European company with a capital of 3,330,923.32 € Registered office: 30 bd Joseph II - L1840 Luxembourg

HALF-YEARLY FINANCIAL REPORT

- Half-year ending on June 30, 2016 -

Table of contents

  1. - HALF-YEARLY MANAGEMENT REPORT H1 2016 3

    CONSOLIDATED STATEMENT OF INCOME 3

    CONSOLIDATED STATEMENT OF THE FINANCIAL POSITION ON 30 JUNE 2016 4

    ANALYSIS OF BUSINESS BY REGION ON 30 JUNE 2016 5

    WORKFORCE ON JUNE 30, 2016 6

    MAIN TRANSACTIONS WITH RELATED PARTIES ON 30 JUNE 2016 6

    SIGNIFICANT EVENTS OCCURRING DURING THE FIRST SIX MONTHS OF THE FISCAL YEAR AND THEIR IMPACT ON THE HALF-YEARLY STATEMENTS 7

    EVENTS SUBSEQUENT TO JUNE 30, 2016 7

    MAIN RISKS AND UNCERTAINTIES 8

    PERSPECTIVES 8

  2. - INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED JUNE 30, 2016 9

CONSOLIDATED FINANCIAL STATEMENT 9

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 10

CONSOLIDATED STATEMENT OF CASH-FLOW 11

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 12

NOTE 1 - BASIS OF PREPARATION OF THE INTERIM INFORMATION (IAS34) 13

COMPREHENSIVE BASIS OF ACCOUNTING 13

TABLE SUMMARISING THE NEW IFRS STANDARDS APPLICABLE FOR THE CURRENT FISCAL YEAR AND PUBLISHED STANDARDS 13

SPECIFIC PRINCIPLES APPLICABLE TO THE INTERMIM STATEMENTS 14

NOTE 2 - SIGNIFICANT EVENTS OF THE FIRST HALF OF 2016 15

NOTE 3 - BUSINESS CLASSIFIED AS DISCONTINUED OPERATIONS (IFRS 5) 16

NOTE 4 - EMPLOYEES 16

NOTE 5 - EVENTS SUBSEQUENT TO 30 JUNE 2016 17

NOTE 6 - BUSINESS SEGMENT INFORMATION 18

NOTE 7 - INFORMATION ON THE BUSINESS 19

NOTE 8 - INCOME TAX EXPENSE 19

NOTE 9 - BASIC EARNINGS AND DILUTED EARNINGS PER SHARE 20

NOTE 10 - GOODWILL 20

NOTE 11 - CAPITAL 21

NOTE 12 - REDEEMABLE EQUITY WARRANTS RESERVED FOR CERTAIN MANAGERS AND EMPLOYEES 22

NOTE 13 - PROVISIONS FOR RISKS AND EXPENSES 24

NOTE 14 - OTHER OPERATING INCOME AND EXPENSES 25

NOTE 15 - FINANCIAL DEBT 25

NOTE 16 - MAIN TRANSACTIONS WITH RELATED PARTIES 26

NOTE 17 - OFF-BALANCE SHEET COMMITMENTS 26

NOTE 18 - RECONCILIATION OF OPERATING INCOME TO ADJUSTED EBITDA 26

I - HALF-YEARLY MANAGEMENT REPORT H1 2016

CONSOLIDATED STATEMENT OF INCOME

Period from January 1 to June 30 (in thousand euros)

2016

6 months

2015

6 months

Variation

June 16/15 Notes

%

Revenue

102 214

87 394

Other revenue

381

231

Total revenue

102 595

87 625

17,1%

Note 6

Cost of sales

(68 235)

(58 547)

Gross margin

34 360

29 078

18,2%

Commercial costs

(6 965)

(5 212)

Administrative costs

(22 191)

(19 376)

Current operating income

5 204

4 490

15,9%

Restructuring costs

(655)

(320)

Other non recurring income and expenses

(276)

310

Impairment of goodwill

-

(1)

Operating income

4 273

4 479

-4,6%

Cost of gross financial debt

(195)

(48)

Income in cash and cash equivalents

395

21

Other financial income and expenses

(261)

(368)

Net income (loss) from continuing operations

4 212

4 084

3,1%

Income tax expenses

(1 812)

(1 498)

Note 8

Share in net income (loss) of associates

-

-

Net income (loss) from discontinued operations

(2 526)

(597)

Note 3

Net income

(126)

1 989

Average number of basic shares

26 573

26 962

28 859

0,07

0,07

Note 9

Note 9

Average number of fully diluted shares

29 869

Earnings per basic share

(0,00)

Earnings per diluted share

(0,00)

In H1 2016, Valtech has recorded a consolidated revenue of € 102.6 million, up by 17.1% (+13.5% at constant scope and exchange rates). America and Northern Europe grew at 41% and 13%, respectively. As a reminder, in H1 2015 revenue related to Valtech Services (business available for sale) was recorded in the line "Net income (loss) from discontinued operations".

Gross margin reached € 34.4 million, up by 18.2% (+13.3%at constant scope and exchange rates) representing a gross margin rate of 33.5%, +0,3% compared with H1 2015.

Adjusted EBITDA was € 6.9 million, up by 5.9% (+0.9% at constant scope and exchange rates), representing a margin of 6.7%, against 7.4% in H1 2015. This development is the result of (i) the increase in gross margin, (ii) an increase of sales and marketing costs by 33.6% due

to the development of our sales strategy, and (iii) controlled administrative expenses, which grew by 14.5%, a slower pace than revenues. Adjusted EBITDA is defined and reconciled to the operating income in note 18 to the interim financial statements.

Restructuring costs for an amount of 655 thousand € are entirely attributable to provisions for partially unoccupied offices in locations where Valtech has secured new leases in anticipation of future growth.

As a result, the Operating income has decreased from € 4,5 million in H1 2015 to € 4.3 million in H1 2016.

Discontinued operations (non-core IT business in the USA) generate a loss of 2.5 million € that correspond to the loss on the sale of this activity in January 2016 (see Note 3 to the interim financial statements) and to the provision for a litigation (see Note 13).

The net loss amounts to € (0.1) million, compared to a net income of € 2.0 million in H1 2015, and incorporates € 0.1 million of net financial loss, € (1.8) million of corporate tax and € (2.5) million of income from discontinued operations.

CONSOLIDATED STATEMENT OF THE FINANCIAL POSITION ON 30 JUNE 2016

The equity on 30 June 2016 amounted to € 58.4 million, including:

  • Net result of € (0,1) million

  • A negative exchange difference of € (1.2) million.

(in Thousands of euros)

June 30, 2016

December 31, 2015

Goodwill

16 415

15 778

Total intangible assets

18 609

17 993

Total tangible assets

5 039

4 304

Total non-current assets

29 030

30 500

Total current assets

83 789

82 459

Total Assets

112 819

112 959

Equity

58 387

59 158

Total non current liabilities

2 024

1 638

Total current liabilities

52 408

52 163

Total liabilities

112 819

112 959

On 30 June 2016, Valtech's financial position remains solid: € 58.4 million in equity, available cash of € 17.4 million and financial debts and bank overdrafts of € 6.2 million.

Valtech SA published this content on 30 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 September 2016 12:18:05 UTC.

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