* STRONG ORGANIC GROWTH: 10.7%
* A SATISFACTORY OPERATING MARGIN ON ACTIVITY: 9.9% OF REVENUE
* 7 ACQUISITIONS OVERSEAS
EUR million 2018 2019* YoY change
Revenue 2,269.9 2,624.0 +15.6%
* of which France 1,029.9 1,134.5 +10.2%
* of which International 1,240.0 1,489.5 +20.1%
Operating Profit on Activity 224.0 260.8 +16.4%
As % of revenue 9.9% 9.9%
Operating Profit 214.2 238.2 +11.2%
As % of revenue 9.4% 9.1%
Net profit, Group share 157.9 164.2 +4.0%
As % of revenue 7.0% 6.3%
Free Cash flow (1) 82.5 160.3 +94.3%
As % of revenue 3.6% 6.1%
Net cash position 12.5 74.9
Headcount 33,700 37,200 +10.4%
* IFRS16 standards applicable from January 1st 2019
BUSINESS 2019 IN SHARP GROWTH: +15.6%
Revenue reaches EUR2,624.0 M growing by 15.6% as compared to 2018. On a
like-for-like basis, business grows by 10.7% (10.2% in France and 11.2% outside
All business sectors are growing and more specifically Rail/Naval, Aerospace
and Defence & Security.
A SATISFACTORY OPERATING PROFIT ON ACTIVITY: 9.9% OF REVENUE
The operating profit on activity increases more quickly than the activity
itself (+16.4%) accounting for EUR260.8 M. Despite adverse calendar effect and
activity rate, along with continuous structuring efforts to support our growth,
the operating margin on activity has slightly increased, up to 9.94% of
revenue. It reached 10.8% of revenue in the second half.
Operating profit reaches EUR238.2 M including EUR5.2 M of share-based payments
(without cash impact), EUR11.6 M of non-recurring costs mainly associated with
acquisition and restructuring costs, as well as social and tax adjustments
(following audits), and EUR5.8 M of goodwill depreciation.
NET PROFIT, GROUP SHARE: EUR164.2 M OR 6.3% OF REVENUE
Financial result accounts for - EUR3.4 M. After taking into account tax
expenses of - EUR77.3 M, earnings from equity affiliates of EUR6.1 M, and
minority interests of - EUR0.6 M, net income equals EUR164.2 M.
NET CASH FLOW: EUR74.9 M / GEARING: - 6.7%
Cash flow reaches EUR272 M (before taking into accounts IFRS16 effects) and
grows by 12.4% as compared to 2018. Free cash flow reaches EUR160.3 M and has
almost doubled as compared to 2018 (+94%) thanks to a very good control of WCR
and low Capex. Financial investments (EUR66.8 M) and dividends (EUR33.4 M) were
entirely self-financed. Therefore net cash position equals EUR74.9 M at the end
of 2019, with a gearing of - 6.7%.
EXTERNAL GROWTH: 7 ACQUISITIONS IN 2019
ALTEN has also consolidated its position on an international level by
completing 7 acquisitions outside France in 2019 (5 in Europe, 1 in Asia and 1
in the US), with 830 consultants and EUR65 M of revenue.
OUTLOOK FOR 2020:
Following two years of a very strong organic growth (>10%), growth should get
back to normal standards in 2020, in respect with the trend experienced in the
second half of 2019.
ALTEN will pursue a satisfactory growth, more rapidly than the market, and will
accelerate its development thanks to a targeted external growth more
specifically on an international level.
Next publication: April 24th after market closing: 2020 Q1 Results
For more information: www.alten.com/investisseurs /
Contact: ESCAL Consulting Tel: + 33 1 44 94 95 66
As a European Leader in Engineering and Technology Consulting (ETC), ALTEN
carries out design and research projects for Technical and IT divisions of
major clients in industry, telecoms and services.
ALTEN's stock is listed in compartment A of the Euronext Paris market (ISIN
FR000001946); it is part of the SBF 120, the IT CAC 50 index and MIDCAP100, and
is eligible for the deferred Settlement Service (SRD).
Appendix to Press Release:
Definition of alternative performance measures and reconciliation with IFRS
The ALTEN Group uses alternative performance measures especially selected to
follow up on its operational activities. The Group has chosen these measures as
they supply additional information allowing the users of periodic financial
information to have a comprehensive understanding of the Group's performance.
Such alternative performance measures are complementary to IFRS standards.
Revenue growth on a like-for-like basis (i.e. organic growth)
Growth on a like-for-like basis (and constant exchange rate) is calculated
excluding the effects of exchange rate variations and the variations of the
consolidation perimeter on a chosen period.
The effects of exchange impacts are measured by converting the revenue of the
period with the average exchange rate from the previous period.
The effects of a perimeter are measured excluding acquisitions, revenue of the
period and for transfers, revenue of the previous period, in order to create a
perimeter which is identical to the previous period.
This alternative measure enables to identify the real performance of the Group
in terms of activity on the chosen period.
Evolution of business 2019
EURM 2018 2019 % Change
Revenue on a like-for-like
basis 2,269.9 2,512.8 10.7%
France 1,029.9 1,134.5 10.2%
International 1,240.0 1,378.3 11.2%
Scope variation 96.3 4.2%
France - -
International 96.3 7.8%
Exchange rate impact 14.9 0.7%
France - -
International 14.9 1.2%
Group revenue 2,269.9 2,624.0 15.6%
France 1,029.9 1,134.5 10.2%
International 1,240.0 1,489.5 20.1%
Operating Profit on Activity
Operating Profit on Activity is the operating income before taking into account
the costs on share-based payments, results from significant transfers of
assets, goodwill impairment, as well as other significant and uncommon elements
considered as miscellaneous fees and operational activities.
Since payments on share-based compensation have noticeable heterogeneous annual
changes, the tables included in our financial statements show the operational
performance of the Group and make it possible to compare with previous or
Net cash position (net debt)
Net debt - as defined and used within the Group, stands for cash flow and
assimilated elements of cash flow less gross financial debt (bank loans and
other assimilated financial debts). This indicator is called "net cash
position" when the amount of cash flow or assimilated element of cash flow are
higher than gross financial debt (or "net debt" in the opposite case).
Free cash flow
Free cash flow corresponds to net cash flow from operating activities minus net
operating investments and net cash flow from financing activities related to
payments of leasing debts.
(c) Direction ALTEN - www.alten.com Engineering & Technology Consulting