2018 first-half results
Revenue: €165m | +5%
Operating profit: €12.1m | +4.3%
Paris, 12 September 2018-Groupe Open (ISIN: FR 0004050300; segmentNextEconomy-972, computer services), Digital Services Company, has published its results for the first half of 2018.
2018 first-half results
In € millions June 2018 June 2017 | ||
Revenue | 165.0 | 157.2 +5.0% |
Operating profit | 12.1 | 11.6 +4.3% |
% operating profit | 7.3% | 7.4% |
Other operating income and expenditure | 0.5 | -0.3 |
Reprocessed operating profit* | 12.6 | 11.3 +11.5% |
IFRS2 charge of free shares | -0.5 | -1.1 |
Operating profit | 12.1 | 10.2 +18.6% |
Net cost of financial debt | -0.3 | -0.3 |
Tax burden | -4.4 | -4.3 |
Net profit of operations | 7.4 | 5.6 +32.1% |
Net profit from operations discontinued, sold or in process of sale | -0.2 | |
Net profit | 7.2 | 5.6 |
*Reprocessed after the non-normative impact of free shares (IFRS2)
Groupe Open continues to grow. At 5%, growth of revenue outstripped the market(consulting and services +3.5% - Syntec Numérique), while operating profit was up by 4.3% and net profit totalled €7.4m.
On June 30, 2018, the headcount totalled 3,700 productive employees, which was stable in relation to 1 January 2018, and up on 30 June 2017, when the like-for-like headcount was 3,560.
Business activity indicators progressed slightly.
Breakdown of revenue and operating profit by geography:
In € millions | First-half 2018 | First-half 2017 | Growth |
Revenue, FranceIn € millions | 158.3 | 151.8 | +4.3% |
Operating profit, France | 12.1 | 11.4 | +6.1% |
In € millions | First-half 2018 | First-half 2017 | Growth |
International revenue InNe€thmeirllaionnds Others | 6.73.7 3.0 | 5.43.6 1.8 | +24.0% |
International operating profit | 0.0 | 0.2 | - |
France performed well, posting a 4.3% rise in revenue, despite an unfavourable calendar effect.
2018 first-half financial situation
BALANCE AND FREE CASH FLOW
In € millions | June 2018 | Dec 2017 | In € millions | June 2018 | Dec 2017 |
Goodwill | 108.2 | 108.2 | Equity capital | 118.4 | 115.5 |
Non-current assets | 125.0 | 123.0 | Financial debt | 14.9 | 14.9 |
Free cash flow | 21.8 | 33.8 | Non-current liabilities | 20.3 | 20.6 |
Other financial liabilities | 5.2 | 7.9 | |||
Current assets | 113.4 | 120.6 | Current liabilities | 99.8 | 107.5 |
Total ASSETS | 238.6 | 244.7 | Total Liabilities | 238.6 | 244.7 |
The financial situation reflects the company's positive net free cash flow position and the control of itsworking capital requirement (WCR), even if the time taken to sign contracts for major new projects and the growth in the public sector have produced an increase in work in process..
In € millions | June 2018 | Dec 2017 | June 2017 |
Net free cash flow generated by business operations | -1.6 | 20.2 | 6.3 |
Net free cash flow generated by investment operations | -4.0 | -3.9 | -3.3 |
Net free cash flow generated by financing operations | -6.3 | -11.7 | -6.8 |
Variation of net free cash flow | -11.9 | 4.6 | -3.8 |
Free cash and free cash equivalents on opening | 33.8 | 29.2 | 29.2 |
Free cash and free cash equivalents on closure | 21.8 | 33.8 | 25.4 |
The generation of free cash reflects:
- the growth in work in process in the first half-year, while keeping customer payment deadlines under control [flows generated by operations]. This increase should be cancelled out in the second half of the year;
- investments in R&D and facilities [flows generated by investments];
- financial flows reflect in particular the distribution of dividends (-€3.5m) and the buy-back of own shares (-€1.3m) [flows generated by financial operations].
Activity and operational performance in the first half of 2018
Some significant highlights in the half-year made a significant contribution to the operational performance.
- The high demand for technological skills applied pressure to recruiting and retaining human resources. However, this trend reflects the fast-growing demands of customers, to which Groupe Open responded by strengthening its dedicated team and reviewing its Human Resources policy on the basis of four pillars: recruiting and building loyalty, developing human assets, digitalizing HR processes and improving life at Open.
- Groupe Open rolled out a nationwide, cross-functional programme to develop the appeal of the company, attract the right talents and build loyalty by valuing employees. The "Practices" (agility, business support, testing) and the "Squads" (development of new technologies,cloud and devops integration, mobility) call on a community of talents that embody an agile and collaborative mindset.
- Made up of eight Production Centres employing more than 1,200 staff members in France, the ITand Digital industrial production system is now robust and optimised. It meets our customers'demands for a local presence and professionalism.
- Moodpeek byOpen (an opinions analysis solution for mobile users), Primpromo byOpen (an international solution for property developers) and Xloan byOpen (a financing operations management solution) have reached maturity and have a promising potential. Swizi byOpen (a web-based app creation and management platform) and Boost byOpen (a DevOps platform forweb, cloud and SaaS solutions) are currently in the operational launch phase in the company'sindustrial production system.
Summary and prospects
To summarise, Groupe Open achieved significant organic growth and results in line with its forecasts in the first half-year, despite the pressure on recruiting and retaining resources.
For the whole of 2018, Groupe Open forecasts revenue growth higher than that of the market(consulting and services +3.5% - Syntec Numérique)and improved profits.
Groupe Open confirms its clear visibility for the future of its operations and operating margin for 2019/2020, and maintains its target of 10%.
An updated version of the Open2020 strategic plan, based essentially on organic growth, will be presented when the 2018 annual results are published in March 2019.
Valérie Benvenuto, Frédéric Sebag and Guy Mamou-Mani will comment the results for the first half of 2018 at the SFAF meeting at 11:30am on Thursday 13 September.
Q3 revenue will be published on Thursday 18 October 2018 in a press release, after closure.
Nathalie Mrejen-Communication
Tel : +33 (0)1 71 06 31 28nathalie.mrejen@open-groupe.com
About Groupe Open
With3,775 employeesand a turnover of€314min 2017, Open is positioning itself as amajor player in digital services,operating mainly in France and internationally in the Netherlands, Luxembourg and Romania.
Open supports firms and organizations in their industrial and digital transformation with an end-to-end IT and digital offering that is effective along the entire corporate value chain. Its aim is to transform the information systems of its customers to fulfil the needs of their new digital business models, with guaranteed stability, control and cost-efficiency by addressing the issues of timeto market, agility, speed and experimentation.
Open is committed to a future-oriented approach by adopting the following corporate values: Applicability, Daring, Ethics & Accountability, Dedication and Commitment.
To learn more about the Open Group:www.open.global
Media Relations AgencyWellcomElise Plat & Sonia Perret- Tel.:+33 (0)1 46 34 60 60elise.plat@wellcom.fr|camille.ruols@wellcom.fr
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Groupe Open SA published this content on 12 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 September 2018 17:37:10 UTC