ASSYSTEM: First-half 2023 results
First-half
2023 results
- Revenue: €282.5 million (up 16.9% in total and 13.9% like for
like)
- Operating profit before non-recurring items (EBITA)(1): €15.7
million (down 4.3%)
- EBITA margin: 5.6% (down 1.2 pts)
Paris La
Défense,
13 September
2023,
5.35 p.m. (CEST) – At
its meeting held today, the Board of Directors of Assystem S.A.
(ASY – ISIN: FR0000074148), an international engineering
group, reviewed the Group’s financial statements for the first half
of 2023 (i.e. the six months ended 30 June 2023).
Dominique Louis, Assystem’s
Chairman & CEO,
stated:
“Assystem is pursuing its strategic mission by
supporting the development of nuclear energy both in France and
throughout the world. This long-standing positioning is more
relevant than ever, as demonstrated by the growth in our business.
While attracting and retaining talent are major challenges today
for the engineering industry overall, the commitments we have made
at Assystem to both the climate and our people’s development enable
us to stand out from the competition.”
KEY FIGURES
|
In millions of euros (€m) |
H1 2022 |
H1 2023 |
Year-on-year change |
|
Revenue |
241.7 |
282.5 |
+16.9% |
|
Operating profit before non-recurring items
–
EBITA(1) |
16.4 |
15.7 |
-4.3% |
|
% of revenue |
6.8% |
5.6% |
-1.2 pts |
|
Consolidated profit for the
period(2) |
32.7 |
21.0 |
|
|
|
31 Dec.
2022 |
30 June
2023 |
|
|
Net
debt(3) |
50.9 |
80.6 |
|
ANALYSIS
OF THE FIRST-HALF 2023 INCOME STATEMENT
Assystem’s consolidated revenue totalled €282.5
million in the first half of 2023, up 16.9% on first-half 2022. The
year-on-year increase breaks down as 13.9% in like-for-like growth,
a positive 3.9% impact from changes in the scope of consolidation
(due to the first-time consolidations of Relsafe, LogiKal and
Oreka), and a 0.9% negative currency effect.
Revenue from Nuclear activities amounted to
€198.1 million versus €171.7 million in the first half of 2022. The
15.4% year-on-year rise includes 15.8% in like-for-like growth, a
positive 0.4% impact from changes in the scope of consolidation,
and a negative 0.9% currency effect.
ET&I revenue came to €84.4 million in the
first half of 2023, compared with €69.9 million in first-half 2022.
Total year-on-year growth was 20.6%, breaking down as 9.1%
like-for-like growth, a positive 12.3% impact from changes in the
scope of consolidation, and a negative 0.8% currency effect.
- Operating profit before
non-recurring items (EBITA)
and
EBITDA(4)
Consolidated EBITA amounted to
€15.7 million in the first six months of 2023, versus
€16.4 million in first-half 2022. EBITA margin amounted to
5.6%, as expected, compared with 6.8% in first-half 2022, due to
the impact of the recruitment campaign carried out upstream of
projects. This campaign was launched as of end-2022 in order to
help drive the Group’s business growth over the medium term.
EBITA for Assystem Operations
(all of the Group’s operations except for Holding company
activities) totalled €18.6 million, representing 6.6% of revenue,
compared with €19.0 million and 7.9% respectively in first-half
2022.
The Group’s “Holding company” expenses had a €2.9 million
negative impact on consolidated EBITA in first-half 2023 versus a
€2.6 million negative impact in the same period of 2022.
Excluding the impact of IFRS 16,
consolidated
EBITDA(4) came
to €18.5 million in first-half 2023, representing 6.5% of revenue,
compared with €19.3 million and 8.0% respectively in first-half
2022.
- Operating profit and other
income statement lines
After taking into account €5.0 million in net
non-recurring income for the period, mainly comprising (i) a
reversal of the provision for the tax dispute related to the FY
2011 and 2012 research tax credits and (ii) €1.0 million in
share-based payments (shares awarded free of consideration),
consolidated operating profit for the six months ended 30
June 2023 totalled €19.7 million, compared with
€14.4 million in the first half of 2022.
