business:-assystem:-first-half-2021-results
/ / / BUSINESS: ASSYSTEM: First-Half 2021 Results
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BUSINESS: ASSYSTEM: First-Half 2021 Results

By Daniel Webster, dWeb.News Publisher

First-half 2021 results

  • Revenue: EUR253.4 million, representing strong year-on-year growth (12.4% like for like)
  • Operating profit before non-recurring items (EBITA)(1): EUR16.6 million (up 77% on H1 2020 and 6.4% on H1 2019)
  • EBITA margin: 6.6%
  • Revised targets for full-year 2021: revenue of EUR520 million(2) and EBITA margin in line with the H1 2021 figure
  • Planned changes in the Group’s scope of consolidation in order to concentrate development, investment and managerial efforts on its core business

Paris La Defense, 15 September 2021, 5. 35 p.m. (CEST) – At its meeting held today, the Board of Directors of Assystem S.A. (ISIN: FR0000074148 – ASY), an international engineering group, reviewed the Group’s financial statements for the first half of 2021 (i.e. the six months ended 30 June 2021).

Dominique Louis, Assystem’s Chairman and Chief Executive Officer, stated:

“Our growth momentum is ongoing tangible proof of how we have got our strategy right by focusing on energy and digital transition both in France and abroad. Going forward, we intend to further concentrate our business development, managerial resources and investments on this central focus, with our planned changes for the Group’s scope of consolidation and our external growth priorities fitting seamlessly with this objective.”

KEY FIGURES

In millions of euros (EURm) H1 2020 H1 2021 Year-on-year change
Revenue 229.5 253.4 +10.4%
Operating profit before non-recurring items – EBITA(1) 9.4 16.6 +76.6%
% of revenue 4.1% 6.6% +2.5 pts
Consolidated profit for the period(3) 0.5 11.2
In millions of euros (EURm) 31 Dec. 2020 30 June 2021
Net debt(4) 23.8 56.2

ANALYSIS OF THE FIRST-HALF 2021 INCOME STATEMENT

  • Revenue

Assystem returned to its pre-Covid business volumes in the first half of 2021. Consolidated revenue totalled EUR253.4 million – 10.4% up on first-half 2020 (12.4% like for like) and 2.8% higher than in the first half of 2019.

Revenue generated by Nuclear activities totalled EUR163.8 million in first-half 2021 (representing 65% of total consolidated revenue), up by a steep 15.8% (15.1% like for like) versus the first six months of 2020. The European region (France and the United Kingdom) was especially strong, as was Turkey.

At EUR89.6 million, ET&I revenue came in 5.5% higher than in first-half 2020, with like-for-like growth of 8.3% and a 2.8% negative currency effect (with the Staffing business particularly impacted).

  • Operating profit before non-recurring items (EBITA) and EBITDA(5)

Consolidated EBITA amounted to EUR16.6 million in the first six months of 2021, 77% up on the EUR9.4 million recorded for first-half 2020 and 6.4% higher than in first-half 2019 (EUR15.6 million). EBITA margin widened to 6.6% from 4.1% in first-half 2020 and 6.3% in the first six months of 2019.

EBITA for Assystem Operations (all of Group’s operations save for Holding) totalled EUR19.5 million, representing 7.7% of revenue versus EUR11.0 million and 4.9% respectively in first-half 2020 and EUR17.3 million and 7.1% in the first half of 2019.

The Group’s “Holding company” expenses had a EUR2.9 million negative impact on consolidated EBITA in first-half 2021, versus a EUR1.6 million negative impact in the first half of 2020 (which included EUR0.6 million in EBITA generated by “Other” activities).

Excluding the impact of IFRS 16, consolidated EBITDA(5) amounted to EUR19.3 million in first-half 2021, representing 7.6% of revenue, compared with EUR11.4 million and 5.0% in first-half 2020 and EUR17.4 million and 7.1% in the first six months of 2019.

