AUBAY : 2021 Half-Yearly Results: Business above pre-crisis level - Record half-year operating margin from ordinary activities: 9.6% - Net income attributable to owners of the parent: EUR 15.6 million
Aubay's Board of Directors, which met on September 15, 2021 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2021. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.
After demonstrating exceptional resilience in 2020, the Group has embarked on a strategy of commercial success. It reported organic growth of 8.5% in the first half of 2021, outstripping the benchmark market.
Operating margin from ordinary activities above projections
Operating margin from ordinary activities stood at 9.6%, the best first-half performance ever achieved in the history of the Group and higher than estimated when the half-yearly results were published in July, thanks in particular to a consultant productivity rate of 93.8% compared to 92.7% at June 30, 2020.
The Group's operating margin for the period came in at 8.2% for activities in France and 11.1% for activities overseas, compared with 7.5% and 10.1%, respectively, in 2020.
Operating profit of €21.3 million
Operating profit rose 22.4%, after taking into account the cost of performance shares of €0.5 million and a net operating expense of €0.6 million, primarily comprising restructuring expenses, which was lower than in the same prior-year period.
Sharp increase in net income attributable to owners of the parent (6.7% of net margin)
Net income attributable to owners of the parent came in at €15.6 million, a record half-year high for the Group. The tax expense of €5.7 million reflected a decrease in the Group's average tax rate to 27%.
Net cash (excluding rental liabilities) stable at €44 million
Cash flow stood at €25.5 million or 10.9% of revenue. The change in WCR amounted to negative €14.3 million compared to a negative €4.2 million for the same period of the previous year, in line with the strong growth in revenue and the usual seasonal nature of our business. After taking into account the payment of a dividend in May for an amount of €4.3 million, net cash was stable at €44 million at June 30, 2021, and should significantly increase during the second half of the year.
Proposed interim dividend of €0.34
In light of the strong increase in net income and the Group's excellent financial position, the Board of Directors has decided to pay an interim dividend of €0.34 per share in respect of 2021. The interim dividend will be paid on November 10, 2021.
Outlook for 2021
Aubay operates on a market that still offers excellent visibility with numerous calls for tender issued by clients. The Group continues to achieve commercial success and productivity remains high. The headcount is still increasing, and is set to hit the 7,000 mark in the short term.
Management is very confident that the following 2021 targets, revised upwards in July, will be achieved:
Annual revenue of between €456 million and €465 million; Operating margin from ordinary activities between 9.5% and 10.5%.
Aubay will publish its 2021 third-quarter revenue on October 20, 2021 after the close of trading.
Glossary
Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.
2021 Organic growth +8.5% Impact of changes in scope 0 Growth as reported +8.5%
Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.
Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating profit from ordinary activities to revenue.
Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.
About Aubay
Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 6,562 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), Aubay generated revenue of €426.4 million in 2020.
Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters AUBT.PA - Bloomberg AUB:FP
Contacts
Nicolas Bouchez - Actus Finance - Tel.: +33 (0)1 53 67 36 74 - E-mail: nbouchez@actus.fr
David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com
APPENDICES
Consolidated financial position ASSETS (€ thousands) 6/30/2021 12/31/2020 Goodwill 131,305 131,305 Intangible assets 991 771 Property, plant & equipment 4,573 5,166 Right of use relating to leases 16,433 18,611 Equity-accounted investees - Other financial assets 2,022 2,263 Deferred tax assets 2,492 2,472 Other non-current assets - 118 NON-CURRENT ASSETS 157,816 160,706 Inventories and work in progress 324 516 Assets on contracts 41,397 29,148 Client and other receivables 112,049 105,432 Other receivables and accruals 36,265 33,496 Marketable securities 840 579 Cash at bank and in hand 48,718 51,883 CURRENT ASSETS 239,593 221,054 TOTAL ASSETS 397,409 381,760 LIABILITIES (€ thousands) 31/06/2021 