ASSYSTEM: 2020 results
2020 results
- Revenue: €471.7 million
- Operating profit before non-recurring items (EBITA)(1): €24.8
million, representing 5.3% of revenue
- Dividend(2) : €1.00 per share
- Outlook for 2021 buoyed by contract wins for Nuclear
activities
- Targets for 2021: full-year revenue of at least €500 million
and EBITA margin of at least 6%
Paris La Défense, 16 March 2021, 5.35
p.m. (CET) – At its meeting on 16 March 2021, the Board of
Directors of Assystem S.A. (ISIN: FR0000074148 - ASY), an
international engineering group, reviewed the Group’s financial
statements for the year ended 31 December 2020.
Dominique Louis, Assystem’s Chairman and Chief Executive
Officer, stated:
“The Covid-19 pandemic had a significant impact
on Assystem’s sales and earnings in 2020, but it did not affect its
strong momentum in terms of business development. Proof of this can
be seen in the many contracts we won during the year, particularly
in the nuclear sector, as well as in our recent announcement
concerning our strategic plans in India. Drawing on our success –
which we have achieved thanks to our top quality teams and their
close proximity to our key clients, as well as our unwavering
ambition to grow our business – we are more than ever putting our
world-renowned engineering expertise to the service of the
transition to carbon-free energy.”
KEY FIGURES
In millions of euros (€m) |
2019 |
2020 |
Revenue |
497.5 |
471.7 |
Operating profit before non-recurring items
– EBITA(1) |
35.2 |
24.8 |
% of revenue |
7.1% |
5.3% |
Consolidated profit for the period excluding Expleo Group’s
contribution |
14.3 |
14.1 |
Consolidated profit/(loss) for the
period(3) |
27.9 |
(21.1) |
Net debt(4) |
51.6 |
23.8 |
Dividend per share (in €)(2) |
1.00 |
1.00 |
ANALYSIS OF THE 2020 INCOME
STATEMENT
For Assystem, 2020 was marked by the negative
impact of the Covid-19 pandemic on the Group’s revenue and
earnings, despite the governmental support measures that were put
in place, notably in France, concerning furlough and short-time
working schemes and exemptions from the corresponding payroll
taxes. This impact was particularly pronounced during the national
lockdown period in France.
Assystem’s consolidated revenue
contracted by 5.2% in 2020, breaking down as a like-for-like
decrease of 5.5%, a 1.2% positive impact from changes in the scope
of consolidation, and a negative 0.9% currency effect.
Revenue from the Energy &
Infrastructure division declined by 3.7% to €429.7
million, with a 5.3% like-for-like decrease, a 2.2% positive impact
from changes in scope of consolidation, and a 0.6% negative
currency effect.
Nuclear activities’ revenue
edged down 2.5% for 2020 as a whole, coming in at €294.5 million,
but stabilised in the second half of the year compared with the
same period of 2019 despite an operating context still affected to
a certain degree by the pandemic. The growth outlook for this
sector looks robust for 2021 thanks to the contracts won during
2020.
Revenue posted by Energy Transition
& Infrastructures (ET&I) amounted to €135.2
million, down 7.6% like for like, although trends improved
significantly in the second half of the year (when the decline was
a contained 3.5% versus 12.0% in the first half). For 2021,
ET&I’s target is to generate revenue at a level between its
2019 and 2020 figures.
The Staffing division’s revenue
– which was heavily affected by the border closures in place
throughout most of 2020 – retreated 11.3% year on year to €38.9
million. This division’s revenue target for 2021 is
€40 million.
- Operating profit before non-recurring items (EBITA) and
EBITDA(5)
Consolidated EBITA totalled
€24.8 million in 2020, compared with €35.2 million in 2019, and
EBITA margin stood at 5.3% versus 7.1%.
EBITA for the Energy &
Infrastructure division came in at €28.3 million, and its
EBITA margin was 6.6%, versus €36.9 million and 8.3% respectively
in 2019.
Staffing EBITA fell year on
year to €0.5 million from €1.4 million(6), with an EBITA margin of
1.3%.
The Group’s “Holding company” expenses, net of
the EBITA of the activities classified in the “Other” category, had
a €4.0 million negative impact on consolidated EBITA in 2020,
versus a €3.1 million(6) negative impact in 2019. Excluding the
EBITA realized by the “Other” activities (which were deconsolidated
on 1 July 2020), these Holding company expenses were €4.6 million
and €4.9 million in 2020 and 2019 respectively.