Expleo Group – in which
Assystem holds 37.22% of the capital and 38.94% of the quasi-equity
instruments issued by that company (convertible bonds with
capitalised interest) – contributed €4.0 million to
consolidated profit, breaking down as €6.3 million in coupons
on the convertible bonds less Assystem’s €2.3 million share of
Expleo Group’s loss for the period.
Assystem recorded net financial
income of €0.3 million for first-half 2023, versus €5.0
million in the six months ended 30 June 2022. The 2023
figure includes a €2.6 million dividend receivable from Framatome
and €1.5 million in interest income recognised following the
above-mentioned reversal of the provision for the tax dispute
related to the FY 2011 and 2012 research tax credits. In terms of
expenses, it includes (i) a €1.3 million expense recognised as a
result of applying IAS 29 (Financial Reporting in Hyperinflationary
Economies) to items in the consolidated statement of financial
position related to the Group’s Turkish subsidiary, although this
had no impact on consolidated cash, and (ii) higher miscellaneous
financial expense items due to the rise in interest rates.After
deducting an income tax expense of €3.4 million (versus €3.5
million in first-half 2022), consolidated profit from
continuing operations totalled €21.0 million, versus €19.0
million in the first six months of 2022.
Consolidated profit for the
period totalled €21.0 million, compared with €32.7 million
in first-half 2022 (which included €13.7 million in profit
from operations that were discontinued in 2022).
- Information
about Expleo Group
Revenue generated by Expleo
Group advanced 13.1% to €698.6 million in the first six
months of 2023 from €617.8 million in first-half 2022.
Expleo Group’s EBITDA
(including the impact of IFRS 16) stood at €66.8 million for the
first half of 2023, representing 9.6% of consolidated revenue (up
2.3 points on first-half 2022).
Expleo Group’s consolidated
profit before recognition of the capitalised interest on
its quasi-equity instruments was €11.6 million, versus €7.8
million in the first six months of 2022.
FREE CASH
FLOW(5)
AND NET DEBT
Taking into account the
seasonal pattern of the Group’s working capital requirement, free
cash flow (excluding the impact of IFRS 16) corresponded
to a negative €27.5 million in the first half of 2023, compared
with a negative €7.0 million in first-half 2022.
The Group had net debt of
€80.6 million
at 30 June 2023, versus €50.9
million at 31 December 2022. The €29.7 million increase breaks down
as follows:
- a €27.5 million impact from the
negative free cash flow, including €39.5 million resulting from the
change in working capital requirement (€20.2 million in first-half
2022), due to the Group’s business growth particularly in
geographic areas where customer payment times are longer;
- a €0.6 million net impact relating
to acquisitions and disposals(6);
- €1.6 million from other
movements.
SIGNIFICANT EVENTS AFTER THE REPORTING
DATE
The Annual General Meeting of 5 June 2023
approved the payment to Assystem’s shareholders of a €1.0 dividend
per outstanding share. This dividend was paid on 7 July,
representing an aggregate payment of €14.8 million.
At end-July, the Group carried out the first
phase of its key personnel retention plan aimed at supporting its
business growth, with the launch of an initial free share plan
(288,250 shares).
OUTLOOK FOR FULL-YEAR
2023
Assystem has signed an agreement to sell its
business activities in the Pacific area – Assystem Polynésie and
Assystem Nouvelle-Calédonie – to the current management of
those two companies. Subject to the fulfilment of conditions
precedent, the sale is due to close by the end of 2023, enabling
Assystem to complete its strategic refocusing.
Taking into account this disposal, Assystem’s targets for
full-year 2023 are as follows:
- consolidated revenue of around €570
million;
- and EBITA of around €35
million.
These targets are based on the assumption that the
macroeconomic, geopolitical and public health context will remain
similar to the first half of the year.
AVAILABILITY OF THE FIRST-HALF
2023 INTERIM FINANCIAL
REPORT
Assystem’s first-half 2023 interim financial
report will be published and filed with the Autorité des Marchés
Financiers (AMF) on 14 September after stock market close of
trading. This report, as well as the presentation of the Group’s
first-half 2023 results, will be able to be viewed and downloaded
on Assystem’s website (www.assystem.com) in the “Finance/Regulated
Information” section.
