GECI INTERNATIONAL 2017-18 revenues up +15.5%
- Growth ramped up to +21.8% for the second half of the year
- Strategic repositioning around Digitalization, Self-Driving Vehicles and Cybersecurity
- Double-digit growth expected for FY 2018-19
In 2017-18, the Group returned to strong revenue growth, up +15.5% to €28.05m[1]. The second half of the year was particularly dynamic, with sales climbing +21.8%, driven by the ramping up of the IT and Telecoms division, as well as the Engineering division, focused on self-driving vehicles and new mobility solutions.
Highlights of the year
The Israeli firm Geci Advanced Technologies[2] is now a fully-owned subsidiary of GECI International. Specialized in cybersecurity, the internet of things and self-driving vehicles, this fully consolidated entity will enable the Group to offer innovative new solutions both in France and internationally.
Thanks to these developments, the Group has set up a first partnership with the Israeli company TripleCyber, a subsidiary of the AMANET group, which is a market leader for cybersecurity.
Etud Integral, a fully-owned subsidiary, has been repositioned as a key operator in the mobility sector (electric propulsion, hybrid and self-driving cars) and its level of monthly business has virtually doubled since July last year.
In Brazil, the Group's subsidiary has continued to be one of the most dynamic, with 25% of the Group's employees already concentrated in this country, particularly in the high-growth telecoms sector, which is benefiting from a favorable local environment.
France represents nearly 80% of the Group's revenues and has benefited from a high level of development, in line with the strong growth in the markets linked to the digitalization of industry and services.
During the year, the Group continued moving forward with its intensive recruitment drive. At March 31, 2018, it had a total of 492 employees, up from 420 at March 31, 2017.
Change in revenues for each quarter and half-year
| €m (unaudited consolidated data) | FY 2017-18 | FY 2016-17 | Change |
| 1st quarter (April-June) | 6.49 | 5.50 | +18.0% |
| 2nd quarter (July-September) | 6.00 | 6.00 | +0% |
| 1st half (April-September) | 12.49 | 11.50 | +8.6% |
| 3rd quarter (October-December) | 7.11 | 6.49 | +9.7% |
| 4th quarter (January-March) | 8.45 | 6.29 | +34.3% |
| 2nd half (October-March) | 15.56 | 12.78 | +21.8% |
| Full-year revenues | 28.05 | 24.28 | +15.5% |
Sales for the second half of the year reflect a significant acceleration in the Group's growth to +21.8%, doubling its rate of progress compared with the first half of the year. Revenues were particularly strong in the fourth quarter: €8.4m, versus €6.3m for the fourth quarter of the previous year, up +34.3% year-on-year.
Change in revenues for each business
| Business line | FY 2017-18 | FY 2016-17 | Change | ||
| €m | % of rev | €m | % of rev | (%) | |
| IT & Telecoms | 15.35 | 54.7% | 12.68 | 52.2% | +21.0% |
| Engineering | 7.99 | 28.5% | 5.99 | 24.7% | +33.4% |
| Finance | 4.50 | 16.0% | 5.49 | 22.6% | - 18.0% |
| Holding | 0.21 | 0.8% | 0.12 | 0.5% | +75.0% |
| Combined revenues | 28.05 | 100.0% | 24.28 | 100.0% | +15.5% |
- IT & Telecoms division: €15.3m, representing 54.7% of consolidated revenues
In France, growth is being driven for all the division's offers (network engineering, embedded IT, web and business application development, and Big Data) by the renewal and development of the client base. It also factors in the growing success of the High Performance Computing (HPC) solutions, confirming their relevance and differentiating features.
In Brazil, the Group's subsidiary generated revenues of BRL 15.1m (€4.0m), up from BRL 11.6m (€3.2m) for FY 2016-17, with +29.7% growth in the local currency and +24.2% in euros. This progress notably factors in the favorable general environment for the telecoms sector, with extensive work to modernize Brazil's telecommunications networks.