Excluding the impact of IFRS 16,
consolidated EBITDA(5) came to €30.5 million in
2020 and EBITDA margin was 6.5%, compared with €39.1 million and
7.9% respectively in 2019.
- Operating profit and other income statement
items
Consolidated operating profit
totalled €21.8 million, versus €27.3 million in 2019, after
taking into account €1.3 million in share-based payments and €1.7
million in net non-recurring expense for the year, including €3.7
million in restructuring costs relating to the Belfort site and a
€2.0 million capital gain on the sale of the Group’s stake in
Eurosyn.
Expleo Group – in which
Assystem holds 38.2% of the capital as well as quasi-equity
instruments issued by that company (convertible bonds with
capitalised interest) – contributed a negative €35.2 million to
consolidated profit, breaking down as Assystem’s €45.2 million
share of Expleo Group’s loss for the period and €10.0 million
in coupons on the convertible bonds. This negative contribution did
not impact the Group’s cash flow.
Assystem recorded a net financial
expense of €1.9 million for 2020. This amount includes
€3.1 million in dividends received from Framatome and a €0.9
million expense recognised for the buyout of the 49% interest in
the Turkish company Assystem Envy that was not already owned by the
Group.
After deducting an income tax expense of €5.8
million (versus €11.2 million in 2019), Assystem ended the year
with a consolidated loss of €21.1 million compared
with consolidated profit of €27.9 million in 2019. Excluding Expleo
Group’s negative contribution, Assystem would have recorded €14.1
million in consolidated profit, versus €14.3 million in 2019.
- Information about Expleo Group
Revenue generated by Expleo
Group came to €908.0 million in 2020, compared with
€1,084.1 million in 2019. The Covid-19 pandemic severely hit demand
for outsourced research and development in Expleo Group’s two main
sectors of activity, i.e. the aeronautical and automotive
industries. As this impact is set to be lasting, the company has
decided to restructure its corresponding operations, primarily in
France, with most of the restructuring measures to be carried out
in 2021.
Expleo Group’s EBITDA
(excluding the IFRS 16 impact) amounted to €51.5 million for 2020
(of which €27.3 million in the second half), representing 5.7%
of its consolidated revenue, versus €108.6 million and 10.0%
respectively in 2019. The 2020 EBITDA figure includes a negative
€12.8 million impact corresponding to the residual amount borne by
the company for its employees on short-time working and furlough
schemes, recorded in EBITA (which totalled €38.6 million).
Expleo Group recorded a consolidated
loss of €92.2 million before recognition of the
capitalised interest on its quasi-equity instruments. This amount
includes a net non-recurring expense of €77.3 million, of which
€66.8 million relates to the provisions for the restructuring
plan.
FREE CASH FLOW(7) AND NET
DEBT
Free cash flow for 2020 came to €58.4 million
(excluding the IFRS 16 impact). Before the €26.7 million positive
effect of the income and payroll tax holiday schemes put in place
by national governments (mainly in France), the figure was €31.7
million (representing 6.7% of revenue). Out of the overall amount
of postponed tax payments, €13.6 million is payable in the first
half of 2021 and €13.1 million in the second half of 2021.
The Group had net debt of €23.8 million
at 31 December 2020, versus €51.6 million at end-2019. The
€27.8 million year-on-year decrease breaks down as
follows:
- a €58.4 million reduction in debt as a result of free cash
flow(7);
- a €15.1 million dividend payment to Assystem shareholders for
2019;
- €8.9 million paid for acquisitions of shares (acquisition of
Corporate Risk Associates and buyout of the minority interests in
Assystem Envy) and purchased goodwill;
- a €6.6 million net cash inflow for other movements, including
€9.4 million paid for purchases of Assystem shares and €3.1 million
in dividends received from Framatome.
RECOMMENDED
DIVIDEND FOR 2020
At the Annual General Meeting to be held on 27
May 2021, Assystem will recommend the payment of a dividend of
€1.00 per share. If this dividend is approved by the shareholders,
it would represent a total payout of €14.8 million(8).
