GFI INFORMATIQUE: 2011 FULL-YEAR EARNINGS
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REVENUE GROWTH: +5.4%
INCREASE IN CASH FLOW: +42.6%
GEARING POST THE CANADA DISPOSAL: 20%
| Main profit and loss items | Before application of IFRS 5 | Canadian businesses, discontinued | 31.12.11 Reported2 | 31.12.10 Restated | Variation | Variation % |
| Revenue | 683.8 | 65.7 | 618.1 | 586.2 | 31.9 | 5.4% |
| Operating margin | 45.1 | 10.8 | 34.3 | 29.2 | 5.1 | 17.4% |
| As a % of revenue | 6.6% | 16.5% | 5.6% | 5.0% | 0.6 pt | |
| Operating profit | 28.8 | 9.3 | 19.6 | 16.1 | 3.5 | 21.5% |
| Profit before income (loss) from discontinued operations and goodwill impairment | - | - | 11.1 | 8.5 | 2.6 | 30.1% |
| Net profit attributable to Group | - | - | 10.5 | 12.0 | -1.4 | -11.9% |
| Earnings per share | - | - | 0.20 | 0.22 | -0.02 | -11.9% |
| Main balance sheet items | ||||||
| Cash flow | 44.1 | 11.8 | 32.3 | 22.7 | 9.7 | 42.6% |
| Net debt | 75.9 | -9.0 | 84.9 | 87.0 | -2.1 | -2.4% |
| Restated net debt[4] | na | na | 37.8 | na | na | na |
| Equity (Group share) | 192.6 | - | 192.6 | 176.5 | 16.1 | 9.1% |
| Restated net debt to equity (Group and minority interests) | 36% | 20% | 48% | 30 pt |
Commenting on these results, Vincent Rouaix said: "Gfi Informatique has made considerable progress in the past two years, in a complicated environment. We have refocused our business on key European markets, made significant strides in moving up the value chain by increasing profitability, and regained a comfortable level of financial flexibility. The main phases of the strategic plan unveiled in 2009 have been completed on schedule. We continue to actively implement this winning strategy, supporting it with an ambitious policy of targeted acquisitions, in order to make Gfi Informatique an unavoidable local player in key markets and achieve further profitability growth."
BUSINESS TRENDS: ACCELERATION OF GROWTH AND OPERATING MARGIN GAINS
Group revenue reached €618.1m in 2011, rising by 5.4% on a reported basis and by 2.4% like-for-like. Operating margin came in at €34.3m, or 5.6% of revenue, up from 5.0% in 2010 and 4.1% in 2009.
Before application of IFRS 5, Group revenue would have totalled €683.8m at 31 December 2011 and operating margin €45.1m.
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France: Growth and increasing profitability
Revenue ended the year at €496.7m, up from €468.3m in 2010, implying 6.1% growth of which 2.7% like-for-like. Growth is gathering momentum with each passing quarter and has benefited the high value-added and recurring activities that form the cornerstone of the Group's repositioning strategy. Operating margin rose by 11.8% year-on-year to €28.7m (5.8% of revenue), even though there were two additional non-working days due to the implementation of work-time reduction agreements.
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International: Margins growing
Iberian Peninsula
Revenue ended the year at €91.7m, compared with €95.0m a year earlier, reflecting a combination of strong resilience in Spain and a decline in Portugal attributable to economic conditions there. Operating margin rose sharply, to €4.3m, or 4.7% of revenue, from €3.0m (3.1%) in 2010.
Northern Europe (Belux and Switzerland)
Revenue in Northern Europe rose by 34.3%, or 21.6% on a like-for-like basis, to €24.3m from €18.1m in 2010. Belux, which contributes 95% of sales, recorded a 3.4% year-on-year increase in operating margin to 5.8%.
Morocco
Revenue growth reached 12.4% in Morocco, and margin held at a high 8.8%.
OPERATING PROFIT GROWTH: +21.5%
Group operating profit advanced by 21.5% over the year to €19.6m, driven by a decline in restructuring costs and other operating income and charges.
Net profit before income (loss) from discontinued operations and goodwill impairment rose 30.1%, from €8.5m to €11.1m.
The cost of borrowings, net of other financial income and charges, rose €1.3m, chiefly due to interest on the Oceane and, more generally, the rise in interest rates over the period.
To factor in a worsening economic climate and outlook in Southern Europe, the group recorded €4.5m of goodwill impairment charge on the businesses in Spain and Portugal during the year.