2023 FINANCIAL CALENDAR
- 14
September: First-half
2023 results presentation at 8.30 a.m. (CEST)
- 26 October:
Third-quarter 2023
revenue release
ABOUT
ASSYSTEM
Assystem, one of the world's leading independent
nuclear engineering companies, is committed to accelerating the
energy transition across the globe. With more than 55 years of
experience in highly regulated sectors with stringent safety and
security constraints, the Group provides engineering and project
management services as well as digital solutions and services to
optimise the performance of complex infrastructure assets
throughout their life cycle. In its 12 countries of operation,
Assystem’s 6,500 experts are supporting energy transition. To
achieve an affordable low carbon energy supply, Assystem is
committed to the development of low carbon electricity (nuclear,
renewables and electricity grids) and clean hydrogen. The Group is
also helping drive the use of low carbon electricity in industrial
sectors such as transportation.
For more information please visit
www.assystem.com / Follow Assystem on Twitter: @Assystem
CONTACTS
Malène Korvin – Chief Financial Officer –
mkorvin@assystem.com - Tel.: +33 (0)1 41 25 29 00
Anne-Charlotte Dagorn –
Communications Director – acdagorn@assystem.com - Tel.: +33 (0)6 83
03 70 29
Agnès Villeret –
Komodo – Investor relations –
agnes.villeret@agence-komodo.com – Tel.: +33 (0)6 83 28 04 15
APPENDICES
1/ Revenue and
EBITA
|
In millions of euros |
H1 2022 |
H1 2023 |
Total year-on-year change |
Like-for-like change(1) |
|
Group |
241.7 |
282.5 |
+16.9% |
+13.9% |
| Nuclear(2) |
|
|
|
|
|
ET&I(2) |
171.7 |
198.1 |
+15.4% |
+15.8% |
(1) Based on a comparable scope of consolidation and constant
exchange rates. (2) UK-based LogiKal consolidated since 1 December
2022, and Relsafe and Oreka since 1 January 2023.
|
In millions of euros |
H1 2022 |
% of revenue |
H1 2023 |
% of revenue |
|
Group |
16.4 |
6.5% |
15.7 |
5.6% |
| Assystem
Operations |
19.0 |
7.8% |
18.6 |
6.6% |
|
Holding company |
(2.6) |
- |
(2.9) |
- |
(1) Operating profit before non-recurring items (EBITA - Earning
Before Interest and Taxes - from Activity) including share of
profit of equity-accounted investees other than Expleo Group and
MPH (€0.6 million in H1 2022 and €0.4 million in H1 2023).
