Assystem : First-half 2019 results, Revenue: €246.5 million
(+14.1%)
First-half 2019 results
- Revenue: €246.5 million (+14.1%)
- Operating profit before non-recurring items (EBITA)(1): €15.6
million
- EBITA margin up 200 bp to 6.3%
Paris - La Défense, 5 September 2019, 5.35 p.m.
(CEST) – At its meeting held today, 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 2019 (i.e. the six months ended 30 June
2019).
First-time application of IFRS 16 and financial
indicators used by Assystem
Assystem adopted IFRS 16, “Leases” on 1 January
2019 using the modified retrospective approach. In accordance with
this approach, the financial statements for 2018 have not been
restated.
The first-time application of this new standard
had only a limited effect on EBITA and consolidated profit for the
period. However, it did have highly significant impacts on the
EBITDA and free cash flow indicators used by Assystem. All of these
impacts are disclosed in this press release together with the
related figures.
In view of these highly significant impacts, in
order to permit meaningful year-on-year comparisons of the above
indicators and maintain a method of calculating EBITDA and free
cash flow consistent with that used to calculate net debt, Assystem
will continue to use EBITDA and free cash flow indicators as
calculated excluding the impacts of IFRS 16.
In the consolidated statement of financial
position, the Group's adoption of IFRS 16 resulted in the
recognition of lease liabilities and right-of-use assets presented
on the liabilities and assets side respectively under “Lease
liabilities” and “Right-of-use assets”. The net debt indicator used
by Assystem does not include lease liabilities.
KEY FIGURES
|
In millions of euros (€m) |
H1 2018 |
H1 2019 |
Year-on-year change |
|
Revenue |
216.1 |
246.5 |
+14.1% |
|
Operating profit before non-recurring items –
EBITA(1) |
9.2 |
15.6 |
+69.5% |
|
% of revenue |
4.3% |
6.3% |
+ 200 bp |
|
Consolidated profit for the period(2) |
7.1 |
14.3 |
|
|
|
|
|
|
|
In millions of euros (€m) |
31 Dec. 2018 |
30 June 2019 |
|
|
Net debt(3) |
31.1 |
68.7 |
|
ANALYSIS OF THE FIRST-HALF 2019 INCOME
STATEMENT
Assystem’s consolidated revenue jumped 14.1%
year on year in the first half of 2019, breaking down as 13.2% in
like-for-like growth and a 0.9% positive currency effect. The lower
number of business days in the first six months of 2019 compared
with first-half 2018 trimmed an estimated 0.8% off like-for-like
growth.
Revenue from the Energy &
Infrastructure division advanced 16.3% to
€219.9 million, with 15.9% like-for-like growth and a 0.4%
positive currency effect.
At €22.7 million, revenue for the
Staffing division was up 2.0%, including a 5.0%
positive currency effect.
- Operating profit before non-recurring items (EBITA) and
EBITDA([4])
Consolidated EBITA surged 69.5%
to €15.6 million in the first six months of 2019 from €9.2 million
in the same period of 2018. The first-half 2019 figure includes a
€0.2 million positive impact from the first-time application of
IFRS 16, which solely affected the E&I division. EBITA margin
widened considerably year on year, to 6.3% from 4.3%.
EBITA for the Energy &
Infrastructure division totalled €16.4 million (including
the €0.2 million IFRS 16 impact) and EBITA margin was 7.5% (7.4%
excluding IFRS 16), versus €10.3 million and 5.4% respectively in
first-half 2018.
Staffing EBITA rose by €0.4
million to €0.8 million, representing an EBITA margin of 3.4%.
The Group’s “Holding company” expenses, net of
the EBITA of the activities classified in the “Other” category, had
a €1.6 million negative impact on consolidated EBITA in first-half
2019 versus a €1.5 million negative impact in the equivalent period
of 2018.
Consolidated EBITDA(4) came to
€17.4 million in the first six months of 2019, compared with €10.4
million in first-half 2018. Including the impact of IFRS 16, it
amounted to €22.0 million.
- Operating profit and other income statement
items
After taking into account €1.5 million in net
non-recurring expense for the period (including €0.3 million in
share-based payments), consolidated operating
profit came to €14.1 million, compared with €9.5 million
in the first six months of 2018.
