Growth in Q1 2020 despite the initial effects of Covid-19
Infotel posted revenue growth of +5.0% in Q1 2020, despite the Covid-19
pandemic whose initial effects were observed during March 2020, interrupting a
nevertheless promising start to the year.
The sectors immediately impacted were Industry with Airbus and PSA, and
Services/Transport with Air France, accounting for 30% of the Group's total
revenue in 2019.
As soon as the discontinuation or suspension of client projects was announced,
Infotel immediately took the necessary measures to deal with this situation:
French government job retention scheme, reduction of sub-contracting, use of
homeworking, anticipated holiday leaves, hiring freeze.
A Q2 that is expected to show a decline, experiencing the effects of the
Given the current economic slowdown and the uncertainty related to developments
in the pandemic, Infotel expects a decline in the level of activity in Q2. The
Group cannot specify revenue and profitability objectives.
Good prospects for a resumption in activity
Infotel has observed profound changes which will have short/medium-term
effects: homeworking which is here for the long term and will impact the
management and location of teams, competitive advantages for clients which the
Group has helped make the shift to digitisation and which are strengthening
their positions, easing of the labour market, etc. Infotel's teams are already
working to anticipate these effects.
Given its very solid financial position, with zero financial debt and net cash
at the end of March 2020 of EUR77.5 million, Infotel has the necessary
resources to get through this crisis and pursue its development. With a view to
the gradual resumption in activity, barring a spike in the pandemic, Infotel is
endeavouring to maintain all its teams and has not made any layoffs.
The Shareholders' Meeting held today in camera decided to reduce the dividend
by 34% to EUR1.05.
Publication of Q2 2020 revenue: 29 July 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.