A limited fall of -3% in revenues, which were driven by the VISIATIV PLATFORM division (+5%) and international activity (+12%)
A resilient EBITDA margin of 3.4%, with EBITDA growth for the VISIATIV PLATFORM division
A strengthened financial structure with cash of €70.8 million and net debt of €34.3 million at the end of June 2020
Lyon, 23 September 2020 – 6 p.m. Visiativ, a creator of digital platforms to accelerate corporate transformation, is listed on Euronext Growth in Paris (FR0004029478, ALVIV).
After a particularly exceptional first six months due to the Covid-19 health crisis and the related economic consequences, Visiativ's 2020 first-half results reflect the resilience capacity of its business model and the Group's strengths in this environment:
- A high level of recurrent activity, representing more than two thirds (67%) of Group revenues at the end of the first six months;
- No dependency on any particular client or sector thanks to a broad portfolio of clients;
- Strong international sales, with revenues up +12% (+6% organic) over the period, representing one quarter of the Group's activity;
- A value proposition and activities that are in line with the needs of companies in the current environment, as reflected in the performance of VISIATIV PLATFORM (growth of +5% and EBITDA margin brought to 13.2%).
These attributes will enable the Group to emerge from this crisis stronger and to stay the course of its CATALYST 2023 strategic plan, which focuses on optimising operating performance, integrating acquired companies and increasing synergies between the Group's different activities.
|Data in €m - Limited review - French accounting standards||H1 2019 |
|H1 2020 |
|% EBTIDA margin||4.1%||3.4%||9.2%|
|% Operating margin||0.8%||-||6.7%|
|Consolidated net income (expense)||-1.6||-3.1||4.6|
|Net income (Group share)||-3.5||-4.3||-23%||2.6|
1 Earnings Before Interest, Tax, Depreciation and Amortisation.
Visiativ generated consolidated revenues of €82.6 million for the first six months of 2020, showing a limited decline of -3% (-5% organic1) despite the consequences of the health crisis and the impact of the lockdown measures in the second quarter.
The 3DEXPERIENCE VAR (Value-Added Reseller) division, which saw a decline in activity of -8% (-9% after restatement for exchange rate and scope effects), was penalised in particular by the deferral of investment decisions by French companies (deferral of new licence sales). International activity grew by +4% over the period, now accounting for 29% of the division's revenue versus 26% in the first half of 2019.
The VISIATIV PLATFORM division saw growth of +5% in the first half of 2020 (+1% organic), as it was more aligned with companies' digital transformation needs. The software activities (Moovapps) suffered most from the crisis while Consulting and Business Development (cloud, managed services, rapid manufacturing) delivered double-digit growth over the period (+11% and +15% respectively). The International activity saw growth of +33% under the effect of synergies from the latest acquisitions and continued strong organic growth outside of France (+22%).
Recurrent revenues (maintenance, SaaS, subscriptions) grew by +4% (+2% organic), accounting for more than two thirds (67%) of the Group's activity at the end of the first six months (versus 63% over the 2019 financial year).
In terms of international activity, which now accounts for 25% of the Group's total activity (versus 22% a year earlier), Visiativ held up well in the first half of the year with revenue growth of +12% (+6% organic), notably in the US, the Benelux countries and the UK.
A resilient EBITDA margin of 3.4% in the first half of 2020
Despite the turbulent environment caused by the health crisis during the first half of the year and the traditional negative seasonal effect that also occurs in the first six months, Visiativ generated EBITDA of €2.8 million, representing a limited decline of -20%
The EBITDA margin thus came out at 3.4% versus 4.1% last year. Thanks to the effective deployment of the business continuity plan and good cost control arising from the decision to partially operate the business during the lockdown period, the Group was able to limit the impact of the crisis.
The 3DEXPERIENCE VAR division generated EBITDA of -€1.9 million in the first half of 2020 versus -€0.7 million last year. As a reminder, this division traditionally generates the bulk of its performance in the second half of the year and no material performance during the first half (EBITDA of €8.1 million in full-year 2019 of which €8.8 million in the second half of 2019 alone).
The VISIATIV PLATFORM division generated first-half EBITDA of €4.8 million, up +17% compared with the first half of 2019, giving an EBITDA margin of 13.2% versus 11.8% a year earlier. This performance confirms Visiativ's technology development strategy, involving a high degree of recurrent activity and high value-added service for the clients by helping to improve their operating performance.