  • Operating profit and other income statement items

After taking into account EUR0.6 million in net non-recurring expense for the period and EUR0.7 million in share-based payments, consolidated operating profit totalled EUR15.3 million, compared with EUR7.9 million in first-half 2020 and EUR14.1 million in first-half 2019.

Expleo Group – in which Assystem holds 38.2% of the capital as well as quasi-equity instruments issued by that company (convertible bonds with capitalised interest) – contributed a negative EUR1.3 million to consolidated profit, breaking down as EUR5.3 million in coupons on the convertible bonds less Assystem’s EUR6.6 million share of Expleo Group’s loss for the period.

Assystem recorded net financial income of EUR0.9 million for first-half 2021, including a EUR2.4 million dividend receivable from Framatome.

After deducting an income tax expense of EUR3.7 million (versus EUR2.6 million in first-half 2020), consolidated profit totalled EUR11.2 million for first-half 2021, compared with EUR0.5 million in the first six months of 2020.

  • Information about Expleo Group

Revenue generated by Expleo Group came to EUR482.8 million in first-half 2021 (EUR236.6 million in the first quarter and EUR246.2 million in the second quarter), compared with EUR488.4 million in first-half 2020 (EUR273.4 million in the first quarter and EUR215.0 million in the second quarter). Expleo’s business volume is increasing, particularly in aeronautics.

Expleo Group’s EBITDA (excluding the IFRS 16 impact) was EUR25.1 million for the period (EUR10.3 million in the first quarter and EUR14.8 million in the second quarter), representing 5.2% of its consolidated revenue, versus EUR24.2 million and 5.0% respectively in the first half of 2020. Almost all of the first-half 2020 figure was recorded in the first quarter.

Expleo Group posted a EUR17.3 million consolidated loss for the first six months of 2021. This amount included a positive EUR20.6 million in EBITA and EUR13.9 million in capitalised interest expense on its convertible bonds.

FREE CASH FLOW(6)AND NET DEBT

Free cash flow for first-half 2021 represented a negative EUR9.4 million excluding the impact of IFRS 16. This figure included the unfavourable effect of paying EUR12.9 million in taxes for 2020 (mainly payroll taxes) which had been deferred under tax holiday schemes. Almost all of the remaining EUR13.8 million still due will be paid in the second half of 2021.

For the period from 1 July 2020 to 30 June 2021 (which is the most relevant measurement period given the seasonal pattern of the Group’s working capital requirement), free cash flow, adjusted for the impact of the above-mentioned deferral and settlement of taxes, represented a positive EUR53.3 million (including EUR10.0 million arising from the change in the amount of no-recourse factored trade receivables). This free cash flow figure represents 10.8% of revenue generated during that period (8.7% excluding the change in the amount of no-recourse factored receivables).

The Group had net debt of EUR56.2 million at 30 June 2021 versus EUR23.8 million at 31 December 2020. The EUR32.4 million increase breaks down as follows:

  • EUR9.4 million due to the impact of the negative first-half 2021 free cash flow(6) figure on debt;
  • EUR20.7 million related to the acquisition of shares in STUP Consultants Private Limited(7);
  • EUR2.3 million from other movements, including EUR1.7 million for purchases of Assystem shares.

PAYMENT OF THE 2020 DIVIDEND

At the Annual General Meeting held on 27 May 2021, Assystem’s shareholders approved a dividend of EUR1.0 per outstanding share. This dividend was paid on 8 July 2021 and represented a total payout of EUR14.8 million.

EXTERNAL GROWTH STRATEGY AND PLANNED CHANGES IN THE GROUP’S SCOPE OF CONSOLIDATION

Assystem is determined to focus its business development, investment and managerial efforts on its core business – energy and digital transition services -.

In accordance with this objective, the Group’s external growth strategy is based on the following priorities:

  • to round out our skills and abilities in the design of complex infrastructure, particularly in the nuclear sector;
  • to have local teams in all of the geographic regions where such infrastructure is, or will be, built and brought into service (e.g. the acquisition of STUP);
  • to increase our capacity to deliver digital transition services and to digitalise our engineering offering.

