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  AUBAY company press release from 14/09/2022

  14/09/2022 - 17:55

2022 Half-Yearly Results: Record half-year operating margin from ordinary activities: 10.3% - Net income attributable to owners of the parent: EUR 17.3 million


In € thousands H1 2022 H1 2021 Change
Revenue 258,480 233,095 +10.9%
Operating profit from ordinary activities 26,601 22,457 +18.5%
As a % of revenue 10.3% 9.6%  
Cost of performance shares (635) (527)  
Other operating income and expenses (941) (613)  
Operating profit 25,025 21,317 +17.4%
Financial income/(expense) (565) 69  
Tax (expense)/income (7,091) (5,776)  
Net income from consolidated companies 17,369 15,610 +11.3%
As a % of revenue 6.7% 6.7%  
Net income attributable to owners of the parent 17,330 15,583  
Earnings per share  €1.31  €1.18  
Headcount 7,442 6,888  

 

Aubay's Board of Directors, which met on September 14, 2022 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2022. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.

Aubay posted excellent results in the first half of 2022. Organic growth reached 10.9%, representing twice the medium-term objective.

 

Double-digit half-year operating margin from ordinary activities

Operating margin from ordinary activities set a new record for a first-half performance, exceeding 10% for the first time at 10.3%. Operating profit from ordinary activities rose 18.5% to €26,601 thousand. This sharp increase was attributable to a robust performance, with a 95.2% consultant utilization rate compared to 93.8% in first-half 2021, and a favorable calendar effect during the period in terms of working days. It can also be explained by contained salary raises, which were offset by an increase in sales prices.

The Group's operating margin from ordinary activities improved across all regions and came in at 8.7% for operations in France and 11.9% for operations overseas, compared with 8.2% and 11.1%, respectively, in 2021.

 

Operating profit of €25 million

Operating profit rose by 17.4%, after taking into account the cost of performance shares for €0.6 million and a net expense of €0.9 million under "Other operating income and expenses", primarily comprising restructuring expenses. 

 

Sharp increase in net income attributable to owners of the parent (6.7% of net margin)

Net income attributable to owners of the parent came in at €17.3 million, a record half-year high for the Group. The tax expense of €7.1 million resulted in an average tax rate of 29%.

 

Net cash (excluding rental liabilities) stable at €64 million, after dividend payment

Cash flow stood at €29.1 million or 11.3% of revenue, compared with €25.7 million in 2021. The change in WCR amounted to a negative €17.8 million compared to a negative €14.5 million for the same period of the previous year, in line with the strong growth in revenue and the usual seasonal nature of our businesses. After taking the €10.1 million dividend payout in May into account, net cash was stable at €64 million at June 30, 2022, and should significantly increase during the second half of the year.

Proposed interim dividend of €0.50

In light of the strong increase in net income and the Group's excellent financial position, the Board of Directors has decided to pay an interim dividend of €0.50 per share in respect of 2022. The interim dividend will be paid on November 10, 2022.

 

Outlook for 2022

Demand from our clients remains strong, as in the first half of the year. The productivity rate has also remained high. Headcount is expected to grow as much in the third quarter as in the first half of the year. However, the seasonal effect will be less favorable in the second half of the year (two fewer working days than in H2 2021).

In light of the above, Aubay reaffirms its objectives and is now aiming to achieve the top end of its revenue target, i.e., €513 million, a 9% increase. The target for operating margin from ordinary activities remains unchanged at between 9.5% and 10.5%.

 

 

Aubay will publish its 2022 third-quarter revenue on October 19, 2022 after the close of trading.

 

 

Glossary

Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues 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.

   2022
Organic growth +10.9%
Impact of changes in scope 0
Growth as reported +10.9%

 

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, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring 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 (excluding rental liabilities): 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

Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 7,442 employees in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2022, Aubay generated revenue of €470.6 million in 2021.

Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters : AUBT.PA - Bloomberg AUB:FP

 

Contacts

Amaury Dugast – Actus Finance – Tel.: +33 (0)1 53 67 36 74 - adugast@actus.fr

David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com

 

 

APPENDICES

 

 

Statement of financial position as of June 30, 202 2    
     
     
ASSETS (in € thousands) June 30, 2022 Dec. 31, 2021
     
Goodwill 131,305 131,305
Intangible assets 894 917
Property, plant & equipment 4,422 4,156
Right of use relating to leases 15,809 14,152
Equity-accounted investees - -
Other financial assets 2,070 2,102
Deferred tax assets 2,321 2,653
Other non-current assets 360 354
NON-CURRENT ASSETS 157,181 155,639
Inventories and work in progress 772 491
Assets on contracts 44,235 32,127
Trade receivables 118,775 111,359
Other receivables and accruals 37,668 37,082
Marketable securities 707 1,026
Cash at bank and in hand 66,459 78,461
CURRENT ASSETS 268,616 260,546
TOTAL ASSETS 425,797 416,185
     
