22/09/2014

Income statement 1st Half-year 2014: Micropole pursues its strategy of focusing on high-value-added

Consolidated turnover stands at €46 m

Growth in consulting business

Sale of ERP business 

 

Engaged in the implementation of its strategic plan which aims to expand and focus its development exclusively on high-value-added consulting and integration services, the Micropole group has pursued its action in  streamlining its businesses and

structuring its offers in this first half-year.  

 

 

In million euros - IFRS  Norms ( Audited figures)

June 30th 2014 June 30th 2013
Turnover 45.9 51.2
Current Operating Income  0.7 1.7
% of turnover  1.5% 3.3%

Expenses and non-operational products  

0.2 0.4
Financial Earnings (0.3) (0.2)
Taxes (0.5) (0.6)
Net Earnings (continuing operations) 0.2

1.3

 

 

An international consulting and digital technology group, located in Europe and Asia, Micropole achieved a consolidated like-for-like turnover of 45.9 million euros over the first half-year 2014.The current operating income stands at  0.7 million euros, as against 1.7 million euros at the same period last year. Net earnings stand at 0.2 million euros, as opposed to 1.3 million euros in the first half-year 2013.

 

While the overall economic climate remains difficult, turnover development in France varies depending on the businesses:

  • The consulting business has shown a 4% rise, with an increase in invoicing rates; Financial Performance Management, Customer Knowledge and Big Data have also shown strong growth.
  • The regional agencies are also showing almost 5% growth.
  • License re-sales and sub-contracting have, however, dropped by almost 50%, this being in line with our strategy.

 

As regards international business, the turnover is up by 2%. In Switzerland, Digital Transformation and Performance Management -geared offers continue to progress. Micropole Belgium, which now deploys all group offers, was sustained by strong growth in its Performance Management offer.

 

Continuation of the Group’s strategic restructuring 

As announced, strategic choices were made relating to our business portfolios and operational restructuring has been undertaken, so as to re-focus Micropole’s offer on its fundamentals, which are added value for our customers, innovation, and international development.

 

The group also announces the increasing strength of Digital Transformation (Customer relationships, Customer knowledge, Mobility, e-Commerce…). Especially dynamic in France and Switzerland, this offer will be carried throughout the Europe zone under the Wide brand. A digital marketing agency and French subsidiary of the Micropole group since 2011, Wide has extended its scope to Switzerland and Belgium.

 

ERP business disposal

The strategic choices of streamlining our businesses have led the group to halt low-potential businesses and those for which margin levels are too low.  Micropole therefore announces the sale of its ERP (Process Optimization) businesses in France, Belgium and Switzerland. Traditionally focused on the « mid-market » segment and in a long implementation cycle approach, the impact of which has been significant in the erosion of group margins, the ERP business on SAP was sold to the Belgian Group Gumption in early September 2014. A Gold Partner of the SAP vendor, the Micropole group is, however, retaining all of its business with SAP on the European Performance Management market.

 

New offer positioning

Micropole expertise will from now on be re-centered around three Data and Digital-related offers which address our customers’ business stakes: Performance Management, Digital Transformation and Data Governance.

 

Truly differentiating with regard to other market actors, the groups businesses are based both on the relevance and consistency of our offers in meeting our customers’ requirements and on their complementary nature.  

 

Prospects

2014 is a transformation year during which the Micropole Group will continue the implementation of its strategic plan. Regarding the second half-year 2014, the business indicators are improving.

 

« We are aiming at a rapid return to growth with improved profitability. In a complicated macro-economic climate and on a highly pressurized market, the development paths on which we are focusing are clearly tomorrow’s vectors for growth and profitability », comments Christian Poyau, Micropole CEO.

 

Next financial date is Tuesday November 4th 2014

for publication of the third quarter turnover