Earnings Release • Jan 30, 2015
Earnings Release
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CUSTOM SOLUTIONS (ISIN: FR0010889386 - Ticker: ALSOL) major player in France of Operational Marketing Solutions announces today its consolidated results for the year 2014 (from Oct 1 st , 2013 until Sept 30 st , 2014).
The figures are extracted from the audited annual accounts.
| In thousands of euros | 2014 | 2013 | Variation 2014/2013 |
|---|---|---|---|
| Sales Turnover | 19 727 | 18 038 | +9,4% |
| Operating income | 1 441 | 2 155 | -33,1% |
| In % of sales | 7,3% | 11,9% | |
| Financial Result | 774 | 670 | +15,5% |
| In % of sales | 3,9% | 3,7% | |
| Profit before tax | 2 215 | 2 825 | -21,6% |
| In % of sales | 11,2% | 15,7% | |
| Exceptional result | -358 | 30 | n/s |
| In % of sales | -1,8% | 0,2% | |
| Net income prior to amortization of | 1 227 | 1 971 | -37,7% |
| goodwill | |||
| In % of sales | 6,2% | 10,9% | |
| Amortization Goodwill | -719 | - | n/s |
| acquisition | |||
| Result from associated | -52 | -35 | 48,6% |
| companies | |||
| Consolidated net income | 456 | 1 936 | -76,4% |
| In % of sales | 2,3% | 10,7% | |
| Minority interests | -66 | - | |
| In % of sales | -0,3% | ||
| Consolidated net income | 389 | 1 936 | -79,9% |
| part of the group | 2% | 10,7% | |
| In % of sales |
The group returned to growth with a sales turnover in sharp increase: € 19,7M against € € 18M in 2013, especially taking advantage of the consolidation in the last 6 months of its two last acquisitions, APP and Lojaali.
The operating result for the year amounted to € 1.4 million, against € 2.2 million in the prior year, a decrease of 33.1%. This decrease is the result of an unfavorable product mix in 2014, despite the recovery of marketing demand that led to a decline in gross margin to 65% of sales against 68% the previous year. The operating result was also affected by costs related to the change of the ERP: IT resources and consultants mobilized on deployment, acquisition costs and deployment in Europe.
The financial income reached a record level of € 774K, an increase of 15.5% over the previous year (€ 670K), thanks to continued high cash position and good investment management.
The consolidated profit before tax remained at a high level of 11.2% of sales, reaching € 2.2 million.
Net income decreased by 38% to € 1.2 million, or 6.2% of sales, primarily impacted by an exceptional loss of € 358K, which is consequential to prudent risk management.
The consolidated net income part of the group amounted to € 389K against 1936K € for the previous year.
The principal reasons of this evolution are :
With the return to growth in business during the year, 2014 was marked by :
The completion of two acquisitions in the first half: the French marketing group APP (brand Flexistart) and Lojaali digital agency in Finland, which have contributed to the activities up to € 1.8 million in the second half (or 9.1% of the annual result) and 19.7% of the turnover of the second half of 2014. The Group confirms its focus on marketing, which accounted for 67% of the group's activity in 2014, against 33% for logistics activities, in line with the objectives of the RIO 2016 project.
www.customsolutions.fr/en
Despite the sale of the logistics business and investments in digital infrastructure and international expansion, the Group expects a significant increase in net profit in 2015, in sofar as:
Finally, on December 9 th , 2014, Custom Solutions confirmed its status as an innovative company by obtaining the three-year renewal of its qualification by Bpifrance.
"Given the elements outlined above, it will be proposed at the General Meeting of Shareholders the payment of a dividend of € 0.1 per share, unchanged identical to previous year. The group experienced a significant transformational year in 2014, maintaining its objectives. For illustration purpose, on October 1st, 2014, the marketing activity represented 90% of our turnover, with a growing part in the digital, against 60% a year earlier. International development is launched, the new ERP in place, recent acquisitions integrated, the Parisian set up. The year 2015 should allow a return to results growth, despite the sale of logistics and increased investment in digital, engine of the group transformation and its growth.
We will also continue our research for targets to enhance our growth objective and our deployment strategy in marketing and digital, in France and in Europe.»
NEXT PRESS RELEASE
Sales turnover 1 st Half 2015
May 19th , 2015
(After market close)
Founded in 1997, Custom Solutions is a major player in Operational Marketing Solutions. The company supports its customers in developing their sales, acquisition and retention of their consumers and motivating their sales networks in designing and deploying innovative and effective marketing campaigns (from the most classic to the most personalized) throughout France and Europe.
With its integrated offer, its recognized innovation ability and its 17 years of expertise, Custom Solutions has built a solid reputation with 300 prestigious clients including Danone, Nestle, Ferrero, Procter & Gamble, Sony, LG , Warner Bros., Orange, Free, Renault and Total.
The company announced in 2013 its strategic plan to 3 years, RIO 2016, which goal is to make Custom Solutions a major European player in Operational Marketing. The project is structured around three axes:
On this basis, Custom Solutions became a 25 % shareholder in "Q3", who are a leading company in social networking who have developed a ground breaking virus mobilisation software solution. Custom Solutions also acquired 70% of a French "packaged solutions" marketing group called "APP", as well as a 55% stake in Finnish promotions agency "LOJAALI" and its Swedish partner "LOYALTIC".
Listed on Euronext's Alternext Paris ISIN : FR0010889386 – Mnemonic : ALSOL Labelized « Innovative Company » by BPIFRANCE
Cédric Reny Chief Executive Officer
David LEBEC Administrative and Financial Director
Phone : +33 (0)4 86 91 41 [email protected] GILBERT DUPONT
Jérôme Guyot Listing Sponsor Phone : +33 (0)1 40 22 45 87
www.customsolutions.fr/en
CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: [email protected]
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