2017-18 FULL-YEAR EARNINGS
- Strong growth in full-year revenues, up +14.2%
- Current operating income at 5.9% of revenues for the second half of the year
- Continued double-digit growth for FY 2018-19
At the Board meeting on July 31, 2018, the Directors reviewed and approved the annual financial statements for FY 2017-18, ended March 31, 2018.
|H2 2017-18 |
|H1 2017-18 |
|Current operating income||(0.06)||0.90||(0.96)||(1.28)|
|Pre-tax current income||(2.73)||(0.55)||(2.18)||(6.01)|
|Consolidated net income||(2.26)||0.12||(2.38)||(6.38)|
|Net income (Group share)||(1.94)||0.13||(2.07)||(5.75)|
The consolidated full-year accounts at March 31, 2018 for the GECI International Group (“the Group”) take into account 12 months of business for ETUD Integral, the company acquired at the end of June 2016, compared with nine months at September 30, 2016. This integration's impact on the consolidated accounts is marginal.
The Group resumed its strong growth and turned its profitability around, particularly in the second half of FY 2017-18. Revenues increased by +22% between the first half of the year and the second six months, while the current operating margin is now positive, up from -7.7% of revenues for the first half to +5.9% for the second half of the year.
These performances have been supported by the Group's strategic repositioning around the Digitalization, Autonomous Vehicles and Cybersecurity markets.
This strategy is reflected in the ramping up of the “IT and Telecoms” division, as well as sustained growth for international operations, in both Brazil and South Africa. The “Engineering” division, focused on autonomous vehicles and new mobility solutions, achieved a significant improvement in its performance levels. The “Finance” division recorded a contraction in business following its withdrawal from certain low value-added segments.
Alongside this, the Group has continued to diversify its operations with a view to supporting its strategy for future growth. The integration of the Israeli subsidiary Geci Advanced Technologies at the end of 2017 has made it possible to further enhance the range of solutions offered, with innovative new solutions for the French and international markets. Following these developments, several commercial partnerships have been set up with market-leading Israeli firms for Cybersecurity and the Internet of Things.
During the year, the Group continued moving forward with its intensive recruitment drive to support its development. At March 31, 2018, it had a total of 492 employees, up from 440 at March 31, 2017.
The Group's full-year revenues at March 31, 2018 are up 14.2% year-on-year to €27.72 million, with 21% generated internationally. The breakdown of the Group's operations between its various markets is as follows: 29% for engineering, 55% for IT and telecoms, and 16% for finance.
Full-year current operating income is close to breaking even, with €(0.06) million at March 31, 2018, compared with a €(1.3) million loss at March 31, 2017. Following a first half of the year affected by costs linked to the redeployment of the Group's offers, current operating income improved significantly over the second half of the year, generating a €0.9 million profit, up from a first-half loss of €(1.0) million. This positive trend reflects the improvement in the company's business model, making it possible to generate a positive current operating margin of 5.9% for the second half of the year.
Net income (Group share) shows a €(1.9) million loss, compared with a €(5.7) million loss at March 31, 2017. This result factors in several non-recurring items, most of which were already recognized during the first half of the year. Today, they amount to € (1.0) million in the liabilities and expenses category. The increase in provision is € 0.35 million for the second half of the year.
After factoring in earnings for the year, shareholders' equity (Group share) represents €(2.2) million, compared with €(6.2) million at March 31, 2017. This includes a total of €4.3 million for the capital increases carried out through (i) the exercising of free BSA warrants distributed following the general meeting on March 29, 2016, (ii) the conversion of part of the ORNANE bonds issued on December 19, 2016, July 31, 2017 and February 7, 2018, and (iii) the exercising of the BSAR A redeemable warrants freely distributed following the general meeting on July 28, 2017.
In addition, the Group's equity position was further strengthened with €2 million from the incorporation of a shareholder current-account from AirInvest Holding Ltd following the general meeting on March 22, 2018.
At March 31, 2018, the Group's net debt represented €(13.3) million (of which €2.7 million of ORNANE bonds not converted), with €1.1 million of cash and cash equivalents. The Group's cash management plan expects a surplus for the end of FY 2018-19, taking into account the rigorous overheads management and the reasonable prospects for business development for the operational companies.
The Group's equity will be strengthened by the conversions of the ORNANE already issued (1.9 million already exercised on 12 July 2018). To date, 2.8 million remain and will increase shareholders' equity during the year.
In a rapidly expanding digital sector, the Group plans double-digit revenue growth for FY 2018-19 and intends to continue improving its profitability.
To ramp up its range of solutions and expand its commercial base, the Group is rolling out a strategy focused on innovative markets (Digitalization, Cybersecurity and New Mobility Solutions), establishing strategic partnerships for high-potential technologies and developing its international presence.
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.
- 2018-19 first-quarter revenues on August 9, 2018
- General meeting on September 21, 2018
The 2017-18 annual financial report is available on the company website at www.geci.net
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, focused in particular on technology consulting, digital, 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 €1,379,818.56
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
|GECI INTERNATIONAL |
Tel: +33 (0)1 46 12 00 00
Tel: +33 (0)1 53 65 68 68
 After adjustment following financial elements reported by the subsidiaries in relation to revenues reported on May 15, 2018.
 GECI Advanced Technologies has been fully consolidated in the accounts since the end of the 2017 calendar year. Its contribution to the Group's consolidated earnings is not significant for FY 2017-18.
 Distributed freely following the combined general meeting on March 29, 2016, 18,981,228 BSA warrants, representing 31 % of the potential maximum total, were exercised following the operation, with 18,981,228 new shares created and a total gross subscription of €484,722.
 On December 19, 2016, the Group issued, followed by an amendment signed on February 15, 2017, €1 million of ORNANE bonds, combined with BSA warrants within a maximum total commitment of €10 million. The extraordinary general meeting on July 28, 2017 authorized the issuing, in several tranches, of ORNANE bonds for a maximum of €9 million. On July 31, 2017, the Group made a first drawdown, exercising 300 ORNANE bond warrants, with a nominal value of €3 million. On February 7, 2018, the Group made a second drawdown, exercising 320 ORNANE bond warrants, with a nominal value of €3.2 million. At March 31, 2018, 50 ORNANE bonds from this second drawdown were converted (270 remaining) and led to the creation of 2,777,777 new shares (tracking table online at http://www.geci.net/files/ORNANE/FRPDF20180712_SUIVI_ORNANE.pdf).
 As authorized by the extraordinary general meeting on July 28, 2017, the Group freely awarded 77,326,418 BSAR A warrants to the Company's shareholders on July 31. At the end of March 2018, 813,912 BSAR A warrants were exercised, with 203,478 new shares created, for a gross total of €54,939. The BSAR A warrants are listed on Euronext.