|In € thousands||H1 2020||H1 2019||Change|
|Operating profit from ordinary activities||18,791||19,069||-1.5%|
|As a % of revenue||8.7%||9.2%|
|Other operating income and expenses||(1,370)||(1,433)|
|Net income from consolidated companies||11,305||11,492||-1.6%|
|As a % of revenue||5.3%||5.5%|
|Net income attributable to owners of the parent||11,287||11,492|
Aubay's Board of Directors, which met on September 16, 2020 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2020. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.
Against the backdrop of an exceptional economic and health crisis, the Group relied on the strong resilience of its business model, reflected in the continued high levels of its key financial indicators in terms of business, profitability and cash flow generation. This performance was driven by the unwavering commitment of all employees and a clear strategy on business lines, customers and skills.
Revenue for the first six months of the year came in at €214.8 million, up 3.2%, practically stable on a like-for?like basis, demonstrating very strong resilience in the context of the health crisis (see July 22, 2020 press release).
Operating profit from ordinary activities stable at €18.8 million and net income at €11.3 million
The Group's recurring operating margin came in at 8.7%, versus 9.2% in 2019, at the upper end of the projected range, down only 50 basis points, and breaking down as 7.5% for business in France and 10.1% for international business. The Group was able to sustain a high productivity rate of 92.7% excluding short-time working measures, which concerned a maximum of 4% of employees at the height of the crisis.
After recognizing non-current expenses of €1.4 million, operating profit from ordinary activities came in at €18.8 million compared to €19.1 million one year ago, i.e., a limited decline of 1.5%.
Financial expense remained stable at €302 thousand.
The tax expense amounted to €5.8 million, reflecting an effective tax rate of 34%, stable year on year.
Net income for the first half of 2020 amounted to €11.3 million, stable compared to June 30, 2019, representing 5.3% of revenue.
Strong improvement in net cash (excluding rental liabilities) to €22.6 million
Despite a traditionally unfavorable seasonal effect, cash flow from operations for the period was excellent with over €18 million compared to €12 million last year. This can be attributed to good working capital management, with an improvement in the average customer payment time of three days. The company has not requested any extension for paying its expenses, particularly with regard to tax or social security.
Cash flow largely covered the limited investments made during the period and the payment of €3.5 million in dividends to shareholders.
Overall, net cash (excluding rental liabilities) amounted to €22.6 million at June 30, 2020 compared to €11.7 million at end 2019.
Outlook for 2020
Operations pursued during the Summer as expected. Visibility continues to gradually improve with demand almost back to normal since September. The upturn in activity, with the signing of many new contracts, some of which are significant for the service centers, has also made it possible to resume hiring in all regions.
Having had a better first half of the year than anticipated in the midst of the crisis, and assuming the health situation stabilizes, Aubay aims to achieve the following performance in 2020:
- Annual revenue of between €420 million and €425 million,
- Operating margin from ordinary activities of 9%.
Interim dividend of €0.33
In light of this reassuring performance, the Board of Directors has decided to pay an interim dividend of €0.33 per share for the current fiscal year on November 10, 2020.
2020 third-quarter revenue: Wednesday, October 21 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 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.
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 the 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: 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 6,411 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2020. Aubay generated revenue of €417.8 million in 2019.
