HY press release

Transcription

1 Press Release 25 November 2016, Huizingen, Belgium REGULATED INFORMATION HY press release (Results for the half year ended 30 September 2016) Growth in both segments leads to half year turnover growth of 9,5% Positive EBIT evolution, excluding last year s one-off provision reversal Solid financial structure reflected by a sound net cash situation Marc De Keersmaecker, General Manager of Realdolmen, commented: Transformation is on track. The results evolve in line with previously announced expectations. The Company s rebranding emphasizes the changes achieved by our organization in the essential fields of customer experience and employee satisfaction. Our efforts bear fruit in sales, customer loyalty, recruitment and reduced attrition. But the transformation plan is not yet completed as we have still work ahead of us to improve margins. Enquiries: Paul De Schrijver, CFO Realdolmen Half year results September 2016 vs September 2015 in m IFRS 30/09/2016 IFRS 30/09/2015 % Variation Turnover from continuing operations 113,60 103,72 9,5% Operating results from continuing operations (EBIT) 3,79 4,25-10,7% Margin 3,3% 4,1% Total profit (loss) for the period 3,70 4,19-11,7% EBITDA (1) 4,91 5,44-9,8% EBITDA Margin 4,3% 5,2% (1) EBITDA=EBIT increased with depreciations, amortizations Balance sheet September 2016 vs March 2016 In m IFRS 30/09/2016 IFRS 30/03/2016 % Variation Equity 147,5 147,1 0,3% Net Debt (2) -20,3-23,4-13,2% Cash 21,2 26,9-21,2% (2) Net Debt= Financial debts and bank overdrafts minus cash

2 1. Financial Review 1.1 Turnover Half year turnover grew by 9,5% compared to the first semester last year. Turnover per segment in K HY Sept '16 HY Sept '15 % Variance Total ,5% IT & Business Consulting ,2% IT & Business Support Serv ,3% IT & Business Consulting: The sourcing, project and consulting activities have grown with 5,2% compared to the first semester of last year. This growth is a direct result of a more focused organization, closer to the customers and faster to match their needs. This is reflected by improved billability rates. The increased customer demand has been fulfilled by a growing workforce. Hiring remains a priority even if attrition rates are improving thanks to the strengthened employee centric approach. Own IP sales improved compared to last year even if they remained below expectations. IT & Business Support Services: The product sales and the related infrastructure outsourcing and maintenance as well as the application outsourcing sales have been successful. This resulted in a 13,3% growth compared to the first semester of last year. IT outsourcing together with mobile and cloud related product sales are growing fast. Cloud service offerings are also growing, offset by decreasing on-premises datacenter sales. 1.2 Operating result (EBIT) EBIT margin decreased in the first semester to 3.3% from 4,1% in the first half of last year. This is the consequence of last year s reversal of a one-off headcount related provision that impacted all segments through allocation. Allocated sales costs also increased, although to a much lesser extent. HY Sept '16 HY Sept '15 % Variance EBIT in K Total ,7% IT & Business Consulting ,2% IT & Business Support Serv ,5% Corporate ,8% EBIT margin % (*) Total 3,3% 4,1% -0,8% IT & Business Consulting 1,4% 1,3% 0,1% IT & Business Support Serv. 7,3% 8,5% -1,3% Corporate -1,3% -1,1% -0,2% (*) The lower first semester s EBIT margins compared to full year s EBIT margins are explained by the seasonality impact of the Consulting business. The number of working days in the second semester of our fiscal year is on average 6% higher compared to the first semester. 2/9

3 IT & Business Consulting: Margins increased from 1,3% to 1,4% of turnover. The impact of turnover growth through increased efficiency has been offset by the abovementioned one-off provision reversal. IT & Business Support Services: EBIT margin in this segment decreased with 164K. This is the result of a positive impact of the increased turnover, offset by an increase in directly allocated overhead (which is merely a consequence of the transformation exercise last year). Corporate Overhead: Corporate overhead increased primarily as a consequence of the abovementioned one-off provision reversal last fiscal year. 1.3 Total Group Net Profit The Group reported a net profit of 3,699m for the half year compared to 4,187m last year. Financial charges amounted to 54K and income taxes were 40K. 1.4 Equity/Net Debt Equity increased with 353K compared to March 31, This is primarily the impact of this half year s net profit of 3,699m and the dividend payment during the semester of 3,539m. The total net cash position amounts to 20,3m. The cash balance stands at 21,2m. 1.5 Prospects for FY 2016/2017 For the full year 2016/2017, we expect turnover of IT & Business Consulting to grow while IT & Business Support Services will remain flat. Overall, the yearly turnover should grow. We expect full year EBIT margins to be around mid-single digit levels. In the second semester, margins in IT & Business Consulting will improve substantially compared to this first semester due to more effective working days and more expected own IP sales by year end. Compared to last year, margins in IT & Business Consulting should improve and margins of IT & Business Support Services should decrease slightly. Last year s one-off provision reversals will negatively influence the comparison with last year s corporate costs. For further information on this press release contact: Paul De Schrijver, CFO T: About Realdolmen Realdolmen is an independent ICT expert with about 1,250 highly skilled ICT professionals, serving more than 1,000 customers in the Benelux with their strategical, tactical and operational ICT demands. In every cooperation Realdolmen endeavors to realize the potential of people and organizations and wishes to make ICT human again. All of this guided by the company motto To get there, together. 3/9

