Solutions 30 : Half-year results 2020
Operational performance remains
resilient
- Half-year revenue up by 14.1% to €363.7 million
- EBITDA margin at 11.4%
- Net cash position of €45.9 million, the result of careful
cash management during an unprecedented pandemic
Return to sustained growth as from June
2020
- Dynamic organic growth expected in H2 with a solid 3rd
quarter
- Stronger long-term prospects, with the health crisis acting as
a catalyst for digital transformation and energy transition
Solutions 30 SE today announces its consolidated
results for the first six months of 2020, prepared in accordance
with IFRS(1).
Key figures(2)
In millions of euros |
06/30/2020 |
06/30/2019 |
Change |
Revenue |
363.7 |
318.8 |
+14.1% |
Adjusted EBITDA |
41.5 |
40.6 |
+2.4% |
As a % of revenue |
11.4% |
12.7% |
|
Adjusted EBIT |
21.8 |
24.5 |
-11.0% |
As a % of revenue |
6.0% |
7.7% |
|
Consolidated net income |
10.5 |
15.3 |
-31.4% |
As a % of revenue |
2.9% |
4.8% |
|
Net income, group share |
10.5 |
15.5 |
-32.0% |
As a % of revenue |
2.9% |
4.9% |
|
Financial structure data In millions of euro |
06/30/2020 |
12/31/2019 |
Change |
Equity |
148.8 |
138.3 |
+10.5 |
Net
debt |
26.7 |
91.8 |
-65.1 |
Net
bank debt |
-45.9 |
3.0 |
-48.9 |
14% revenue growth
After a strong start to the year, lockdown
measures, travel restrictions, and the closure of some businesses
disrupted Solutions 30’s activities from mid-March to mid-May.
Over these two months, revenue was 35% lower than pre-Covid levels.
As soon as the lockdown ended, most of the group’s markets quickly
bounced back to their pre-crisis levels and Solutions 30
returned to sustainable growth by June.
For the first six months of the year, revenue
was up 14.1% (+6.9% organic growth) compared to the same period in
2019. Maintenance activities, which are recurrent by nature, acted
as a buffer against the decline, or even temporary interruption, of
installations and roll-outs.
In France, revenue grew by 10.4% (9.2% organic
growth) in the first six months of 2020 to reach
€224.3 million, compared with €203.3 million for the same
period in 2019. This performance is a result of excellent momentum
in the Telecom business, up 37% over the first six months, while
the group’s other business sectors suffered as a result of the
coronavirus containment measures.
In the Benelux countries, revenue for the
half-year was up 13.2% (2.04% organic growth) to
€66.2 million, compared with €58.5 million for the same
period in 2019, largely due to resilience in the Telecom
business.
In other countries, revenue for the first half
of 2020 was up by 28.2% (3.9% organic growth) to
€73.1 million, compared with €57.0 million one year ago.
The impact of pandemic-related restrictions has varied from country
to country. Germany and Poland were relatively unscathed, while
Italy and Spain were hit hard.
An agile and solid business
model
Despite the sudden drop in activity followed by
a sharp rebound, Solutions 30 has proven the effectiveness of
its business model, as well as its ability to adapt quickly. From
the outset of the lockdown, all measures were taken to protect the
health of employees, while guaranteeing business continuity and
adapting the group’s cost structure to preserve its future capacity
to capture structural growth in its markets.
Thanks to a highly variable cost structure and
the implementation of partial activity measures, adjusted EBITDA
was €41.5 million at the end of June 2020, or 11.4% of
revenue, compared to €40.6 million, or 12.7% of revenue one
year earlier. Operating costs represented 78.2% of revenue,
compared to 81.4% a year earlier, while structural costs amounted
to 10.4% of revenue (10.2% excluding costs related to the adoption
of IFRS standards and transfer to Euronext), compared with 9.4% in
the first half of 2019.
In step with the limited decline in the adjusted
EBITDA margin, adjusted EBIT was €21.8 million, or 6.0% of
revenue. It includes €8.6 million of depreciation and
operating provisions tied to the increase in IT platform
investments over the last two years, and €11.1 million of
depreciation for right-of-use leased assets (IFRS 16).
Customer relationship amortization amounted to
€5.7 million in 2020, compared to €4.7 million a year
earlier. Net financial income, consisting mainly of financial
expenses, represented an expense of €2.0 million, compared
with €1.0 million for 2019. This variation is explained by the
change in bank debt and by FX exchange losses of €0.7 million
recorded on loans in local currency granted by the group to its
Polish subsidiary (acquisition of Elmo assets) and on transactions
with its Tunisian subsidiary, while the euro appreciated. Taxes
amounted to €3.8 million, compared to €3.5 million the
previous year.
Taking these factors into account, the group
share of net income reached €10.5 million, compared to
€15.5 million in the first half of 2019.