The contribution to Assystem’s
consolidated profit by Expleo Group (“Expleo”) – in which
Assystem holds a 38.2% interest – was €6.7 million excluding the
impact of the non-recurring expenses recorded by Expleo for
first-half 2019 but including €4.4 million in coupons on Expleo
convertible bonds. Taking into account Assystem’s €2.6 million
share of Expleo’s non-recurring expenses, Expleo’s net contribution
to consolidated profit for first-half 2019 was €4.1 million
(comprising Assystem's €0.3 million share of Expleo’s loss for the
period and the €4.4 million in convertible bond coupons).
Assystem recorded net financial
income of €0.6 million in the six months ended 30 June
2019, including a €2.4 million dividend receivable by Assystem on
its 5% stake in Framatome.
After deducting €4.5 million in income tax
expense, consolidated profit for the period
totalled €14.3 million, compared with €7.1 million in
first-half 2018.
- Information on the revenue and EBITDA(4) generated in
first-half 2019 by Expleo Group
Revenue generated by Expleo Group came in at
€544.2 million in the first six months of 2019 versus
€511.4 million in first-half 2018. Overall year-on-year growth
was 6.4%, breaking down as a 6.6% positive impact from changes in
scope of consolidation (chiefly due to the inclusion for the full
six-month period of SQS, which has been consolidated since 1
February 2018), an estimated 0.7% negative impact from the
year-on-year decrease in the number of business days and a 0.4%
positive currency effect. Like-for-like growth based on constant
exchange rates and business days was 0.1%. This figure reflects the
adverse impact during the period of the one-off effect of losing a
contract in the aeronautics sector in the United Kingdom and a
change in SQS’s business mix. This change had an immediate positive
impact on operating profitability in terms of absolute value and
margin, but a short-term negative effect on business volumes.
Expleo Group’s EBITDA (excluding the IFRS 16
impact) amounted to €47.5 million for the period, representing 8.7%
of its consolidated revenue, versus €41.0 million and 8.0%
respectively in first-half 2018.
FREE CASH FLOW AND NET DEBT
At 30 June 2019, free cash flow
for the previous twelve months generated by Assystem’s fully
consolidated entities (excluding the IFRS 16 impact) totalled €27.1
million, representing 5.7% of revenue for that period. As expected,
working capital requirement related to the K.A.CARE contract
returned to a normal level in the first half of 2019. The down
payment received on this contract in late 2018 was used during
first-half 2019.
Assystem had net debt of €68.7 million
at 30 June 2019 versus €31.1 million at 31 December 2018.
The €37.6 million increase breaks down as follows:
- an €11.3 million negative effect on debt from the first-half
2019 free cash flow figure([5]) (excluding the IFRS 16
impact);
- a €15.0 million dividend payment made to Assystem's
shareholders;
- €9.3 million paid for acquisitions of shares (including €8.0
million in additional consideration for the acquisition of
Framatome shares) and purchased goodwill;
- €2.0 million in other movements.
In the second half of the year, the Group’s
stake in Framatome will further impact net debt as a result of (i)
a €4.5 million payment for the final instalment of additional
consideration, and (ii) the receipt of a €2.4 million dividend
for 2018. In addition, in July 2019, Assystem acquired ASCO for
€7.0 million.
OUTLOOK FOR FULL-YEAR 2019
On a consolidated basis, Assystem's targets for
full-year 2019 are now as follows:
- annual revenue of at least €500 million, including the impact
of consolidating ASCO as from 1 October 2019, but excluding
the effect of any other external growth transactions;
- EBITA margin of at least 6.8% (excluding the IFRS 16
impact);
- free cash flow (excluding the IFRS 16 impact) representing more
than 6% of revenue for the 24-month period covering the 2018 and
2019 financial years.
AVAILABILITY OF THE FIRST-HALF 2019 INTERIM FINANCIAL
REPORT
Assystem’s first-half 2019 interim financial
report has today been published and filed with the Autorité des
Marchés Financiers (AMF). This report, as well as the presentation
of the Group’s first-half 2019 results, can be viewed and
downloaded on Assystem’s website (www.assystem.com) in the
“Finance/Regulated Information” section.