2/ Consolidated financial
statements
- Consolidated statement of financial
position
| In
millions of euros |
31 Dec.
2022 |
30 June
2023 |
|
ASSETS |
|
|
|
Goodwill |
122.2 |
124.1 |
|
Intangible assets |
3.6 |
3.8 |
|
Property, plant and equipment |
11.7 |
12.1 |
|
Right-of-use assets |
30.6 |
29.2 |
|
Investment property |
1.3 |
1.3 |
|
Equity-accounted investees |
1.4 |
5.8 |
|
Expleo Group shares |
37.1 |
33.6 |
|
Expleo Group convertible bonds |
144.2 |
150.5 |
|
Expleo Group shares and convertible bonds |
181.3 |
184.1 |
|
Other non-current financial assets(1) |
141.3 |
145.2 |
|
Deferred tax assets |
8.3 |
8.1 |
|
Non-current assets |
501.7 |
513.7 |
|
Trade receivables |
163.6 |
194.9 |
|
Other receivables |
23.8 |
31.8 |
|
Income tax receivables |
4.2 |
2.5 |
|
Other current assets |
1.3 |
3.2 |
|
Cash and cash equivalents |
28.5 |
23.3 |
|
Assets classified as held for sale |
16.3 |
7.6 |
|
Current assets |
237.7 |
263.3 |
|
TOTAL ASSETS |
739.4 |
777.0 |
|
|
|
|
|
EQUITY AND LIABILITIES |
31 Dec.
2022 |
30 June
2023 |
|
Share capital |
15.7 |
15.7 |
|
Consolidated reserves |
334.8 |
369.1 |
|
Profit for the period attributable to owners of the parent |
48.9 |
20.2 |
|
Equity attributable to owners of the parent |
399.4 |
405.0 |
|
Non-controlling interests |
2.1 |
2.8 |
|
Total equity |
401.5 |
407.8 |
|
Long-term debt and non-current financial liabilities |
76.0 |
107.5 |
|
Non-current lease liabilities |
24.7 |
21.3 |
|
Pension and other employee benefit obligations |
19.3 |
17.7 |
|
Long-term provisions |
17.0 |
9.4 |
|
Deferred tax liabilities |
0.4 |
0.1 |
|
Non-current liabilities |
137.4 |
156.0 |
|
Short-term debt and current financial liabilities |
3.4 |
0.3 |
|
Current lease liabilities |
7.6 |
9.9 |
|
Trade payables |
35.3 |
37.1 |
| Due
to suppliers of non-current assets |
0.1 |
0.1 |
|
Accrued taxes and payroll costs |
98.8 |
101.8 |
|
Income tax liabilities |
3.3 |
1.7 |
|
Short-term provisions |
3.3 |
2.8 |
|
Other current liabilities(2) |
42.4 |
53.4 |
|
Liabilities directly associated with assets classified as held for
sale |
6.3 |
6.1 |
|
Current liabilities |
200.5 |
213.2 |
|
TOTAL EQUITY AND LIABILITIES |
739.4 |
777.0 |
(1) Including Framatome shares, representing €134.0 million at
30 June 2023.
- (2) O/w, at 30 June 2023, €14.8 million in dividends payable to
Assystem shareholders.
Consolidated income statement
|
In millions of euros |
Six months ended 30 June
2022 |
Six months ended30 June
2023 |
| |
|
|
|
Revenue |
241.7 |
282.5 |
| Payroll
costs |
(169.2) |
(203.2) |
| Other operating
income and expenses |
(48.4) |
(55.6) |
| Taxes other
than on income |
(0.6) |
(0.5) |
| Depreciation,
amortisation and provisions for recurring operating items, net |
(7.7) |
(7.9) |
|
|
|
|
|
Operating profit before non-recurring items
(EBITA) |
15.8 |
15.3 |
|
Share of profit of equity-accounted investees |
0.6 |
0.4 |
|
|
|
|
|
EBITA including share of profit of equity-accounted
investees |
16.4 |
15.7 |
|
Non-recurring income and expenses |
(1.1) |
5.0 |
| Share-based
payments |
(0.9) |
(1.0) |
|
|
|
|
|
Operating profit |
14.4 |
19.7 |
|
Share of profit/(loss) of Expleo Group |
(2.7) |
(2.3) |
| Share of profit
of MPH GS |
- |
0.4 |
| Income from
Expleo Group convertible bonds |
5.8 |
6.3 |
| Net financial
income/(expense) on cash and debt |
(0.3) |
(1.8) |
| Other financial
income and expenses |
5.3 |
2.1 |
| |
|
|
|
Profit from continuing operations before tax |
22.5 |
24.4 |
| |
|
|
| Income tax
expense |
(3.5) |
(3.4) |
|
|
|
|
|
Profit from continuing operations |
19.0 |
21.0 |
| |
|
|
| Profit from
discontinued operations |
13.7 |
- |
| |
|
|
|
Consolidated profit for the period |
32.7 |
21.0 |
| Attributable
to: |
|
|
| Owners of the
parent |
32.4 |
20.2 |
|
Non-controlling interests |
0.3 |
0.8 |
- Consolidated statement of cash flows
|
In millions of euros |
Six months ended 30 June
2022 |
Six months ended 30 June 2023
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
| EBITA including
share of profit of equity-accounted investees |
16.4 |
15.7 |
|
| Depreciation,
amortisation and provisions for recurring operating items, net |
7.7 |
7.9 |
|
|
EBITDA |
24.1 |
23.6 |
|
| Change in
