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Econocom Group SE — Interim / Quarterly Report 2012
Aug 30, 2012
3943_iss_2012-08-30_3fe94b04-6553-4bda-9071-7d1862006dfd.pdf
Interim / Quarterly Report
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REGULATED INFORMATION
30 August 2012
SHARP RISE IN RECURRING OPERATING PROFIT (39%) AND FIVE-FOLD INCREASE IN NET PROFIT
Revenue H1 2012 €736.9 M
Recurring operating profit H1 2012 €26.0 M 2012 HALF-YEAR RESULTS
Net consolidated profit H1 2012 €13.7 M
| CONSOLIDATED HALF-YEAR RESULTS (unaudited, in € millions) |
H1 2011 | H1 2012 |
|---|---|---|
| Revenue | 763.7 | 736.9 |
| Recurring operating profit1 | 18.6 | 26.0 |
| Operating profit | 12.8 | 21.3 |
| Financial result | (7.4) | (2.2) |
| Profit before tax | 5.4 | 19.1 |
| Tax | (2.7) | (5.4) |
| Net consolidated profit | 2.7 | 13.7 |
| Net profit, group share | 2.7 | 13.7 |
Econocom, the European leader in business-to-business ICT infrastructure management, announced its half-year results after the Board of Directors met today. Jean-Louis Bouchard, Chairman of Econocom Group, said: "Thanks to an all-round team effort, Econocom continues its expansion. In just six months, we have achieved revenue and recurring operating profit – despite the highly seasonal nature of business – very similar to our full-year results in 2008, the first year of our Horizon 2012 strategic plan, in spite of the difficult economic and financial environment."
2012 half-year results
In the first half of 2012, the group reported consolidated revenue of €736.9 million compared with €763.7 million in H1 2011. In difficult market conditions, in which certain clients were particularly hesitant, this slight drop (-3.5%) was due chiefly to the postponing of certain contracts and the relinquishment of non-strategic activities.
This realignment of the group's core business, combined with the synergies resulting from the integration of ECS and the controlling of operating costs, caused recurring operating profit to jump 39% from €18.6 million to €26 million.
Net profit increased five-fold in a year, standing at €13.7 million at the end of June 2012, thanks to a significant drop in financial expenses and integration costs.
Financial position on 30 June 2012
Net cash stood at €75.5 million at the end of June 2012, whilst net financial debt amounted to €59 million, €53 million less than a year ago.
At 30 June 2012, the group's consolidated shareholders' equity stood at €134 million.
At the Shareholders' Meeting on 14 September, Econocom will submit its proposal to cancel 7.6% of the share capital held as treasury stock, which will be immediately accretive, and to divide the Econocom Group share by 4.
Strategy and outlook
The main technology infrastructure trends (smart objects, virtualisation, cloud computing, security and mobile computing) are central to Econocom's development strategy and are major sources of growth.
In the light of this first half-year performance, Econocom maintains its annual guidance: a slight rise in revenue, recurring operating profit in excess of €70 million, and net earnings per share of around €2².
Furthermore, Econocom Group's strong financial position means it will be able to continue its external growth strategy in the second half, one which has already resulted in three acquisitions since the beginning of the year: Centix (virtualisation), Tactem (telecoms) and Cap Synergy (IT security).
The 2012 half-year report will be published on www.econocom.com after the close of trading on 31 August 2012.
The third-quarter revenue statement will be published after the close of trading on Wednesday 17 October 2012.
² Before the share is divided by 4
About Econocom
Established in 17 countries with 3,700 employees and consolidated revenue of €1.58 billion in 2011, Econocom is Europe's leading independent provider of business-to-business IT and telecoms infrastructure management services.
Its services include consultancy, distribution, leasing and a complete range of IT outsourcing services. The Econocom Group share (BE0003563716 - ECONB) has been listed on the Euronext NYSE in Brussels since 1986 and is part of the BelMid index
For further information
www.econocom.com - Follow us on Twitter: https://twitter.com/econocom
Contact: investor and shareholder relations: [email protected]
PR contact: [email protected]
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