AUBAY : 2021 annual results: Strong growth, profitability and cash generation - Operating margin from ordinary activities: 10.6 % - Net income attributable to owners of the parent: EUR 34.4 million - Net cash: EUR 74.8 million
Aubay's Board of Directors, which met on March 23, 2022 under Chairman Christian Aubert, approved the statutory and consolidated financial statements for 2021. The financial statements have been audited by the Statutory Auditors and the auditors' report will be issued once the procedures required to publish the company's Universal Registration Document have been completed.
After demonstrating remarkable resilience in 2020, the Group posted exceptional results in 2021 despite the uncertain health environment. It met or exceeded all its targets for growth, profitability, recruitment and cash generation.
Operating margin from ordinary activities above normative margin
Operating margin from ordinary activities was higher than estimated when the annual results were published in January, at 10.6 %, exceeding the Group's normative profitability target of between 9.5 % and 10.5 %.
The Group's operating margin from ordinary activities for the period came in at 9.6 % for activities in France and 11. 6% for activities overseas, compared with 9.3 % and 10.0 %, respectively, in 2020.
Operating profit: €47.3 million
Operating profit came to €47.3 million, a substantial increase of 22.5 %, after taking into account the cost of performance shares for €1.5 million and “Other operating income and expenses” representing a net expense of €1.1 million, primarily comprising restructuring expenses. The operating margin was 10.1 %, among the best in the sector.
Sharp increase in net income attributable to owners of the parent (7.3 % of net margin)
Net income attributable to owners of the parent soared to €34.4 million, up 31.7 %, setting a new record after taking into account a tax expense of €12.9 million representing an effective tax rate of 27 %, versus 31 % in 2020.
Net cash (excluding rental liabilities) up significantly at €74.8 million
The Group's financial position was considerably strengthened in 2021 thanks to excellent generation of cash from operating activities of €45.8 million, versus €47.2 million in 2020, a superb performance given the strong increase in revenue. As a result, net cash increased from €44.7 million at December 31, 2020 to €74.8 million at December 31, 2021.
Proposed dividend of €1.10 per share
In light of this remarkable performance and the Group's excellent financial position, the Board of Directors has decided to propose a final dividend of €1.10 per share in respect of 2021 to the Annual General Meeting to be held on May 10, 2022, representing a payout ratio of 42 % of net income. Taking into account the interim dividend of €0.34 per share paid on November 10, 2021, the balance to be paid will amount to €0.76 per share.
Outlook for 2022
As of early 2022, the market in which Aubay operates is still very buoyant. Customers are continuing to ramp up their investments in digital transformation, with demand from key accounts even higher than the same time last year. The Group's key challenge will be to generate profitable and sustainable growth that outperforms its benchmark market, with Numeum forecasting growth of 4.7 % for the IT services industry in 2022.
All the Group's operating indicators are sound, building on the strong dynamic seen in 2021, and management is confident that the Group will achieve the following targets:
Organic growth of between 7 % to 9 %, i.e., revenue of between €504 million and €513 million, Operating margin from ordinary activities of between 9.5 % and 10.5 %.
Aubay will publish its 2022 first-quarter revenue on April 21, 2022 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 +10.4% Impact of changes in scope - Growth as reported +10.4%
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 7,306 employees in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), Aubay generated revenue of €470.6 million in 2021.
Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters : AUBT.PA - Bloomberg AUB:FP
Contacts
Amaury Dugast – Actus Finance – Tel.: +33 (0)1 53 67 36 74 - adugast@actus.fr
David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com
APPENDICES
Statement of financial position as of December 31, 202 1 ASSETS (in € thousands) Dec. 31, 2021 Dec. 31, 2020 Goodwill 131,305 131,305 Intangible assets 917 771 Property, plant & equipment 4,156 5,166 Right of use relating to leases 14,152 18,611 Equity-accounted investees - Other financial assets 2,102 2,263 Deferred tax assets 2,653 2,472 Other non-current assets 354 118 NON-CURRENT ASSETS 155,639 160,706 Inventories and work in progress 491 516 Assets on contracts 32,127 29,148 Trade receivables 111,359 105,432 Other receivables and accruals 37,082 33,496 Marketable securities 1,026 579 Cash at bank and in hand 78,461 51,883 CURRENT ASSETS 260,546 221,054 TOTAL ASSETS 416,185 381,760 EQUITY AND LIABILITIES (in € thousands) Dec. 31, 2021 Dec. 31, 2020 Capital 6,611 6,604 Additional paid-in capital and consolidated reserves 188,740 170,016 Net income attributable to owners of the parent 34,409 26,132 Shareholders' equity attributable to the Group 229,760 202,752 Minority interests 191 144 SHAREHOLDERS' EQUITY 229,951 202,896 Borrowings and financial liabilities: non-current portion 2,155 3,913 Rental liabilities due in more than 1 year 10,198 13,756 Deferred tax liabilities 1 1 Provisions for contingencies and expenses 6,924 6,751 Other non-current liabilities 74 273 NON-CURRENT LIABILITIES 19,352 24,694 Borrowings and financial liabilities: current portion 2,500 3,907 Rental liabilities due within 1 year 4,366 5,240 Trade and other payables 35,981 30,572 Contract liabilities 19,913 18,319 Other current liabilities 104,122 96,132 CURRENT LIABILITIES 166,882 154,170 TOTAL EQUITY AND LIABILITIES 416,185 381,760
Income statement for 2021 In € thousands 2021 % 2020 % Revenue 470,601 100% 426,382 100% Other operating income 409 421 Purchases used in production and external charges (99,319) (86,216) Staff costs (310,482) (287,855) Taxes other than on income (3,963) (3,702) Amortization, depreciation and provisions (7,558) (7,628) Change in inventories of work in progress and finished goods Other operating income and expenses 239 (187) Operating profit from ordinary activities 49,927 10.6% 41,215 9.7% Expenses linked to restricted share units and similar awards (1,489) (1,112) Current operating profit 48,438 10.3% 40,103 9.4% Other operating income and expenses (1,120) (1,463) Operating profit 47,318 10.1% 38,640 9.1% Income from cash and cash equivalents Net borrowing costs (494) (588) Other financial income and expenses 578 169 Financial income/(expense) 84 (419) Income tax expense (12,921) 27% (12,036) 31% Income from equity-accounted investees Net income before results of discontinued operations or assets held for sale 34,481 26,185 Net income after tax of discontinued operations or assets held for sale Net income 34,481 7.3% 26,185 6.1% Attributable to owners of the parent 34,409 26,132 Minority interests 72 53 Basic weighted average number of shares 13,209,435 13,192,494 Earnings per share 2.60 1.98 Diluted weighted average number of shares 13,283,935 13,244,994 Diluted earnings per share* 2.59 1.97
Cash flow statement for 2021 (in € thousands) 2021 2020 Consolidated net income (including non-controlling interests) 34,481 26,185 Income from equity-accounted investees Net depreciation, amortization and provisions and right of use relating to leases 7,161 7,298 Non-cash expenses and income relating to share-based payments 1,489 1,112 Other non-cash items 212 Dividend income Gains and losses on disposals of fixed assets 1 45 Cash flow after net interest expense and tax 43,132 34,852 Net borrowing costs 494 588 Tax expense (including deferred taxes) 12,921 12,036 Cash flow before net interest expense and tax (A) 56,547 47,476 Income tax payments (B) (11,485) (9,651) Change in trade and other receivables (C) (13,215) 8,323 Change in trade and other payables (C) 13,959 1,121 Change in WCR linked to operations (including debt related to employee benefits) 744 9,444 Net cash provided by (used in) operating activities (D) = (A+B+C) 45,806 47,269 Outflows for the acquisition of tangible and intangible fixed assets (1,034) (1,023) Inflows from the disposal of tangible and intangible fixed assets Outflows for the acquisition of financial assets (48) Inflows from the disposal of financial assets Change in loans and advances granted 99 356 Disbursements (cash) related to business combinations, net of cash and cash equivalents Dividends received Other operating cash flows Net cash provided by (used in) investing activities (E) (935) (715) 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 (8,851) (7,916) - Dividends paid to the non-controlling shareholders of consolidated companies (25) Inflows from new borrowings 1,734 Repayment of loan debt (3,374) (6,631) Repayment of rental liabilities (5,323) (5,048) Net interest payments (494) (588) Purchase of non-controlling minority interests Other financial cash flows Net cash provided by (used in) financial activities (F) (18,067) (18,449) Effects of changes in foreign exchange rates (G) 47 (31) Change in net cash (D+E+F+G) 26,851 28,074 Cash and cash equivalents at the beginning of the period 52,205 24,131 Cash and cash equivalents at end of period 79,056 52,205
- SECURITY MASTER Key: mJmdZJpulJyZm5xpkstqZ2GYbWyXk5LIZ5OWmmNtaZyWmG1mnGdiZpvJZnBkm2tn
- Check this key: https://www.security-master-key.com.
Regulated information:
Inside Information:
- News release on accounts, results
Full and original press release in PDF: https://www.actusnews.com/news/73661-aubay-ra-2021-v-eng.pdf
Source Actusnews