2019 FINANCIAL CALENDAR
- 30 October:
Third-quarter 2019 revenue release
Assystem is an international
engineering group. As a key participant in the industry for over 50
years, the Group supports its clients in managing their capital
expenditure throughout their asset life cycles. 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 CEOTel.: +33 (0)1 41 25 28 07
Anne-Charlotte DagornCommunications
Directoracdagorn@assystem.comTel.: +33 (0)6 83 83 70 29 |
Agnès VilleretInvestor
relations - Komodoagnes.villeret@agence-komodo.comTel.: +33 (0)6 83
28 04 15 |
APPENDICES
1/ Revenue and EBITA by
division
|
In millions of euros |
H1 2018 |
H1 2019 |
Total year-on-year change
|
Like-for-like change* |
|
Group |
216.1 |
246.5 |
+14.1% |
+13.2% |
| Energy & Infrastructure |
189.1 |
219.9 |
+16.3% |
+15.9% |
| Staffing |
22.3 |
22.7 |
+2.0% |
-3.0% |
|
Other |
4.7 |
3.9 |
- |
|
* Based on a comparable scope of consolidation and
constant exchange rates.
·EBITA(1)
|
In millions of euros |
H1 2018 |
% of revenue |
H1 2019 |
% of revenue |
|
Group |
9.2 |
4.3% |
15.6 |
6.3% |
| Energy & Infrastructure |
10.3 |
5.4% |
16.4 |
7.5% |
| Staffing |
0.4 |
1.8% |
0.8 |
3.4% |
| Holding
company and Other |
(1.5) |
- |
(1.6) |
- |
- Operating profit before non-recurring items (EBITA):
- including share of profit of equity accounted investees other
than Expleo Group (€0.6 million in first-half 2018 and €0.5
million in first-half 2019); and
- taking into account the €0.2 million positive impact of the
first-time application of IFRS 16, recognised under Energy &
Infrastructure
2/ Consolidated Financial Statements
- Consolidated statement of financial
position
| In millions of
euros |
31 Dec. 2018 |
30 June 2019 |
|
ASSETS |
|
|
| Goodwill |
82.8 |
83.0 |
| Intangible
assets |
4.7 |
8.2 |
| Property, plant
and equipment |
7.6 |
8.5 |
| Right-of-use
assets |
- |
36.9 |
| Investment
property |
1.4 |
1.4 |
|
Equity-accounted investees |
0.7 |
1.3 |
| Expleo
Group shares |
88.1 |
87.5 |
|
Expleo Group convertible bonds |
102.2 |
106.7 |
| Expleo Group
shares and convertible bonds |
190.3 |
194.2 |
| Other
non-current financial assets(1) |
129.1 |
137.5 |
| Deferred tax
assets |
4.7 |
3.5 |
|
Non-current assets |
421.3 |
474.5 |
| Trade
receivables |
150.8 |
177.9 |
| Other
receivables |
40.6 |
41.2 |
| Income tax
receivables |
1.1 |
1.0 |
| Other current
assets |
0.5 |
0.1 |
| Cash and cash
equivalents(2) |
32.4 |
18.9 |
|
Current assets |
225.4 |
239.1 |
|
|
|
|
|
TOTAL ASSETS |
646.7 |
713.6 |
| EQUITY
AND LIABILITIES |
31 Dec. 2018 |
30 June 2019 |
|
|
|
|
| Share
capital |
15.7 |
15.7 |
| Consolidated
reserves |
351.6 |
354.5 |
| Profit for the
period attributable to owners of the parent |
19.4 |
14.1 |
| Equity
attributable to owners of the parent |
386.7 |
384.3 |
|
Non-controlling interests |
0.1 |
(0.2) |
|
Total equity |
386.8 |
384.1 |
| Long-term debt
and non-current financial liabilities(2) |
63.1 |
87.2 |
| Lease
liabilities |
– |
29.5 |
| Pension and
other employee benefit obligations |
14.7 |
16.5 |
| Liabilities
related to share acquisitions |
4.6 |
4.6 |
| Long-term
provisions |
16.6 |
16.7 |
| Other
non-current liabilities |
1.3 |
0.7 |
| |
|
|
|
Non-current liabilities |
100.3 |
155.2 |
| Short-term
debt and current financial liabilities(2) |
0.4 |
0.4 |
| Lease
liabilities |
- |
7.6 |
| Trade
payables |
31.0 |
36.0 |
| Due to
suppliers of non-current assets |
0.8 |
2.0 |
| Accrued taxes
and payroll costs |
89.1 |
91.8 |
| Income tax
liabilities |
2.2 |
1.7 |
| Liabilities
related to share acquisitions |
1.1 |
1.0 |
| Short-term
provisions |
3.7 |
2.7 |
| Other current
liabilities |
31.3 |
31.1 |
|
Current liabilities |
159.6 |
174.3 |
| |
|
|
|
TOTAL EQUITY AND LIABILITIES |
646.7 |
713.6 |
- Including Framatome shares representing €132.3 million at 30
June 2019.
