Regulatory News:
Sopra Group (Paris:SOP):
-- Revenue: 1 billion euros
-- Total growth: +11.6%
-- Organic growth: +9.4%
-- Current operating margin: 9.1% (+21.1%)
-- Net profit: 5.5% (+24.7%)
-0-
*T
2007 2006 Change (%)
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Key income statement items
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Revenue MEUR 1,001.4 897.7 + 11.6%
Profit from recurring MEUR
operations 90.8 75.0 + 21.1%
as % of revenue % 9.1% 8.4%
Operating profit MEUR 90.1 73.9 + 21.9%
as % of revenue % 9.0% 8.2%
Net profit MEUR 55.1 44.2 + 24.7%
as % of revenue % 5.5% 4.9%
----------------------------------------------------------------------
Data per share
----------------------------------------------------------------------
Basic net earnings per share(1) EUR 4.80 3.86 + 24.4%
*T
Sopra Group announces revenue of 1 billion euros for 2007, with a
current operating margin of 9.1%, perfectly in line with the Project
2007, which was ambitiously launched in 2003 in a challenging economic
environment.
This performance once again reflects the solidity of the Group´s
positioning and strategy. The targeted acquisitions that were forecast
in connection with Project 2007 have been completed, and the
objectives that were set, both in terms of revenue growth and
enhancing margins have been adhered to. Over the last four years,
Sopra Group has therefore recorded robust and regular organic growth,
beating the average IT services market growth rate, with a constant
increase in margins.
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2004 2005 2006 2007
----------------------------------------------------------------------
Revenue MEUR 629.8 757.0 897.7 1001.4
Total growth % n/n-1 + 19.8% + 20.2% + 18.6% + 11.6%
Organic growth % n/n-1 + 9.4% + 9.7% + 8.5% + 9.4%
Current operating margin % revenue 6.5% 7.4% 8.4% 9.1%
Net profit % revenue 3.9% 4.7% 4.9% 5.5%
*T
For 2007 more specifically, the Group´s growth was amplified and
reached +12.8% (organic growth) and +15.6% (total growth) during the
fourth quarter, as forecast. With a current operating margin of more
than 9%, profitability was at its highest level since 1999 and
underscores the Group´s capacity to pursue its development and assume
the level of investment required for its transformation project.
Emboldened by this performance, the Group is now pursuing its
Project 2010, which aims to achieve revenue of 2 billion euros while
preserving the Group´s independence.
In recent years, Sopra Group has developed a specific business
model founded, in Europe, on Consulting, Systems Integration,
Application Outsourcing and industry specific Solutions (Banking,
Human Resources and Real Estate), and worldwide on the activity of its
Axway subsidiary which is the market leader for Collaborative Business
Solutions.
As regards the outlook for the Group, Pierre Pasquier added: "We
have made the right choices in terms of positioning and we have
implemented a successful business model fuelled not only by
technological development but also by both the trend towards
outsourcing and enterprise consolidation. We don´t believe that our
business model is subject to a cyclical downturn that is often talked
about these days. Additionally, our model makes it difficult to
compare us with other industry players who have not selected the same
positioning".
Performance by division
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Growth % %
(in millions Revenue --------------- ROC Margin Revenue ROC Margin
of euros) total organic
----------------------------------------------------------------------
Management
consulting 43.9 + 7.1% + 7.1% 4.5 10.3% 41.0 4.0 9.8%
SSI France 597.5 + 11.1% + 10.9% 52.3 8.8% 537.9 44.1 8.2%
SSI Europe 214.9 + 6.3% + 4.3% 19.5 9.1% 201.9 15.1 7.5%
Axway 145.1 + 24.1% + 12.0% 14.5 10.0% 116.9 11.8 10.1%
Total Group 1,001.4 + 11.6% + 9.4% 90.8 9.1% 897.7 75.0 8.4%
----------------------------------------------------------------------
*T
Financial position
The Group has generated free cash flow(2) of 30.0 million euros.
The reduction compared to the previous year reflects the combination
of a favourable situation in terms of payment of corporate income tax
and an increase in working capital required as a result of growth.
Given in particular the cash paid for acquisitions, net debt
amounts to 130.3 million euros. The Group´s financial position at 31
December 2007 is sound, with net debt representing 1.3 times EBITDA
and a net debt to equity ratio of 52.4%.
