PR Newswire/Les Echos/
Press release
April, 30th 2010
2009 Audited Results
Revenue and net profit at 31 March 2010
The Board of Directors of Valtech SA, meeting in Paris on 22 April 2010 under
the chairmanship of Sebastian Lombardo, its new Chairman and Chief Executive
Officer since 9 March 2010, reviewed and approved the Group's audited financial
statements for the financial year ended 31 December 2009. Key figures were as
follows:
(EUR thousands) 2008 FY 2009 HY1 2009 HY2 2009 FY
Revenue 100 591 40 556 34 961 75 517
Gross profit 32 683 10 769 13 589 24 358
Profit/(loss) from
recurring operations 2 940 (2 180) 906 (1 274)
Operating prof it/(loss) 2 402 (2 949) (807) (3 756)
Net profit/(loss) 1 171 (3 307) 2 400 (907)
Valtech Group's results for the 2009 financial year were significantly below the
initial guidance and markedly underperformed the industry's average performance.
Even though this situation is partly explained by the difficult economic
environment that prevailed in 2009 (especially in the UK and Denmark), certain
operational difficulties also contributed significantly. Valtech suffered from
difficult positioning in all its markets, except in Sweden, which confirmed its
good performance in 2009. The Group was particularly exposed in Germany, due to
its historic dependency on the automotive industry, as well as in the US and in
France due to a number of under delivering fixed rate projects. The Group
reported a 2009 revenue of EUR 75.5 million, representing a 24.9% decline
compared to 2008, a 23.3% on a like-for-like basis (constant group structure and
exchange rates). The operating loss totalled EUR 3.8 million.
Note that this operational situation, characterized by a strong decrease in
revenue and operating profitability, was offset at Group net profitability level
by non-recurring items, such as:
· The recognition as "disposed operations" of a EUR 3.1 million income,
related to the estimated proceeds from the disposal of Valtech SA's minority
shareholding in Medhost Inc., in accordance with IFRS 5
· The granting of a Research Tax Credit of EUR 2.32 million over the 2009
financial year, for which an application for refund was filed in 2010 and
had a EUR 1.6 million positive impact excluding associated costs. Without
this Research Tax Credit, the operating loss would have been EUR 5.4 million
· The strong reduction in selling and marketing expenses (down EUR 1.4
million), as well as administrative costs (down EUR 2.7 million) partially
offset by restructuring costs (down EUR 2.0 million).
After taking these non-recurring items into account, the Group reports a net
loss of EUR 0.9 million.
The Group generated cash flow from operating activities of EUR 3.3 million and
Valtech had a net cash position of EUR 8.2 million at year end. The Group
benefited from good management of cash flow related to operating activities,
which should be nuanced however due to EUR 3.2 million in overdrafts and current
and non-current financial debt of EUR 0.7 million.
2009 REVENUE GEOGRAPHIC ANALYSIS
Chiffre et Résultat Chiffres et Résultat
CA d'affaires d'exploitation d'affaires d'exploitation
2009 % / CA 2008 % / CA
France 33 489 1 034 3% 39 053 2 298 6%
Reste de
l'Europe 33 450 1 482 4% 43 716 4 431 10%
USA 6 908 -3 623 -52% 15 188 -1 524 -10%
Inde 1 670 -3 0% 2 634 -117 -4%
Coûts
Corporate -2 647 -2 686
Valtech
Group 75 517 -3 756 -5% 100 591 2 402 2%
France (44.3% of Revenue)
Revenue of French operations declined by 14.2% and operating profit of EUR 2.3
million in 2008 turned into a EUR 1million profit in 2009. The relative size of
French operations rose to 44.3% of Group revenue, up from only 38.8% in 2008.
Rest of Europe (44.3% of revenue)
The rest of Europe (UK, Germany and Scandinavia) remained the main contributor
to operating profitability and represented 44.3% of Group revenue. Revenue
declined by 23.5% compared to 2008 in this region, due to the weak performance
of the UK, Germany and Denmark.
US and Asia (11.4% of revenue)
Our subsidiaries in the US and in Asia contributed 11.4% to the Group's 2009
revenue, compared to 17.7% in 2008. These subsidiaries experienced a difficult
year, especially in the US where revenue fell by 54.5% compared to 2008. Our US
subsidiary reported an operating loss for the period.
Our operations in India also suffered from the global recession and recorded a
decrease in revenue.
WORKFORCE SIZE
The workforce totalled 893 at end 2009. The Group reduced its headcount by 216
people over the year, in order to adapt its structures to the Group's actual
financial performance.
Billable staff represented 82.6% of personnel in 2009, compared to 85% in 2008.
2010 OUTLOOK
Following the takeover bid submitted on 23 October 2009 and closed on 10 March
2010, SiegCo has become Valtech Group's new principal shareholder and holds
58.25% of company shares and voting rights. A new management team headed by
Sebastian Lombardo took over operational control of the company on 9 March 2010.
In 2010 this new team will focus on stabilising the deteriorated operational
situation and initiating a turn-around strategy based on a differentiating
strategic positioning and the constitution of a higher value offering portfolio
in the digital segment.
SALES FOR THE FIRST QUARTER 2010 (Q1)
Q1 2010 Q1 2010 % Q1 2009 Q1 2009 %
revenue operating revenue revenue operating revenue
profit/(loss) profit/(loss)
France 8,468 (1,133) (13%) 9,036 239 3%
Rest of Europe 8,073 511 6% 10,071 1,022 10%
USA 2,092 (324) (15%) 1,702 (1,013) (59%)
India 298 (99) (33%) 505 (12) (2%)
Corporate costs (454) (302)
Valtech Group 18,931 (1,499) (8%) 21,314 (65) 0%
The first quarter of 2010 did not show any upturn in the operational situation,
which continued to deteriorate both at revenue and profitability levels.
Q1 2010 revenue was in marked decline of 11.2% compared to Q1 2009. Europe (UK,
Denmark, and Germany, excluding Sweden) was the most severely affected in terms
of revenue fall, whereas the US achieved 23% revenue growth compared to Q1 2010.
France revenue declined by 6.3%.
The operating profitability has also continued to deteriorate in the first
quarter 2010, featuring a EUR1.5 million operating loss, compared to near
breakeven in the first quarter 2009.
In spite of the external market recovery, the operational situation remains very
difficult, in line with the 2009 performance. Major steps have been initiated
early in the 2nd quarter by the new management team, as part of a recovery plan
aimed at stabilising the operational situation by the end of 2010.
NOTICE OF ANNUAL GENERAL MEETING
The Annual General Meeting will be held in Paris on 29 June 2010.
Press enquiries:
investors@valtech.com
Chairman of the Board
Sebastian Lombardo
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