STRONG ACTIVITY INCREASE IN FULL‐YEAR REVENUE 2016: +13.5%
- Consolidated full‐year 2016 revenue grew 13.5% year on year to €1,748.30 million. On a like‐for‐like and constant exchange rate basis, business increased by 7.3% (up 3.4% in France and up 11.5% outside France), confirming the momentum observed throughout the year. International activity now stands for 52.5% of the activity of the Group.
- In Q4, the Group reported a 13.1% increase in revenue to €453.8 million. On a like‐for‐like basis, business grew by 6.4% during the final quarter of the year (up 2.2% in France and up 10.8% outside France).
- Despite seasonal fluctuations in 2016, growth developed throughout the year. Southern Europe, North America and the UK reported sustained growth of over 10% in 2016. Organic growth improved as the year went on in Scandinavia (>10% in Q4); it turned positive again in Germany in H2 2016.
- Activity growth is mainly driven by Automotive, Services/Finance and Aerospace.
STRONG 13.5% INCREASE IN REVENUE
STRONG INTERNATIONAL GROWTH: +23.2%
10 ACQUISITIONS COMPLETED IN 2016
(Incl. 9 outside France)
OPERATING PROFIT FROM ORDINARY ACTIVITIES UP 18.6%
- There was a significant improvement in operating margin on ordinary activities, from 9.9% in 2015 to 10.3% this year: it was 10.2% for the first six months of the year, rising to 10.5% in the second‐half of the period, in spite of an unfavorable calendar effect vis‐à‐vis H2 2015 (i.e., 2 less business days in H2 2016).
- The higher operating margin was a result of enhanced project performance, careful control of overheads (SG&A expenses), and improved operating margins on acquisitions completed in 2014 and 2015.
OPERATING PROFIT UP: + 7.0%
- Operating profit climbed 7% year on year to €157.4 million. This amount includes €9.0 million in expenses related to setting up the free share award plan. This operation had no impact on the Group’s cash situation and there is maximum potential dilution estimated at 2.1% of capital.
- The non‐recurring loss of €14.5 million mainly comprises the impact of reassessments of social security charges in France, restructuring costs and acquisition‐related fees.
NET PROFIT GROUP SHARE UP 5.7%
- After taking into account the financial result and tax expense, net profit group share amounted to €112.4 million (6.4% of revenue), a 5.7% increase on the 2015 figure (i.e., €106.3 million, or 6.9% of revenue).
NET CASH BALANCE: POSITIVE €4.6 MILLION
- Free cash flow for the year was satisfactory and amounted to €112.4 million, or 6.4% of revenue.
- The free cash flow enabled the Group to self‐finance its investments, acquisitions and dividend payouts.
- The Group had a positive net cash balance of €4.6 million at end‐December 2016. Consequently, ALTEN has a healthy balance sheet that will allow it to continue to finance both its organic and acquisition‐based growth.
EXTERNAL GROWTH: A NEW ACQUISITION COMPLETED IN GERMANY;
10 ACQUISITIONS SINCE JANUARY 2016
- ALTEN continued to deploy a dynamic, targeted external growth strategy throughout the year. The Group completed 10 acquisitions (including 9 outside France), representing an additional 1,700 consultants and cumulative annual revenue of €119 million.
- In France, ALTEN acquired a Life Sciences company (estimated annual revenue of €19 million ‐ 190 additional consultants).
- Abroad, 9 companies reached the Group:
• 4 acquisitions in Europe: Germany, Italy and Romania (Revenue: €41 million ‐ 450 consultants).
• 5 acquisitions in North America and India (Revenue: €59 million ‐ 1,065 consultants).
OUTLOOK FOR 2017:
- Although 2017 starts in a context of geopolitical uncertainty both in Europe and the US, the activity remains
well oriented. ALTEN has consolidated its positions in all the areas where the Group does business in 2016 and
this should enable it to deliver positive organic growth once again in 2017 (assuming comparable economic