operating working capital requirement |
(20.2) |
(39.5) |
|
| Income tax
paid |
(4.2) |
(3.6) |
|
| Other cash
flows |
1.1 |
0.5 |
|
| Net cash
generated from/(used in) operating activities of discontinued
operations |
(1.2) |
- |
|
|
Net cash generated
from/(used in)
operating activities |
(0.4) |
(19.0) |
|
| |
|
|
|
| O/w: -
continuing operations |
0.8 |
(19.0) |
|
| - discontinued
operations |
(1.2) |
- |
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Acquisitions of property, plant and equipment and intangible
assets, net of disposals, o/w: |
(1.8) |
(3.4) |
|
| Acquisitions of
property, plant and equipment and intangible assets |
(1.9) |
(3.4) |
|
|
Proceeds from disposals of property, plant and
equipment and intangible assets |
0.1 |
- |
|
| |
|
|
|
| Free
cash flow |
(2.2) |
(22.4) |
|
| O/w: -
continuing operations |
(0.9) |
(22.4) |
|
| - discontinued
operations |
(1.3) |
- |
|
| |
|
|
|
| Acquisitions of
shares, net of cash acquired |
- |
(5.7) |
|
| Other
movements, net |
|
(0.7) |
|
| |
|
|
|
| Net cash
generated from investing activities of discontinued operations
|
26.0 |
1.2 |
|
|
Net cash generated
from/(used in) investing
activities |
24.2 |
(8.6) |
|
| O/w: -
continuing operations |
(1.8) |
(9.8) |
|
| - discontinued
operations |
26.0 |
1.2 |
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| Net
financial income received/(expenses paid) |
(2.3) |
(2.0) |
|
| Drawdown on the
revolving credit facility |
- |
29.0 |
|
| Repayments of
borrowings and movements in other financial liabilities |
(17.0) |
(0.8) |
|
| Repayment of
lease liabilities* |
(4.8) |
(5.1) |
|
|
Other movements in equity of the parent company |
(0.1) |
0.3 |
|
|
Net cash generated
from/(used in) financing
activities |
(24.2) |
21.4 |
|
|
Net increase/(decrease) in cash and cash
equivalents |
(0.4) |
(6.2) |
|
| |
|
|
|
* Including interest expense.
3/ Movements
in net debt
|
In millions of euros – excluding the IFRS
16 impact |
|
|
|
Net debt at 31
Dec.
2022 |
50.9 |
|
|
Free cash flow |
27.5 |
|
|
Net effect of disposals & acquisitions |
0.6 |
|
| Other movements |
1.6 |
|
|
Net debt at
30 June
2023 |
80.6 |
|
4/ Information about
the Company’s capital
|
Number of shares |
At 31
Dec. 2022 |
At 31
Aug. 2023 |
|
Ordinary shares outstanding |
15,668,216 |
15,668,216 |
| Treasury
shares |
833,400 |
791,353 |
| Free shares and
performance shares outstanding |
268,425 |
511,900 |
| Weighted average
number of shares outstanding |
14,812,512 |
14,838,480 |
|
Weighted average number of diluted shares |
15,080,937 |
15,100,055 |
Ownership structure at
31 August
2023
|
In % |
Shares |
Exercisable voting rights |
|
HDL Development(1) |
57.93% |
74.59% |
| Free
float(2) |
36.79% |
25.41% |
|
Treasury shares |
5.28% |
- |
(1) HDL Development is a holding company that is
95.65%-controlled by Dominique Louis (Assystem’s Chairman &
CEO), notably through HDL, which itself holds 0.85% of Assystem’s
capital. (2) Including 0.85% held by HDL.
(1) Operating profit before non-recurring items
(EBITA - Earning Before Interest and Taxes - from Activity)
including share of profit of equity-accounted investees other than
Expleo Group and MPH (€0.6 million in H1 2022 and €0.4 million
in H1 2023).(2) Including profit attributable to non-controlling
interests, amounting to €0.3 million in H1 2022 and €0.8 million in
H1 2023. Profit for the period attributable to owners of the parent
therefore totalled €32.4 million in H1 2022 (including €13.7
million in profit from operations discontinued in 2022) and €20.2
million in H1 2023.(3) Debt less cash and cash equivalents,
excluding the IFRS 16 impact.
(4) EBITA excluding the impact of IFRS 16 (€23.6 million in
first-half 2023) and before depreciation and amortisation expense
and net provisions for recurring items excluding the IFRS 16
impact.
(5) Corresponding to net cash generated from
operating activities less capital expenditure, net of disposals.(6)
Including a debt impact of €(5.1) million from disposals (adjusted
to reflect the impact of the deferred payment related to the sale
of Assystem’s controlling interest in the Staffing business) and
€5.7 million from acquisitions.
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