2018 annual results
Continuing strong growth and high operating profitability
Current operating income: EUR22.7m
Dividend proposed at the General Meeting: EUR1.60 per share
Growth in the second half of the year
Revenue in the second half of 2018 increased to EUR116.5 million compared with
EUR115.2 million in the first half of 2018. Current operating income increased
to EUR12.0 million in the second half of 2018 compared with EUR10.7 million in
the first half, giving a current operating margin of 10.3% in the second half
of 2018 versus 9.2% in the first half of the year.
Group net income in the second half of 2018 also grew to EUR8.0 million versus
EUR7.1 million in the first half of 2018, giving an improvement in the net
margin to 6.9% in the second half of 2018 compared with 6.1% in the first half
of the year.
Annual results: Growth and profitability
The Board of Directors, at its meeting of 6 March 2019, approved the annual
financial statements for fiscal year 2018.
In EUR million at 31 December
(audited accounts) 2018 2017 Change
Current operating income 22.7 23.4 -2.8%
as a % of revenue 9.8% 11.2% ns
Operating income 23.0 23.3 -1.1%
Income tax (7.9) (7.3) +6.8%
Group net income 15.1 15.8 -4.5%
as a % of revenue 6.5% 7.5% ns
The financial statements have been audited and the reports certifying them are
currently being prepared.
*EBITDA is calculated as follows: Current operating income + depreciation,
amortisation and provisions - provisions for current assets + provisions for
disputes + amortisation of research tax credit + retirement provisions.
A very dynamic year for the Services division
In 2018, Infotel posted revenue of EUR231.7 million and generated organic
growth of 10.7% versus 2017.
The Services division saw its revenue increase by 11% to EUR223.3 million
thanks to continued strong activity levels linked to the mass rollout of
digitisation projects by Tier-one clients. The banking sector accounted for the
highest level of activity among Infotel's teams, representing more than 38% of
the Service division's activity at the year-end, followed by manufacturing at
The Software division saw an increase in 2018 revenue of 2.8% to EUR8.4
million, of which EUR4.3 million related to royalties from IBM.
Continued high operating profitability
Current operating income came out at EUR22.7 million in 2018 versus EUR23.4
million the previous year, giving a current operating margin of 9.8% (an
improvement on 9.2% in the first half of the year). It incorporates a slight
increase in expenses to 81.9% of revenue compared with 79.5% in 2017, linked to
a very competitive recruitment environment. That said, training costs related
to the integration of new employees show a significant decrease in the second
half of 2018.
The inter-contract rate remained very low for the full year at 1.8%.
Consequently, Group net income came out at EUR15.1 million versus EUR15.8
million, giving a net margin for the year of 6.5% compared with 6.1% in the
A solid financial structure
With shareholders' equity increasing to EUR87.4 million and still no financial
debt, the Group's financial structure remains very solid. Net cash at the end
of the year stood at EUR72.8 million.
Proposed dividend of EUR1.60 per share
The Infotel Board of Directors will propose the payment of a dividend of
EUR1.60 per share for 2018 to the General Meeting of 29 May 2019, representing
an increase of 40%. The aim is to reward our shareholders and demonstrate the
management's confidence in the outlook for the year ahead.
On 11 February, the Group acquired the Lyon-based services company Coach'is,
which will help to strengthen its foothold in the Rhône-Alpes region and add
on the expertise of more than 30 employees specialising in applications
development, advisory and support in project ownership, and collaborative
Infotel has rolled out a set of measures to boost the integration and
management of human resources and strengthen staff retention. The Group has set
a gross recruitment target of more than 500 in the current year.
Given the strong levels of commercial activity observed since the start of the
year, Infotel confirmed that it expects its revenue growth for 2019 to remain
above the market level and continued excellent operating profitability.
General Meeting: 29 May 2019 - pm
Publication of 2019 Q1 revenue: 29 May 2019
Listed on Compartment B of Euronext Paris since January 1999 (ISIN code
FR0000071797), Infotel specialises in information management systems for major
accounts, from mobile to very high-volume databases (Big Data). Operating at
the forefront of technological innovation, Infotel develops its expertise
across two complementary divisions: IT services and software publishing.
Infotel posted revenue of EUR231.7 million in 2018 and employs over 2,400