FINANCIAL PRESS RELEASE

Wednesday, 25 September 2019, after market close

2019 half-year results

Revenue up 1.5%

6% increase in pre-tax income

DLSI SA's Management Board and Supervisory Board met on 13 September 2019 and closed the (unaudited) accounts for the first half of 2019:

Thousands of €

June 30, 2019

June 30, 2018

IFRS standards

(6 months)

(6 months)

Revenue

111 361

+1.54%

109 668

Current operating income

5 121

+5.17%

4 869

Operating margin

4.6%

4.6%

Pre-tax income (*)

4 958

+6.03%

4 676

Tax expense

2 319

+98.04%

1 171

Total net income

2 638

-24.71%

3 504

Net margin

2.4%

3.2%

Group share in net income

2 663

-23.54%

3 483

Equity (A)

47 494

43 700

Financial debts (B) (**)

22 616

20 604

Cash (C)

7 208

4 159

Net debt (B-C)

15 408

16 445

Gearing (B-C) / (A)

32%

37%

  1. Thevalue-added contribution (CVAE) pursuant to the business-tax reform has been reclassified as an income tax in accordance with IFRS standards.
    (**) Financial debts take into account IFRS 16 restatement and financial leases.

Half-year revenue

Consolidated half-year revenue was of €111 361K as at 30 June, up 1.54% compared with 30 June 2018. The 52 branches in France contributed 70.2%of the sales for the six-month period. Activity is strong in the fields of nuclear energy, construction and industry, as well as in the services sector.

Prism'Emploi showed a 3.9% drop in temporary-employment activity for the first half of 2019 compared with the same period in 2018.

Revenue from the nuclear-energy field was of €7 535K as at 30 June 2019, compared with €6 543K as at 30 June 2018, up 14.8%.

International sales, in Switzerland, Luxembourg, Germany and Poland, represented 29.8%of the consolidated revenue.

Impact of new tax laws

The changing of the CICE(Competitiveness and Employment Tax Credit) to reductions in social contributions as from 1 January 2019 resulted in an increased tax base for corporate tax and contributed to almost doubling the tax burden (€800K).

Net income

Net income before taxes was up 6% and amounted to €4 958K.

Net income was of €2 638K as at 30 June 2019 compared with €3 504K in net income for the first half of 2018. The Group share in the net income amounted to €2 663K, i.e., -23.54% compared with the first half of the previous financial year.

The amount was negatively impacted by the change to the CICE(€800K)

Application of IFRS 16 as at 30 June 2019 resulted in increasing the fixed assets by €3.8M, as well as the financial debts by the same amount.

A stronger balance sheet

Equity reached €47.4M after the payment of a dividend of €1 per share (i.e., €2 541 490) approved by the General Shareholders' Meeting held on 21 June 2019. Strengthening the balance sheet by increasing equity opens possibilities for investment, in particular for acquisitions.

Net debt represented 32% of the equity as at 30 June 2019, down compared with 30 June 2018.

Recent events and prospects for 2019

The DLSI Group is continuing its growth in the second half of the year and is confident in its ability to reach its goal of €240M in revenue.

Our group remains open to opportunities for external growth, whether in France or in the rest of Europe.

Next press release:

  • Publication of 3rdquarter revenue for 2019 on 25 October 2019 (after market closes)

About DLSI:

Created in 1992, the DLSI Group represents a network of over 70 agencies located throughout eastern France, from Dunkirk to Lyon, as well as in Paris, the north-west and the Provence-Alpes Côte d'Azur region. The DLSI Group also has locations in Luxembourg, Germany, Switzerland and Poland.

With a foothold in all industries, we offer all employment solutions, from indefinite-term contracts to fixed-term contracts and temporary employment.

Listed on the Euronext Growth market of Euronext Paris since 2006, the Group generated revenue of 230.2 million euros in 2018.

  • Follow our news in real time: @DLSI_Officiel ISIN FR0010404368 - Ticker symbol: ALDLS

DLSI contacts:

  • Financial: Raymond DOUDOT / Anne Marie ROHR - phone: +33 3 87 88 12 80
  • Communications:Jean-Guillaume ROYER / Maël LE NINAN - communication@groupedlsi.com

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Disclaimer

DLSI SA published this content on 25 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 September 2019 19:57:06 UTC