With this same objective, Assystem is planning to (i) sell its Life Sciences and General Industry Technical Assistance businesses (which generate approximately EUR40 million in revenue), (ii) sell its operations in New Caledonia and French Polynesia (representing c. EUR12 million in revenue), and (iii) transfer control of its Staffing business (approximately EUR40 million in revenue), while remaining a significant shareholder in the business given the commercial synergies that exist with the Group’s other activities.

Assystem is currently in talks with a potential buyer concerning the sale of its Life Sciences and General Industry Technical Assistance businesses and the terms and conditions of the deal could be agreed upon by the end of 2021.

The completion of all of the above projects would lead to the deconsolidation of just over EUR90 million in revenue. The negative impact of holding company costs being absorbed by companies that are still within the Group’s consolidation scope would mean that the transaction’s short-term impact on EBITA margin will be limited. However, EBITA margin should improve over the medium-term.

REVISED TARGETS FOR FULL-YEAR 2021 AND OUTLOOK

Assystem has revised its targets for full-year 2021 and they are now as follows:
– consolidated revenue of EUR520 million (based on the same scope of consolidation as in first-half 2021 plus the impact of consolidating STUP as from 1 July 2021);
– EBITA margin in line with that recorded for first-half 2021.

The consolidated revenue target excludes the effect of any restatements that may be carried out at end-2021 pursuant to IFRS 5 concerning the Life Sciences and General Industry Technical Assistance businesses. If such restatements are required, they would lead to the deconsolidation of the revenue generated by these businesses in 2021 (approximately EUR40 million), with no significant impact on EBITA margin. The Group doesn’t expect that the Covid situation will have a negative impact on the achievement of these targets at this stage.

AVAILABILITY OF THE FIRST-HALF 2021 INTERIM FINANCIAL REPORT

Assystem’s first-half 2021 interim financial report has been published and filed with the Autorite des Marches Financiers (AMF) today. This report, as well as the presentation of the Group’s first-half 2021 results, can be viewed and downloaded on Assystem’s website (www.assystem.com) in the “Finance/Regulated Information” section.

2021 FINANCIAL CALENDAR

  • 16 September: First-half 2021 results – Presentation meeting at 8. 30 a.m. (CEST)
  • 28 October: Third-quarter 2021 revenue release

ABOUT ASSYSTEM
Assystem is an international engineering group. As a key participant in the industry for over 50 years, the Group supports its clients in managing their capital expenditure throughout their asset life cycles. Assystem S.A. has been listed on Euronext Paris. To find out more visit http://www.assystem.com / Follow Assystem on Twitter: @Assystem

CONTACTS

Philippe ChevallierCFO & Deputy CEO – Tel. : +33 (0)1 41 25 28 07
Anne-Charlotte DagornCommunications Director – acdagorn@assystem.com – Tel. : +33 (0)6 83 03 70 29
Agnes VilleretKomodoInvestor relations – agnes.villeret@agence-komodo.com – Tel. : +33 (0)6 83 28 04 15

APPENDICES

1/ Revenue and EBITA

  • Revenue
In millions of euros H1 2020 H1 2021 Total
year-on-year change
Like-for-like
year-on-year change*
Group 229.5 253.4 +10.4% +12.4%
Nuclear 141.4 163.8 +15.8% +15.1%
ET&I 85.0 89.6 +5.5% +8.3%
Other 3.1

Based on a comparable scope of consolidation and constant exchange rates.
Including Staffing revenue amounting to EUR20.2 million in H1 2020 and EUR19.2 million in H1 2021.
The business corresponding to the “Other” segment has been deconsolidated since 1 July 2020.

  • EBITA(1)
In millions of euros H1 2020 % of revenue H1 2021 % of revenue
Group 9.4 4.1% 16.6 6.6%
Assystem Operations 11.0 4.9% 19.5 7.7%
Holding company and Other (1.6) (2.9)

(1) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees other than Expleo Group (EUR0.5 million in H1 2020 and EUR0.6 million in H1 2021).

