Results for H1 2012

Results for H1 2012

Turnover: +14.6% / Operating margin: 6.6% / Net margin: 4.5%
Confidence in growth forecast
and rise in profitability in the second half

Bagnolet, 29 August 2012

In €M, at 30 June20122011Δ 2012 / 2011
Turnover for H168.860.0+14.6%
where Services Turnover64.756.7+14.0%
where Software Turnover4.54.8+24.2%
Recurring Operating Income4.54.8
 In % of turnover6.6%8.0%(6.1%)
Net Profit (Group Share):3.13.3
 In % of turnover4.5%5.6%(7.6%)

Activity: Expansion of the service desks

Infotel had a good first half of 2012 with a turnover of € 68.8 M, increasing 14.6%. On a like-for-like basis*, activity displayed a rise of 11.8% in organic growth above market.

The Services division (94% of turnover) grew 14.0% to € 64.7 M (+4.6% in Q2). Activity continued in all sectors except Automobile, with an expansion of several major service desks in the Insurance, Pensions, Banking and Aeronautics sectors. Almost 120 people were recruited during the first half, and the activity rate at the end of the period remains among the standard rate for the Group.

The Software division (6% of turnover) grew 24.2% to € 4.1 M, of which +69.8% in Q2 (+40.3% on a like-for-like basis). The activity recorded two very good quarters in terms of royalties resulting from IBM sales. In France, the purchasing forecasts are affected especially in the second half of the year by a certain ‘wait-and-see’ attitude and relatively long decision-making processes.

*Excluding the contribution of Insoft Software GmbH (Software division) and Empeiria (Services division) acquired in 2011 and incorporated respectively on 30 June 2011 and 1 January 2012

Half-year results: prioritising growth over margins

The operating income was established at € 4.5 M (as opposed to € 4.8 M in the first half of 2011), with an operating margin of 6.6%, down in relation to the first half of 2011. This drop results from three elements: the desire to prioritise growth with the start-up of major service contract projects signed in 2011, where expansion required more subcontracting, and the winning of new customers; the stoppage of some projects, notably in the Automobile and Distribution sectors, temporarily affecting the inter-contract rate; and the general ongoing pressure on prices where Infotel has however managed to maintain its position.

The net profit (Group share) of the consolidated accounts rose to € 3.1M (as opposed to € 3.3 M in the first half 2011), with a net margin of 4.5% compared to 5.6% in H1 2011.

Solid financial situation

Infotel‘s financial situation remains solid. The Group’s equity grew to €42.5 M (as opposed €38.2 M at 30 June 2011) and debt is nil. The operating net cash increased € 1.8 M and was established at € 15.1 M at 30 June 2012 (after the acquisition of Empeiria and the payment of dividends).

Confidence in growth forecast; rise in profitability in the second half

Thanks to the solidness of its economic model (almost 70% of Services are performed under consulting contracts) and its dynamic sales teams, Infotel has managed to both maintain its position and secure its margins in a demanding economic context.

The Group is hence confident about its growth forecasts and confirms its target of € 135 M in turnover for 2012. Regarding profitability, the second half should enable it to return to optimum levels. Despite a reduced visibility, the recurring operating income of the same order as the previous year should be achieved in 2012.

Next meetings:
Analysts meeting: 19 September 2012

Publication of Q3 2012 turnover: 24 October 2012 (after trading)

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (ISIN code FR0000071797), Infotel is an expert in database management and web applications. At the cutting edge of technology innovation, Infotel develops its expertise in two complementary divisions: IT services and high-tech software publishing. As part of its “Ambitions 2012” plan, Infotel has set itself two major goals: perform almost all service provision from its service desks, and become a front-line player in dematerialisation. In 2011, Infotel had a turnover of € 123.5 M.