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Econocom Group SE — Earnings Release 2010
Jan 26, 2011
3943_iss_2011-01-26_73f573a0-2e1d-4884-bfae-d6940890eddd.pdf
Earnings Release
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GOOD YEAR 2010, NOTABLE FOR THE ACQUISITION OF ECS GROUP
REVENUE AND RECURRING OPERATING PROFIT UP
In 2010 Econocom Group posted consolidated revenue of €1,010 million (compared to €759 million in 2009).
Recurring operating profit stood at €47 million (versus €28.7 million in 2009).
With these results, one of the two objectives of the Horizon 2012 strategic plan has been fulfilled: €1 billion revenue.
2010 was a particularly successful and significant year for Econocom Group, as it finalized the acquisition of ECS Group on October 28, 2010. Both groups' Management devoted considerable effort to the transaction throughout the second half. The findings of the integration focus groups launched at the end of October resulted in the new group's organization and general operating principles being announced on January 10, 2011.
A STRONG FINANCIAL POSITION
The results posted for 2010, combined with the capital increase reserved for Société Générale for the acquisition of ECS Group, raised shareholders' equity which stands at €140 million.
Total net debt (including the acquisition debt) came in at €40 million on December 31, 2010, which was significantly lower than forecast during the acquisition process, due to the measures taken to reduce working capital requirements in the fourth quarter.
The integration focus groups also confirmed that the synergies arising from the combining of the two groups could generate cost savings estimated at between €20 and 25 million full-year. The savings generated at this stage will translate into approximately €10 million in 2011.
OUTLOOK
In 2011 the focus will primarily be on ensuring a successful integration of the two groups.
The group's Management predicts for the current year revenue of €1.4 billion and operating profitability of 4% bolstered by the implementation of commercial and cost synergies.
The annual results will be published after the close of trading on March 16, 2011.
Econocom is a European service company specializing in business-to-business IT and telecom resource management. Econocom's service offering includes consulting, procurement, financing and a comprehensive range of IT outsourcing services.
The Econocom Group share is part of the Euronext Next Economy index. e-mail: [email protected] For more information, please visit our website: www.econocom.com
- 33%
Revenue:
2009 759
2010 1010
(in € millions)