OUTLOOK FOR 2021
Excluding the contributions of any acquisitions
carried out during 2021 and based on exchange rates at the
beginning of the year, Assystem’s targets for 2021 are as
follows:
- consolidated revenue of at least €500 million;
- EBITA margin of at least 6%, noting that the increase compared
with the reference year of 2019 in IT costs arising from the
implementation of a new ERP system(9) and IT security measures
represents 0.8% of revenue.
This outlook is based on the assumption that
both the Group and its clients are able to continue conducting
their business in the same conditions as those currently
prevailing.
2021 FINANCIAL CALENDAR
- 4 May 2021:
First-quarter 2021 revenue release
- 27 May 2021:
Annual General Meeting
- 29 July 2021:
First-half 2021 revenue release
ABOUT
ASSYSTEMAssystem is an international
engineering group. As a key participant in the industry for over 50
years, the Group supports its clients in managing their capital
expenditure throughout their asset life cycles. Assystem S.A. is
listed on Euronext Paris. To find out more visit www.assystem.com /
Follow Assystem on Twitter: @Assystem
Philippe Chevallier CFO & Deputy CEOTel.: +33
(0)1 41 25 28 07 Anne-Charlotte
DagornCommunications Directoracdagorn@assystem.comTel.:
+33 (0)6 83 03 70 29 |
Agnès
VilleretInvestor relations –
Komodoagnes.villeret@agence-komodo.comTel.: +33 (0)6 83 28 04 15
|
APPENDICES
1/ REVENUE AND EBITA BY
DIVISION
In millions of euros |
2019 |
2020 |
Total year-on-year change |
Like-for-like change* |
Group |
497.5 |
471.7 |
-5.2% |
-5.5% |
Energy & Infrastructure |
446.2 |
429.7 |
-3.7% |
-5.3% |
Staffing |
43.8 |
38.9 |
-11.3% |
-7.3% |
Other |
7.5 |
3.1 |
- |
- |
* Based on a comparable scope of consolidation and
constant exchange rates.
In millions of euros |
2019 |
% of revenue |
2020 |
% of revenue |
Group |
35.2 |
7.1% |
24.8 |
5.3% |
Energy & Infrastructure |
36.9 |
8.3% |
28.3 |
6.6% |
Staffing |
1.4 |
3.2% |
0.5 |
1.3% |
Holding
company and Other |
(3.1) |
- |
(4.0) |
- |
(1) Operating profit before
non-recurring items (EBITA) including share of profit of
equity-accounted investees other than Expleo Group (€0.9 million in
2019 and €1.0 million in 2020).
2/ Consolidated Financial Statements
- CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
In millions of
euros |
31 Dec. 2019 |
31 Dec. 2020 |
ASSETS |
|
|
Goodwill |
84.6 |
82.0 |
Intangible
assets |
12.2 |
15.6 |
Property, plant
and equipment |
10.5 |
12.0 |
Right-of-use
assets |
34.4 |
37.7 |
Investment
property |
1.4 |
1.3 |
Equity-accounted
investees |
1.0 |
1.4 |
Expleo Group shares |
91.2 |
43.0 |
Expleo Group convertible bonds |
111.4 |
121.4 |
Expleo Group
shares and convertible bonds |
202.6 |
164.4 |
Other non-current
financial assets(1) |
143.8 |
144.6 |
Deferred tax assets |
4.5 |
5.7 |
Non-current assets |
495.0 |
464.7 |
Trade
receivables |
160.8 |
150.5 |
Other
receivables |
30.0 |
23.9 |
Income tax
receivables |
1.6 |
0.7 |
Other current
assets |
0.5 |
0.3 |
Cash and cash equivalents(2) |
29.2 |
43.1 |
Current assets |
222.1 |
218.5 |
TOTAL ASSETS |
717.1 |
683.2 |
|
|
|
EQUITY AND LIABILITIES |
31 Dec. 2019 |
31 Dec. 2020 |
Share
capital |
15.7 |
15.7 |
Consolidated
reserves |
353.7 |
348.9 |
Profit/(loss) for the period attributable to owners of the
parent |
27.0 |
(22.0) |
Equity
attributable to owners of the parent |
396.4 |
342.6 |
Non-controlling interests |
0.3 |
0.1 |
Total equity |
396.7 |
342.7 |
Long-term debt
and non-current financial liabilities(2) |
80.5 |
66.0 |
Lease
liabilities |
27.1 |
30.2 |
Pension and other
employee benefit obligations |
