ASSYSTEM : 2016 results, Strong growth and profitability momentum
(Thomson Reuters ONE) -
2016 results
Strong growth and profitability momentum
* Operating profit before non-recurring items (EBITA)(()[1]()) up 15.7% to
?66.9 million
* EBITA margin up 0.6 pt to 7.0%
* Adjusted profit for the period(()[2]()) up 23.1% to ?45.8 million
* Free cash flow(()[3]()): ?45.3 million, representing 4.7% of revenue
Paris, 8 March 2017, 5.35 p.m. CET - At its meeting on 7 March 2017, the Board
of Directors of Assystem S.A. (ISIN: FR0000074148 - ASY), a leading player in
engineering, reviewed the Group's financial statements for the year ended 31
December 2016.
Dominique Louis, Chairman and Chief Executive Officer of Assystem, stated:
"2016 was a year of dynamic growth for our three main sectors - Aerospace,
Automotive and Nuclear - which drove our operating performance. As a result, we
have embarked on 2017 with confidence, which is reflected both in the dividend
we will be recommending at our AGM in May and in the targets we have set
ourselves for the current year."
2015 2016 Year-on-year change
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Revenue 907.7 955.6 +5.3%
Operating profit before non-recurring items 57.8 66.9 +15.7 %
- EBITA
% of revenue 6.4% 7.0% +0.6 pt
Consolidated profit for the period(()[4]()) 27.9 32.1 +15.1%
Adjusted profit for the period 37.2 45.8 +23.1%
Free cash flow 44.8 45.3 +1.1%
% of revenue 4.9% 4.7% -0.2 pt
Net cash/(debt)(()[5]()) 198.8 (16.1) -
Adjusted earnings per share((6)) 1.72 2.12 +23.3%
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Dividend per share(7) (in ?) 0.80 1.00 +25.0%
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ANALYSIS OF THE 2016 INCOME STATEMENT
* Revenue
Assystem's consolidated revenue amounted to ?955.6 million in 2016, representing
a year-on-year increase of 5.3%, which breaks down as 5.4% in organic growth, a
1.2% rise due to changes in scope of consolidation and a 1.3% negative currency
effect.
Revenue generated by Global Product Solutions came to ?577.5 million and
accounted for 60.4% of the consolidated total. This 9.3% year-on-year increase -
which was driven by Aerospace and Automotive activities - breaks down as 9.7% in
organic growth, a 1.3% positive impact from changes in scope of consolidation
and a 1.7% negative currency effect.
Revenue for the Energy & Infrastructure business rose 1.5% to ?315.7 million and
represented 33.0% of the consolidated total. Organic growth and changes in scope
of consolidation each added 1.3% to revenue in 2016 whereas the currency effect
was a negative 1.1%. Excluding the impact of the revenue decline posted by the
Saudi Arabia-based company, Radicon, organic growth was 5.3%.
At ?53.2 million (accounting for 5.6% of the consolidated total), revenue for
the Staffing business decreased by 11.4%, as the positive effects of
diversifying into the industrial sector only partially offset the revenue drop
seen in the Oil & Gas sector.
* Operating profit before non-recurring items (EBITA)
Consolidated EBITA advanced 15.7% to ?66.9 million in 2016 from ?57.8 million
the previous year, and EBITA margin represented 7.0% of revenue, up 0.6 of a
point on the 6.4% recorded for 2015.
Global Product Solutions EBITA rose by ?8.2 million to ?47.0 million,
representing an EBITA margin of 8.1% versus 7.3% in 2015. Both the Aerospace and
Automotive sectors saw a sharp increase in their EBITA and EBITA margin figures.
EBITA for the Energy & Infrastructure business contracted by ?1.6 million to
?24.1 million, representing an EBITA margin of 7.6% compared with 8.3%.
Radicon's contribution to EBITA was a negative ?1.2 million, versus a positive
?3.7 million in 2015. Excluding Radicon, consolidated EBITA increased by ?3.3
million to ?25.3 million, representing an EBITA margin of 8.5% versus 7.8% in
2015.
Staffing EBITA came to ?2.4 million compared with ?1.4 million in 2015, and
EBITA margin rose to 4.6% from 2.3%. These year-on-year increases stemmed from a
reduction in the business's cost base and the collection of receivables that had
previously been written down as bad debt.
* Non-recurring income and expenses
This item represented a net expense of ?13.5 million in 2016, breaking down as:
* a ?7.0 million impairment loss recognized for assets used by the Staffing
business;
* ?3.5 million in restructuring costs; and
* a ?3.0 million net expense related to acquisitions and disposals and awards
of free shares and performance shares.
