2019 Annual Results
Excellent business momentum: EUR248.4m
EBITDA* of 11.5% of revenue
Dividend to be proposed at the General Meeting: EUR1.60 per share
At its meeting of 4 March 2020, the Board of Directors approved the annual
financial statements for fiscal year 2019.
International accounting standard IFRS 16, concerning the treatment of leases
in the consolidated financial statements, came into force on 1 January 2019.
Infotel group chose to apply this standard using the simplified retroactive
approach, in which there are no adjustments for the previous year. Note that
the implementation of IFRS 16 requires a change in the presentation of the
consolidated financial statements as approved at 31 December 2019, with the
balance sheet showing a liability in respect of future lease payments and an
asset in respect of rights of use. On the income statement, the lease expense
previously recognised under operating costs is now to be recognised partly as a
depreciation charge and partly as a financial cost.
In EUR million at 31 December
(audited accounts) 2019 2018 Change Impact
Consolidated revenue 248.4 231.7 +7.2%
o/w Services 239.9 223.3 +7.4%
o/w Software 8.5 8.4 +1.4%
Personnel expenses (105.3) (101.2) +4.0%
External charges (110.3) (99.8) +10.5%
EBITDA* 28.5 25.6 +11.3% 2.6
provisions (6.3) (3.3) +91.0% (2.6)
Current operating income
excluding free shares 25.9 22.7 +14.1%
as a % of revenue 10.4% 9.8% NA
Current operating income 22.4 22.7 -1.3%
as a % of revenue 9.0% 9.8% NA
Income tax (8.9) (7.9) 12.6%
Net income, Group share 13.0 15.1 -14.1%
as a % of revenue 5.2% 6.5% n/s
These financial statements were audited and the associated certification
reports 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.
Strong growth in Services throughout the year
Infotel chalked up revenue growth of 7.2% to EUR248.4m for its 2019 fiscal
year. This performance testifies to the excellent business momentum generated
by the roll-out of projects relating to the digital transformation of companies
across all sectors.
The Services arm thus recorded revenue growth of 7.4% to EUR239.9m in 2019. The
Banking sector is the biggest contributor to revenue, accounting for 36.1%,
followed by Manufacturing (28.2%), Services (21.2%) and Insurance & Retirement
(12.5%). The Group is enjoying solid momentum internationally, with growth of
47% for Infotel UK (EUR3.6m) and 65% for Infotel Monaco (EUR4.8m).
The Software division posted revenue growth of 1.4 % to EUR8.5 million in
High operating profitability
Excluding the IFRS 2 standard, staff expenses would be down by 3.5 million
euros (excluding the amount of free shares distributed to the Group's key
managers), the current operating income would be EUR25.9m and the current
operating margin would be 10.4%.
Current operating income came to EUR22.4m in 2019, implying a current operating
margin of 9%. The inter-contract rate remained very low at 1.9%.
This result also includes an increase in external expenses stemming from the
greater use of outsourcing services, to keep step with extremely buoyant
Meanwhile, the application of IFRS 16 increased the amount of interest due as a
result of the rise in debt. Consequently, Group net income came out at EUR13.0
million, giving a net margin of 5.2% of revenue for the full year.
A solid financial structure
The balance sheet shows a total of EUR202.3 million at 31 December 2019,
compared with EUR176.5 million at 31 December 2018.
Shareholders' equity increased to EUR92.7m, from EUR87.4m a year earlier.
As a result of the application of IFRS 16, the Group recorded an increase in
non-current assets including rights of use in a net amount of EUR16.2 million.
The Group did not have any financial liabilities at 31 December 2019. Net cash
at the end of the year stood at EUR74.6 million.
Proposed dividend of EUR1.60 per share
Infotel's Board of Directors will propose the payment of a dividend of EUR1.60
per share for 2019 to the General Meeting of 20 May 2020. The decision to
continue distributing a high dividend testifies to management's confidence in
the Group's prospects.
Infotel's strong business momentum and the renewed trust shown by clients in
extending its role in new digital transformation projects lend weight to the
Group's target for revenue growth to outpace the market and operating
profitability to remain high in 2020.
General Meeting: 20 May 2020 - afternoon
Publication of Q1 2020 revenue: 20 May 2020
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 EUR248.4m in 2019 and employs over 2,500 people.