
H1 2017 |
% of revenue |
Group |
8.8 |
4.6% |
12.0 |
5.9% |
Energy &
Infrastructure |
9.9 |
6.3% |
13.9 |
7.9% |
Staffing |
1.1 |
3.7% |
0.6 |
2.5% |
Holding
company and Other |
(2.2) |
- |
(2.5) |
- |
-
Operating profit before
non-recurring items (EBITA) including share of profit of
equity-accounted investees (€0.5 million in first-half 2016 and
€0.2 million in first-half 2017).
2/ Consolidated financial
statements
In millions of euros
|
31 Dec. 2016* |
30 June 2017 |
Assets |
|
|
Goodwill |
184.8 |
68.7 |
Intangible assets |
3.6 |
0.9 |
Property, plant and equipment |
17.9 |
6.5 |
Investment property |
1.4 |
1.4 |
Equity-accounted investees |
0.9 |
0.7 |
Available-for-sale financial assets |
0.2 |
0.1 |
Other
non-current financial assets |
13.7 |
3.7 |
Deferred tax assets |
17.0 |
9.3 |
Non-current assets |
239.5 |
91.3 |
Trade
receivables |
320.1 |
143.5 |
Other
receivables |
70.9 |
45.8 |
Income
tax receivable |
1.5 |
1.7 |
Other current assets |
0.3 |
0.7 |
Cash and cash equivalents |
85.4 |
30.4 |
|
478.2 |
222.1 |
Assets held for sale |
- |
401.0 |
Current assets |
478.2 |
623.1 |
|
|
|
TOTAL ASSETS |
717.7 |
714.4 |
Equity and liabilities |
31 Dec. 2016 |
30 June 2017 |
|
|
|
Share
capital |
22.2 |
22.2 |
Share
premium |
80.3 |
80.3 |
Consolidated reserves |
106.7 |
112.3 |
Profit
for the period attributable to owners of the parent |
31.5 |
21.4 |
Equity attributable to owners of the
parent |
240.7 |
236.2 |
Non-controlling interests |
0.3 |
0.1 |
Total equity |
241.0 |
236.3 |
Long-term debt and non-current financial liabilities |
4.4 |
107.3 |
Pension and other employee benefit obligations |
26.4 |
11.6 |
Liabilities related to share acquisitions |
14.1 |
9.2 |
Long-term provisions |
7.6 |
7.6 |
Other
non-current liabilities |
5.9 |
3.8 |
Non-current liabilities |
58.4 |
139.5 |
Short-term bond debt |
14.4 |
- |
Other
short-term debt and current financial liabilities |
82.7 |
1.1 |
Trade
payables |
66.4 |
21.7 |
Due to
suppliers of non-current assets |
1.5 |
0.1 |
Accrued taxes and payroll costs |
186.7 |
73.2 |
Income
tax liabilities |
3.8 |
1.0 |
Liabilities related to share acquisitions |
4.4 |
- |
Short-term provisions |
7.2 |
2.9 |
Other current liabilities |
51.2 |
15.6 |
|
418.3 |
115.6 |
Liabilities associated with assets held for sale |
- |
223.0 |
Current liabilities |
418.3 |
338.6 |
|
|
|
TOTAL EQUITY AND LIABILITIES |
717.7 |
714.4 |
* Restated to
facilitate year-on-year comparisons.
In millions of euros |
H1 2016* |
H1 2017 |
|
|
|
Revenue |
191.0 |
204.5 |
Payroll costs |
(136.6) |
(142.2) |
Other
operating income and expenses |
(44.5) |
(49.5) |
Taxes
other than on income |
(0.4) |
(0.5) |
Depreciation, amortisation and provisions for recurring
operating items, net |
(1.2) |
(0.5) |
|
|
|
Operating profit before non-recurring
items (EBITA) |
8.3 |
11.8 |
Share
of profit of equity-accounted investees |
0.5 |
0.2 |
|
|
|
EBITA including share of profit of
equity-accounted investees |
8.8 |
12.0 |
Non-recurring income and expenses |
(1.6) |
0.1 |
|
|
|
Operating profit |
7.2 |
12.1 |
Net
financial income (expense) on cash and debt |
(0.9) |
(1.0) |
Change
in fair value of the derivative embedded in Ornane bonds |
(2.2) |
- |
Other
financial income and expenses |
(1.0) |
(0.8) |
|
|
|
Profit from continuing operations before
tax |
3.1 |
10.3 |
|
|
|
Income
tax expense |
(0.5) |
(4.1) |
|
|
|
Profit from continuing
operations |
2.6 |
6.2 |
|
|
|
Profit
from discontinued operations |
13.4 |
15.6 |
|
|
|
Consolidated profit for the period |
16.0 |
21.8 |
Attributable to: |
|
|
Owners
of the parent |
15.7 |
21.4 |
Non-controlling interests |
0.3 |
0.4 |
|
|
|
* Restated to facilitate year-on-year
comparisons.