Net profit attributable to the Group was €10.5m, compared with €11.9m in 2010. However, the result for 2011 was not directly comparable to the year-earlier figure, which had included one-time gains on the disposal of the healthcare software business in Canada, income from the use of losses carried forward, and goodwill impairment of just €1.0m.
Earnings per share came to €0.20, compared with €0.22 in 2010.
A SIGNIFICANTLY IMPROVED FINANCIAL SITUATION
Gfi Informatique's financial situation has never been more favourable. Improved profitability and a tight control of working capital requirement combined to lift cash flow by 42.6%, to €32.3m from €22.7m in 2010. The net debt-to-equity ratio fell to a record 41% at 31 December 2011, not taking into account proceeds from the disposal in Canada received in March. With these proceeds, gearing would have stood at 20% on 31 December 2011.
HEADCOUNT
The headcount stood at 8,695 at 31 December 2011, meaning the Group employed 655 more people than on 31 December 2010, of which 380 previously worked for Ares.
PROPOSED DIVIDEND
Taking into account the earnings for the year, the board of directors will propose to the next General Meeting the payment of a dividend of 9 eurocents per share.
A STRATEGY GEARED TO PROFITABLE GROWTH BOOSTED BY ACQUISITIONS
The disposal at an opportune time of the Canadian activities, which offered no synergies with the Group's other businesses, allowed Gfi Informatique to record a capital gain of around €3m in 2012. It also strengthens the Group's financial situation, since transaction proceeds amount to €57m, of which €47m were payable immediately and the balance in 18 months.
This deal, taken together with strong cash generation and the €50m Océane bond issued in June 2011, give Gfi Informatique the financial resources needed to step up the acquisition policy initiated in 2011 with the takeover of Ares and negotiations to acquire the Business Solutions activities of Thales. Future acquisitions will focus in priority on bolstering the Group's positions in France and thus rising further up the value chain, in keeping with the strategy successfully implemented since the second half of 2009. Focused on integration, industrialisation and innovation, this strategy is designed to make Gfi Informatique an unavoidable local player offering high value-added solutions in its different businesses.
OUTLOOK
The Group remains cautious about 2012, since market conditions currently afford limited visibility. However, insofar as business trends remain very robust, management is forecasting, as of today, a further increase in revenue and more profitability growth over the full year.
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Next release: 2 May 2012, Q1 2012 revenue
Notice
The items in this press release other than historical facts are estimates. They do not constitute guarantees because of the inherent difficulties in forecasting results. Actual results may differ considerably from explicit or implicit forecasts.
About Gfi Informatique
Gfi Informatique is a major player in value-added IT services and software in Europe, and occupies a strategic position in its differentiated approach to global firms and niche entities. With its multi-specialist profile, the Group serves its clients with a unique combination of proximity, sector organisation and quality industrial solutions. The Group has almost 8,700 employees and generated 2011 revenue of €618.1m.
Gfi Informatique is listed on the Paris Euronext, NYSE Euronext (Compartment B) - ISIN Code: FR0004038099.
| For further information, please contact: |
GFI INFORMATIQUEKEIMA COMMUNICATIONPRESS RELATIONS
Alix HERIARD
Tel : +33 1 56 43 44 62
alix.heriard@keima.fr
Investor Relations
Emmanuel DOVERGNE
Tel.: +33 1 56 43 44 63
emmanuel.dovergne@keima.fr
Administrative and Financial Director
Cyril MALHER
Tel.: +33 1 44 04 50 64
cyril.malher@gfi.fr
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APPENDICES
Profit and loss account
The restatement of the exercices 2010 and 2009 concern the application of the standard IFRS 5 on the discontinued activities.
Cash-Flow statement
The restatement of the exercices 2010 and 2009 concern the application of the standard IFRS 5 on the discontinued activities.
Balance sheet
Revenue
The restatement of the exercices 2010 and 2009 concern the application of the standard IFRS 5 on the discontinued activities.
P/L reconciliation with IFRS
[1] Operating profit on ordinary activities before one-time charges including goodwill impairment and write-downs.
[2] Audit work on the consolidated financial statements has been carried out. The audit report will be issued on completion of the due diligence required for the purposes of publishing the annual financial report.
[3] Particularly in the profit and loss account, all income and charges are grouped together under "profit (loss) from discontinued operations". A reconciliation chart for the 2009 to 2011 fiscal years is included in the appendices.
[4] Net debt at 31/12/2011 restated for the share of proceeds from the disposal in Canada received in March 2012.