- Net debt totalled €68.7 million at 30 June 2019, breaking down
as:
- Short- and long-term debt and current and non-current financial
liabilities: €87.6 million
- Cash and cash equivalents: €18.9 million
|
- Consolidated income statement
|
In millions of euros |
Six months ended 30 June 2018 |
Six months ended 30 June 2019 |
| |
|
|
|
|
Revenue |
216.1 |
246.5 |
|
| Payroll
costs |
(158.5) |
(177.0) |
|
| Other operating
income and expenses |
(47.2) |
(47.6) |
|
| Taxes other
than on income |
(0.6) |
(0.4) |
|
| Depreciation,
amortisation and provisions for recurring operating items, net |
(1.2) |
(6.4) |
|
|
|
|
|
|
|
Operating profit before non-recurring items
(EBITA) |
8.6 |
15.1 |
|
| Share of profit
of equity-accounted investees |
0.6 |
0.5 |
|
|
|
|
|
|
|
EBITA including share of profit of equity-accounted
investees |
9.2 |
15.6 |
|
| Non-recurring
income and expenses |
0.4 |
(1.2) |
|
|
Share-based payments |
(0.1) |
(0.3) |
|
|
|
|
|
|
|
Operating profit |
9.5 |
14.1 |
|
| Share of
profit/(loss) of Expleo Group |
(2.9) |
(0.3) |
|
| Income from
Expleo Group convertible bonds |
3.9 |
4.4 |
|
| Net financial
expense on cash and debt |
(0.3) |
(1.0) |
|
| Other financial
income and expenses |
0.1 |
1.6 |
|
| |
|
|
|
|
Profit from continuing operations before tax |
10.3 |
18.8 |
|
| |
|
|
|
| Income tax
expense |
(3.1) |
(4.5) |
|
| |
|
|
|
|
Profit from continuing operations |
7.2 |
14.3 |
|
| |
|
|
|
| Profit/(loss)
from discontinued operations |
(0.1) |
- |
|
|
|
|
|
|
|
Consolidated profit for the period |
7.1 |
14.3 |
|
|
Attributable to: |
|
|
|
| Owners of the
parent |
7.1 |
14.1 |
|
| Non-controlling
interests |
- |
0.2 |
|
- Consolidated statement of cash flows
|
In millions of euros |
Six months ended 30 June 2018 |
Six months ended 30 June 2019 |
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| EBITA including
share of profit of equity-accounted investees |
9.2 |
15.6 |
| Depreciation,
amortisation and provisions for recurring operating items, net |
1.2 |
6.4 |
|
EBITDA |
10.4 |
22.0 |
| Change in
operating working capital requirement |
5.7 |
(18.2) |
| Income tax
paid |
(4.5) |
(3.2) |
| Other cash
flows |
(3.2) |
(1.9) |
|
Net cash generated from/(used in) operating
activities |
8.4 |
(1.3) |
| O/w related to
continuing operations |
8.4 |
(1.3) |
| O/w related to
discontinued operations |
- |
- |
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Acquisitions of
property, plant and intangible assets, net of disposals, o/w: |
(3.0) |
(5.4) |
| Acquisitions of
property, plant and equipment and intangible assets |
(3.1) |
(5.4) |
| Proceeds from
disposals of property, plant and equipment and intangible
assets |
0.1 |
- |
| Free
cash flow |
5.4 |
(6.7) |
| O/w related to
continuing operations |
5.4 |
(6.7) |
| O/w related to
discontinued operations |
- |
- |
| Acquisitions of
shares, net of proceeds from sales |
- |
(9.3) |
| Investment in
Expleo Group |
(60.7) |
- |
| Other
movements, net |
(9.8) |
- |
| |
|
|
|
Net cash generated from/(used in) investing
activities |
(73.5) |
(14.7) |
| O/w related to
continuing operations |
(66.3) |
(14.7) |
| O/w related to
discontinued operations |
(7.2) |
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