* Operating profit, consolidated profit for the period and adjusted profit for
the period
After deducting the net non-recurring expense for the year, consolidated
operating profit came to ?53.4 million, up 35.2% on the ?39.5 million reported
for 2015.
After taking into account ?3.6 million in net financial expense and a ?17.7
million income tax expense, consolidated profit for the period amounted to
?32.1 million, of which ?0.6 million was attributable to non-controlling
interests.
Adjusted profit for the period totalled ?45.8 million, up 23.1% year on year.
FREE CASH FLOW AND NET DEBT
Consolidated free cash flow amounted to ?45.3 million, representing 4.7% of
revenue. Excluding the one-off impact of a change in the rules for paying
certain payroll taxes in France, it came to ?50.3 million, representing 5.3% of
revenue and 75% of consolidated operating profit. DSO was unchanged at 78 days,
following a 5-day reduction in 2015.
The Group had net debt of ?16.1 million at 31 December 2016, versus net cash of
?198.8 million one year earlier. The majority of the year-on-year change was due
to the fact that in 2016 the Company bought back 91.2% of its Odirnane bonds and
reclassified under financial liabilities the Odirnane bonds that were still
outstanding at 31 December 2016. These remaining Odirnane bonds have been
redeemed since that date.
In January 2017, the Group entered into a new bank financing arrangement
comprising an ?80 million term loan(([6])()) and a ?200 million revolving credit
facility(([7])()) under financial and contractual conditions that reflect the
current liquidity of the bank lending market.
Recommended dividend for 2016
At the Annual General Meeting to be held on 16 May 2017, Assystem will recommend
the payment of a dividend of ?1.00 per share for 2016. If this dividend is
approved by shareholders it would represent a total payout of ?21.1
million(([8])), corresponding to 46% of adjusted profit for the period.
OUTLOOK FOR 2017
In view of the favourable market trends in the Automotive, Aerospace and Nuclear
sectors, Assystem has set itself the following targets for 2017:
* for organic growth at constant exchange rates to be at least the same as in
2016;
* a further increase in EBITA margin;
* free cash flow representing more than 5% of revenue.
FINANCIAL CALENDAR FOR 2017
- 27 April: Press release for first-quarter 2017 revenue.
- 16 May: Annual General Meeting.
Assystem is an international group specialised in engineering. As a key
participant in the industry for 50 years, Assystem supports its clients in
developing their products and managing their capital expenditure throughout the
product life cycle. Assystem employs some 12,500 people worldwide and generated
?956 million in revenue in 2016. Assystem SA is listed on Euronext Paris.
For more information please visit www.assystem.com
Follow Assystem on Twitter: (at)Assystem
CONTACTS
Philippe Chevallier Agnès Villeret
CFO & Deputy CEO Investor relations - Komodo
Tel.: +33 (0)1 55 65 03 10 agnes.villeret(at)agence-komodo.com
Tel.: +33 (0)6 83 28 04 15
APPENDICES
1/ Revenue and EBITA by division
* Revenue
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In millions of euros 2015 2016 Total year-on-year Organic year-on-year
change change
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Group 907.7 955.6 +5.3% +5.4%
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Global Product Solutions 528.6 577.5 +9.3% +9.7%
Energy & Infrastructure 311.1 315.7 +1.5% +1.3%
Staffing 60.1 53.2 -11.4% -11.4%
Holding company and Other 7.9 9.2 -
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* EBITA((1))
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In millions of euros 2015 % of revenue 2016 % of revenue
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Group 57.8 6.4% 66.9 7.0%
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Global Product Solutions 38.8 7.3% 47.0 8.1%
Energy & Infrastructure 25.7 8.3% 24.1 7.6%
Staffing 1.4 2.3% 2.4 4.6%
Holding company and Other (8.1) - (6.6) -
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1. Operating profit before non-recurring items (EBITA) including share of
profit of equity-accounted investees (?0.5 million in 2015 and ?1.4 million
in 2016).
