DEVOTEAM S.A. 2021
Interim
Financial
Report
This document is available on the website
www.devoteam.com
Creative tech for Better Change
C O N T E N T S
KEY FIGURES FOR THE PERIOD ................................................................................................................................................................. | |
INTERIM HIGHLIGHTS ............................................................................................................................................................................ | |
RESULTS BY GEOGRAPHICAL AREA ............................................................................................................................................................ | |
ANALYSIS OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................... | |
RELATED PARTIES ................................................................................................................................................................................ | 6 |
KEY RISKS AND UNCERTAINTIES FOR THE SECOND HALF OF 2021....................................................................................................................... | 6 |
OUTLOOK FOR THE SECOND HALF OF 2021................................................................................................................................................. | 6 |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2021 | 7 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ..................................................................................................................................... | 7 |
CONSOLIDATED INCOME STATEMENT ........................................................................................................................................................ | 8 |
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................................................... | 9 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.................................................................................................................................... | 10 |
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2021................................................... | 12 |
STATUTORY AUDITORS' REPORT | 33 |
STATEMENT BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT .................................................................................................. | 34 |
2021 interim financial report | 2 |
KEY FINANCIAL INFORMATION
KEY FIGURES FOR THE PERIOD | ||||
In millions of euros(1) | 30/06/2021 | 30/06/2020 | Total change | Organic change (2) |
Revenue | 430.1 | 387.2 | +11.1% | +7.5% |
Operating margin | 49.6 | 35.8 | +38.5% | |
As % of revenue | 11.5% | 9.3% | +2.3 pt | |
Operating income | 45.3 | 31.4 | +43.9% | |
As % of revenue | 10.5% | 8.1% | +2.4 pt | |
Net income - Group share | 26.0 | 16.4 | +58.8% | |
Diluted earnings per share(3) | €3.16 | €1.99 | +59.0% | |
Net cash (debt) at closing(4) | 95.2 | 92.4 | +€2.8 million | |
- The financial statements were approved by the Supervisory Board on 6 September 2021.
- At comparable perimeter and exchange rates.
- Based on the weighted average number of shares for the year.
- Cash position net of all financial debts, excluding debts related to operating leases under IFRS 16 "Leases".
INTERIM MANAGEMENT REPORT
INTERIM HIGHLIGHTS
The revenue in the first half of 2021 amounted to €430.1 million, up by 11.1% compared to the first half of 2020 (7.5% at constant scope and exchange rates). Changes in the scope of consolidation had a positive effect of 3.8 points on growth, while the change in exchange rates had a negative impact on growth by 0.2 point.
The operating margin increased by 38.5% in volume to €49.6 million, i.e. 11.5% of revenue, compared to €35.8 million and 9.3% of revenue in the first half of 2020. The operating margin for the first half of 2021 includes 4.4 million in public subsidies (mainly partial activity) as well as a positive effect due to fewer employees taking leave over the period due to successive restrictive measures through Europe; an effect that the Group believes should reverse in the second half of the year.
As a reminder, this operational performance compares with the first half of 2020 impacted by the COVID-19 health crisis from mid- March.
At 30 June 2021, the Group had 8,238 employees, an increase of 615 people over the half-year. In the first half of the year, the attrition rate of resources was 29% and the activity rate was 82.3%.
The financial situation remains healthy, with the net cash position of €95.2 million at 30 June 2021 being stable compared to the same period of the previous year.
During the period, the Group continued its external growth policy with the acquisitions of Nubalia Cloud Computing, a specialist in the integration of Google solutions in Spain and Portugal, and of Integrity, a specialist in cybersecurity based in Portugal, in February and June 2021, respectively. In addition, the Group finalised the sale of its remaining minority stake in Siticom GmbH in Germany.
2021 interim financial report | 3 |
RESULTS BY GEOGRAPHICAL AREA | |||
In millions of euros | H1 2021 | H1 2020 | 2020 |
France | |||
Contribution* to revenue | 193.0 | 173.6 | 341.5 |
Variation | 11.2% | ||
L-f-l variation | 9.0% | ||
Operating margin | 23.6 | 19.0 | 41.8 |
In % of Group contribution | 12.2% | 10.9% | 12.2% |
International | |||
Contribution* to revenue | 240.2 | 216.4 | 424.3 |
Variation | 11.0% | ||
L-f-l variation | 6.4% | ||
Operating margin | 31.3 | 20.2 | 43.2 |
In % of Group contribution | 13.0% | 9.3% | 10.2% |
HQ & divestments | |||
Contribution* to revenue | (3.1) | (2.7) | (5.4) |
Operating margin | (5.2) | (3.3) | (11.3) |
Total | |||
Contribution* to revenue | 430.1 | 387.2 | 760.4 |
Variation | 11.1% | ||
L-f-l variation | 7.5% | ||
Currency impact | -0.2% | ||
Perimeter impact | 3.8% | ||
Operating margin | 49.6 | 35.8 | 73.7 |
In % of Group contribution | 11.5% | 9.3% | 9.7% |
* See definition in Note 5.2 of the 2021 interim financial report. | |||
Including impact of significant acquisitions on the contribution to revenue: | |||
In millions of euros | H1 2021 | ||
France | 3.8 | ||
Ysance, consolidated as of 31 December 2020 | 3.8 | ||
International | 10.9 | ||
Inviso, consolidated as of 1 July 2020 | 4.9 | ||
Fourcast, consolidated as of 1 August 2020 | 4.2 | ||
Nubalia, consolidated as of 1 March 2021 | 1.8 | ||
ANALYSIS OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Analysis of the consolidated income statement
The revenue in the first half of 2021 amounted to €430.1 million, up by 7.5% at constant scope and exchange rates compared to the previous financial year.