|
|
|
In millions of euros |
H1 2016
|
H1 2017
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
EBITDA |
31.6 |
38.6 |
|
|
|
Change
in operating working capital requirement |
(24.9) |
(29.3) |
|
|
|
Income
tax paid |
(6.5) |
(8.6) |
|
|
|
Other
movements |
(3.4) |
(3.3) |
|
|
|
Net cash used in operating
activities |
(3.2) |
(2.6) |
O/w related to discontinued
operations |
(6.5) |
(4.0) |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
Acquisitions of property, plant and equipment and intangible
assets, net of disposals |
(3.6) |
(6.3) |
Acquisitions of shares in consolidated companies, net of sales |
(10.1) |
(18.9) |
|
|
|
Net cash used in investing activities |
(13.7) |
(25.2) |
O/w related to discontinued
operations |
(3.2) |
(22.4) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
Net
financial income received (expenses paid) |
(1.1) |
(1.7) |
Proceeds from new borrowings |
- |
103.4 |
Repayments of borrowings and movements in other financial
liabilities |
(17.8) |
(94.5) |
Dividends paid(1) |
(17.9) |
(22.9) |
Other
movements in equity of the parent company |
(9.4) |
0.1 |
|
|
|
Net cash used in financing
activities |
(46.2) |
(15.6) |
O/w related to discontinued
operations |
(5.0) |
(50.4) |
|
|
|
Net decrease in cash and cash
equivalents |
(63.1) |
(43.4) |
O/w related to discontinued
operations |
(14.7) |
(76.8) |
Net cash and cash equivalents at
beginning of period |
233.4 |
84.4 |
Effect of non-monetary items and changes in exchange
rates |
(0.6) |
0.4 |
|
|
|
Net decrease in cash and cash
equivalents |
(63.1) |
(43.4) |
Net cash and cash equivalents at
period-end |
169.7 |
41.4 |
(1) Including €21.2 million in first-half
2017 and €17.0 million in first-half 2016 paid to shareholders of
Assystem SA.
4/ Information
about the Company's capital
Number of shares |
At 31 Dec. 2016 |
At 31 Aug. 2017 |
Number of ordinary
shares outstanding |
22,218,216 |
22,218,216 |
Number of treasury
shares |
1,068,442 |
1,060,724 |
Number of free shares
and performance shares outstanding |
313,300 |
247,300 |
Weighted average
number of shares outstanding |
21,258,072 |
21,153,633 |
Weighted
average number of diluted shares |
21,571,372 |
21,400,933 |
Ownership structure at 31 August 2017
% |
Shares |
Voting rights |
HDL
Development(1) |
60.66% |
77.16% |
Free float(2) |
34.57% |
22.84% |
Treasury
shares |
4.77% |
- |
(1) HDL Development is a
holding company controlled by Dominique Louis (Assystem's Chairman
and Chief Executive Officer), notably through HDL, which itself
holds 0.23% of Assystem's capital.
(2) Including 0.23% held by HDL.
([1]) Operating profit before non-recurring items
(EBITA) including share of profit of equity-accounted investees
(€0.5 million in first-half 2016 and €0.2 million in first-half
2017).
([2]) Breaking down as €6.2 million (up 138% year on
year) from continuing operations and €15.6 million (up 16.4%) from
discontinued operations.
([3]) Including profit attributable to non-controlling
interests amounting to €0.3 million in first-half 2016 and €0.4
million in first-half 2017. Profit for the period attributable to
owners of the parent therefore totalled €15.7 million in first-half
2016 and €21.4 million in first-half 2017.
([4]) With GPS accounted for by the equity method and
taking into consideration Assystem Technologies Groupe's financing
structure and the elimination of certain non-recurring tax items
related to internal and external dividends.
([5]) Taking into account net cash generated by
operating and investing activities of continuing operations
estimated at c. €35 million (excluding the impact of any
acquisitions) in the second half of 2017 (including €9 million
from the receipt of a research tax credit receivable), and based on
the assumption that the following will have taken place before 31
December 2017: the completion of the GPS Transaction (with net cash
proceeds of €400 million), the cash settlement of a €200 million
share buyback offer, and the New NP Investment (for an amount of
€125 million).
ASSYSTEM HY 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: ASSYSTEM via Globenewswire
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