18.4 |
19.6 |
Liabilities
related to share acquisitions |
4.4 |
- |
Long-term
provisions |
17.2 |
17.4 |
Other non-current
liabilities |
0.8 |
- |
Deferred tax liabilities |
- |
0.1 |
Non-current liabilities |
148.4 |
133.3 |
Short-term debt
and current financial liabilities(2) |
0.3 |
0.9 |
Lease
liabilities |
7.7 |
8.5 |
Trade
payables |
32.7 |
28.3 |
Due to suppliers
of non-current assets |
1.2 |
0.1 |
Accrued taxes and
payroll costs |
95.4 |
120.8 |
Income tax
liabilities |
2.7 |
1.0 |
Short-term
provisions |
3.0 |
6.9 |
Other current liabilities |
29.0 |
40.7 |
Current liabilities |
172.0 |
207.2 |
TOTAL EQUITY AND LIABILITIES |
717.1 |
683.2 |
(1) Including Framatome shares representing €136.7 million at 31
December 2020.(2) Net debt totalled €23.8 million at 31 December
2020, breaking down as: -
Short- and long-term debt and current and non-current
financial liabilities: €66.9 million
- Cash and cash
equivalents: €43.1 million.
- CONSOLIDATED INCOME
STATEMENT
In millions of euros |
2019 |
2020 |
|
|
|
Revenue |
497.5 |
471.7 |
Payroll
costs |
(351.2) |
(348.6) |
Other operating
income and expenses |
(97.7) |
(81.9) |
Taxes other
than on income |
(1.1) |
(1.1) |
Depreciation,
amortisation and provisions for recurring operating items, net |
(13.2) |
(16.3) |
|
|
|
Operating profit before non-recurring items
(EBITA) |
34.3 |
23.8 |
Share of profit
of equity-accounted investees |
0.9 |
1.0 |
|
|
|
EBITA including share of profit of equity-accounted
investees |
35.2 |
24.8 |
Non-recurring
income and expenses |
(6.9) |
(1.7) |
Share-based
payments |
(1.0) |
(1.3) |
|
|
|
Operating profit |
27.3 |
21.8 |
Share of
profit/(loss) of Expleo Group |
4.5 |
(45.2) |
Income from
Expleo Group convertible bonds |
9.1 |
10.0 |
Net financial
expense on cash and debt |
(1.8) |
(2.7) |
Other financial
income and expenses |
0.5 |
0.8 |
|
|
|
Profit/(loss) from continuing operations before
tax |
39.6 |
(15.3) |
|
|
|
Income tax
expense |
(11.2) |
(5.8) |
|
|
|
Profit/(loss) from continuing operations |
28.4 |
(21.1) |
|
|
|
Profit/(loss)
from discontinued operations |
(0.5) |
- |
|
|
|
Consolidated profit/(loss) for the period |
27.9 |
(21.1) |
Attributable to: |
|
|
Owners of the
parent |
27.0 |
(22.0) |
Non-controlling interests |
0.9 |
0.9 |
- CONSOLIDATED STATEMENT OF CASH
FLOWS
In millions of euros |
2019 |
2020 |
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
EBITA including
share of profit of equity-accounted investees |
35.2 |
24.8 |
Depreciation,
amortisation and provisions for recurring operating items, net |
13.2 |
16.3 |
EBITDA |
48.4 |
41.1 |
Change in
operating working capital requirement |
8.1 |
46.9 |
Income tax
paid |
(10.7) |
(6.7) |
Other cash
flows |
(3.8) |
(0.4) |
Net cash generated from operating activities |
42.0 |
80.9 |
O/w related to
continuing operations |
42.5 |
80.9 |
O/w related to
discontinued operations |
(0.5) |
- |
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
Acquisitions of
property, plant and equipment and intangible assets, net of
disposals, o/w: |
(15.8) |
(11.9) |
Acquisitions of property, plant and equipment and intangible
assets |
(16.0) |
(12.0) |
Proceeds from disposals of property, plant and equipment and
intangible assets |
0.2 |
0.1 |
Free
cash flow |
26.2 |
69.0 |
O/w related to
continuing operations |
26.7 |
69.0 |
O/w related to
discontinued operations |
(0.5) |
- |
Acquisitions of
shares and purchased goodwill |
(22.2) |
(8.9) |
Other
movements, net |
4.4 |
6.1 |
Net cash generated from/(used in) investing
activities |
(33.6) |
(14.7) |
O/w related to
continuing operations |
(33.6) |
(17.1) |