2/ Consolidated financial statements
* Consolidated statement of financial position
In millions of euros 31 Dec. 2015 31 Dec. 2016
Assets
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Goodwill 147.2 184.8
Intangible assets 3.7 3.6
Property, plant and equipment 17.5 17.9
Investment property 1.4 1.4
Equity-accounted investees 0.7 0.9
Available-for-sale financial assets 0.2 0.2
Other non-current financial assets 11.8 13.7
Deferred tax assets 10.5 17.0
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Non-current assets 193.0 239.5
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Trade receivables 298.2 320.1
Other receivables 66.3 70.9
Income tax receivable 1.1 1.5
Other current assets 0.5 0.3
Cash and cash equivalents 233.8 85.4
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Current assets 599.9 478.2
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TOTAL ASSETS 792.9 717.7
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Equity and liabilities 31 Dec. 2015 31 Dec. 2016
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Share capital 22.2 22.2
Share premium 80.3 80.3
Consolidated reserves 144.6 106.7
Equity instruments((1)) 158.4 -
Profit for the period 27.2 31.5
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Equity attributable to owners of the parent 432.7 240.7
Non-controlling interests (0.1) 0.3
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Total equity 432.6 241.0
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Long-term bond debt 26.4 -
Other long-term debt and non-current financial
liabilities 4.5 4.4
Fair value of derivatives 2.1 -
Pension and other employee benefit obligations 23.5 26.4
Liabilities related to share acquisitions 1.0 14.1
Long-term provisions 7.3 7.6
Other non-current liabilities - 5.9
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Non-current liabilities 64.8 58.4
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Short-term bond debt - 14.4
Other short-term debt and current financial
liabilities 2.2 82.7
Trade payables 55.3 66.4
Due to suppliers of non-current assets 0.9 1.5
Accrued taxes and payroll costs 180.0 186.7
Income tax liabilities 3.9 3.8
Liabilities related to share acquisitions 3.6 4.4
Short-term provisions 7.0 7.2
Other current liabilities 42.6 51.2
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Current liabilities 295.5 418.3
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TOTAL EQUITY AND LIABILITIES 792.9 717.7
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(1) Odirnane bonds
* Consolidated income statement
2015 2016
In millions of euros
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Revenue 907.7 955.6
Payroll costs (644.8) (662.4)
Other operating income and expenses (193.8) (217.6)
Taxes other than on income (1.5) (1.3)
Depreciation, amortisation and provisions for recurring
operating items, net (10.3) (8.8)
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Operating profit before non-recurring items (EBITA) 57.3 65.5
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Share of profit of equity-accounted investees 0.5 1.4
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EBITA including share of profit of equity-accounted investees 57.8 66.9
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Non-recurring income and expenses (18.3) (13.5)
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Operating profit 39.5 53.4
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Net financial income (expense) on cash and debt 4.0 (0.8)
Other financial income and expenses (3.0) (2.8)
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Profit from continuing operations before tax 40.5 49.8
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Income tax expense (13.1) (17.7)
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Profit from continuing operations 27.4 32.1
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Profit from discontinued operations 0.5 -
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Consolidated profit for the period 27.9 32.1
Attributable to:
Owners of the parent 27.2 31.5
Non-controlling interests 0.7 0.6
* Consolidated statement of cash flows
2015 2016
In millions of euros
CASH FLOWS FROM OPERATING ACTIVITIES
EBITDA 68.1 75.7
Change in operating working capital requirement 6.0 (3.4)
Income tax paid (9.5) (12.8)
Other movements (12.3) (5.8)
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Net cash generated from operating activities 52.3 53.7
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CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure, net (7.5) (8.4)
Acquisitions of shares in consolidated companies, net of
disposals (34.0) (26.4)
Movements in loans to non-consolidated companies 0.1 -
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Net cash used in investing activities (41.4) (34.8)
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CASH FLOWS FROM FINANCING ACTIVITIES
Net financial income received (expenses paid) 3.9 (1.5)
Proceeds from new borrowings - 80.0
Repayments of borrowings and movements in other financial
liabilities((1)) (1.7) (32.3)
Dividends paid((2)) (16.2) (17.9)
Buyback of equity instruments((3)) - (176.9)
Coupon paid on equity instruments((3)) (7.2) (7.2)
Other movements in equity of the parent company (6.3) (9.8)
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Net cash used in financing activities (27.5) (165.6)
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Net decrease in cash and cash equivalents (16.6) (146.7)
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Cash and cash equivalents at beginning of year 250.5 233.4
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Effect of non-monetary items and changes in exchange rates (0.5) (2.3)
Net decrease in cash and cash equivalents (16.6) (146.7)
Cash and cash equivalents at year-end 233.4 84.4
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(1) Including ?31.5 million related to the buyback of Ornane bonds in 2016.
(2) Including ?17.0 million in 2016 and ?16.2 million in 2015 paid to
shareholders of Assystem SA.