2/ Consolidated financial statements

  • Consolidated statement of financial position
In millions of euros 31 Dec. 2020 30 June 2021
ASSETS
Goodwill 82.0 82.0
Intangible assets 15.6 14.9
Property, plant and equipment 12.0 12.8
Right-of-use assets 37.7 35.1
Investment property 1.3 1.3
Equity-accounted investees 1.4 1.4
Expleo Group shares 43.0 38.0
Expleo Group convertible bonds 121.4 126.7
Expleo Group shares and convertible bonds 164.4 164.7
Other non-current financial assets(1) 144.6 165.6
Deferred tax assets 5.7 3.5
Non-current assets 464.7 481.3
Trade receivables 150.5 160.0
Other receivables 23.9 25.0
Income tax receivables 0.7 1.1
Other current assets 0.3 2.7
Cash and cash equivalents(2) 43.1 31.9
Current assets 218.5 220.7
TOTAL ASSETS 683.2 702.0
EQUITY AND LIABILITIES 31 Dec. 2020 30 June 2021
Share capital 15.7 15.7
Consolidated reserves 348.9 312.7
Profit/(loss) for the period attributable to owners of the parent (22.0) 11.1
Equity attributable to owners of the parent 342.6 339.5
Non-controlling interests 0.1 0.3
Total equity 342.7 339.8
Long-term debt and non-current financial liabilities(2) 66.0 87.1
Lease liabilities 30.2 28.1
Pension and other employee benefit obligations 19.6 20.0
Non-current liabilities related to share acquisitions
Long-term provisions 17.4 17.5
Other non-current liabilities
Deferred tax liabilities 0.1 0.1
Non-current liabilities 133.3 152.8
Short-term debt and current financial liabilities(2) 0.9 1.0
Lease liabilities 8.5 8.3
Trade payables 28.3 27.1
Due to suppliers of non-current assets 0.1 0.2
Accrued taxes and payroll costs 120.8 118.1
Income tax liabilities 1.0 0.8
Current liabilities related to share acquisitions 1.1
Short-term provisions 6.9 3.6
Other current liabilities 40.7 49.2
Current liabilities 207.2 209.4
TOTAL EQUITY AND LIABILITIES 683.2 702.0

(1) Including Framatome shares, representing EUR136.2 million at 30 June 2021.
(2) Net debt totalled EUR56.2 million at 30 June 2021, breaking down as:

  • – Short- and long-term debt and current and non-current financial liabilities: EUR88.1 million
  • – Cash and cash equivalents: EUR31.9 million