Financial structure bolstered by
diligently managing working capital requirements
Throughout the crisis, Solutions 30 took
care to protect its cash flow. As the crisis came to an end, and to
support strong growth in volumes, some customers accelerated their
settlement times, which helped to reduce working capital
requirements and strengthen the group’s financial balances.
At the end of June 2020, the group’s equity
amounted to €148.8 million, compared with €138.3 million
at December 31, 2019. The group’s gross cash position
reached €151.8 million, compared to €84.2 million at the
end of December 2019. Gross bank debt was €106.0 million
compared with €87.1 million six months earlier. The group
posted a net cash position (excluding IFRS 16) of
€45.9 million at the end of June 2020, compared to a net debt
of €3.0 million at the end of December 2019.
Total net debt, including €57.8 million in
leasing liabilities and €14.8 million of potential financial
debt on future call options and earnouts, amounted to
€26.7 million.
Outstanding receivables transferred under the
group’s deconsolidating factoring program amounted to
€43 million, compared with €54 million at the end of
2019.
Outlook
On the back of strong performance during the
first six months of the year, Solutions 30 confirms that
organic growth will be sustained in the 3rd quarter. At this stage,
as long as the situation does not worsen further, the group is
confident in its ability to combine both double-digit growth and
profitability for the full year.
Solutions 30 has a confident outlook for
the coming months and years ahead. The group’s business model has
demonstrated its effectiveness during a crisis that was
unprecedented in terms of its nature but also its speed and scale.
The health crisis is acting as a catalyst for economic change. In
this context, the group is stronger than ever, having asserted its
competitive positioning and consolidated its relationships with its
customers. The digital transformation and the energy transition are
accelerating under the combined effect of necessity and economic
stimulus plans being approved by the main European countries.
In markets driven by positive long-term trends,
the group intends to pursue its strategy of balancing organic
growth and acquisitions, while relying on its solid foundation of
recurring activities to position itself in new markets and
duplicate its French model throughout Europe.
Webcast
A webcast in English will take place on
Thursday, September 24th at 2:30 pm (CET).
Upcoming event
n 2020
Q3 revenue, November 4, 2020
(1) The Solutions 30 Supervisory Board,
which met on September 23rd, reviewed and validated the financial
results for the first half of 2020, as approved by the Group
Management Board. Limited account review procedures are in
progress. The half-year financial report will be made available no
later than September 30th.
(2) The group adopted IFRS 16
for Leases on January 1, 2018. As a result, the 2019 and 2020 data
are fully comparable. In accordance with this standard, all leases
are now recognized on the balance sheet. This results in the
recognition of a fixed asset (rights of use) on the assets side of
the balance sheet, with a financial liability as a counterpart
calculated by discounting the future rental payments provided for
in the lease agreements. These rights of use are subject to
amortization and the liabilities lead to the recognition of a
financial expense.
Glossary
EBITDA
Earnings before interest, taxes, depreciation, and amortization, as
well as non-recurring income and expenses
Adjusted
EBIT
Operating income before amortization of intangible assets,
including customer relationships, and non-recurring income and
expenses.
Non-recurring
transactions
Income and expenses that are infrequent, unusual in nature, and
significant in amount are considered non-recurring
transactions.
Customer
relationships
Intangible assets related to the fair value measurement of acquired
companies at the time of consolidation. The amortization period of
3 to 11 years is the estimated time for the consumption
of the majority of economic benefits flowing to the company.
Net
debt
Net debt includes loans from credit institutions, bank overdrafts,
lease liabilities, and future liabilities from earnouts and put
options, less cash and cash equivalents.
Net bank
debt
Net bank debt includes loans from credit institutions and bank
overdrafts, less cash and cash equivalents. This represents net
debt excluding the impact of IFRS 16. Net bank debt is used as
a reference in calculating the covenants included in the group’s
debt contracts.
About
Solutions 30 SE
The Solutions 30 group is the European
leader in solutions for new technologies. Its mission is to make
the technological developments that are transforming our daily
lives accessible to everyone, individuals and businesses alike.
Yesterday, it was computers and the Internet. Today, it’s digital
technology. Tomorrow, it will be technologies that make the world
even more interconnected in real time. With more than
30 million call-outs carried out since it was founded and a
network of more than 10,000 local technicians, Solutions 30
currently covers all of France, Italy, Germany, the Netherlands,
Belgium, Luxembourg, the Iberian Peninsula, and Poland. The share
capital of Solutions 30 SE consists of
107,127,984 shares, equal to the number of theoretical votes
that can be exercised.Solutions 30 S.E. is listed on the Euronext
Paris exchange (ISIN FR0013379484- code S30). Indexes: MSCI Europe
Small Cap | Tech40 | CAC PME | SBF120 | CAC Mid 60. Visit our
website for more information: www.solutions30.com
Contact
Analysts/investors: Nathalie Boumendil |
Tel: +33 (0)6 85 82 41 95 |
nathalie.boumendil@solutions30.comPress: Samuel Beaupain | Tel: +
352 2 777 4210 | media.relations@solutions30.com