AUBAY (EPA:AUB) - 2019 Half-Yearly Results : Further improvement in recurring operating margin: 9.2% - Interim dividend: EUR 0.33

Directive transparence : information réglementée

18/09/2019 18:00
In € thousands H1 2019 H1 2018 Change
Revenue 208,115 197,346 +5.5%
Operating profit from ordinary activities 19,069 17,457 +9.2%
As a % of revenue 9.2% 8.8%  
Other operating income and expenses (1,433) (1,428)  
Operating profit 17,636 16,029 +10.0%
Net financial income/(expense) (306) (155)  
Tax (expense)/income (5,838) (4,847)  
Net income from consolidated companies 11,492 11,027 +4.2%
As a % of revenue 5.5% 5.6%  
Net income attributable to owners of the parent 11,492 11,027  

Aubay's Board of Directors, which met on September 18, 2019 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2019. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.


Aubay posted another solid performance, with improved results for the first half of 2019. Revenue for the first six months of the year increased 5.5% in organic terms to €208.1 million.


Operating margin from ordinary activities up by 40 basis points over the period, at 9.2%.

The Group's operating margin from ordinary activities came in at 9.2%, versus 8.8% for first-half 2018, up 40 basis points despite one less billable day. Business in France accounted for 9.7% of the figure and international business 8.6%.

Operating profit from ordinary activities was up 9.2% at €19.1 million, versus €17.5 million in first-half 2018. The increase, which is higher than the increase in revenue, is directly linked to the improvement in the gross margin. The first?time application of IFRS 16 did not have a material impact on recurring operating income (positive €60 thousand).

The Group reported a financial expense of €306 thousand for the period, compared to €155 thousand in first?half 2018. This figure includes a €150 thousand expense related to the first-time application of IFRS 16.

The tax expense amounted to €5.8 million, representing an effective tax rate of 34%, versus 31% one year earlier. This increase is due to the competitiveness and employment tax reform in France, which saw the former tax credit system replaced by lower contributions.


Half-yearly net income of €11.5 million

After non-ordinary expenses, which primarily included the cost of free shares and other one-off expenses that remained stable year on year, attributable net income was up 4.2% over the period at €11.5 million.


Net cash position (excluding rental liabilities) of €4.6 million

Cash from operations amounted to €12.1 million, compared to €1.5 million in first-half 2018. The sharp rise was due to positive cash flows for €4.2 million and the optimization of working capital for a positive €6.3 million, despite the seasonal effect generally being unfavorable in the first half of the year.

Dividends paid to shareholders amounted to €4.3 million during the period.

Overall, net cash (excluding lease liabilities resulting from the application of IFRS 16) amounted to €4.6 million at June 30, 2019.



In a constant drive towards greater expertise, our clients' expectations in terms of innovation remain high. 

In view of these market conditions, Aubay is ideally positioned, leveraging a consistently demanding and selective recruitment policy, to develop and gain market share in the months and years to come.

The targets published in our 2019 second-quarter revenue press release remain unchanged, namely:

  • Revenue of €425 million, corresponding to organic growth of 5% to 7%
  • Operating margin from ordinary activities between 9.5% and 10.5%.


Interim dividend of €0.33

In light of this excellent performance, the Board of Directors has decided to pay an interim dividend of €0.33 per share for the current fiscal year on November 12, 2019. As a reminder, the interim dividend paid in November 2018 was €0.27 per share.


Next publication

2019 third-quarter revenue: Wednesday, October 23 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 revenue 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, significant or infrequent and that are booked separately in order to facilitate the understanding of an entity's 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 6,236 employees in 7 countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2019. Aubay generated revenue of €400.6 million in 2018.

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


Alexandra Prisa - Actus Finance - Tel.: +33 (0)1 53 67 35 79 - E-mail: aprisa@actus.fr

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




Consolidated statement at June 30, 2019    
ASSETS (€ 000s) 30/06/2019 31/12/2018
Goodwill 124,101 124,101
Intangible assets 665 678
Property, plant and equipment 5,242 5,284
Use rights relating to leases 24,063  
Equity-accounted investees - -
Other financial assets 2,319 2,309
Deferred tax assets 2,173 2,126
Other non-current assets 141  
NON-CURRENT ASSETS 158,704 134,498
Inventories and work in progress 436 378
Assets on contracts 36,868 20,649
Trade receivables and related accounts 101,462 115,760
Other receivables and accruals 35,856  35,892 
Marketable securities 977 
Cash at bank and in hand 20,393  19,519 
CURRENT ASSETS 195,992 192,198
TOTAL ASSETS 354,696 326,696
EQUITY AND LIABILITIES (€ '000s) 30/06/2019 31/12/2018
Capital 6,597  6,568 
Additional paid-in capital and consolidated reserves 154,863  131,515 
Net income attributable to the Group 11,492  27,327 
Shareholders' equity attributable to the Group 172,952 165,410
Attributable to non-controlling interests 0
SHAREHOLDERS' EQUITY 172,952 165,410
Borrowings and financial liabilities: non-current portion 8,392 10,493
Rental debts: non-current portion 21,453  
Deferred tax liabilities 5 6
Provisions for contingencies and expenses 5,567 5,328
Other non-current liabilities 3 2
Borrowings and financial liabilities: current portion 8,334 8,819
Rental debts: current portion 2,696  
Trade payables and related accounts 26,915 26,530
Liabilities on contracts 12,513 17,528
Other payables and accruals 95,866 92,580


