2002/2003 first half results
- December 11, 2002Regulated information
- Despite degraded market context, Group maintains operating results
- Exceptional depreciation of the A. goodwill
- Financial situation healthy, cash position improved
- Annual targets maintained
SoluCom (Euroclear 7486) today announces its results for the first half of its 2002/2003 fiscal year.
Key figures
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Accounts as of 09/30
In M€ |
1st half
2002/2003 |
1st half
2001/2002* Group |
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|
Group
|
SoluCom +
Idesys |
Arcome
|
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|
Turnover Operating profit
Net profit Net profit/ loss |
11.2 0.8 0.3 (6.6)** |
10.1 1.2 0.6 |
1.2 (0.4) (0.3) |
9.2 1.1 0.6 0.4 |
* SoluCom and Idesys 6 months – Arcome 1 month
** including 6.6 M€ for the exceptional Arcome depreciation
Despite the degraded market context, the Group maintains its operating results
During the 1st half of its 2002/2003 fiscal year (ended September 30), the turnover of SoluCom established itself at 11.2 M€ versus 9.2 M€ for 2001/2002, up 21%. On a like-for-like SoluCom-Idesys basis, organic growth comes out to 14%.
Over the period, SoluCom generated an operating profit of 0.8 M€ versus 1.1 M€ during the first half of 2001/2002. The operating margin comes out to 7.3%, up from the 6.4% achieved during the 2nd half of the previous year, which was marked by the budding crisis in the new technologies sector.
It should be noted that these 7.3% were recorded during the half year that includes the summer. Besides, the reorganisation of Arcome is expected to start having its full effect only during the second half of 2002/2003.
The non-operating expenses come out to (0.3) M€, including reserves of 0.2 M€ to cover the depreciation of own shares purchased for the purpose of the liquidity contract.
The net profit before goodwill depreciation comes out to 0.3 M€, i.e. a net margin of 3.0%.
Decision to proceed to an exceptional goodwill depreciation for Arcome
Faced with an ever-more uncertain operator market and despite the healthier operating situation that prevails within Arcome, SoluCom, by mutual agreement with its Auditors, has decided to proceed to an exceptional depreciation of the goodwill of Arcome, up to 6.6 M€ (thereby bringing the residual goodwill to 0). Pursuant to that decision, the Group's share of the net loss comes out to (6.6) M€.
This bookkeeping decision has no impact on the Group's cash position.
Driven by the desire to be extremely cautious, it reflects the efforts put forth by SoluCom to deliver transparent and true accounts.
A robust financial situation
SoluCom maintains a robust financial situation, with shareholder equity of 6.2 M€. The net indebtedness has been slashed by two thirds, dropping from 2.4 M€ on March 31, 2002 to 0.8 M€ at the end of the half year (13% gearing). This reduction comes about as the result of the cash flow generated over the period and the reduction in operating capital requirements.
The net overdraft cash position comes out to 2.2 M€ as of September 30, 2002.
Intense sales policy and good control over operational indicators
Throughout the half year, SoluCom implemented an intense, targeted, sales policy, building on the loyalty of key customers and harnessing the drivers of demand, i.e. telecom costs optimisation, international networks, directories, and secured external access.
The half year saw the Group capture new customers including Areva, ATICA, Essilor, Geodis, IRD, Ministry of Foreign Affairs, Rhodia, Saint-Gobain, Snecma, and Spie.
Besides, the Group also managed to stay in control of its operating indicators: gradual recovery of the activity rate, price drop kept under control, and order book stabilisation. This control, combined with the sales policy implemented, made it possible for S to achieve good operating performance results, while the market was subject to sustained degradation throughout the half-year* and to tougher competitive pressure.
As far as Arcome is concerned, the measures adopted in March 2002 have begun to bear their fruits. Arcome conquered new first-rank positions with key operators; it benefited from the Group's commercial synergies, and displayed sustained progression of its activity rates. Now already, the average production rate for September, October, and November, is beyond the operating breakeven point.
However, Arcome still has limited visibility, with an order book covering 2 months only.
* Revised forecasts of the Syntec as of October 23: market decline ranging from 2 to 5% over the year.
Outlook
Commenting about SoluCom's future prospects, Pascal Imbert, Chairman of the Executive Board, declared: “In a market that degraded throughout the half year, SoluCom demonstrated the quality of its fundamentals and its ability to react, as reflected by its operating results. Financially speaking, we have decided to proceed to an exceptional depreciation of the goodwill of Arcome, and have reduced the Group's net indebtedness considerably, which made it possible for us to have a very healthy financial situation.
These solid bases put us in an ideal situation to enter the second half year, which is marked by still limited visibility, and take full advantage of the economic recovery whenever it takes place.”
Unless the market further degrades, SoluCom confirms its target annual turnover of 24 M€, with a 5% uncertainty, for an operating margin in excess of 6.4%.
About the SoluCom Group
The SoluCom Group, which was formed through the merger of SoluCom, Idesys and Arcome, is active in infrastructure consulting and engineering in the telecoms and networks, security and e-technologies segments. The Group has positioned itself in very high value-added services.
The Solucom Group's client roster includes some very prestigious names, all of which are very large accounts, including Air France, Amadeus, Arcelor, Auchan, Banque de France, BNP-Paribas, Caisse d'Epargne, Cegetel, Crédit Agricole, EDF, France Télécom, Groupement Cartes Bancaires, La Poste, the French Ministries of Finance and the Interior, LVMH, Renault, SNCF, Société Générale, Suez, TotalFinaElf and Vivendi.
SoluCom trades on the NextEconomy segment of Euronext Paris.
Euroclear Code 7486 – FTSE: 972, IT services – ISIN: FR0004036036
Next financial communication : Q3 turnover, 4 February 2003
Consult our latest financial information at: www.solucom.fr
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SoluCom Pascal IMBERT |
Actus Marine NAMAND |
Download a PDF file about 2002/2003 first half results