Current operating income: €46.0m
The Group Management Board met on 31 March 2020 and approved the 2019 financial statements, which were examined by the Supervisory Board on 8 April 2020. The audit work has been completed and the certification audit report will be issued once annual financial report publication formalities have been duly completed.
Consolidated income statement (1 January – 31 December)
|Current operating income||46.0||44.6||+3.3%||-7.4%|
|Current operating margin||10.2%||10.4%|
|Net income from consolidated operations||36.1||19.1||+88.7%|
|Net income/loss from discontinued operations||-0.8||30.72|
|Net income (Group share)||34.8||48.8||-28.6%|
1 First-time application of IFRS 16 - “Leases” as of 1 January 2019 without retrospective changes for 2018.
2 Net income of CPoR Devises, sold at the end of 2018.
Tessi, a global provider of Business Process Services, posted 2019 turnover of €452.0 million, up 5.6% like-for-like compared to 2018. At constant consolidation scope (excluding Owliance in H1 2019, Orone over four months in 2019 and Tessi Austria in 2018), turnover rose 1.3%.
Current operating income rose 3.3% to €46.0 million, benefiting from a €900,000 gain from the full-year consolidation of Owliance in 2019, compared to 6 months in 2018, the reclassification of CVAE to taxes (€3.7 million) and the impact of IFRS 16 (€300,000). At constant consolidation scope and accounting standards, current operating income was down €3.3 million, mainly impacted by a slowdown in the Iberia region due to challenging market conditions.
Operating income increased €16.9 million to €58.3 million, benefiting from the recognition of net non-recurring income of €12.3 million, mainly consisting of an extraordinary gain generated by the fair value measurement of an acquisition purchase price supplement.
Net financial expense came to €9.2 million (down from €14.3 million in 2018, including a
€7.6 million non-recurring debt refinancing expense). The reclassification of CVAE as income tax resulted in a €13.1 million tax charge (up from €8.0 million in 2018).
Net income from consolidated operations amounted to €36.1 million, up 88.7% compared to 2018.
Net income (Group share) amounted to €34.8 million, down compared to 2018 due to the deconsolidation of net income from CPoR Devises, sold at the end of 2018.
|Net debt (excluding advances)||235.6||34.2|
In February 2019, the Group finalised the refinancing arrangements for its entire debt involving new senior debt amounting to €165 million.
The financial structure was impacted by the acquisition of ADM Value in 2019, financed via a €60 million capital increase at the end of the year (in cash and contributions in kind) as well as additional borrowings of €53.6 million.
Net borrowings at 31 December 2019 include, for the first year, lease liabilities (IFRS 16) amounting to €54.4 million. At constant accounting standards, this change is the result of the difference between (i) cash flow from operations (€37 million) and the proceeds from sales of real estate assets (€20 million) and (ii) cash outflows related to capital expenditure (€16 million), the dividend pay-out (€120 million) and the net financing of acquisitions.
In 2020, Tessi will consolidate the operations of ADM Value, a customer relations specialist acquired in December 2019 offering synergies that live up to expectations.
2020 got off to a good start in the first two months, confirming the Group's growth trajectory.
Inevitably, this trend has been checked by the ongoing health crisis, which is currently exerting major pressure on business. The exact consequences of the crisis are as yet unclear, given the uncertainty regarding how long the current restrictions will last in countries where the Group operates.
Under these circumstances, Tessi continues to adapt its organisation and workforce by introducing measures to support short-time working, in order to mitigate the impact of the fall in turnover on its financial performance.
Tessi will keep the market informed of all significant developments impacting its business.
|Next release |
Q1 2020 turnover, 6 May 2020 after market close
|About TESSI |
Tessi is an international provider of Business Process Services that helps businesses to digitise the customer experience. Tessi operates in over 14 countries worldwide, has around 9,400 employees and posted turnover of €452.0 millions in 2019 (excluding ADM Value). Tessi is listed on Euronext Paris - compartment B (TES).
Read more at tessi.eu