- Engineering division: €8.0m, representing 28.5% of consolidated revenues
In France, this division is confirming the increased quality of its services in high value-added sectors (urban mobility, renewable energies, etc.). The strengthening of relations with major contracting authorities has paved the way for its commercial development to accelerate since the second half of the year and is notably reflected in the progress made with the package-based business.
In South Africa, the Group's subsidiary is continuing to develop its positions covering specialist training programs for highly regulated industries. Its revenues came to €1.9m, up +87.9% from €1.0m the previous year.
- Finance division: €4.5m, representing 16.0% of consolidated revenues
In line with expectations, the development of the division's revenues reflects its withdrawal from certain low value-added segments, while redeploying offers in more buoyant segments such as banking, finance and insurance, as well as consulting and security.
Geographic mix: international sales diversification
France represents 79.1% of full-year revenues, compared with 83% the previous year. Sales in Brazil and South Africa are up to 14.3% and 6.6% of the business respectively.
| Region | FY 2017-18 | FY 2016-17 | Change | ||
| €m | % of rev | €m | % of rev | ||
| France | 22.19 | 79.1% | 20.08 | 83% | +10.5% |
| Brazil | 4.00 | 14.3% | 3.22 | 13% | +24.2% |
| South Africa | 1.86 | 6.6% | 0.99 | 4% | +87.9% |
| Full-year revenues | 28.05 | 100% | 24.28 | 100% | +15.5% |
Outlook for 2018-19: sustained double-digit sales growth
Capitalizing on its positioning in innovative new business areas, the Group aims to support its development and is forecasting double-digit revenue growth for FY 2018-19, enabling the Group to significantly improve its profitability.
Digitalization, Cybersecurity, the Internet of Things and New Mobility Solutions are core areas within the high value-added niche strategy developed by the Group, which aims to expand its range of solutions and operational base.
Alongside this, the Group is continuing to look into strategic partnerships for high-potential technologies. It is also further strengthening its international presence, aiming to expand its commercial base and ramp up its global range of solutions.
With innovative solutions delivering strong value-added, the Group aims to capitalize on technological breakthroughs in the engineering, telecoms and IT sectors to support major industrial firms, SMEs and startups, ensuring the success of their digital transformation and designing smart services and solutions.
Next dates
- 2017-18 full-year earnings on July 31, 2018 after close of trading.
GECI International - Smart Solutions for a Smart World
The GECI International Group, created in 1980, has established itself as a high-tech engineering specialist. Today, GECI International is targeting high-growth, strong value-added market segments, focusing in particular on engineering, IT, telecommunications and smart products and services. With its world-renowned credibility for advisory services, its expertise and its ability to deploy the most qualified skills, GECI International is supporting businesses with their digital transition and their efforts to design and develop new smart services and solutions.
GECI International - French limited company (société anonyme) with capital of €1,323,156.40
Registered office: 37-39 Rue Boissière - 75116 Paris – France - Paris trade and companies register: 326 300 969
GECI International is listed on the regulated market Euronext Paris - Compartment C - and is part of the CAC Small and CAC Technology indices.
GECI International is eligible for the SRD long-only deferred settlement service.
ISIN (shares): FR0000079634 – GECP
ISIN (BSAR A warrants): FR0013266764 - GECBT
| Contact | |
| GECI INTERNATIONAL Investor Relations Tel: +33 (0)1 46 12 00 00 relation.investisseurs@geci.net | CALYPTUS Cyril Combe Tel: +33 (0)1 53 65 68 68 geci@calyptus.net |
[1] Full-year revenues take into account a positive scope effect of €1.1m for the first quarter, linked to ETUD Integral's consolidation since June 2016. The foreign exchange effect is not significant.
[2] GECI Advanced Technologies has been included in the accounts since the end of the 2017 calendar year. Its contribution to the Group's full-year revenues is not significant for FY 2017-18.
News releases under ongoing reporting obligations:
- Information on annual revenues
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