(3) Odirnane bonds.
3/ Changes in net cash/(debt)
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In millions of euros
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Net cash/(debt) at 31 December 2015 198.8
EBITDA 75.7
Change in operating working capital (3.4)
requirement
Income tax paid (12.8)
Capital expenditure, net (8.4)
Other movements (5.8)
FREE CASH FLOW 45.3
Acquisitions, net of disposals (26.4) Envy, Aerotec Concept, Onyx
Promavi, Bâtir Group and
Edison
Buybacks/reclassifications of Odirnane (195.1)
and Ornane bonds
Dividends, share buybacks and other (38.7) Including ?17.0 million in
dividends paid to Assystem
shareholders, ?7.2 million
in coupons on Odirnane
bonds, and ?9.8 million
related to share buybacks
Net cash/(debt) at 31 December 2016 (16.1)
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4/ Adjusted profit for the period
In millions of euros 2015 2016
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Consolidated profit for the period 27.9 32.1
Profit attributable to non-controlling interests (0.7) (0.6)
Profit from discontinued operations (0.5) -
Coupon on equity instruments((1)) (7.2) -
Non-recurring income and expenses not deductible for tax purposes 13.1 7.8
Non-recurring income and expenses deductible for tax purposes, net
of income tax((2)) 3.7 3.9
Exceptional financial income and expenses (Ornane bonds and
refinancing), net of income tax 0.9 2.6
Adjusted profit for the period((3)) 37.2 45.8
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1. Accrued coupon on Odirnane bonds for the year.
2. Tax effect calculated using the effective tax rate for the year, excluding
the impact of the impairment of Staffing assets, i.e. 27.9% in 2015 and
32.0% in 2016.
3. Attributable to owners of the parent.
5/ Information about the Company's capital
Number of shares 2015 2016
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Number of ordinary shares outstanding (at 31 December) 22,218,216 22,218,216
Number of treasury shares (at 31 December) 680,149 1,068,442
Number of free shares and performance shares outstanding 39,150 313,300
(at 31 December)
Weighted average number of shares outstanding 21,595,143 21,258,072
Weighted average number of diluted shares((1)) 21,634,293 21,571,372
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(1) Excluding the dilutive impact of the Ornane and Odirnane bonds.
Ownership structure at 28 February 2017
% Shares Voting rights
------------------------------------------------
HDL Development((1)) 60.66% 77.25%
Free float((2)) 34.57% 22.75%
Treasury shares 4.77% -
------------------------------------------------
(1) HDL Development is a holding company controlled by Dominique Louis
(Assystem's Chairman and Chief Executive Officer), notably through HDL, which
itself holds 0.23% of Assystem's capital.
(2) Including 0.23% held by HDL.
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([1]) Operating profit before non-recurring items (EBITA) including share of
profit of equity-accounted investees (?0.5 million in 2015 and ?1.4 million in
2016).
([2]) Consolidated profit for the period after deducting (i) profit attributable
to non-controlling interests and profit from discontinued operations, and (ii)
for 2015, accrued coupons on Odirnane bonds; adjusted for the net of tax amounts
of non-recurring income and expenses, and exceptional financial income and
expenses (see section 4 of the Appendices).
([3]) Net cash generated from operating activities less capital expenditure, net
of disposals.
([4]) Including profit attributable to non-controlling interests amounting to
?0.7 million in 2015 and ?0.6 million in 2016. Profit for the period
attributable to owners of the parent therefore totalled ?27.2 million in 2015
and ?31.5 million in 2016.
([5]) Cash and cash equivalents less debt and after taking into account the fair
value of hedging instruments.
(6) Adjusted profit for the period divided by the weighted average number of
diluted shares outstanding (excluding the dilutive impact of the Ornane and
Odirnane bonds).
(7) For 2016 the figure corresponds to the dividend that will be recommended at
the Annual General Meeting on May 16, 2017.
([6]) 5-year maturity, redeemable at maturity in January 2022.
([7]) Maturing in January 2022, with two options to extend for further one-year
terms (subject to the lenders' agreement).
([8]) Corresponding to ?1.00 multiplied by the 21,149,774 outstanding ordinary
shares carrying dividend rights at 31 December 2016.
ASSYSTEM FY 2016 results:
http://hugin.info/143356/R/2086296/787136.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ASSYSTEM via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 08.03.2017 - 17:37 Uhr
Sprache: Deutsch
News-ID 529059
Anzahl Zeichen: 31074
contact information:
Town:
Paris
Kategorie:
Business News
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