04/10/2017

Micropole: first half-year income growth

Micropole: first half-year income growth

  • Turnover growth, doubling of operating income et net income positive 
  • Strong calendar impact and exceptional non-recurring costs 
  • Confirmation of favorable prospects for 2017

 

 

In line with its strategic plan, the clear improvement of Micropole income over the first half year confirms the accuracy of the groups’ positioning and its Digital and Data-geared offers, the relevance of its ongoing investment policy, and the organizational development measures taken over these last months. The multiple development levers, operational indicators and the strong dynamism of the market favor Micropole’s good growth prospects and continuation in margin improvement over the second half-year   2017.

 

In million euros - IFRS  Norms

(being audited)

1st HY 2017

1st HY 2016

Turnover

58.1

56.4

Current operating income

1.9

1.7

 % of turnover

      3.3%

     3.0%

Expenses and non- operational products

(0.8)

(1.2)

Operating income 

1.1

0.4

Income from ongoing businesses

0.5

(0.4)

Income from divested businesses

(0.3)

(0.0)

Net income

0.2

(0.4)

 

 

 

Micropole, an international consulting and digital technology Group, specialized in Digital Transformation, Performance Management and Data Governance, announces first half-year 2017 turnover improvement which is over market average at 3.1%, this being 58.1 million euros, as against 56.4 million euros achieved over the same period last year. Like for like, turnover growth amounts to 2.5%.

 

 

Notable events over the period

The current operating income shows growth for the sixth consecutive half-year to stand at 1.9 million euros. Despite the negative calendar effect on the period, this improvement stems from the return on strategic investments made in our European bases in 2016, the improvement in operational indicators due to the good positioning of our offers and the ongoing innovation policy implemented within the Group.

Moreover, to accelerate the implementation of the strategic plan, and strengthen both the excellence of its positioning on the markets and the cross-cutting partnering capacity which Micropole provides for its customers, the organization of Micropole has been enhanced. This has resulted in the following changes:

  • The nomination of Laurence Temam as group CFO, whose experience in Digital Service companies  as well as her dual strategic and operational vision are assets in the concretization of Micropole’s growth and performance ambitions.
  • In Paris, the grouping of the different operational units into two large divisions favor project innovation and complementarity of know-how: a DIGITAL business unit and a PERFORMANCE management unit.
  • Again in Paris, new sales organization, in line with our strategy of added value and differentiation, for increased focus on strategic customers and strengthening of market management expertise per business sector.

These adjustments have consequently generated exceptional and non-recurring costs in the accounts for the period, partly linked to the renewal of some management positions. The operating income has however more than doubled, at 1.1 million euros. The amount of the divested businesses income corresponds to the residuals of commercial and labor court disputes. The Group also announces a return to first half year positive net income from business undertaken, which stands at 0.5 million euros, thus confirming the solid improvement in core business margins.

 

 

Business Progress

The operational performance for the period reflects the excellent commercial dynamic, and validates the Groups’ positioning strategy based on Value-Added services and Innovation geared to Business, Digital and IS management.

 

Many remarkable projects have been deployed during this first half-year, to partner customers on regulatory compliance issues (for example GDPR), to improve customer relationships and knowledge, to implement digital transformation or again, to assist the business lines to manage their activity more efficiently.

 

The strategic offers of Digital Transformation, Consulting, Data Governance and Financial Performance Management, on which Micropole is a leading actor, also continue to boost growth. Only the Micropole Institute subsidiary is sluggish, despite good resilience in the traditional training market.

 

 

Progression in geographical locations 

  • Businesses in France have continued to progress well throughout the period.

ä  Benefitting from high levels of investment undertaken in 2016, Switzerland (+10%) and Benelux (+25%) pursue their very positive growth dynamic.  

  • As for China, progression continues with the signing of some significant contracts.   

 

 

Recruitment

In an ever-tense recruitment market, the Group continues its active search for business consultants, project managers and data experts to accompany its growth. Micropole has already engaged over 170 new staff in France.

 

To attract the best talent, the Group has been engaged in a dynamic Employer Brand policy, which has received a double accolade in 2017 with its ranking in 8th position for the Happy at Work for Starters label, marking Micropole out as a good enterprise within which to begin a career, and the obtaining of the Happy Trainees label.

 

 

Prospects

« These results, in line with our forecasts, as well as all the operational management indicators, enable us to feel confident in truly favorable prospects for Micropole. We therefore confirm our objective of significant margin growth to the end of 2017 », commented Christian Poyau, CEO of the Micropole Group.

 

 

Next financial date Thursday November 9th 2017 for the publication of the 3rd quarter turnover. The complete financial calendar is available on the Group’s internet site.