Dividend
It will be proposed to shareholders to distribute a dividend for
2007 of EUR 1.65 per share compared to the dividend of EUR 1.35 paid
for financial year 2006.
Changes in consolidation scope
As previously mentioned:
-- The B2B activity of Atos Origin (Germany) has been
consolidated since 1 February 2007,
-- Methosystem (Italy) has been consolidated since 1 July 2007,
-- Interface (France) has been consolidated since 1 August 2007,
-- Business Architects International (Belgium) has been
consolidated since 1 October 2007.
The integration of CIBF and G2i, acquired in 2008, is well
underway and the two companies will be consolidated with effect from 1
January 2008.
Outlook
Given the regularity of its financial performance, and based on
the information available at the present date, Sopra Group remains
confident in its ability to achieve organic growth in excess of the
industry average. Improving the operating margin, while at the same
time financing the investment for ongoing business transformation,
also remains a constant objective of the Group.
Financial calendar
-- Wednesday 13 May 2008 after the market close: publication of
revenue for the 1st quarter of 2008.
-- Friday 15 May 2008 at 2.30pm: Annual Shareholders´ Meeting at
Hotel Meurice.
About Sopra Group
A leader in the European consulting and IT services market, Sopra
Group generated revenue of 1 billion euros in 2007 and has a human and
intellectual resource potential of over 11,000 people. Thanks to a
longstanding culture of excellence and strong sector-specific,
functional and technological know-how, the Group offers its clients an
end to end approach based on a well-honed business model. Sopra
Group´s ambition is to allow its clients to focus on transformation
projects that will give them a competitive edge and help them drive
growth. Sopra Group´s savoir-faire encompasses prior strategic
reflection through to the supervision and implementation of major
systems integration and application outsourcing projects. The Group
also pursues the worldwide deployment of its activities in both
application integration and business process management through its
subsidiary Axway, the world´s leading provider of Collaborative
Business Solutions, with a complete range of solutions and services.
For more information, please go to our website www.sopragroup.com.
Appendices
-- Consolidated income statement
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31/12 31/12
2007 2006
======================================================================
MEUR % MEUR %
----------------------------------------------------------------------
Revenue 1,001.4 100% 897.7
----------------------------------------------------------------------
Staff costs - Employees -647.9 -582.6
-----------
Staff costs - Contractors 80.7 -71.0
-----------
Operating expenses 167.4 -156.3
-----------
Depreciation, amortisation and -14.6 -12.8
provisions
----------------------------------------------------------------------
Profit from recurring operations 90.8 9.1% 75.0 8.4%
----------------------------------------------------------------------
Other operating income and -0.7 -1.1
expenses
----------------------------------------------------------------------
Operating profit 90.1 9.0% 73.9 8.2%
----------------------------------------------------------------------
Net cost of financial debt -7.8 -6.4
-----------
Net financial expense -2.0 -1.3
-----------
Corporate income tax -25.2 -22.0
----------------------------------------------------------------------
Net profit 55.1 5.5% 44.2 4.9%
----------------------------------------------------------------------
Group share 55.1 5.5% 24.5 2.7%
-----------
Minority interests - -
======================================================================
EBITDA 101.9 10.2% 84.7 9.4%
======================================================================
*T
-- Consolidated balance sheet
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*T
31/12 31/12
2007 2006
MEUR
======================================================================
Goodwill 300.6 278.6
Other fixed assets 38.2 37.6
Other assets and liabilities 70.3 16.2
----------------------------------------------------------------------
Assets 409.1 332.4
----------------------------------------------------------------------
Equity 248.8 216.2
Provisions for contingencies and losses 30.0 18.5
Net debt 130.3 97.7
----------------------------------------------------------------------
Capital invested 409.1 332.4
----------------------------------------------------------------------
