AUBAY (EPA:AUB) - 2020 Half-Yearly Results : Strong resilience in unprecedented circumstances - Maintaining key performance indicators at high levels

Directive transparence : information réglementée

16/09/2020 17:45
In € thousands H1 2020 H1 2019 Change
Revenue 214,777 208,115 +3.2%
Operating profit from ordinary activities 18,791 19,069 -1.5%
As a % of revenue 8.7% 9.2%  
Other operating income and expenses (1,370) (1,433)  
Operating profit 17,421 17,636 -1.2%
Financial income/(expense) (302) (306)  
Tax (expense)/income (5,814) (5,838)  
Net income from consolidated companies 11,305 11,492 -1.6%
As a % of revenue 5.3% 5.5%  
Net income attributable to owners of the parent 11,287 11,492  
Minority interests 18 -  


Aubay's Board of Directors, which met on September 16, 2020 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2020. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.


Against the backdrop of an exceptional economic and health crisis, the Group relied on the strong resilience of its business model, reflected in the continued high levels of its key financial indicators in terms of business, profitability and cash flow generation. This performance was driven by the unwavering commitment of all employees and a clear strategy on business lines, customers and skills.

Revenue for the first six months of the year came in at €214.8 million, up 3.2%, practically stable on a like-for?like basis, demonstrating very strong resilience in the context of the health crisis (see July 22, 2020 press release).


Operating profit from ordinary activities stable at €18.8 million and net income at €11.3 million

The Group's recurring operating margin came in at 8.7%, versus 9.2% in 2019, at the upper end of the projected range, down only 50 basis points, and breaking down as 7.5% for business in France and 10.1% for international business. The Group was able to sustain a high productivity rate of 92.7% excluding short-time working measures, which concerned a maximum of 4% of employees at the height of the crisis.

After recognizing non-current expenses of €1.4 million, operating profit from ordinary activities came in at €18.8 million compared to €19.1 million one year ago, i.e., a limited decline of 1.5%.

Financial expense remained stable at €302 thousand.

The tax expense amounted to €5.8 million, reflecting an effective tax rate of 34%, stable year on year.

Net income for the first half of 2020 amounted to €11.3 million, stable compared to June 30, 2019, representing 5.3% of revenue.


Strong improvement in net cash (excluding rental liabilities) to €22.6 million

Despite a traditionally unfavorable seasonal effect, cash flow from operations for the period was excellent with over €18 million compared to €12 million last year. This can be attributed to good working capital management, with an improvement in the average customer payment time of three days. The company has not requested any extension for paying its expenses, particularly with regard to tax or social security.

Cash flow largely covered the limited investments made during the period and the payment of €3.5 million in dividends to shareholders.

Overall, net cash (excluding rental liabilities) amounted to €22.6 million at June 30, 2020 compared to €11.7 million at end 2019.


Outlook for 2020

Operations pursued during the Summer as expected. Visibility continues to gradually improve with demand almost back to normal since September. The upturn in activity, with the signing of many new contracts, some of which are significant for the service centers, has also made it possible to resume hiring in all regions.

Having had a better first half of the year than anticipated in the midst of the crisis, and assuming the health situation stabilizes, Aubay aims to achieve the following performance in 2020:

  • Annual revenue of between €420 million and €425 million,
  • Operating margin from ordinary activities of 9%.


Interim dividend of €0.33

In light of this reassuring performance, the Board of Directors has decided to pay an interim dividend of €0.33 per share for the current fiscal year on November 10, 2020.


Next publication

2020 third-quarter revenue: Wednesday, October 21 after the close of trading.


Glossary/Alternative performance indicators

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.

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 the 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: 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 Group

Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. It had 6,411 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2020. Aubay generated revenue of €417.8 million in 2019.

Euronext, Compartiment B – ISIN FR0000063737-AUB – Reuters AUBT.PA - Bloomberg AUB:FP



Nicolas Bouchez – Actus Finance – Tel. +33 (0)1 53 67 35 79- Email: nbouchez@actus.fr

David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67- Email: dfuks@aubay.com



Consolidated financial position


ASSETS (€ thousands) 6/30/2020 12/31/2019
Goodwill 131,305 131,412
Intangible assets 835 828
Property, plant & equipment 5,409 5,575
Right of use relating to leases 20,603 22,996
Equity-accounted investees -
Other financial assets 2,256 2,661
Deferred tax assets 2,163 2,796
Other non-current assets 32 277
NON-CURRENT ASSETS 162,603 166,545
Inventories and work in progress 335 411
Assets on contracts 36,195 29,216
Client and other receivables 101,059 115,097
Other receivables and accruals 32,040  37,209 
Marketable securities 503  1,056 
Cash at bank and in hand 34,130  23,411 
CURRENT ASSETS 204,262 206,400
TOTAL ASSETS 366,865 372,945


