|In € thousands||H1 2019||H1 2018||Change|
|Operating profit from ordinary activities||19,069||17,457||+9.2%|
|As a % of revenue||9.2%||8.8%|
|Other operating income and expenses||(1,433)||(1,428)|
|Net financial income/(expense)||(306)||(155)|
|Net income from consolidated companies||11,492||11,027||+4.2%|
|As a % of revenue||5.5%||5.6%|
|Net income attributable to owners of the parent||11,492||11,027|
Aubay's Board of Directors, which met on September 18, 2019 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2019. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.
Aubay posted another solid performance, with improved results for the first half of 2019. Revenue for the first six months of the year increased 5.5% in organic terms to €208.1 million.
Operating margin from ordinary activities up by 40 basis points over the period, at 9.2%.
The Group's operating margin from ordinary activities came in at 9.2%, versus 8.8% for first-half 2018, up 40 basis points despite one less billable day. Business in France accounted for 9.7% of the figure and international business 8.6%.
Operating profit from ordinary activities was up 9.2% at €19.1 million, versus €17.5 million in first-half 2018. The increase, which is higher than the increase in revenue, is directly linked to the improvement in the gross margin. The first?time application of IFRS 16 did not have a material impact on recurring operating income (positive €60 thousand).
The Group reported a financial expense of €306 thousand for the period, compared to €155 thousand in first?half 2018. This figure includes a €150 thousand expense related to the first-time application of IFRS 16.
The tax expense amounted to €5.8 million, representing an effective tax rate of 34%, versus 31% one year earlier. This increase is due to the competitiveness and employment tax reform in France, which saw the former tax credit system replaced by lower contributions.
Half-yearly net income of €11.5 million
After non-ordinary expenses, which primarily included the cost of free shares and other one-off expenses that remained stable year on year, attributable net income was up 4.2% over the period at €11.5 million.
Net cash position (excluding rental liabilities) of €4.6 million
Cash from operations amounted to €12.1 million, compared to €1.5 million in first-half 2018. The sharp rise was due to positive cash flows for €4.2 million and the optimization of working capital for a positive €6.3 million, despite the seasonal effect generally being unfavorable in the first half of the year.
Dividends paid to shareholders amounted to €4.3 million during the period.
Overall, net cash (excluding lease liabilities resulting from the application of IFRS 16) amounted to €4.6 million at June 30, 2019.
In a constant drive towards greater expertise, our clients' expectations in terms of innovation remain high.
In view of these market conditions, Aubay is ideally positioned, leveraging a consistently demanding and selective recruitment policy, to develop and gain market share in the months and years to come.
The targets published in our 2019 second-quarter revenue press release remain unchanged, namely:
- Revenue of €425 million, corresponding to organic growth of 5% to 7%
- Operating margin from ordinary activities between 9.5% and 10.5%.
Interim dividend of €0.33
In light of this excellent performance, the Board of Directors has decided to pay an interim dividend of €0.33 per share for the current fiscal year on November 12, 2019. As a reminder, the interim dividend paid in November 2018 was €0.27 per share.
2019 third-quarter revenue: Wednesday, October 23 after the close of trading.
Glossary/Alternative performance indicators
Organic revenue growth: this refers to growth calculated for a constant scope of activity for a given period, excluding revenue from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.
Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, significant or infrequent and that are booked separately in order to facilitate the understanding of an entity's operating performance.
Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating profit from ordinary activities to revenue.
Net debt or net cash: this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.
About AUBAY Group
Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. It had 6,236 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2019. Aubay generated revenue of €400.6 million in 2018.
