Half Year Results 2003/2004 – Operating results up by a robust 38% – New flagship project : the Siemens AG Corporate Network

  • December 17, 2003Regulated information

Financial highlights

En M€ 1st half 2003/04 1st half 2002/03 Fiscal 2002/03
Revenues 12.3 11.2 24.0
Operating result
Operating margin
Net profit before goodwill amortisation
Net profit margin before goodwill amortisation
Net group result 0.8 (6.6)** (4.4)**

* one-time tax savings included : +1.7 M€
** Arcome's goodwill amortisation included : -6.6 M€

Turnover jumps 10%
Consolidated revenues of the SoluCom Group for the first half of fiscal 2003/04 (as at Sept. 30) were €12.3 million, representing a 10% organic increase. This was achieved in a weak market which (according to a Syntec estimate) has contracted by 10 % compared with overall activity in 2003.

Operating results up by a robust 38%
Operating result increased by 38% to €1.1 million, compared with €0.8 million for the same period last year. SoluCom's operating margin increased by 1.9 point to 9.2% on the strength of substantially improved capacity utilisation as well as more moderate selling price decreases.

While SoluCom has achieved stable profitability, its subsidiary Arcome registered a spectacular increase in revenues thus building on the turnaround that began last year. However, in terms of future prospects, caution remains the watchword in the telecom operators' industry.

On the other hand, our subsidiary Idesys has lost ground (slightly negative operating margin) as the consequence of a substantial falloff in activities during the first half of the year. This has led to expansion of the Idesys marketing team, a move that will enable the company to respond more effectively to market conditions.

Robust net profits: net group result reaches €0.8 million
Net result before goodwill amortisation was €0.9 million – a net margin of 7.4% compared with 3.0% for the same period last year. This result includes exceptional income of €0.3 million arising from an Arcome asset guarantee.

Group net result reached €0.8 million compared with a loss of €6.6 million during the same period last year (this loss included a one-time goodwill amortisation for Arcome).

Financial position strengthened
As at Sept. 30, 2003, the Group had net cash and cash equivalents amounting to €1.0 million compared with €0.6 million as at March 30, 2003. This breaks down to €2.8 million of cash on hand and €1.8 million of financial debt.

Ongoing efforts to expand the SoluCom client base
While continuing to leverage the loyalty of its current clients, the Group is also taking steps to expand its client base by partnering with the following key accounts: Air Liquide, the French Army, Castorama, DGA, the French Petroleum Institute, Hurel Hispano, the French Labor Ministry, Orascom, Réseau Ferré de France and Télécom Développement.

New flagship project: the Siemens AG corporate network
The SoluCom Group has been selected by Siemens AG (Europe's largest privately held corporate group with 426,000 employees) to steer the transformation of its word wide corporate network.

Known as the ''Siemens Corporate Network Transformation Programme'' the project involves 2,000 locations in over 90 countries and Siemens' 426,000 employees. It aims at reducing Siemens telecommunications costs through the implementation of one secure network for the whole Siemens Community.

Around 20 SoluCom consultants have been working at Munich-based CIO since July 2003. This team has taken full responsibility of Program Management and provides consulting expertise in the fields of Telecom and Security. Duration of the program should be two years.

The long view
“Although business has improved since September, the market remains extremely volatile and we feel that any prognostication regarding the staying power of the current recovery would be premature,” commented SoluCom CEO Pascal Imbert. “However, in view of our performance during the first half of this year, we feel confident in our capacity to meet the goals that we set at the beginning of the year, which is to improve our revenue and operating results compared with last year's.”

About the SoluCom Group

The SoluCom Group, which was formed through the merger of SoluCom, Idesys and Arcome, is active in infrastructure consulting and engineering in the telecoms and networks, security and applications infrastructures segments. The Group has positioned itself in very high value-added services.
The Solucom Group's client roster includes some very prestigious names, all of which are very large accounts including: Air France, Arcelor, Auchan, BNP-Paribas, Cegetel, CNAM-TS, Crédit Agricole, EDF, E.Leclerc, France Télécom, Groupama, La Poste, L'Oréal, LVMH, Ministères des Affaires Etrangères et de la Justice, PPR, Renault, SNCF, Société Générale, Suez, Total, Veolia Environnement.

SoluCom trades on the NextEconomy segment of Euronext Paris.

Euroclear Code 7486 – FTSE: 972, IT services – ISIN: FR0004036036 – LCO

Next press release: February 11, 2004. 3rdQuarter Revenues.

Consult our latest financial information at : www.solucom.fr

Phone: 01 30 43 35 00

Laurence KIPFER
Investors Relations

Press Officer
Phone : 01 53 67 36 36

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Regulated information

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