ITS Group, ICT Company specialized in sustainable development of IT infrastructures, publishes its 2013 annual accounts closed on 31 st December 2013. The Board of Directors of ITS Group met on 21 st March 2013 to finalise the 2013 accounts presented below. The audit procedures are underway.

The 2013 fiscal year has been characterized by heterogeneous semesters on a comparable basis, with a clear improvement of the performance during the second semester, in particular since the 4th quarter, which has permitted to compensate for delays of the first semester. The year 2013 marks also a real change of dimension for the Group with the integration of Overlap assets since October, which first contributions are encouraging.

Turnover in growth of 24%

The consolidated 2013 annual turnover has been established at 115.1 M€ with a growth of 24% compared to 2012. On a comparable basis, the turnover is nearly stable; the return to an organic growth at the second semester has permitted to compensate the decrease of the six first months of the year.

The activities « Trade / Integration projects » from Overlap have contributed of 22.2 M€ on less than 3 months, a performance higher than the initial expectations of the Group. It proves a real trust from the main partners (IBM, HP, ORACLE) and clients in the new Group.

Current operating income: 7.2 M€

The current operating income came to 7.2 M€, corresponding to a current operating margin of 6.3%.

On the historical perimeter, the current operating margin came to the same level than the previous year. The Group has reaped in the second semester the rewards of its reinvigorating (which has resulted in particular of a net improvement of the activity rate and an increase in staff) and of its internal reorganization, after the decline of the operating margin in the first quarter (6%).

The current operating margin of the « trade / Integration projects » activities from Overlap came to 4.1% on the consolidation period, a very satisfying performance which proves the know-how of ITS Group to integrate and bring back rapidly on track unprofitable or low-profit activities and create value.

Net income: 3.6 M€ that is to say a net margin of 3.2%

After accounting for financing costs and taxes which came to similar level than those of 2012, the net income reached 3.6 M€ up to 20%, i.e. a net margin of 3.2%.

Solid financial structure reinforced by the conversion of RSSW in February 2014

The integration of the assets of Overlap resulted in the payment of 2.4 M€ linked to the acquisition and to an increase of the WCR linked to the nature of the activity which create a need for funding in the order of 6 M€. On 31st December 2013, net debt amounted to 9.9 M€, compared to equity costs of 34.4 M€, i.e. a net-debt-to-equity ratio of 28.8%.

This net debt has been significantly reduced after the conversion of the Redeemable Stock Subscription Warrants (BSAR) at the end of February 2014, which has permitted to the Group to reinforce its cash flow and equity costs of 4.7 M€. The Group recalls that the share capital is now made up of 7 839 145 shared (PEA-SME eligible).

ITS Group has a very robust financial structure, giving it financial means perfectly in line with its growth ambitions

2014 perspectives: sustain the momentum of the end of 2013

ITS Group has started up 2014 with ambition and confidence. The Group is sustaining the momentum of the dynamic renewed on the 2013 second semester and aims to return to a significant organic growth, building it on its positioning on the most profitable jobs in IT infrastructures and on its full offer (Cloud computing, VDI, BaaS, DaaS, Big Data…).

In parallel, the Group will finalise the good integration of Overlap staff. Most of teams will notably be gathered by the middle of 2014, which will enable to optimize the operating synergies already set up, and to generate additional significant savings (more than 1 M€ in full year).

In 2014, the Group has set a first target of at least 180 M€ turnover, i.e. a minimum growth of 56% in published data, coupled with a current operating result superior to 10 M€.

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