O/w related to
discontinued operations |
- |
2.4 |
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
Net financial
income received/(expenses paid) |
(1.7) |
(1.3) |
Proceeds from
new borrowings |
17.2 |
- |
Repayments of
borrowings and movements in other financial liabilities |
(0.2) |
(14.0) |
Repayments of
lease liabilities* |
(9.3) |
(10.6) |
Dividends
paid |
(17.2) |
(16.0) |
Other movements
in equity of the parent company |
0.2 |
(9.4) |
|
|
|
Net cash generated from/(used in) financing
activities |
(11.0) |
(51.3) |
|
|
|
Net increase/(decrease) in cash and cash
equivalents |
(2.6) |
14.9 |
|
|
|
Net cash and cash equivalents at beginning of
year |
32.1 |
29.1 |
Effect of
non-monetary items and changes in exchange rates |
(0.4) |
(1.1) |
Net
increase/(decrease) in cash and cash equivalents |
(2.6) |
14.9 |
Net cash and cash equivalents at year-end |
29.1 |
42.9 |
* Including interest expense.
3/ MOVEMENTS IN NET DEBT/(CASH)
In millions of euros |
|
|
Net debt at 31 Dec.
2019 |
51.6 |
|
Free cash flow from continuing operations |
(58.4) |
Excluding impact
of IFRS 16 |
Acquisitions of
shares |
8.9 |
|
Dividends paid to
Assystem’s shareholders |
15.1 |
|
Treasury share
transactions |
9.4 |
|
Other
movements |
(2.8) |
Including €3.1
million in dividends received from Framatome |
Net debt at 31 Dec. 2020 |
23.8 |
|
4/ INFORMATION ABOUT THE COMPANY'S
CAPITAL
Number of shares |
At 31 Dec. 2019 |
At 31 Dec. 2020 |
Ordinary shares outstanding |
15,668,216 |
15,668,216 |
Treasury shares |
670,640 |
855,848 |
Free shares and performance shares
outstanding |
303,715 |
170,925 |
Weighted average number of shares
outstanding |
15,004,957 |
15,000,142 |
Weighted
average number of diluted shares |
15,308,672 |
15,171,067 |
Ownership Structure at 28 February
2021
In % |
Shares |
Exercisable voting rights |
HDL Development(1) |
57.14% |
74.76% |
Free float(2) |
37.37% |
25.24% |
Treasury shares |
5.49% |
- |
- HDL Development is a holding company that is 88.33%-controlled
by Dominique Louis (Assystem’s Chairman and Chief Executive
Officer), notably through HDL, which itself holds 0.85% of
Assystem’s capital.
- Including 0.85% held by HDL.
(1) Operating profit before
non-recurring items (EBITA) including share of profit of
equity-accounted investees other than Expleo Group (€0.9 million in
2019 and €1.0 million in 2020).
(2) For 2020, the figure corresponds to the
dividend that will be recommended at the Annual General Meeting on
27 May 2021.
(3) Including profit
attributable to non-controlling interests amounting to €0.9 million
for both 2019 and 2020. Consequently, in 2019, profit for the
period attributable to owners of the parent came to €27.0 million,
and in 2020, loss for the period attributable to owners of the
parent was €22.0 million.
(4) Debt less cash and cash equivalents and
after taking into account the fair value of hedging
instruments.
(5) EBITA excluding the impact
of IFRS16 (i.e. €0.6 million in 2020) and before depreciation and
amortisation expense and net provisions for recurring operating
items.
(6) €0.2 million in EBITA has been reclassified
from “Other” to Staffing for 2019 in order to provide meaningful
comparisons with 2020.
(7) Corresponding to net cash
generated from operating activities less capital expenditure, net
of disposals. Free cash flow including the IFRS 16 impact amounted
to €69.0 million.
(8) Corresponding to €1.00
multiplied by the 14,808,463 outstanding shares carrying dividend
rights at 28 February 2021.
(9) The Group’s previous ERP was fully
amortised.
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