LIABILITIES (€ thousands) 6/30/2020 12/31/2019
Capital 6,603  6,597 
Additional paid-in capital and consolidated reserves 174,089  151,164 
Net income attributable to the Group 11,305  26,409 
Shareholders' equity attributable to the Group 191,997 184,170
Minority interests 109 91 
SHAREHOLDERS' EQUITY 192,106 184,261
Borrowings and financial liabilities: non-current portion 4,486 5,697
Rental liabilities: due in over 1 year 15,740 17,823
Deferred tax liabilities 4 5
Provisions for contingencies and expenses 6,395 6,129
Other non-current liabilities 386 489
Borrowings and financial liabilities: current portion 7,260 7,124
Rental liabilities: due within 1 year 5,188 5,435
Trade payables and related accounts 27,672 30,576
Contract liabilities 12,952 14,722
Other liabilities and accruals 94,676 100,684


Consolidated income statement        
(in € thousands) 6/30/2020 % 6/30/2019 %
Revenue 214,777 100% 208,115 100%
Other operating income 244    72   
Purchases used in production and external charges (43,205)    (37,711)   
Staff costs (147,290)    (146,237)   
Taxes other than on income (1,791)    (1,713)   
Amortization, depreciation and provisions (3,840)    (3,546)   
Change in inventories of work in progress and finished goods        
Other operating income and expenses (104)    89   
Operating profit from ordinary activities 18,791 8.7% 19,069 9.2%
Expenses linked to restricted share units and similar awards (464)    (743)   
Current operating profit 18,327 8.8% 18,326 8.8%
Other operating income and expenses (906)    (690)   
Operating income 17,421 8.1% 17,636 8.5%
Income from cash and cash equivalents        
Net borrowing costs (140)    (177)   
Other financial income and expenses (162)    (129)   
Financial income/(expense) (302)   (306)  
Income tax expense (5,814)    (5,838)   
Income from equity-accounted investees        
Net income before results of discontinued operations or assets held for sale 11,305   11,492  
Net income after tax of discontinued operations or assets held for sale        
Net income 11,305 5.3% 11,492 5.5%
Attributable to owners of the parent 11,287    11,492   
Minority interests 18     
Basic weighted average number of shares 13,186,893   13,180,931  
Earnings per share 0.86   0.87  
Diluted weighted average number of shares 13,239,393   13,279,431  
Diluted earnings per share 0.85   0.87  


Statement of consolidated cash flows

In € thousands 6/30/2020 6/30/2019
Consolidated net income (including non-controlling interests) 11,305 11,492
Income from equity-accounted investees    
Net depreciation, amortization and provisions and right of use relating to leases 4,498  3,661 
None-cash expenses and income relating to share-based payments 464  743 
Other non-cash items 212   
Dividend income   (88) 
Gains and losses on disposals of fixed assets (277) 
Cash flow after net interest expense and tax 16,202 15,814
Net borrowing costs 283  177 
Tax expense (including deferred taxes) 5,414  5,838 
Cash flow before net interest expense and tax (A) 21,899 21,829
Income tax payments (B) (130)  (5,403) 
Change in trade and other receivables (C) 4,132  (5,753) 
Change in trade and other payables (C) (7,665)  1,457 
Net cash provided by (used in) operating activities (D) = (A+B+C) 18,236 12,130
Outflows for the acquisition of tangible and intangible fixed assets (646)  (646) 
Inflows from the disposal of tangible and intangible fixed assets    
Outflows for the acquisition of financial assets (4)  (4) 
Inflows from the disposal of financial assets   32 
Change in loans and advances granted 388  (6) 
Disbursements (cash) related to business combinations, net of cash and cash equivalents    
Dividends and subsidies received   88 
Net cash provided by (used in) investing activities (E) (262) (536)
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 (3,562)  (4,354) 
 Dividends paid to the non-controlling shareholders of consolidated companies    
Inflows from new borrowings 1,357  10 
Repayment of financial debt (2,332)  (5,558) 
Repayment of loan debt (2,864)  (1,225) 
Net interest payments (283)  (173) 
Purchase of non-controlling minority interests    
Other financial flows    
Net cash provided by (used in) financial activities (F) (7,684) (11,300)
Effects of changes in foreign exchange rates (G) (40) (1)
Change in net cash (D+E+F+G) 10,250  293 
Cash and cash equivalents at the beginning of the period 24,131 19,372
Cash and cash equivalents at end of period 34,381 19,665

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Full and original press release in PDF: https://www.actusnews.com/news/65039-s1-resultats-2020-vdef_eng.pdf

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