The operating margin, defined as the current operating profit excluding the impact of share-based payments and amortisation of intangible assets related to acquisitions, stood at €49.6 million in the first half of 2021, representing 11.5% of revenue.
The operating income amounted to €45.3 million, a clear increase compared to the first half of 2020. It does, however, include restructuring costs of €3.0 million mainly in Germany and €2.9 million of goodwill impairment of the German entities.
The financial result was -€2.7 million. It included a €0.3 million foreign exchange loss, a €0.5 million interest expense on the bond issue, a €0.3 million cost related to the application of IFRS 16, and €1.4 million of short-term Group financing costs (confirmed lines of credit and factoring).
The income tax expense amounted to €12.5 million. It represented 29.5% of the profit before tax, against 36.4% in the first half of 2020. Excluding the effects of non-taxable profits and other exceptional items, the Group's standardised tax rate was 26.4% in the first half of 2021. The tax rate has thus fallen compared to last year, as a result of tax reform in France.
The net income attributable to the shareholders of the Group increased by 58.8%, from €16.4 million in the first half of 2020 to €26.0 million in the first half of 2021.
2021 interim financial report | 4 |
Consolidated balance sheet analysis
The main items of the consolidated balance sheet changed as follows during the first half of 2021:
In millions of euros | 30 June 2021 | 31 December | Change | |||||
2020 | ||||||||
Non-current assets | 252.9 | 221.7 | 31.2 | |||
Operating receivables | 350.7 | 304.6 | 46.1 | |||||
Cash and cash | 131.1 | 153.1 | (22.0) | |||||
equivalents* | ||||||||
Equity attributable to the | 209.6 | 214.7 | (5.1) | |||||
Group | ||||||||
Minority shareholders' | 14.5 | 16.5 | (2.0) | |||||
equity | ||||||||
Non-current liabilities | 86.1 | 72.0 | 14.1 | |||||
Current liabilities | 424.5 | 376.2 | 48.3 | |||||
Main reasons for the change
The change is mainly due to the recognition of new goodwill for €13.5 million related to external growth operations (Nubalia) as well as the takeover of the entity Integrity in Portugal classified as non-consolidated as of 30 June 2021 for €16.0 million. This change was partially offset by the impairment of the Germany CGU for an amount of €2.9 million, as well as the disposal of the minority stake in Siticom GmbH for anamount of -€1.9million.
The change in operating receivables is mainly due to the increase in trade receivables for €35.7 million as well as in prepaid expenses for €10.2 million. Due to the seasonality of the activity, the days of sales outstanding (DSO) increased from 46 daysat the end of December 2020 to 49 days at the end of June 2021.
See below
The change is due to the recognition of income for the period in the amount of €26.0 million, scope effects of -€24.3 million, and a foreign exchange effect of €0.5 million.
Non-controlling interests (see Note 4.9.4 to the consolidated financial statements).
The increase in non-current liabilities is mainly due to the change in liabilities relatedto put options and earn-outsfor €10.6 million.
The increase in current liabilities is mainly due to the increase in trade payables for €16.7 million, contract liabilities for €9.8 million and tax and social security liabilitiesfor €13.5 million in line with the Group's growth.
-
Cash and cash equivalents (net of €2.9 million in bank overdrafts) decreased by €22.0 million during the half-year to stand at €131.1 million.
This change is due to: - Positive cash flow from operating activities of €37.9 million resulting from a substantial increase in operating cash flow (defined as the total operating cash flows before the impact of WCR and taxes paid) to €60.8 million (versus €41.9 million at 30 June 2020) and a seasonal increase in WCR of -€13.2 million (versus €20.8 million at 30 June 2020) mainly due to (i) the improvement in the days of sales outstanding (DSO), which stood at 49 days (compared with 46 days at 31 December 2020 and 63 days at 30 June 2020), and (ii) the impact of the postponement in the previous year of social-security charges and tax due dates under the COVID-19 government measures for €20.5 million.
- Negative cash flow from investing activities of €26.7 million over the period (versus -€1.7 million at 30 June 2020) mainly due to the effect of cash outflows related to acquisitions of subsidiaries (less cash acquired) for €25.2 million.
- Negative cash flow from financing activities of €33.6 million (versus -€9.0 million at 30 June 2020), which includes in particular:
- a net cash outflow of €23.9 million related to transactions on non-controlling interests;
- a net outflow from borrowings for €1.8 million;
- the repayment of lease liabilities associated with the right-of-use assets (IFRS 16) for €7.4 million;
- an increase in outstanding receivables sold, net of security deposit for €3.7 million;
- the payment of dividends to non-controlling shareholders for €2.1 million.
2021 interim financial report | 5 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Devoteam SA published this content on 08 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 October 2021 11:31:07 UTC.
