In € thousands | 2020 | 2019 | Change |
Revenue | 426,382 | 417,757 | +2.1% |
Operating profit from ordinary activities | 41,215 | 42,801 | -3.7% |
As a % of revenue | 9.7% | 10.2% | |
Cost of performance shares | (1,112) | (1,484) | |
Other operating income and expenses | (1,463) | (1,464) | |
Operating profit | 38,640 | 39,853 | -3.0% |
Financial income/(expense) | (419) | (309) | |
Tax (expense)/income | (12,036) | (13,135) | |
Net income from consolidated companies | 26,185 | 26,409 | -0.9% |
As a % of revenue | 6.1% | 6.3% | |
Net income attributable to owners of the parent | 26,132 | 26,409 | |
Earnings per share | €1.98 | €2.0 | |
Headcount | 6,562 | 6,503 |
Aubay's Board of Directors, which met on March 24, 2021 under Chairman Christian Aubert, approved the statutory and consolidated statements for 2020. The financial statements have been audited by the Statutory Auditors. and the auditors' report will be issued once the procedures required to publish the company's Universal Registration Document have been completed.
Despite the unprecedented crisis, the Group demonstrated exceptional resilience in 2020, with an operating performance placing it among the frontrunners of the industry. This resilience is reflected in all the indicators, which have remained at a high level. Our teams were able to adapt quickly to new ways of working. The second half of the year was dynamic from a commercial perspective, accelerating a return to normal business conditions. There was a similar upturn in the recruitment process, following the slowdown observed at the start of the pandemic.
Operating margin from ordinary activities above projections
Operating margin was higher than estimated when the annual results were published in January, at 9.7%. It is once again perfectly in line with our profitability benchmark (between 9.5% to 10.5%). The Group's operating margin for the period came in at 9.3% for activities in France and 10.0% for activities overseas, compared with 11.3% and 9.1% in 2019, respectively.
Operating profit: €38.6 million
Operating profit came to €38.6 million, a contained decline of 3.0%, after taking into account the cost of performance shares of €1.1 million and “Other operating income and expenses” representing a net expense of €1.5 million, primarily comprising restructuring expenses.
Net income attributable to owners of the parent down to almost break-even (6.1% of net margin)
Net income attributable to owners of the parent remained high at €26.1 million, very close to the record figure achieved in 2019, after taking into account a tax expense of €12 million, which represents an effective tax rate of 31%, versus 33% in 2019.
Sharp increase in net cash (excluding rental liabilities): €44.7 million
Our financial position was considerably strengthened in 2020 thanks to a remarkable increase in cash flow from operations of €47.2 million, versus €34.9 million in 2019. The company has not requested any extension for paying its expenses, particularly with regard to tax or social security. Aubay's net cash therefore improved from €11.6 million at December 31, 2019 to €22.6 million at June 30, and then €44.7 million at end-2020.
Proposed dividend of €0.66 per share
In light of this remarkable performance and its excellent financial position, the Board of Directors has decided to propose a dividend of €0.66 per share in respect of 2020 to the Annual General Meeting, representing a payout ratio of around 33% of net income. An interim dividend of €0.33 was already paid in November 2020.
Outlook for 2021
Aubay operates on a dynamic market, that still offers good visibility. The health crisis has acted as a means to step up investment in digital transformation and in strengthening system resilience. In addition, major groups are constantly seeking to reduce costs related to modernizing their information systems by engaging the services of partners such as Aubay that have long since demonstrated their efficiency.
As a result, demand for our services has not weakened since the start of the year – quite the opposite. With our tailor-made services, the Group is continuing its development and gaining market share.
Our consultants' productivity rate is high at the start of the year and our hiring plan particularly robust. The headcount has been increasing at a slightly faster rate than anticipated, particularly in France.
This has boosted the confidence of Aubay's management for the current year and those to come.
The objectives for 2021 are:
- Annual revenue of between €440 million and €450 million,
- Operating margin from ordinary activities of between 9.5% and 10.5%.
Aubay will publish its 2021 first-quarter revenue on April 21, 2021 after the close of trading.
Glossary
Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.
2020 | |
Organic growth | -1.5% |
Impact of changes in scope | +3.6% |
Growth as reported | +2.1% |
Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.
Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating profit from ordinary activities to revenue.
Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.
About Aubay
Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 6,562 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), Aubay generated revenue of €426.4 million in 2020.
Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters AUBT.PA - Bloomberg AUB:FP
Contacts
Nicolas Bouchez - Actus Finance - Tel.: +33 (0)1 53 67 36 74 - E-mail: nbouchez@actus.fr
David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com
APPENDICES
Statement of financial position at December 31, 2020 | ||
ASSETS (in € thousands) | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill | 131,305 | 131,412 |
Intangible assets | 771 | 828 |
Property, plant & equipment | 5,166 | 5,575 |
Right of use relating to leases | 18,611 | 22,996 |
Equity-accounted investees | - | |
Other financial assets | 2,263 | 2,661 |
Deferred tax assets | 2,472 | 2,796 |
Other non-current assets | 118 | 277 |
NON-CURRENT ASSETS | 160,706 | 166,545 |
Inventories and work in progress | 516 | 411 |
Assets on contracts | 29,148 | 29,216 |
Trade receivables | 105,432 | 115,097 |
Other receivables and accruals | 33,496 | 37,209 |
Marketable securities | 579 | 1,056 |
Cash at bank and in hand | 51,883 | 23,411 |
CURRENT ASSETS | 221,054 | 206,400 |
TOTAL ASSETS | 381,760 | 372,945 |
EQUITY AND LIABILITIES (in € thousands) | Dec. 31, 2020 | Dec. 31, 2019 |
Capital | 6,604 | 6,597 |
Additional paid-in capital and consolidated reserves | 170,016 | 151,164 |
Net income attributable to owners of the parent | 26,132 | 26,409 |
Shareholders' equity attributable to the Group | 202,752 | 184,170 |
Minority interests | 144 | 91 |
SHAREHOLDERS' EQUITY | 202,896 | 184,261 |
Borrowings and financial liabilities: non-current portion | 3,913 | 5,697 |
Rental liabilities due in more than 1 year | 13,756 | 17,823 |
Deferred tax liabilities | 1 | 5 |
Provisions for contingencies and expenses | 6,751 | 6,129 |
Other non-current liabilities | 273 | 489 |
NON-CURRENT LIABILITIES | 24,694 | 30,143 |
Borrowings and financial liabilities: current portion | 3,907 | 7,124 |
Rental liabilities due within 1 year | 5,240 | 5,435 |
Trade and other payables | 30,572 | 30,576 |
Contract liabilities | 18,319 | 14,722 |
Other current liabilities | 96,132 | 100,684 |
CURRENT LIABILITIES | 154,170 | 158,541 |
TOTAL EQUITY AND LIABILITIES | 381,760 | 372,945 |
Income statement for 2020 | ||||
In € thousands | 2020 | % | 2019 | % |
Revenue | 426,382 | 100% | 417,757 | 100% |
Other operating income | 421 | 242 | ||
Purchases used in production and external charges | (86,216) | (76,535) | ||
Staff costs | (287,855) | (288,213) | ||
Taxes other than on income | (3,702) | (3,056) | ||
Amortization, depreciation and provisions | (7,628) | (7,412) | ||
Change in inventories of work in progress and finished goods | ||||
Other operating income and expenses | (187) | 18 | ||
Operating profit from ordinary activities | 41,215 | 9.7% | 42,801 | 10.2% |
Expenses linked to restricted share units and similar awards | (1,112) | (1,484) | ||
Current operating profit | 40,103 | 9.4% | 41,317 | 9.9% |
Other operating income and expenses | (1,463) | (1,464) | ||
Operating profit | 38,640 | 9.1% | 39,853 | 9.5% |
Income from cash and cash equivalents | ||||
Net borrowing costs | (588) | (725) | ||
Other financial income and expenses | 169 | 416 | ||
Financial income/(expense) | (419) | (309) | ||
Income tax expense | (12,036) | 31% | (13,135) | 33% |
Income from equity-accounted investees | ||||
Net income before results of discontinued operations or assets held for sale | 26,185 | 26,409 | ||
Net income after tax of discontinued operations or assets held for sale | ||||
Net income | 26,185 | 6.1% | 26,409 | 6.3% |
Attributable to owners of the parent | 26,132 | 26,409 | ||
Minority interests | 53 | 0 | ||
Basic weighted average number of shares | 13,192,494 | 13,180,717 | ||
Earnings per share | 1.98 | 2.00 | ||
Diluted weighted average number of shares | 13,244,994 | 13,272,217 | ||
Diluted earnings per share* | 1.97 | 1.99 |
Cash flow statement for 2020 | ||
(in € thousands) | 2020 | 2019 |
Consolidated net income (including non-controlling interests) | 26,185 | 26,409 |
Income from equity-accounted investees | - | |
Net depreciation, amortization and provisions and right of use relating to leases | 6,346 | 6,857 |
Non-cash expenses and income relating to share-based payments | 1,049 | 1,484 |
Other non-cash items | 212 | - |
Dividend income | (89) | |
Gains and losses on disposals of fixed assets | 998 | 24 |
Cash flow after net interest expense and tax | 34,790 | 34,685 |
Net borrowing costs | 593 | 730 |
Tax expense (including deferred taxes) | 11,849 | 13,135 |
Cash flow before net interest expense and tax (A) | 47,232 | 48,550 |
Income tax payments (B) | (9,651) | (15,382) |
Change in trade and other receivables (C) | 8,541 | (2,487) |
Change in trade and other payables (C) | 1,121 | 4,180 |
Change in WCR linked to operations (including debt related to employee benefits) | 9,662 | 1,693 |
Net cash provided by (used in) operating activities (D) = (A+B+C) | 47,243 | 34,861 |
Outflows for the acquisition of tangible and intangible fixed assets | (1,023) | (1,938) |
Inflows from the disposal of tangible and intangible fixed assets | 0 | |
Outflows for the acquisition of financial assets | (7) | 32 |
Inflows from the disposal of financial assets | - | |
Change in loans and advances granted | 356 | (70) |
Disbursements (cash) related to business combinations, net of cash and cash equivalents | (6,768) | |
Dividends received | 89 | |
Other operating cash flows | ||
Net cash provided by (used in) investing activities (E) | (674) | (8,655) |
Proceeds from capital increases | ||
Amounts received upon the exercise of stock options | ||
Purchases of treasury shares for cancellation | ||
Purchases of and proceeds from the sale of treasury shares | ||
Dividends paid in the period: | ||
- Net dividends paid to parent company shareholders | (7,916) | (8,703) |
- Dividends paid to the non-controlling shareholders of consolidated companies | ||
Inflows from new borrowings | 1,734 | |
Repayment of loan debt | (6,631) | (6,722) |
Repayment of rental liabilities | (5,048) | (5,316) |
Net interest payments | (595) | (731) |
Purchase of non-controlling minority interests | ||
Other financial cash flows | ||
Net cash provided by (used in) financial activities (F) | (18,456) | (21,472) |
Effects of changes in foreign exchange rates (G) | (31) | 25 |
Change in net cash (D+E+F+G) | 28,082 | 4,759 |
Cash and cash equivalents at the beginning of the period | 24,131 | 19,372 |
Cash and cash equivalents at end of period | 52,213 | 24,131 |
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