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RESULTS FOR THE 1ST HALF OF 2012
Revenue: +14.6% / Operating margin: 6.6% / Net margin: 4.5%
Confidence in growth prospects
and increased profitability in the second half of the year
Bagnolet, August 29, 2012
| In M€, as at 30 June | 2012 | 2011 | Δ 2012 / 2011 |
| Revenue 1st half | 68,8 | 60,0 | +14,6 % |
| – Services | 64,7 | 56,7 | +14,0 % |
| – Softwares | 4,5 | 4,8 | +24,2 % |
| Profit from recurring operations | 4,5 | 4,8 | |
| % of turnover | 6,6 % | 8,0 % | (6,1 %) |
| Net income (group share) | 3,1 | 3,3 | |
| % of turnover | 4,5 % | 5,6 % | (7,6 %) |
Activity: scaling up service centers
Infotel achieved a good 1st half of 2012 with a turnover of €68.8 million, up 14.6%. On a like-for-like basis*, the business grew by 11.8%, representing organic growth above the market.
The Services division (94% of revenue) grew by 14.0% to €64.7 million (+4.6% in the 2nd quarter). Activity was strong in all sectors except the Automotive market, with an increase in several major service centers in the Insurance, Retirement, Banking and Aeronautics sectors. Nearly 120 people were recruited in the first half of the year, and the activity rate at the end of the period remains within the Group’s usual standards.
The Software division (6% of revenue) grew by 24.2% to €4.1 million, of which +69.8% in the second quarter (+40.3% at pc). The business recorded two good quarters in terms of royalties from IBM sales. In France, the purchase forecasts are more for the second half of the year due to a certain wait-and-see attitude and relatively long decision-making cycles.
*Excluding contributions from Insoft Software GmbH (Software division) and Empeiria (Services division), acquired in 2011 and integrated on 30 June 2011 and 1 January 2012 respectively.
Half-year results: priority to growth at the one-off expense of margins
Operating income amounted to €4.5 million (compared to €4.8 million in the first half of 2011), representing an operating margin rate of 6.6%, down from the first half of 2011.
This decline is the consequence of three elements: an assumed desire to focus on growth with the start of major fixed-price projects signed at the end of 2011, the ramp-up of which will have required greater recourse to subcontracting, and the conquest of new customers; the halt of some projects, particularly in the automotive and distribution sectors, which temporarily impacted the intercontract rate.
Net income (Group share) for the consolidated group amounted to €3.1 million (compared to €3.3 million in the first half of 2011), representing a net margin rate of 4.5% compared to 5.6% in the first half of 2011.
Very strong financial position
Infotel’s financial position remains very solid. The Group’s equity amounted to €42.5 million (compared to €38.2 million at 30 June 2011) and debt was zero. Operating cash increased by €1.8 million to €15.1 million at 30 June 2012 (after the acquisition of Empeiria and payment of dividends).
Confidence in growth prospects; profitability increases in the second half of the year
Thanks to the strength of its business model (nearly 70% of the Services business carried out with fixed-price services) and the commercial dynamism of its teams, Infotel has managed to both maintain its positions and secure its margins in a demanding economic context.
The Group is therefore confident in its growth prospects, and confirms its revenue target of €135 million for 2012. In terms of profitability, the second half of the year should allow us to return to a good level. Despite reduced visibility, a profit from recurring operations of the same order as last year should be achieved in 2012.
Next appointments:
Analyst meeting: September 19, 2012
Q3 2012 revenue: October 24, 2012 (after stock market)
About Infotel
Listed on Compartment C of Euronext Paris since January 1999 (Isin code FR0000071797), Infotel is the specialist in the management of databases and their Web applications.
At the forefront of technological innovations, Infotel develops its expertise around two complementary areas of expertise: IT services and high-tech software publishing. As part of its “Ambitions 2012” plan, Infotel has set itself two main objectives: to achieve almost all of its services in Service Centers and to become a key player in dematerialization. In 2011, Infotel had a total turnover of €123.5 million.