NYSE Euronext, Compartiment B – ISIN FR0000063737-AUB – Reuters AUBT.PA - Bloomberg AUB:FP
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|Consolidated statement at June 30, 2019|
|ASSETS (€ 000s)||30/06/2019||31/12/2018|
|Property, plant and equipment||5,242||5,284|
|Use rights relating to leases||24,063|
|Other financial assets||2,319||2,309|
|Deferred tax assets||2,173||2,126|
|Other non-current assets||141|
|Inventories and work in progress||436||378|
|Assets on contracts||36,868||20,649|
|Trade receivables and related accounts||101,462||115,760|
|Other receivables and accruals||35,856||35,892|
|Cash at bank and in hand||20,393||19,519|
|EQUITY AND LIABILITIES (€ '000s)||30/06/2019||31/12/2018|
|Additional paid-in capital and consolidated reserves||154,863||131,515|
|Net income attributable to the Group||11,492||27,327|
|Shareholders' equity attributable to the Group||172,952||165,410|
|Attributable to non-controlling interests||0||0|
|Borrowings and financial liabilities: non-current portion||8,392||10,493|
|Rental debts: non-current portion||21,453|
|Deferred tax liabilities||5||6|
|Provisions for contingencies and expenses||5,567||5,328|
|Other non-current liabilities||3||2|
|Borrowings and financial liabilities: current portion||8,334||8,819|
|Rental debts: current portion||2,696|
|Trade payables and related accounts||26,915||26,530|
|Liabilities on contracts||12,513||17,528|
|Other payables and accruals||95,866||92,580|
|TOTAL EQUITY AND LIABILITIES||354,696||326,696|
|Consolidated statement of income as of June 30, 2019|
|Revenue||208 115||100%||197 346||100%|
|Other operating income||72||89|
|Purchases used in production and external charges||(37,711)||(39,724)|
|Taxes other than on income||(1,713)||(1,692)|
|Amortisation, depreciation and provisions||(3, 546)||(835)|
|Change in inventories of work in progress and finished goods|
|Other current operating income and expenses||89||(43)|
|Operating profit from ordinary activities||19,069||9.2%||17,457||8.8%|
|Expenses linked to restricted share units and similar awards||(743)||(733)|
|Current operating income||18,326||8.8%||16,724||8.5%|
|Other operating income and expenses||(690)||(695)|
|Income from cash and cash equivalents|
|Net borrowing costs||(177)||(249)|
|Other financial income and expenses||(129)||94|
|Net financial income (expense)||(306)||(155)|
|Income tax expense||(5,838)||(4,847)|
|Income from equity-accounted investees|
|Net income before results of discontinued operations or assets held for sale||11,492||11,027|
|Net income after tax of discontinued operations or assets held for sale|
|Attributable to shareholders||11,492||11,027|
|Attributable to non-controlling interests||0||0|
|Basic weighted average number of shares||13,180,931||13,113,301|
|Earnings per share||0.87||0.84|
|Diluted weighted average number of shares||13,279,431||13,214,801|
|Diluted earnings per share||0.87||0.83|
|Consolidated statement of cash flow at June 30, 2019|
|Consolidated net income (including non-controlling interest)||11,492||11,027|
|Income from equity-accounted investees|
|Net exceptional depreciation, amortisation and provisions relating to leases||3,661||813|
|Non-cash expenses and income relating to share-based payments||743||733|
|Other non-cash items||(31)|
|Gains and losses on disposals of fixed assets||6||(17)|
|Cash flow after net interest expense and tax||15,814||12,518|
|Net borrowing costs||177||249|
|Tax expense (including deferred taxes)||5,838||4,847|
|Cash flow before net interest expense and tax (A)||21,829||17,614|
|Income tax payments (B)||(5,403)||(5,484)|
|Change in trade and other receivables (C)||(5,753)||(13,673)|
|Change in trade and other payables (C)||1,457||3,039|
|Net cash provided by (used in) operating activities (D) = (A+B+C)||12,130||1,496|
|Outflows for the acquisition of tangible and intangible fixed assets||(1,871)||(1,308)|
|Inflows from the disposal of tangible and intangible fixed assets|
|Outflows for the acquisition of financial assets||(4)|
|Inflows from the disposal of financial assets||32|
|Change in loans and advances granted||(6)||30|
|Outflows (inflows) linked to business combinations net of cash acquired|
|Dividends and grants received||88||7|
|Net cash provided by (used in) investing activities||(1,761)||(1,271)|
|Proceeds from capital increases|
|Amounts received upon the exercise of stock options||31|
|Purchases of treasury shares for cancellation|
|Purchases of and proceeds from the sale of treasury shares||31|
|Dividends paid in the period|
|-Net dividends paid to parent company shareholders||(4,354)||(3,151)|
|-Dividends paid to the non-controlling shareholders of consolidated companies||(18)|
|Inflows from new borrowings||1,235||8,155|
|Repayment of financial debt||(4,176)||(6,025)|
|Repayment of loan debt||(2,607)|
|Net interest payments||(173)||(283)|
|The purchase of non-controlling interests (put options)||(2,196)|
|Other financial flows|
|Net cash provided by (used in) financing activities (F)||(10,075)||(3,456)|
|Effects of changes in foreign exchange rates (G)||(1)||(2)|
|Change in net cash (D+E+F+G)||293||(3,233)|
|Opening cash and cash equivalents||19,372||16,492|
|Closing cash and cash equivalents||19,665||13,259|