Half-year results at top end of announced range – 2005/2006 growth target revised upwards to 22% following Dreamsoft acquisition

  • December 13, 2005Regulated information
In € million (IFRS) H1 2005/06 H1 2004/05 Change Fiscal
Revenues 16.8 14.5 +16% 31.4
Trading operating income 2.0 2.0 -1% 4.3
Operating margin 11.8% 13.8% 13.8%
Operating income 2.0 1.8 +13% 4.1
Net income (group share) 1.3 1.2 +16% 2.7
Net margin 8.0% 8.0% 8.7%
Equity 13.7 11.1 12.8
Net cash and cash equivalents (1) 4.3 3.0 6.4

(1) After restatement of long term and short term borrowings

Sustained organic growth: +16%

In favourable market conditions marked by the confirmed return of IT investments by key accounts, the SoluCom Group posted revenues of € 16.8 million with entirely organic growth of 16%.

SoluCom launched a dynamic sales campaign, featuring in particular the opening of 7 new major accounts during the half-year (including Bolloré, Crédit du Nord, Eurostar and Pernod Ricard). The Group has also strengthened its position with such major clients as ANPE, L'Oréal and Saint-Gobain, and has continued to consolidate its position among newer accounts such as Dexia, PPR and T-Online.

This growth has been accompanied by a consistent rate of recruitment, with a growth of 10% in staff over six months, bringing to 321 the number of Group employees (excluding Dreamsoft) as at 30 September 2005. In an employment market that has picked up, SoluCom confirms its attractiveness by continuing to attract the most sought after candidates from the finest universities. The acceptance rate for job offers was 75% during the first half, without overbidding on salaries.

Operating margin of 11.8%, at the top end of the expected range

As part of the Group's growth plan to become the Nr. 1 in its market with € 55 million by 2007, SoluCom has decided, as announced at the beginning of the financial year, to stimulate growth by accelerating investments, mainly in recruitment, sales development and reputation.

Notwithstanding the impact of this chosen strategy on margins, SoluCom continues to be amongst the most profitable companies in the market. Thus for the first half-year the operating margin came to 11.8%, at the top end of the 10-12% range targeted for the entire year.

This performance is based on a high activity rate of 85.5%, and a sales price that remains top of the line at € 687 per day. As forecast, sales prices are down compared with the previous year. This 2.5% drop results from the effect of established prices, with sales prices stable and/or on the up for new deals.

The Group's share of net income also rose 16% to € 1.3 million.

Financial capabilities maintained following Dreamsoft acquisition

The acquisition of Dreamsoft was finalised at the end of September 2005, and it was consolidated into the Group Balance Sheet at 30 September 2005. Following this acquisition SoluCom still has net cash of € 4.3 million, which provides it with the means to continue its selective acquisitions strategy.

A buoyant market with strong growth potential

In the coming months SoluCom will continue to benefit from its positioning in infrastructure consulting, one of the most buoyant market segments, with growth prospects of 6-8% in 2006, according to Syntec Informatique.

In addition, the Group will be basing itself on strong growth areas:

  • Telephony over IP (ToIP), a major breakthrough technology; SoluCom is already being considered in the strategic planning of several major players in the field;
  • Consulting on IT facilities outsourcing, a phenomenon that cannot be ignored in the move to industrialise IT in major enterprises.

2005/2006 targets: 22% growth expected

Besides the market's dynamism, SoluCom will be relying in the second half-year on both recruitment already carried out and a sustained recruitment programme, in order to achieve its target of organic growth in excess of 15%. The Group will also benefit from Dreamsoft's contribution for six months.

All these issues allow SoluCom to revise its overall growth forecast upwards to 22% for 2005/2006, while maintaining its overall operating margin of 10-12%.

The Group will publish its 2005/2006 9-months revenues figures on 31/01/2006 at market closure.


About the SoluCom Group

The SoluCom Group is active in infrastructure consulting in the telecoms, work stations & data center, security and software/middleware infrastructures segments.
The Solucom Group's client roster includes some very prestigious names, all of which are very large accounts including: ADAE, Air France, Air Liquide, ANPE, Arcelor, BNP-Paribas, Bouygues Telecom, Canal+, CNAM-TS, EDF, E.Leclerc, France Télécom, Gaz de France, Groupama, Groupe Crédit Agricole, La Poste, L'Oréal, Ministries of Foreign Affairs, Education and Justice, Neuf Cegetel, Nouvelles Frontières, PSA Peugeot Citroën, PPR, Saint-Gobain, Siemens AG, SNCF, Société Générale, Suez, Total, Valeo.

SoluCom is listed on Euronext Paris – Eurolist – Compartment C and is a member of the NextEconomy segment.
ISIN code: FR0004036036 – FTSE: 972, Services Informatiques – Mnemonics: LCO

All our financial information is available at www.solucom.fr

Tel.: +33 (0)1 49 03 25 00
Pascale BESSE
Tel.: +33 (0)1 49 03 25 00
Kaparca Finance
Guillaume LE FLOCH
Analysts – Investors Relations
Tel.: +33 (0)1 72 74 82 25
Press Office
Tel.: +33 (0)1 72 74 82 24

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Regulated information

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