• Assystem : First-half 2019 results, Revenue: €246.5 million ( 14.1%)

    Источник: Nasdaq GlobeNewswire / 05 сен 2019 16:35:01   Europe/London

                      

    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 2018H1 2019Year-on-year change
    Revenue216.1246.5+14.1%
    Operating profit before non-recurring items – EBITA(1) 9.215.6+69.5%
    % of revenue4.3%6.3%+ 200 bp
    Consolidated profit for the period(2)7.114.3 
        
    In millions of euros (€m)  31 Dec. 201830 June 2019 
    Net debt(3)31.168.7 

    ANALYSIS OF THE FIRST-HALF 2019 INCOME STATEMENT

    • Revenue

    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 CEO
    Tel.: +33 (0)1 41 25 28 07

     

    Anne-Charlotte Dagorn
    Communications Director
    acdagorn@assystem.com
    Tel.: +33 (0)6 83 83 70 29

     
     

    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

    • Revenue
    In millions of euros H1 2018H1 2019Total year-on-year change

     
    Like-for-like
    change*
    Group216.1246.5+14.1%+13.2%
    Energy & Infrastructure189.1219.9+16.3%+15.9%
    Staffing22.322.7+2.0%-3.0%
    Other4.73.9- 

       * 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
    Group9.24.3%15.66.3%
    Energy & Infrastructure10.35.4%16.47.5%
    Staffing0.41.8%0.83.4%
    Holding company and Other(1.5)-(1.6)-
    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); 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 euros31 Dec. 201830 June 2019
    ASSETS  
    Goodwill82.883.0
    Intangible assets4.78.2
    Property, plant and equipment7.68.5
    Right-of-use assets-36.9
    Investment property1.41.4
    Equity-accounted investees0.71.3
      Expleo Group shares88.187.5
      Expleo Group convertible bonds102.2106.7
    Expleo Group shares and convertible bonds190.3194.2
    Other non-current financial assets(1)129.1137.5
    Deferred tax assets4.73.5
    Non-current assets421.3474.5
    Trade receivables150.8177.9
    Other receivables40.641.2
    Income tax receivables1.11.0
    Other current assets0.50.1
    Cash and cash equivalents(2)32.418.9
    Current assets225.4239.1
       
    TOTAL ASSETS646.7713.6


    EQUITY AND LIABILITIES31 Dec. 201830 June 2019
       
    Share capital15.715.7
    Consolidated reserves351.6354.5
    Profit for the period attributable to owners of the parent19.414.1
    Equity attributable to owners of the parent386.7384.3
    Non-controlling interests0.1(0.2) 
    Total equity386.8384.1
    Long-term debt and non-current financial liabilities(2)63.187.2
    Lease liabilities29.5
    Pension and other employee benefit obligations14.716.5
    Liabilities related to share acquisitions4.64.6
    Long-term provisions16.616.7
    Other non-current liabilities1.30.7
       
    Non-current liabilities100.3155.2
    Short-term debt and current financial liabilities(2)0.40.4
    Lease liabilities-7.6
    Trade payables31.036.0
    Due to suppliers of non-current assets0.82.0
    Accrued taxes and payroll costs89.191.8
    Income tax liabilities2.21.7
    Liabilities related to share acquisitions1.11.0
    Short-term provisions3.72.7
    Other current liabilities31.331.1
    Current liabilities159.6174.3
       
    TOTAL EQUITY AND LIABILITIES646.7713.6
     
    1. Including Framatome shares representing €132.3 million at 30 June 2019.
    2. 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 eurosSix months ended
    30 June 2018
    Six months ended
    30 June 2019
        
    Revenue216.1246.5 
    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)8.615.1 
    Share of profit of equity-accounted investees0.60.5 
        
    EBITA including share of profit of equity-accounted investees9.215.6 
    Non-recurring income and expenses0.4(1.2) 
    Share-based payments(0.1)(0.3) 
        
    Operating profit 9.514.1 
    Share of profit/(loss) of Expleo Group(2.9)(0.3) 
    Income from Expleo Group convertible bonds3.94.4 
    Net financial expense on cash and debt(0.3)(1.0) 
    Other financial income and expenses0.11.6 
        
    Profit from continuing operations before tax10.318.8 
        
    Income tax expense(3.1)(4.5)  
        
    Profit from continuing operations7.214.3  
        
    Profit/(loss) from discontinued operations(0.1) 
        
    Consolidated profit for the period7.114.3  
    Attributable to:    
    Owners of the parent7.114.1 
    Non-controlling interests-0.2 


    • Consolidated statement of cash flows
    In millions of eurosSix months ended
    30 June 2018
    Six months ended 30 June 2019
    CASH FLOWS FROM OPERATING ACTIVITIES  
    EBITA including share of profit of equity-accounted investees9.215.6
    Depreciation, amortisation and provisions for recurring operating items, net1.26.4
    EBITDA10.422.0
    Change in operating working capital requirement5.7(18.2)
    Income tax paid(4.5)(3.2)
    Other cash flows(3.2)(1.9)
    Net cash generated from/(used in) operating activities8.4(1.3)
    O/w related to continuing operations8.4(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 assets0.1-
    Free cash flow5.4(6.7)
    O/w related to continuing operations5.4(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 borrowings59.724.0
    Repayments of borrowings and movements in other financial liabilities7.4-
    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 activities47.72.7
       
    Net decrease in cash and cash equivalents (17.4)(13.3)
       
    Net cash and cash equivalents at beginning of period27.332.1
    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 period9.118.6

    * Including €0.4 million in interest paid.

    3/ Changes in net debt

    In millions of euros   
    Net debt at 31 Dec. 201831.1 
    Free cash flow from continuing operations11.3Excluding impact of first-time application of IFRS 16
    Acquisitions of shares and purchased goodwill9.3 
    Dividends paid to shareholders of Assystem15.0 
    Other movements2.0 
    Net debt at 30 June 201968.7 

    4/ Information about the Company's capital 

    Number of sharesAt 31 Dec. 2018At 31 Aug. 2019
    Ordinary shares outstanding15,668,21615,668,216
    Treasury shares667,336658,205
    Free shares and performance shares outstanding256,380304,555
    Weighted average number of shares outstanding15,089,31915,002,279
    Weighted average number of diluted shares15,345,69915,306,834

    Ownership structure at 31 August 2019

    In %SharesExercisable voting rights
    HDL Development(1)61.34%77.45%
    Free float(2)34.46%22.55%
    Treasury shares4.20%-
    1. HDL Development is a holding company controlled by Dominique Louis (Assystem's Chairman and Chief Executive Officer), notably through HDL, which itself holds 0.35% of Assystem's capital.
    2. 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.


    Attachment

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