31/12/2020 Capital 6,611 6,604 Additional paid-in capital and consolidated reserves 192,581 170,016 Net income attributable to the Group 15,583 26,132 Shareholders' equity attributable to the Group 214,775 202,752 Minority interests 146 144 SHAREHOLDERS' EQUITY 214,921 202,896 Borrowings and financial liabilities: non-current portion 2,444 3 ,913 Rental liabilities: due in over 1 year 11,809 13,756 Deferred tax liabilities 1 1 Provisions for contingencies and expenses 6,812 6,751 Other non-current liabilities 441 273 NON-CURRENT LIABILITIES 21,507 24,694 Borrowings and financial liabilities: current portion 3,097 3,907 Rental liabilities: due within 1 year 5,024 5,240 Trade payables and related accounts 31,120 30,572 Contract liabilities 14,462 18,319 Other liabilities and accruals 107,278 96,132 CURRENT LIABILITIES 160,981 154,170 TOTAL EQUITY AND LIABILITIES 397,409 381,760
Consolidated income statement
(in € thousands) 6/30/2021 % 12/31/2020 % Revenue 233,095 100% 214,777 100% Other operating income 200 244 Purchases used in production and external charges (46,850) (43,205) Staff costs (158,452) (147,290) Taxes other than on income (1,935) (1,791) Amortization, depreciation and provisions (3,758) (3,840) Change in inventories of work in progress and finished goods Other operating income and expenses 157 (104) Operating profit from ordinary activities 22,457 9.6% 18,791 8.7% Expenses linked to restricted share units and similar awards (527) (464) Current operating profit 21,930 9
9.4% 18,327 8.5% Other operating income and expenses (613) (906) Operating income 21,317 9.1% 17,421 8.1% Income from cash and cash equivalents Net borrowing costs (260) (283) Other financial income and expenses 329 (19) Financial income/(expense) 69 (302) Income tax expense (5,776) 27% (5,814) 34% Income from equity-accounted investees Net income before results of discontinued operations or assets held for sale 15,610 11,305 Net income after tax of discontinued operations or assets held for sale - - Net income 15,610 6.7% 11,305 5.3% Attributable to owners of the parent 15,583 11,287 Minority interests 27 18 Basic weighted average number of shares 13,208,860 13,190,560 Earnings per share 1.18 0.86 Diluted weighted average number of shares 13,283,360 13,243,060 Diluted earnings per share 1.17 0.85
Statement of consolidated cash flows (in € thousands) 6/30/2021 12/31/2020 Consolidated net income (including non-controlling interests) 15,660 11,305 Income from equity-accounted investees Net depreciation, amortization and provisions and right of use relating to leases 2,810 4,150 None-cash expenses and income relating to share-based payments 527 464 Other non-cash items 212 Dividend income Gains and losses on disposals of fixed assets 484 101 Cash flow after net interest expense and tax 19,481 16,232 Net borrowing costs 260 283 Tax expense (including deferred taxes) 5,726 5,814 Cash flow before net interest expense and tax (A) 25,467 22,329 Income tax payments (B) (4,852) (130) Change in trade and other receivables (C) (14,300) (4,231) Net cash provided by (used in) operating activities (D) = (A+B+C) 6,315 17,968 Outflows for the acquisition of tangible and intangible fixed assets (460) (646) Inflows from the disposal of tangible and intangible fixed assets Outflows for the acquisition of financial assets (4) Inflows from the disposal of financial assets Change in loans and advances granted 248 388 Disbursements (cash) related to business combinations, net of cash and cash equivalents Net cash provided by (used in) investing activities (E) (212) (262) Proceeds from capital increases Amounts received upon the exercise of stock options Purchases of treasury shares for cancellation Purchases of and proceeds from the sale of treasury shares Dividends paid in the period Net dividends paid to parent company shareholders (4,340) (3,562) Dividends paid to the non-controlling shareholders of consolidated companies Inflows from new borrowings 115 1 520 Repayment of financial debt (2,168) (2,482) Repayment of loan debt (2,165) (2,609) Net interest payments (260) (283) Purchase of non-controlling minority interests Other financial flows Net cash provided by (used in) financial activities (F) (8,818) (7,416) Effects of changes in foreign exchange rates (G) 34 (40) Change in net cash (D+E+F+G) (2,681) 10,250 Cash and cash equivalents at the beginning of the period 52,205 24,131 Cash and cash equivalents at end of period 49,524 34,381
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Full and original press release in PDF: https://www.actusnews.com/news/71001-aubay-resultats-s12021-vf-gb.pdf
Source Actusnews