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5 Condensed consolidated statement of comprehensive income for the period ended September 30, /09/ /09/2015 EUR '000 EUR '000 CONTINUING OPERATIONS Operating Revenue Turnover Other operating income Operating Charges Purchases of goods for resale, new materials and consumables Services and other goods Employee benefits expense Depreciation and amortization expense Impairment of inventory and receivables Provisions Other operating expenses OPERATING RESULT before NON-RECURRING Other non-recurring income 0 0 Other non-recurring charges 0 0 OPERATING RESULT (EBIT) Financial income 0 80 Financial charges Profit (Loss) before income taxes Income taxes Profit (Loss) for the year from continuing operations Discontinued Operations Profit (Loss) for the year from discontinued operations 0 0 Profit (Loss) for the year Total profit (Loss) for the year Total comprehensive income for the period Attributable to: Equity holders of the parent Non-controlling interest 0 0 EPS (in EURO) Basic earnings per share (EUR) 0,7104 0,7878 Diluted earnings per share (EUR) 0,7104 0,7878 5/9

6 Condensed consolidated statement of financial position for the period ended September 30, 2016 ASSETS 30/09/ /03/2016 EUR '000 EUR '000 Non-Current Assets Goodwill Intangible assets Property, plant and equipment Deferred tax assets Finance lease receivables Long term receivables Current Assets Inventories Trade and other receivables Cash and cash equivalents Total Current Assets TOTAL ASSETS EQUITY AND LIABILITIES Shareholder's Equity Share capital Treasury shares (-) Share premium Retained earnings Equity attributable to equity holders of the parent TOTAL EQUITY Non-Current Liabilities Obligations under finance lease Bank loans and Other Borrowings 0 0 Other non-current liabilities Retirement benefit obligations Provisions Deferred tax liabilities Current Liabilities Obligations under finance lease Bank overdrafts and loans Trade and other payables Current income tax liabilities Provisions Total Current Liabilities TOTAL LIABILITIES TOTAL EQUITY and LIABILITIES /9

7 Condensed consolidated statement of cash flows for the period ended September 30, /09/ /09/2015 EUR '000 EUR '000 EBIT Depreciation and amortization Provisions and allowances Other adjustments Gross Operating Cash Flow Changes in working capital Net Operating Cash Flow Income taxes paid Net Cash Flow from Operating Activities Interest received 0 1 Investments in intangible assets Investments in property, plant and equipment Disposals of intangible assets and property, plant and equipment 0 3 Net Cash Flow from Investment Activities Interest paid Dividend paid Increase / Decrease financial liabilities cash inflow Increase / Decrease financial liabilities cash outflow Cash Flow from Financing Activities Changes in Cash and Cash Equivalents Net cash position opening balance Net cash position closing balance Total Cash movement /9

8 Condensed consolidated statement of changes in equity for the period ended September 30, 2016 Share Capital Treasury shares Defined Benefit Obligations Share Premium Convertible bond Retained earnings Total EUR '000 EUR '000 EUR '000 EUR '000 EUR '000 EUR '000 Balance at April 1, Net profit/(loss) Capital increase (1) Capital decrease (2) Depreciation treasury shares EUR '000 Balance at September 30, Balance at April 1, Net profit/(loss) Deferred consideration ex- Traviata shareholders (3) Dividend (4) Balance at September 30, (1) Capital decrease through absorption of losses in accordance with article 614 of the Belgian Company Code, followed by a capital increase for the same amount through absorption of the share premium in order to bring the capital to KEUR, approved by the extraordinary shareholders' meeting of September 30, (2) Capital decrease as approved by the extraordinary shareholders' meeting of September 30, (3) Relates to the payment on the deferred consideration in shares to the former Traviata shareholders for 193 KEUR. The difference of 26 KEUR relates to the realized losses on this payment since the fair value of the shares at the moment of payment was lower than the initial purchase price of the treasury shares. (4) Dividend payment as approved by the shareholders' meeting of September 14, /9

9 Auditor Statement The Statutory auditor confirms that the limited review, which is finished in substance, did not reveal any significant adjustments to the consolidated half-year financial information 9/9