Business in first half 2021

Results H1 2021
29/07/2021
  • RETURN OF ORGANIC GROWTH IN FIRST HALF: +3.4%
  • RESTORED OPERATING MARGIN: 9.8% OF REVENUE
  • 4 ACQUISITIONS IN FRANCE AND OVERSEAS

RESULTS H1 2021

ACTIVITY AT END OF JUNE: +12.5%

Revenue reaches €1,395.2 M growing by 12.5% as compared to June 2020. On a like‐for‐like basis, the activity grows by 3.4% (‐ 0.1% in France; 5.7% outside France). All business activities are in strong growth on the second quarter 2021, partly due to the favourable base effect from the second quarter of 2020. Automotive and Civil Aeronautics stay neverthelessimpacted by the Health Crisis.   Rail/Naval, Defense & Security, Life Sciences and the other industries have more than 10% growth.   All geographical areas are growing except Germany and Sweden, where the weight of Automotive and/or Civil Aeronautic sectors is important. France is stable. It keeps being impacted on those sectors, but shows good performances on other sectors.

OPERATING PROFIT ON ACTIVITY: 9.8% OF REVENUE

Operating Profit on Activity reaches €137.1 M, i.e. 9.8% of revenue. The strong recovery on the second quarter and cost efficiency have allowed to get back earlier than expected to pre‐Health Crisis operating margin levels.

OPERATING PROFIT: 8.9% OF REVENUE

Operating Profit reaches €124.2 M (i.e. 8.9% of revenue). It includes €7.5 M of shared‐based payments (non cash) and €5.4 M of non‐recurring costs mainly associated with restructuring cost, acquisition fees and earn‐out.

NET PROFIT, GROUP SHARE: 6.4% OF REVENUE

The working capital requirement (WCR) increase of €76.6 M is mainly due to the strong activity recovery in the second half generating a substantial increase of the accounts receivable. After income tax and Capex, Free Cash Flow reaches €50.4 M i.e. 3.6% of revenue.   Net cash position equals €162.9 M, after taking into account the acquisitions (‐€51.5 M), other financial flow (‐€2.3 M) and dividends (‐€33.9 M). Gearing equals ‐12.7%.

EXTERNAL GROWTH: 4 ACQUISITIONS IN FRANCE AND OVERSEAS

ALTEN has finalised 4 acquisitions in 2021:

  • In UK/Finland: 1 company specialised in Consulting and Agile Training (Revenue: €9.5 M, 65 consultants)
  • In Germany: 1 company specialised in Engineering Consulting (especially in the Automotive sector) (Revenue: €10 M, 90 consultants)
  • In France: 1 company specialised in the transformation and digitalisation of Information System (Revenue: €37 M, 280 consultants)
  • In UK: 1 company specialised in Life Sciences (Revenue: €20 M, 180 consultants)

OUTLOOK FOR 2021:

Automotive and Civil Aeronautics remain impacted by the Health Crisis but are growing again. Organic growth recovery occurred earlier than anticipated but its perennity and intensity will obviously depend on the evolution of the health crisis.   If the context remains unchanged, ALTEN should obtain in 2021 a satisfying organic growth and operating margin on activity. ALTEN will keep reinforcing in strategic sectors and activities by pursuing itstargeted external growth policy in order to speed its development, mainly overseas.

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