After factoring in net depreciation, amortisation and provisions, operating income came to -€0.3 million.
Financial income came to -€1.7 million compared with -€0.8 million in the first half of 2019, incorporating financial impairment of €1.0 million following the departure of one of the three partners of QOLID, putting an early end to the development of this subsidiary.
Consolidated net revenue came to -€3.1 million compared with -€1.6 million at 30 June 2019. The buyback of non-controlling interests initiated in the first half of the year led to net income, Group share of -€4.3 million, a limited decline of -23% compared with the first half of 2019.
A strengthened financial position at 30 June 2020
The first half of 2020 was marked by a strengthening of the financial structure of Visiativ.
Operating cash flow came to +€3.1 million, underpinned by positive cash flow (+€0.6 million) and a variation in the working capital requirement of +€2.5 million attributable to strong client receipts and the corporate support measures.
Investment operations used €11.1 million over the period, mainly allocated to external growth (acquisition of MSC Associates Ltd. in the United Kingdom) and to increasing Visiativ's majority stake in the Consulting activity, in line with the objectives set out in the CATALYST 2023 plan.
Financing flows reached +€47.3 million following the implementation with partner banks of a state-guaranteed loan (PGE) of €39.2 million during the second quarter of 2020.
The net change in cash flow over the period was +€39.1 million.
At 30 June 2020, Visiativ had available cash flow of €70.8 million (vs. €31.7 million at 31 December 2019). Net financial debt came to €34.3 million for total shareholders' equity of €47.1 million, giving a gearing ratio of 73% at 30 June 2020, identical to that recorded at 30 June 2019.
Having been impacted like virtually all other French companies by the Covid-19 health crisis, Visiativ was able to guarantee continuity of services for its clients and showed resilience in this adverse environment, as reflected in its 2020 first-half results.
While the economic environment remains uncertain over the coming months, the Group has several attributes to draw on in order to emerge stronger from this crisis:
- A resilient business model with a high level of recurrent activity (67% in the first half of 2020);
- Good momentum at its international subsidiaries (+12% in the first half of 2020) which will help to offset lower growth in France;
- Activities that are in line with companies' current needs: digitisation, consultation in innovation, infrastructures, cloud, etc.;
- No dependency on any particular client or sector, thanks to its diverse client portfolio;
- A stronger financial position, with disposable cash of over €70 million.
In addition, the company continues to focus on the execution of CATALYST 2023 and the implementation of the different tranches of the strategic plan in order to drive an increase in synergies between the different activities and optimise its operating performance.
- Q3 2020 revenues:Wednesday 21 October 2020
- FY 2020 revenues:Wednesday 27 January 2021
- FY 2020 results:Wednesday 24 March 2021
These dates have yet to be confirmed and may be subject to change if necessary. All publications will be issued after close of trading on Euronext Paris.
A true platform of human and digital experiences, Visiativ is a global player with multiple areas of expertise (consulting, software editing and integration, platform creation, IT outsourcing). Through its unique value proposition, it helps accelerate companies' innovation and transformation. Working with mid-caps since its foundation in 1987, the Visiativ Group posted 2019 revenues of €203 million and boasts a diverse portfolio of over 18,000 customers. Covering all of France's business hubs and with operations worldwide (Belgium, Brazil, Canada, USA, the Netherlands, Luxembourg, Morocco, UK and Switzerland), Visiativ has over 1,000 employees. The Visiativ share (ISIN code FR0004029478, ALVIV) is listed on Euronext Growth Paris. The share is eligible for the PEA and PEA-PME personal equity plans and FCPI/FIP investment funds, thanks to its status as an “innovative business” recognised by Bpifrance.
For further information, visit www.visiativ.com
|VISIATIV CONTACT |
Tel.: +33 (0)4 78 87 29 29
|INVESTOR CONTACT |
Tel.: +33 (0)1 53 67 36 92
|PRESS CONTACT |
Tel.: +33 (0)4 72 18 04 92
1 Like-for-like growth after restatement for the impact of the consolidation of CCSL (01/07/2019) and Living Actor (01/12/2019), and at constant exchange rates.