Consolidated income statement

In millions of euros Six months
ended
30 June 2020
Six months
ended
30 June 2021
Revenue 229.5 253.4
Payroll costs (174.6) (184.6)
Other operating income and expenses (38.0) (44.5)
Taxes other than on income (0.6) (0.5)
Depreciation, amortisation and provisions for recurring operating items, net (7.4) (7.8)
Operating profit before non-recurring items (EBITA) 8.9 16.0
Share of profit of equity-accounted investees 0.5 0.6
EBITA including share of profit of equity-accounted investees 9.4 16.6
Non-recurring income and expenses (0.9) (0.6)
Share-based payments (0.6) (0.7)
Operating profit 7.9 15.3
Share of profit/(loss) of Expleo Group (10.5) (6.6)
Income from Expleo Group convertible bonds 4.9 5.3
Net financial expense on cash and debt (0.5) (0.1)
Other financial income and expenses 1.3 1.0
Profit before tax 3.1 14.9
Income tax expense (2.6) (3.7)
Consolidated profit for the period 0.5 11.2
Attributable to:
Owners of the parent 0.1 11.1
Non-controlling interests 0.4 0.1
  • Consolidated statement of cash flows
In millions of euros Six months ended
30 June 2020
Six months ended
30 June 2021
CASH FLOWS FROM OPERATING ACTIVITIES
EBITA including share of profit of equity-accounted investees 9.4 16.6
Depreciation, amortisation and provisions for recurring operating items, net 7.4 7.8
EBITDA 16.8 24.4
Change in operating working capital requirement 20.4 (19.8)
Income tax paid (3.3) (2.1)
Other cash flows (1.4) (3.7)
Net cash generated from/(used in) operating activities 32.5 (1.2)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property, plant and equipment and intangible assets, net of disposals, o/w: (5.8) (3.1)
Acquisitions of property, plant and equipment and intangible assets (5.8) (3.1)
Proceeds from disposals of property, plant and equipment and intangible assets
Free cash flow 26.7 (4.3)
Acquisitions of shares, net of proceeds from sales (8.7) (20.7)
Net cash generated from/(used in) investing activities (14.5) (23.8)
CASH FLOWS FROM FINANCING ACTIVITIES
Net financial income received/(expenses paid) (1.1) (0.5)
Proceeds from new borrowings 21.0
Repayments of borrowings and movements in other financial liabilities (2.2)
Repayments of lease liabilities* (5.4) (5.1)
Dividends paid (1.0)
Other movements in equity of the parent company (3.6) (1.7)
Net cash generated from/(used in) financing activities (13.3) 13.7
Net increase/(decrease) in cash and cash equivalents 4.7 (11.3)
Net cash and cash equivalents at beginning of period 29.2 42.9
Effect of non-monetary items and changes in exchange rates (0.3) 0.1
Net increase/(decrease) in cash and cash equivalents 4.7 (11.3)
Net cash and cash equivalents at period-end 33.6 31.8

Including interest expense

3/ Movements in net debt

In millions of euros
Net debt at 31 Dec. 2020 23.8
Negative free cash flow 9.4 Excluding impact of IFRS 16
Acquisitions of shares 20.7 Acquisition of STUP
Treasury share transactions 1.7
Other movements 0.6 Including EUR0.5 million in net financial expenses paid
Net debt at 30 June 2021 56.2

4/ Information about the Company’s capital

Number of shares At 31 Dec. 2020 At 31 Aug. 2021
Ordinary shares outstanding 15,668,216 15,668,216
Treasury shares 855,848 883,648
Free shares and performance shares outstanding 170,925 221,300
Weighted average number of shares outstanding 15,000,142 N/A
Weighted average number of diluted shares 15,171,067 N/A

Ownership structure at 31 August 2021

In % Shares Exercisable voting rights
HDL Development(1) 57.14% 74. 84%
Free float(2) 37.22% 25. 16%
Treasury shares 5. 64%

(1) HDL Development is a holding company that is 88. 33%-controlled by Dominique Louis (Assystem’s Chairman and Chief Executive Officer), 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) including share of profit of equity-accounted investees other than Expleo Group (EUR0.5 million in H1 2020 and EUR0.6 million in H1 2021).
(2) Provided no restatements are required pursuant to IFRS 5 (see the planned changes to the Group’s scope of consolidation described below).

(3) Including profit attributable to non-controlling interests: EUR0.4 million in H1 2020 and EUR0.1 million in H1 2021. Profit for the period attributable to owners of the parent therefore totalled EUR0.1 million in H1 2020 and EUR11.1 million in H1 2021.
(4) Debt less cash and cash equivalents and after taking into account the fair value of hedging instruments.
(5) EBITA excluding the impact of IFRS 16 (i.e. EUR16.3 million in first-half 2021) and before depreciation and amortisation expense and net provisions for recurring operating items. HTML6 Corresponds to net cash from operating activities less capital spending, net of disposals. Free cash flow including the IFRS 16 impact was a negative EUR4.3 million.
(7) The total purchase price for 99% of STUP’s share capital was EUR21.7 million (including transaction costs), of which EUR20.6 million was paid in H1 2021 and EUR1.1 million in July 2021 (recorded under liabilities related to share acquisitions at 30 June 2021).

  • PR ASY_Resultatssemestriels 2021 eng

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