Consolidated statement of income as of June 30, 2019        
(€ 000s) 30/06/2019 % 30/06/2018 %
Revenue 208 115 100% 197 346 100%
Other operating income 72    89   
Purchases used in production and external charges (37,711)    (39,724)   
Staff costs (146,237)    (137,684)   
Taxes other than on income (1,713)    (1,692)   
Amortisation, depreciation and provisions (3, 546)    (835)   
Change in inventories of work in progress and finished goods        
Other current operating income and expenses 89    (43)   
Operating profit from ordinary activities 19,069 9.2% 17,457 8.8%
Expenses linked to restricted share units and similar awards (743)    (733)   
Current operating income 18,326 8.8% 16,724 8.5%
Other operating income and expenses (690)    (695)   
Operating profit 17,636 8.5% 16,029 8.1%
Income from cash and cash equivalents        
Net borrowing costs (177)    (249)   
Other financial income and expenses (129)    94   
Net financial income (expense) (306)   (155)  
Income tax expense (5,838)    (4,847)   
Income from equity-accounted investees        
Net income before results of discontinued operations or assets held for sale 11,492   11,027  
Net income after tax of discontinued operations or assets held for sale        
Net income 11,492 5.5% 11,027 5.6%
Attributable to shareholders 11,492    11,027   
Attributable to non-controlling interests    
Basic weighted average number of shares 13,180,931   13,113,301  
Earnings per share 0.87   0.84  
Diluted weighted average number of shares 13,279,431   13,214,801  
Diluted earnings per share 0.87   0.83  


Consolidated statement of cash flow at June 30, 2019    
(€ ‘000s) 30/06/2019 30/06/2018
Consolidated net income (including non-controlling interest) 11,492 11,027
Income from equity-accounted investees    
Net exceptional depreciation, amortisation and provisions relating to leases 3,661 813 
Non-cash expenses and income relating to share-based payments 743 733 
Other non-cash items   (31) 
Dividend income (88) (7) 
Gains and losses on disposals of fixed assets 6 (17) 
Cash flow after net interest expense and tax 15,814 12,518
Net borrowing costs 177 249 
Tax expense (including deferred taxes) 5,838 4,847 
Cash flow before net interest expense and tax (A) 21,829 17,614 
Income tax payments (B) (5,403) (5,484) 
Change in trade and other receivables (C) (5,753) (13,673)
Change in trade and other payables (C) 1,457 3,039 
Net cash provided by (used in) operating activities (D) = (A+B+C) 12,130 1,496
Outflows for the acquisition of tangible and intangible fixed assets (1,871) (1,308) 
Inflows from the disposal of tangible and intangible fixed assets    
Outflows for the acquisition of financial assets (4)  
Inflows from the disposal of financial assets 32  
Change in loans and advances granted (6) 30 
Outflows (inflows) linked to business combinations net of cash acquired    
Dividends and grants received 88
Net cash provided by (used in) investing activities (1,761) (1,271)
Proceeds from capital increases    
Amounts received upon the exercise of stock options   31 
Purchases of treasury shares for cancellation    
Purchases of and proceeds from the sale of treasury shares   31 
Dividends paid in the period    
-Net dividends paid to parent company shareholders (4,354) (3,151) 
-Dividends paid to the non-controlling shareholders of consolidated companies   (18) 
Inflows from new borrowings 1,235 8,155 
Repayment of financial debt (4,176) (6,025) 
Repayment of loan debt (2,607)  
Net interest payments (173) (283) 
The purchase of non-controlling interests (put options)   (2,196) 
Other financial flows    
Net cash provided by (used in) financing activities (F) (10,075) (3,456)
Effects of changes in foreign exchange rates (G) (1) (2) 
Change in net cash (D+E+F+G) 293 (3,233) 
Opening cash and cash equivalents 19,372 16,492
Closing cash and cash equivalents 19,665 13,259

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