Euronext, Compartiment B – ISIN FR0000063737-AUB – Reuters AUBT.PA - Bloomberg AUB:FP
Nicolas Bouchez – Actus Finance – Tel. +33 (0)1 53 67 35 79- Email: [email protected]
David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67- Email: [email protected]
Consolidated financial position
|ASSETS (€ thousands)||6/30/2020||12/31/2019|
|Property, plant & equipment||5,409||5,575|
|Right of use relating to leases||20,603||22,996|
|Other financial assets||2,256||2,661|
|Deferred tax assets||2,163||2,796|
|Other non-current assets||32||277|
|Inventories and work in progress||335||411|
|Assets on contracts||36,195||29,216|
|Client and other receivables||101,059||115,097|
|Other receivables and accruals||32,040||37,209|
|Cash at bank and in hand||34,130||23,411|
|LIABILITIES (€ thousands)||6/30/2020||12/31/2019|
|Additional paid-in capital and consolidated reserves||174,089||151,164|
|Net income attributable to the Group||11,305||26,409|
|Shareholders' equity attributable to the Group||191,997||184,170|
|Borrowings and financial liabilities: non-current portion||4,486||5,697|
|Rental liabilities: due in over 1 year||15,740||17,823|
|Deferred tax liabilities||4||5|
|Provisions for contingencies and expenses||6,395||6,129|
|Other non-current liabilities||386||489|
|Borrowings and financial liabilities: current portion||7,260||7,124|
|Rental liabilities: due within 1 year||5,188||5,435|
|Trade payables and related accounts||27,672||30,576|
|Other liabilities and accruals||94,676||100,684|
|TOTAL EQUITY AND LIABILITIES||366,865||372,945|
|Consolidated income statement|
|(in € thousands)||6/30/2020||%||6/30/2019||%|
|Other operating income||244||72|
|Purchases used in production and external charges||(43,205)||(37,711)|
|Taxes other than on income||(1,791)||(1,713)|
|Amortization, depreciation and provisions||(3,840)||(3,546)|
|Change in inventories of work in progress and finished goods|
|Other operating income and expenses||(104)||89|
|Operating profit from ordinary activities||18,791||8.7%||19,069||9.2%|
|Expenses linked to restricted share units and similar awards||(464)||(743)|
|Current operating profit||18,327||8.8%||18,326||8.8%|
|Other operating income and expenses||(906)||(690)|
|Income from cash and cash equivalents|
|Net borrowing costs||(140)||(177)|
|Other financial income and expenses||(162)||(129)|
|Income tax expense||(5,814)||(5,838)|
|Income from equity-accounted investees|
|Net income before results of discontinued operations or assets held for sale||11,305||11,492|
|Net income after tax of discontinued operations or assets held for sale|
|Attributable to owners of the parent||11,287||11,492|
|Basic weighted average number of shares||13,186,893||13,180,931|
|Earnings per share||0.86||0.87|
|Diluted weighted average number of shares||13,239,393||13,279,431|
|Diluted earnings per share||0.85||0.87|
Statement of consolidated cash flows
|In € thousands||6/30/2020||6/30/2019|
|Consolidated net income (including non-controlling interests)||11,305||11,492|
|Income from equity-accounted investees|
|Net depreciation, amortization and provisions and right of use relating to leases||4,498||3,661|
|None-cash expenses and income relating to share-based payments||464||743|
|Other non-cash items||212|
|Gains and losses on disposals of fixed assets||(277)||6|
|Cash flow after net interest expense and tax||16,202||15,814|
|Net borrowing costs||283||177|
|Tax expense (including deferred taxes)||5,414||5,838|
|Cash flow before net interest expense and tax (A)||21,899||21,829|
|Income tax payments (B)||(130)||(5,403)|
|Change in trade and other receivables (C)||4,132||(5,753)|
|Change in trade and other payables (C)||(7,665)||1,457|
|Net cash provided by (used in) operating activities (D) = (A+B+C)||18,236||12,130|
|Outflows for the acquisition of tangible and intangible fixed assets||(646)||(646)|
|Inflows from the disposal of tangible and intangible fixed assets|
|Outflows for the acquisition of financial assets||(4)||(4)|
|Inflows from the disposal of financial assets||32|
|Change in loans and advances granted||388||(6)|
|Disbursements (cash) related to business combinations, net of cash and cash equivalents|
|Dividends and subsidies received||88|
|Net cash provided by (used in) investing activities (E)||(262)||(536)|
|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||(3,562)||(4,354)|
|Dividends paid to the non-controlling shareholders of consolidated companies|
|Inflows from new borrowings||1,357||10|
|Repayment of financial debt||(2,332)||(5,558)|
|Repayment of loan debt||(2,864)||(1,225)|
|Net interest payments||(283)||(173)|
|Purchase of non-controlling minority interests|
|Other financial flows|
|Net cash provided by (used in) financial activities (F)||(7,684)||(11,300)|
|Effects of changes in foreign exchange rates (G)||(40)||(1)|
|Change in net cash (D+E+F+G)||10,250||293|
|Cash and cash equivalents at the beginning of the period||24,131||19,372|
|Cash and cash equivalents at end of period||34,381||19,665|