EQUITY AND LIABILITIES (in € thousands) June 30, 2021 Dec. 31, 2021
     
Capital 6,634 6,611
Additional paid-in capital and consolidated reserves 214,253 188,740
Net income attributable to owners of the parent 17,330 34,409
Shareholders' equity attributable to the Group 238,217 229,760
Minority interests 187 191
SHAREHOLDERS' EQUITY 238,404 229,951
Borrowings and financial liabilities: non-current portion 1,903 2,155
Rental liabilities due in more than 1 year 10,944 10,198
Deferred tax liabilities 1 1
Provisions for contingencies and expenses 6,367 6,924
Other non-current liabilities 192 74
NON-CURRENT LIABILITIES 19,407 19,352
Borrowings and financial liabilities: current portion 1,774 2,500
Rental liabilities due within 1 year 5,257 4,366
Trade and other payables 36,646 35,981
Contract liabilities 13,701 19,913
Other current liabilities 110,608 104,122
CURRENT LIABILITIES 167,986 166,882
TOTAL EQUITY AND LIABILITIES 425,797 416,185

 

 

Consolidated income statement for first-half 2022        

 

(in € thousands) First-half 2022 % First-half 2021 %
Revenue 258,480 100% 233,095 100%
Other operating income 120    200   
Purchases used in production and external charges (49,103)    (46,850)   
Staff costs (176,617)    (158,452)   
Taxes other than on income (2,197)    (1,935)   
Amortization, depreciation and provisions (3,925)    (3,758)   
Change in inventories of work in progress and finished goods        
Other operating income and expenses (157)    157   
Operating profit from ordinary activities 26,601 10.3% 22,457 9.6%
Expenses linked to restricted share units and similar awards (635)    (527)   
Current operating profit 25,966 10.0% 21,930 9.4%
Other operating income and expenses (941)    (613)   
Operating profit 25,025 9.7% 21,317 9.1%
Income from cash and cash equivalents        
Net borrowing costs (244)    (260)   
Other financial income and expenses (321)    329   
Financial income/(expense) (565)   69  
Income tax expense (7,091)  29% (5,776)  27%
Income from equity-accounted investees        
Net income before results of discontinued operations or assets held for sale 17,369   15,610  
Net income after tax of discontinued operations or assets held for sale        
Net income 17,369 6.7% 15,610 6.7%
Attributable to owners of the parent 17,333    15,583   
Minority interests 39   27  
Basic weighted average number of shares 13,252,256   13,208,860  
Earnings per share 1.31   1.18  
Diluted weighted average number of shares 13,332,256   13,283,360  
Diluted earnings per share 1.30   1.17  

 

 

Cash flow statement for first-half 2022
 
(in € thousands) First-half 2022 First-half 2021
     
Consolidated net income (including non-controlling interests) 17,368 15,660
Income from equity-accounted investees    
Net depreciation, amortization and provisions and right of use relating to leases 3,816  2,810 
Non-cash expenses and income relating to share-based payments 635  527 
Other non-cash items    
Dividend income (57)   
Gains and losses on disposals of fixed assets (6)  484 
Cash flow after net interest expense and tax 21,756 19,481
Net borrowing costs 244  260 
Tax expense (including deferred taxes) 7,091  5,726 
Cash flow before net interest expense and tax (A) 29,276 25,467
Income tax payments (B) (8,798)  (4,852) 
Change in WCR © (17,463) (14,300) 
Net cash provided by (used in) operating activities (D) = (A+B+C) 2,830 6,315
Outflows for the acquisition of tangible and intangible fixed assets (1,102)  (460) 
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    
Change in loans and advances granted 50  248 
Disbursements (cash) related to business combinations, net of cash and cash equivalents    
Dividends received 57   
     
Net cash provided by (used in) investing activities (E) (993) (212)
Proceeds from capital increases    
Amounts received upon the exercise of stock options    
Purchases of treasury shares for cancellation    
Purchases of and proceeds from the sale of treasury shares    
Dividends paid in the period:    
 - Net dividends paid to parent company shareholders (10,075)  (4,340) 
 - Dividends paid to the non-controlling shareholders of consolidated companies (44)   
Inflows from new borrowings   115 
Repayment of loan debt (1,272)  (2,168) 
Repayment of rental liabilities (2,818)  (2,165) 
Net interest payments (244)  (260) 
Purchase of non-controlling minority interests    
Other financial cash flows    
Net cash provided by (used in) financial activities (F) (14,453) (8,818)
Effects of changes in foreign exchange rates (G) (11) 34 
Change in net cash (D+E+F+G) (12,627)  (2,681) 
Cash and cash equivalents at beginning of period 79,056 52,205
Cash and cash equivalents at end of period 66,429 49,524

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  Original Source: AUBAY