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  AUBAY company press release from 23/03/2022

  23/03/2022 - 17:55

2021 annual results: Strong growth, profitability and cash generation - Operating margin from ordinary activities: 10.6 % - Net income attributable to owners of the parent: EUR 34.4 million - Net cash: EUR 74.8 million


In € thousands 2021 2020 Change
Revenue 470,601 426,382 +10.4%
Operating profit from ordinary activities 49,927 41,215 +21.1%
As a % of revenue 10.6% 9.7%  
Cost of performance shares (1,489) (1,112)  
Other operating income and expenses (1,120) (1,463)  
Operating profit 47,318 38,640 +22.5%
Financial income/(expense) 84 (419)  
Tax (expense)/income (12,921) (12,036)  
Net income from consolidated companies 34,481 26,185 +31.7%
As a % of revenue 7.3% 6.1%  
Net income attributable to owners of the parent 34,409 26,132  
Earnings per share  €2.60  €1.98  
Headcount 7,306 6,562  

 

 

Aubay's Board of Directors, which met on March 23, 2022 under Chairman Christian Aubert, approved the statutory and consolidated financial statements for 2021. The financial statements have been audited by the Statutory Auditors and the auditors' report will be issued once the procedures required to publish the company's Universal Registration Document have been completed.

 

After demonstrating remarkable resilience in 2020, the Group posted exceptional results in 2021 despite the uncertain health environment. It met or exceeded all its targets for growth, profitability, recruitment and cash generation.

 

Operating margin from ordinary activities above normative margin

Operating margin from ordinary activities was higher than estimated when the annual results were published in January, at 10.6 %, exceeding the Group's normative profitability target of between 9.5 % and 10.5 %.

The Group's operating margin from ordinary activities for the period came in at 9.6 % for activities in France and 11. 6% for activities overseas, compared with 9.3 % and 10.0 %, respectively, in 2020.

 

Operating profit: €47.3 million

Operating profit came to €47.3 million, a substantial increase of 22.5 %, after taking into account the cost of performance shares for €1.5 million and “Other operating income and expenses” representing a net expense of €1.1 million, primarily comprising restructuring expenses. The operating margin was 10.1 %, among the best in the sector.

 

Sharp increase in net income attributable to owners of the parent (7.3 % of net margin)

Net income attributable to owners of the parent soared to €34.4 million, up 31.7 %, setting a new record after taking into account a tax expense of €12.9 million representing an effective tax rate of 27 %, versus 31 % in 2020.

 

Net cash (excluding rental liabilities) up significantly at €74.8 million

The Group's financial position was considerably strengthened in 2021 thanks to excellent generation of cash from operating activities of €45.8 million, versus €47.2 million in 2020, a superb performance given the strong increase in revenue. As a result, net cash increased from €44.7 million at December 31, 2020 to €74.8 million at December 31, 2021.

 

Proposed dividend of €1.10 per share

In light of this remarkable performance and the Group's excellent financial position, the Board of Directors has decided to propose a final dividend of €1.10 per share in respect of 2021 to the Annual General Meeting to be held on May 10, 2022, representing a payout ratio of 42 % of net income. Taking into account the interim dividend of €0.34 per share paid on November 10, 2021, the balance to be paid will amount to €0.76 per share.

 

Outlook for 2022

As of early 2022, the market in which Aubay operates is still very buoyant. Customers are continuing to ramp up their investments in digital transformation, with demand from key accounts even higher than the same time last year. The Group's key challenge will be to generate profitable and sustainable growth that outperforms its benchmark market, with Numeum forecasting growth of 4.7 % for the IT services industry in 2022.

All the Group's operating indicators are sound, building on the strong dynamic seen in 2021, and management is confident that the Group will achieve the following targets:

  • Organic growth of between 7 % to 9 %, i.e., revenue of between €504 million and €513 million,
  • Operating margin from ordinary activities of between 9.5 % and 10.5 %.

 

Aubay will publish its 2022 first-quarter revenue on April 21, 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.

   2021
Organic growth +10.4%
Impact of changes in scope -
Growth as reported +10.4%

 

 

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 7,306 employees in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), 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 - [email protected]

David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: [email protected]

 

 

APPENDICES

 

Statement of financial position as of December 31, 202 1    
     
     
ASSETS (in € thousands) Dec. 31, 2021 Dec. 31, 2020
     
Goodwill 131,305 131,305
Intangible assets 917 771
Property, plant & equipment 4,156 5,166
Right of use relating to leases 14,152 18,611
Equity-accounted investees -  
Other financial assets 2,102 2,263
Deferred tax assets 2,653 2,472
Other non-current assets 354 118
NON-CURRENT ASSETS 155,639 160,706
Inventories and work in progress 491 516
Assets on contracts 32,127 29,148
Trade receivables 111,359 105,432
Other receivables and accruals 37,082 33,496 
Marketable securities 1,026 579 
Cash at bank and in hand 78,461 51,883 
CURRENT ASSETS 260,546 221,054
TOTAL ASSETS 416,185 381,760
     
