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Sword Group Earnings Release 2020
9939_iss_2020-07-28_dd6ec884-ae4e-40b2-a900-748f6fba8bd8.pdf
Earnings Release
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Financial Press Release
Windhof - 28 July 2020
SWORD
UPGRADE YOUR BUSINESS
Sword Group
Results for the Second Quarter of 2020
Start of Negotiations with Argos with a View to Selling the Business Activities in France
RESULTS
SECOND QUARTER 2020
Consolidated Revenue: €55.0m
Consolidated Growth: + 2.6%
Organic Growth on a like-for-like basis: + 1.9%
Profitability (EBITDA margin): 14.4%
SECOND QUARTER ACCOUNTS 2020
| Q2 | ||
|---|---|---|
| €million | 2020 (1) (2) | 2019 |
| Revenue | 55.0 | 53.6 |
| EBITDA | 7.9 | 7.1 |
| EBITDA margin | 14.4% | 13.3% |
Organic Growth + 1.9%
FIRST HALF OF 2020
Consolidated Revenue: €112.1m
Consolidated Growth: + 7.7%
Organic Growth on a like-for-like basis: + 6.0%
Profitability (EBITDA margin): 13.1%
ACCOUNTS FOR THE FIRST HALF OF 2020
| H1 | ||
|---|---|---|
| €million | 2020 (1) (2) | 2019 |
| Revenue | 112.1 | 104.1 |
| EBITDA | 14.7 | 13.9 |
| EBITDA margin | 13.1% | 13.4% |
Organic Growth + 6.0%
(1) non audited figures
(2) with application of the IFRS 16 standard
[...]
The press release will be published on the web sites here after: Thomson Reuters and Sword Group. It was also sent to the "Commission de Surveillance du Secteur Financier (CSSF)" and saved on the Luxembourg Stock Exchange's website.
Market
Euronext Paris
Compartment B
ICB 9530
Software &
Computer Services
ISIN Code
FR0004180578
Indices
CAC® Small
CAC® Mid & Small
CAC® All-Tradable
CAC® All-Share
31
Agenda
08/09/20
H1 2020 Results presentation meeting at 10 am, in Paris, Centre Arpège Trocadéro
07/10/20
2020 Third Quarter Revenue
[Methodological Note]
Regarding the definition of the alternative performance indicators mentioned above, their justification and their calculation methods, please refer to the relevant methodological note (paragraph 2 page 15 of the Annual Financial Report for 2019) as published in the Annual Report ending on 31st December 2019. To access the Annual Report, please click HERE.
sword-group.com
Sword Group - 2, rue d'Arlon L-8399 Windhof - [email protected]
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PME
EURONEXT
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FINANCIAL INVESTMENT
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ANALYSIS
The +6% organic growth for the 1st half of 2020 at constant exchange rates on a like-for-like basis can be broken down as follows:
- Software: -9.1%
- Services: +7.9%
The Software division shows a decrease, mainly due to the postponement of licence revenue that was budgeted for the first half-year.
The Services division reacted to the crisis with different trends depending on the countries.
Two countries stood out in particular:
- BeLux (-0.4%) that did not show growth due to the Tipik subsidiary, in charge of the development of information systems linked to the organisation of events within the European Union.
- The UK (+18.9%) whose business activity was energised by the Oil market.
2020 OUTLOOK
Sword Group plans organic growth of 5%* (versus 12% budgeted) associated with an EBITDA margin of 13% (no change in relation to the initial budget).
PROJECT TO SELL THE BUSINESS ACTIVITIES IN FRANCE
Argos Wityu and Sword Group have entered into negotiations with a view to the acquisition by Argos Wityu of the French business activities of Sword Group.
The perimeter concerned by the operation envisaged includes:
- The Services business activities currently managed by the French subsidiaries in France,
- The international Software activities with the National Trademark and Patent Offices.
This perimeter, the profitability of which is in line with the Group standards, generates a revenue trend of €60 million for 2020.
Argos Wityu is a European Fund whose investment strategy favours company growth, and who invests in particulier in the new technologies sector. While preserving the assets and expertise developed by the Group in France, Argos Wityu and the current management team of Sword France have an ambitious development project.
Sword Group will focus on:
- In France, the Software activities generally speaking,
- In the GRC sector (Risk Management and Compliance), acquisitions that provide products that are complementary to those already managed by this division,
- In the UK, Services through aggressive mainly organic growth but also supported by targeted acquisitions,
- In the other countries, the pursuit of its organic growth accompanied by potential acquisitions.
[The operation remains subject to information and consultation of the staff representatives and to approval of the anti-trust authorities.]
The press release will be published on the web sites here after: Thomson Reuters and Sword Group. It was also sent to the "Commission de Surveillance du Secteur Financier (CSSF)" and saved on the Luxembourg Stock Exchange's website.
| Market | ICB 9530 | ISIN Code | Indices | Sword-Group.com |
|---|---|---|---|---|
| Euronext Paris | Software & Computer Services | FR0004180578 | CAC® Small | CAC® All-Tradable |
| Compartment B | CAC® Mid & Small | CAC® All-Share |
Sword Group
Sword has 2,300+ IT/Digital & Software specialists present over 5 continents to accompany you in the growth of your organisation in the digital age.
As a leader in technological and digital transformation, Sword has since 2000 acquired a solid reputation in software publishing and in complex IT & business project management.
With Sword you have the guarantee of strong close and qualified local commitment, the aim of which is to optimise your processes and data.
Agenda
01/09/20
H1 2020 Results presentation meeting at 10 am, in Paris, Centre Arpège Trocadéro
12/10/20
2020 Third Quarter Revenue
Sword Group - 2, rue d'Arlon L-8399 Windhof - [email protected]
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EURONEXT
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LE BONNE DE L'UNIVERSITÉ
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