- BUSINESS STRONGLY IMPACTED BY THE HEALTH CRISIS IN FRANCE
- SINCE JANUARY 2020: 4 ACQUISITIONS OVERSEAS
BUSINESS AT THE END OF JUNE 2020: -8.9%
Business decreases by 8.9% at the end of September: ‐18.2% in France and ‐1.6% overseas. On a like‐for‐like basis and constant exchange rate, business decreases by 11.3%: ‐17.9% in France and ‐6.2% outside France. Since January 2020 business has been strongly impacted by the health crisis. Although the activity resumed during the third quarter, it remains very slow.
In the third quarter, business decreases by 18.6%: ‐27.0% in France and ‐12.4% overseas. On a like‐for‐like basis, revenue decreases by 19.4%. Organic growth declines by 26.6% in France and 14.0% overseas. Despite a 6‐point increase as compared to Q2 2020, the business rate in Q3 2020 remains low, i.e. 84% as compared to 92% in Q3 2019.
Business in the Automotive and Civil Aeronautics sectors remains the most impacted whereas Rail/Naval, Life Sciences and Energy (Oil & Gas excepted) withstand the impacts of the health crisis.
Therefore, in the countries with predominant activities in the Automotive and Aeronautics sectors ‐ i.e. France, Germany, Sweden, UK and US ‐ business has significantly decreased in the third quarter. Italy, Switzerland and Asia/Pacific however achieve good results as their activities increase by over 5%.
EXTERNAL GROWTH : 4 ACQUISITIONS OVERSEAS SINCE JANUARY 2020
ALTEN has consolidated its position abroad by completing 4 acquisitions since the beginning of 2020:
- One company in Chin and Japan specialised in IT (annual revenue: €18 M, 400 consultants)
- One company in South Korea specialised in software development and CAE/PLM (annual revenue: €21 M, 300 consultants)
- One company in the US and Ukraine specialised in software development (annual revenue: €7.5 M,100 consultants)
- One company in Germany specialised in engineering consulting (annual revenue: €19 M, 200 consultants)
ALTEN has meanwhile sold 2 non‐strategic companies in 2020:
- One company in China specialised in the automotive industry (annual revenue: €6 M, 160 consultants)
- One company in France specialised in Telecoms (annual revenue: €16 M, 300 consultants)
OUTLOOK FOR 2020:
Since mid‐March, the health crisis has strongly affected our activities.
The most durably impacted sectors are Automotive & Heavy trucks, Aircraft & associated activities, and Civil Aeronautics.
France, Sweden, Germany, and to a lesser extent the US and the UK, i.e. the countries having predominant activities in the most impacted sectors, are sharply affected by the health crisis.
Although the activity moderately resumed in the third quarter, it should strengthen in the last quarter, however very slowly on account of far‐off prospects of recovery in the Automotive and Aerospace sectors.
As a consequence, we foresee in the second half a similar decrease in business as in the second quarter. In 2020, provided the same business and health conditions, this decrease should average 13%.