EQUITY AND LIABILITIES (in € thousands) Dec. 31, 2021 Dec. 31, 2020
     
Capital 6,611 6,604 
Additional paid-in capital and consolidated reserves 188,740 170,016 
Net income attributable to owners of the parent 34,409 26,132 
Shareholders' equity attributable to the Group 229,760 202,752
Minority interests 191 144 
SHAREHOLDERS' EQUITY 229,951 202,896
Borrowings and financial liabilities: non-current portion 2,155 3,913
Rental liabilities due in more than 1 year 10,198 13,756
Deferred tax liabilities 1 1
Provisions for contingencies and expenses 6,924 6,751
Other non-current liabilities 74 273
NON-CURRENT LIABILITIES 19,352 24,694
Borrowings and financial liabilities: current portion 2,500 3,907
Rental liabilities due within 1 year 4,366 5,240
Trade and other payables 35,981 30,572
Contract liabilities 19,913 18,319
Other current liabilities 104,122 96,132
CURRENT LIABILITIES 166,882 154,170
TOTAL EQUITY AND LIABILITIES 416,185 381,760

 

 

Income statement for 2021        
         
In € thousands 2021 % 2020 %
Revenue 470,601 100% 426,382 100%
Other operating income 409    421   
Purchases used in production and external charges (99,319)    (86,216)   
Staff costs (310,482)    (287,855)   
Taxes other than on income (3,963)    (3,702)   
Amortization, depreciation and provisions (7,558)    (7,628)   
Change in inventories of work in progress and finished goods        
Other operating income and expenses 239    (187)   
Operating profit from ordinary activities 49,927 10.6% 41,215 9.7%
Expenses linked to restricted share units and similar awards (1,489)    (1,112)   
Current operating profit 48,438 10.3% 40,103 9.4%
Other operating income and expenses (1,120)    (1,463)   
Operating profit 47,318 10.1% 38,640 9.1%
Income from cash and cash equivalents        
Net borrowing costs (494)    (588)   
Other financial income and expenses 578    169   
Financial income/(expense) 84   (419)  
Income tax expense  (12,921)  27% (12,036)  31%
Income from equity-accounted investees        
Net income before results of discontinued operations or assets held for sale 34,481   26,185  
Net income after tax of discontinued operations or assets held for sale        
Net income 34,481 7.3% 26,185 6.1%
Attributable to owners of the parent 34,409    26,132   
Minority interests 72   53   
Basic weighted average number of shares 13,209,435   13,192,494   
Earnings per share 2.60   1.98  
Diluted weighted average number of shares 13,283,935   13,244,994   
Diluted earnings per share* 2.59   1.97  

 

 

Cash flow statement for 2021    
     
     
 (in € thousands) 2021 2020
     
Consolidated net income (including non-controlling interests) 34,481 26,185
Income from equity-accounted investees    
Net depreciation, amortization and provisions and right of use relating to leases 7,161  7,298 
Non-cash expenses and income relating to share-based payments 1,489  1,112 
Other non-cash items   212 
Dividend income    
Gains and losses on disposals of fixed assets 45 
Cash flow after net interest expense and tax 43,132 34,852
Net borrowing costs 494  588 
Tax expense (including deferred taxes) 12,921  12,036 
Cash flow before net interest expense and tax (A) 56,547 47,476
Income tax payments (B) (11,485)  (9,651) 
Change in trade and other receivables (C) (13,215)  8,323 
Change in trade and other payables (C) 13,959  1,121 
Change in WCR linked to operations (including debt related to employee benefits) 744 9,444
Net cash provided by (used in) operating activities (D) = (A+B+C) 45,806 47,269
Outflows for the acquisition of tangible and intangible fixed assets (1,034)  (1,023) 
Inflows from the disposal of tangible and intangible fixed assets    
Outflows for the acquisition of financial assets   (48) 
Inflows from the disposal of financial assets    
Change in loans and advances granted 99  356 
Disbursements (cash) related to business combinations, net of cash and cash equivalents    
Dividends received    
Other operating cash flows    
Net cash provided by (used in) investing activities (E) (935) (715)
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 (8,851)  (7,916) 
 - Dividends paid to the non-controlling shareholders of consolidated companies  (25)  
Inflows from new borrowings   1,734 
Repayment of loan debt (3,374)  (6,631) 
Repayment of rental liabilities (5,323)  (5,048) 
Net interest payments (494)  (588) 
Purchase of non-controlling minority interests    
Other financial cash flows    
Net cash provided by (used in) financial activities (F) (18,067) (18,449)
Effects of changes in foreign exchange rates (G) 47 (31)
Change in net cash (D+E+F+G) 26,851  28,074 
Cash and cash equivalents at the beginning of the period 52,205 24,131
Cash and cash equivalents at end of period 79,056 52,205

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  Original Source: AUBAY