| Net financial
income received/(expenses paid) |
0.1 |
(0.9) |
| Proceeds from
new borrowings |
59.7 |
24.0 |
| Repayments of
borrowings and movements in other financial liabilities |
7.4 |
- |
| Repayments of
lease liabilities* |
- |
(4.6) |
| Dividends
paid |
(15.7) |
(16.3) |
| Other movements
in equity of the parent company |
(3.8) |
0.5 |
| |
|
|
|
Net cash generated from/(used in) financing
activities |
47.7 |
2.7 |
| |
|
|
|
Net decrease in cash and cash equivalents |
(17.4) |
(13.3) |
| |
|
|
|
Net cash and cash equivalents at beginning of
period |
27.3 |
32.1 |
| Effect of
non-monetary items and changes in exchange rates |
(0.8) |
(0.2) |
| Net decrease in
cash and cash equivalents |
(17.4) |
(13.3) |
|
Net cash and cash equivalents at beginning of
period |
9.1 |
18.6 |
* Including €0.4 million in interest paid.
3/ Changes in net debt
|
In millions of euros |
|
|
| Net debt at 31 Dec.
2018 |
31.1 |
|
|
Free cash flow from continuing operations |
11.3 |
Excluding impact
of first-time application of IFRS 16 |
| Acquisitions of
shares and purchased goodwill |
9.3 |
|
| Dividends paid to
shareholders of Assystem |
15.0 |
|
| Other
movements |
2.0 |
|
|
Net debt at 30 June 2019 |
68.7 |
|
4/ Information about the Company's
capital
|
Number of shares |
At 31 Dec. 2018 |
At 31 Aug. 2019 |
| Ordinary shares outstanding |
15,668,216 |
15,668,216 |
| Treasury shares |
667,336 |
658,205 |
| Free shares and performance shares
outstanding |
256,380 |
304,555 |
| Weighted average number of shares
outstanding |
15,089,319 |
15,002,279 |
| Weighted
average number of diluted shares |
15,345,699 |
15,306,834 |
Ownership structure at 31 August
2019
|
In % |
Shares |
Exercisable voting rights |
| HDL Development(1) |
61.34% |
77.45% |
| Free float(2) |
34.46% |
22.55% |
|
Treasury shares |
4.20% |
- |
- HDL Development is a holding company controlled by Dominique
Louis (Assystem's Chairman and Chief Executive Officer), notably
through HDL, which itself holds 0.35% of Assystem's capital.
- Including 0.35% held by HDL.
([1]) Operating profit before
non-recurring items (EBITA) including share of profit of
equity-accounted investees other than Expleo Group
(€0.6 million in first-half 2018 and €0.5 million in
first-half 2019). The Group’s first-time application of IFRS 16 had
a €0.2 million positive impact on EBITA in first-half 2019.
([2]) Including profit
attributable to non-controlling interests: a nil amount in
first-half 2018 and €0.2 million in first-half 2019. Profit for the
period attributable to owners of the parent therefore totalled €7.1
million in first-half 2018 and €14.1 million in first-half 2019.
The Group’s first-time application of IFRS 16 had a €0.1 million
negative impact on consolidated profit for the period in first-half
2019.
([3]) Debt less cash and cash equivalents and
after taking into account the fair value of hedging
instruments.
([4]) EBITA before net depreciation expense and
net additions to provisions for recurring operating items,
excluding the impact of IFRS 16 on EBITA and depreciation
expense
([5]) Free cash flow including the impact of
IFRS 16 was a negative €6.7 million.
- Assystem First-half 2019 results
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