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  GECI INTERNATIONAL company press release from 17/05/2021

  17/05/2021 - 18:00

2020-21 FULL-YEAR REVENUES


GECI International, the Digital Transformation and Technology Consulting specialist, is reporting pro forma1 full-year revenues of €16.5m, down 26% from the previous year on a comparable basis.

 

KEY DEVELOPMENTS FOR THE YEAR
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The financial year was impacted by the global pandemic and the resulting economic environment. Faced with this situation, the Group further strengthened its restructuring, focused in priority on its digital business and returning to a balanced financial position.

The Digital Transformation division (€15.1m - 91% of consolidated revenues), despite a significant contraction in revenues, maintained its positions with its clients globally. The company successfully adapted to the new crisis situation in terms of working from home, and following its effectively managed organization and integration during the first half of the year, it was able to record a sustained level of business over the second half of the year. Despite the health constraints limiting prospecting operations in France and internationally, the Group further strengthened its sales teams for the digital business in particular, anticipating this market's growing needs.

The Technology Consulting division (€1.4m - 8.6% of consolidated revenues) recorded a significant contraction due to ETUD Integral, which was deconsolidated from the Group's scope after being placed in compulsory liquidation proceedings on December 2, 2020, with its activity affected by both the automotive crisis and the health crisis. This deconsolidation will enable the Group to reinforce its financial position. The pro forma data in this press release takes into account the cancellation of this reduction in the Group's scope.

At March 31, 2021, the Group's consolidated revenues were split primarily between France (81%), Brazil (14%) and South Africa (5%). International revenues take into account an unfavorable exchange effect of €0.7m, representing 4.4% of revenues.

At end-March 2021, the Group had a total of 377 employees, with the reduction in its workforce since the end of March 2020 globally linked to the reduction in the Group's scope, the end of a contract in Brazil and the withdrawal from low-potential activities.

CHANGE IN HALF-YEAR AND FULL-YEAR REVENUES
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ETUD Integral's contribution has been cancelled out (€1.0m in 2020-21 and €3.1m in 2019-20) to enable full-year revenues to be compared based on an identical scope.

€m
Unaudited consolidated data
FY 2020-21
pro forma
FY 2019-20
pro forma
Change FY 2019-20
reported
First half (April-September) 8.3 11.2 -26.2% 13.0
Second half (October-March) 8.2 11.3 -27.1% 12.6
Full-year revenues 16.5 22.5 -26.6% 25.6

CHANGE IN REVENUES FOR EACH BUSINESS LINE AND REGION
__________

Based on pro forma data, the activities in France recorded 6% sequential growth from the first half of the year to the second half (€6.9m for H2 2020-21, versus €6.5m for H1 2020-21), reflecting the gradual improvement in business. For this same period, activities outside of France were down 4.7% at constant exchange rates.

  FY 2020-21
pro forma
FY 2019-20
pro forma
Change FY 2019-20
reported
€m % of rev €m % of rev (%) €m % of rev
Business line              
Digital Transformation 15.1 91.4% 20.6 91.6% -26.8% 20.6 80.5%
Technology Consulting 1.4 8.6% 1.9 8.4% -25.0% 5.0 19.5%
Holding - 0.0% - 0.0% NA - 0.0%
Full-year revenues 16.5 100% 22.5 100% -26.6% 25.6 100%
Region              
France 13.4 81.1% 16.6 73.6% -19.2% 19.7 76.8%
Brazil 2.3 13.9% 4.8 21.2% -52.0% 4.8 18.6%
South Africa 0.8 5.0% 1.2 5.2% -28.7% 1.2 4.6%
Full-year revenues 16.5 100% 22.5 100% -26.6% 25.6 100%

FINANCIAL POSITION
__________

The Group effectively capitalized on this crisis period to accelerate its reorganization. Several positive developments stand out: (i) the crisis has been a major accelerator for the Company's digital transformation, (ii) the restructuring rolled out from September 2019 has been further strengthened, making it possible to limit the consequences of Covid-19, (iii) the financing agreement signed in September 2020 based on ORNAN bonds redeemable in cash and/or new shares has enabled the Company to achieve a sound financial position to cover its immediate cash requirements, while securing its long-term financial stability. The Group is moving forward with its deleveraging and redeployment policy, targeting a quick return to a balanced position.

OUTLOOK
__________

In a difficult economic environment, the Group intends to safeguard its financial capacity and is moving forward with its strategy to return to a balanced position by optimizing its costs and processes, while realigning its commercial development around its markets with stronger potential, such as digital transformation and technologies, with a focus on cybersecurity and smart solutions and products.

Since the start of 2021, the Group has specifically rolled out a series of actions aimed at accelerating its commercial activity:

i) Focusing on strong value-added activities and training its consultants in these areas;
ii) Strengthening its listings with key clients and access to tenders with several new prospects, including major companies from the finance sector;
iii) Setting up international partnerships to support the recruitment of expert profiles.

These actions are expected to support the robust developments put in place and the economic recovery that is forecast. Despite a complex situation in Brazil, a multi-year contract was won with a leading telecoms operator during the fourth quarter of 2020, while initial encouraging feedback has been received for the smart products and solutions, particularly in terms of cybersecurity and traffic management. These expected positive developments will be consolidated by the stronger sales teams set up and the new listings secured.

All of the Group's teams, fully focused on profitability targets, are effectively positioned to get back on track for growth and success.

NEXT DATE
__________

2020-21 full-year earnings on July 30, 2021 after close of trading.

Publication of the Annual Financial Report on July 30, 2021 after close of trading.

ABOUT GECI INTERNATIONAL
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“Smart Solutions for a Smart World”

Founded in 1980, GECI International is a specialist Digital Transformation and Technology Consulting group. For over 40 years, GECI International has innovated alongside major industrial and service companies to provide smart solutions, products and services. With its network of partner companies and expert capabilities worldwide, the Group offers integrated solutions for Finance, Services and Industry for its clients, from key accounts to SMEs and startups.

GECI International has been listed on the Euronext Growth Paris market since March 29, 2021.
ISIN (shares): FR0000079634 - ALGEC / ISIN (BSAR A warrants): FR0013266764 - GECBT

CONTACTS
__________

GECI International - Investor Relations
Tel: +33 (0)1 46 12 00 00 / [email protected]
CALYPTUS - Cyril Combe
Tel: +33 (0)1 53 65 68 68 / [email protected]

 

1 Taking into account the deconsolidation of ETUD Integral in December 2020


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  Original Source: GECI INTERNATIONAL