Current operating margin 2006/2007: 13% – Goal for 2010 : to join the TOP 5 IS consulting firms

Financial objectives for 2006/2007 exceeded

At the end of the 2006/2007 financial year (ended on 31 March 2007), Solucom achieved consolidated turnover of €52.8m, up 36% as compared to 2005/2006. This figure takes into account the contribution of New'Arch and KLC, consolidated since 1 August and 1st November 2006, respectively.

EBIT amounts to €6.9m, up 37%. This represents 13.0% of invoicing, a level that is clearly higher than the 10% to 12% range initially aimed for. This achievement is the result of an excellent activity rate, at 86%, a rising selling price and controlled average wages.

The group’s share of net profit increased by 45%, to €4.6m, the net margin increased from 8.3% to 8.8%.

High level of cash-flow enabled the self-financed acquisition of New'Arch and KLC as well as the payment of dividends. Net cash remains largely favourable, and even rose slightly in the financial year to €6.7m on 31 March 2007, as against €6.6m the previous year. The group’s equity capital amounts to €20.2m at the end of the financial year, as against €15.7m in March 2006.

The dividend offered at the general meeting on 28 September 2007 of €0.14 per share is an increase of 40% as compared to the previous financial year.

Success of the 2004 – 2007 plan

The 2006/2007 financial year marks the success of the 2007 strategic plan presented three years ago. With its 524 associates (as of 31 March 2007), Solucom now affirms itself as the number one technology consulting company, with incontrovertible positions in certain infrastructure areas such as telecom, security or more recently SOA.

The plan’s financial goals could be surpassed because of a development that combined completely self-financed steady internal growth and vigorous external expansion while maintaining a high level of profitability.

In just a few years, Solucom has considerably reinforced its commercial positions and made a name for itself by now being present on more than half of its target of 200 largest French accounts.

Our ambition for 2010: to join the TOP 5 information systems consulting firms

Confident in its ability to pursue a steady development pace, Solucom has established new goals for the 2010 horizon.

The group aims at a leading position in the key area of information systems governance, while reinforcing its edge in technology consulting. As a "Governance & Technologies Consulting Group", Solucom’s goal is to combine the efficiency of governance with the relevance of technological choices and to position itself at the very heart of IS performance.

This evolution will be accompanied by a new change of dimension, with the goal of doubling in size to reach the threshold of 1,000 associates before the end of 2010 and thus join the TOP 5 information systems consulting firms. To achieve this goal, Solucom will make use of its significant client development potential, established recruiting know-how and strong ability to bring consulting companies together.

This doubling of size will be accompanied by investments that will enable increased awareness of the group and help develop a more international image, even if Solucom's priority in the next three years is to remain focused on the French market.

These developments will be achieved without sacrificing the group’s profitability.

Objectives for 2007/2008: + 30% growth and 11% to 13% of current operating margin

The alliance with Vistali, since 1 April 2007, marks a first step in this plan with the reinforcement of the Solucom offer in their current core business. In terms of governance, the group has already implemented its new range of offers by combining its existing know-how with the capacities of KLC, the latter being a catalyst for Solucom and an additional vehicle for recognition in this market.

For the 2007/2008 financial year, Solucom has set the goal of attaining a turnover of €70m, by consolidating Vistali as of 1 April 2007, and a current operating margin of between 11% and 13%, as opposed to a goal of 10% to 12% for the previous financial year.

Forthcoming publications: Q1 2007/2008 turnover, on 24 July 2007 (after closing).

Solucom group: Consulting in Governance & Technology

Solucom is an IS consulting group specialising in governance and technology consulting. Its positioning is summarised by its mission statement: IS performance to serve companies' core business requirements.
The group also consults to Telecoms operators to define their strategy for innovative offerings and services.
 Solucom is the partner of the largest French companies in their national and international projects:
Air France-KLM, Alstom, ANPE, Banque de France, BNP Paribas, Bouygues Telecom, Carrefour, Crédit Agricole, EDF, Gaz de France, La Poste, L’Oréal, Ministry of the Economy and Finance, Ministry of National Education, Ministry of the Interior, Neuf Cegetel, Orange, RTE, SFR, SNCF, Société Générale, Suez, Total.
Solucom is listed on Euronext Paris – Eurolist – Section C, NextEconomy section.
ISIN code: FR0004036036 – LCO; ICB: 9533 – Services Informatiques