*T
-- Change in net debt
-0-
*T
2007 2006
In millions of euros
----------------------------------------------------------------------
Net debt at beginning of period (A) 97.7 128.7
----------------------------------------------------------------------
Cash from operations before changes in working
capital 100.8 87.2
----------------------------------------------------------------------
Income taxes paid -38.2 -1.3
Changes in working capital requirements -10.9 4.4
----------------------------------------------------------------------
Net cash flow from operating activities 51.7 90.3
----------------------------------------------------------------------
Net cash used in investing activities -13.8 -13.1
Net interest paid -7.9 -6.0
----------------------------------------------------------------------
Free cash flow 30.0 71.2
----------------------------------------------------------------------
Impact of changes in consolidation scope -49.2 -25.6
Dividends paid -15.5 -12.6
Capital increases in cash 4.7 0.6
Other changes -2.4 -2.1
----------------------------------------------------------------------
Total net change for the period (B) -32.4 31.4
----------------------------------------------------------------------
Effect of foreign exchange rate changes (C ) -0.2 -0.4
----------------------------------------------------------------------
Net debt at period-end (A-B+/-C) 130.3 97.7
----------------------------------------------------------------------
*T
-- Change in equity
-0-
*T
MEUR
======================================================================
Position at 31 December 2006 216.2
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Dividends - 15.5
Net profit - Group share 55.1
Capital increase through exercise of share subscription
options 4.7
Share-based payments 0.9
Translation adjustments - 7.6
----------------------------------------------------------------------
Position at 31 December 2007 248.8
*T
-- Group revenue per quarter
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*T
12 M
Consulting Q1 Q2 Q3 Q4 2007
----------------------------------------------------------------------
Revenue 2007 (MEUR ) 10.8 11.9 9.2 12.0 43.9
Revenue 2006 (MEUR ) 11.0 10.4 8.3 11.3 41.0
Total growth (%) -1.8% 14.4% 10.8% 6.2% 7.1%
Organic growth (%) -1.8% 14.4% 10.8% 6.2% 7.1%
12 M
SSI France Q1 Q2 Q3 Q4 2007
----------------------------------------------------------------------
Revenue 2007 (MEUR ) 146.6 141.8 137.7 171.4 597.5
Revenue 2006 (MEUR ) 137.0 130.9 119.5 150.5 537.9
Total growth (%) 7.0% 8.3% 15.2% 13.9% 11.1%
Organic growth (%) 7.0% 8.3% 14.8% 13.5% 10.9%
12 M
SSI Europe Q1 Q2 Q3 Q4 2007
----------------------------------------------------------------------
Revenue 2007 (MEUR ) 51.9 52.5 51.0 59.5 214.9
Revenue 2006 (MEUR ) 49.5 51.0 48.6 52.8 201.9
Total growth (%) 4.8% 2.9% 4.9% 12.7% 6.4%
Organic growth (%) 4.2% 2.1% 3.2% 7.8% 4.4%
12 M
Axway Q1 Q2 Q3 Q4 2007
----------------------------------------------------------------------
Revenue 2007 (MEUR ) 29.9 37.9 31.8 45.5 145.1
Revenue 2006 (MEUR ) 25.9 27.3 28.8 34.9 116.9
Total growth (%) 15.4% 38.8% 10.4% 30.4% 24.1%
Organic growth (%) 6.8% 21.5% -1.2% 19.4% 12.0%
12 M
Group Q1 Q2 Q3 Q4 2007
----------------------------------------------------------------------
Revenue 2007 (MEUR ) 239.2 244.1 229.7 288.4 1,001.4
Revenue 2006 (MEUR ) 223.4 219.6 205.2 249.5 897.7
Total growth (%) 7.1% 11.2% 11.9% 15.6% 11.6%
Organic growth (%) 5.9% 9.0% 9.5% 12.8% 9.4%
*T
-- Breakdown and movements in the Group´s workforce (excluding
external personnel)
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*T
31/12 31/12
2007 2006
----------------------------------------------------------------------
Staff - France 7,580 6,750
Staff - International 3,740 3,160
----------------------------------
Total 11,320 9,910
Staff 9,910 9,100
Integration of acquired companies 310 100
Net recruits 1,100 710
----------------------------------
Total 11,320 9,910
*T
-- Breakdown of revenue by division
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Revenue Revenue
2007 (%) 2006 (%)
----------------------------------------------------------------------
Management consulting 4% 5%
SSI France 60% 60%
SSI Europe 21% 22%
Axway 15% 13%
--------------------------------------------
100% 100%
*T
-- Breakdown of revenue by vertical market
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*T
Revenue Revenue
2007 (%) 2006 (%)
----------------------------------------------------------------------
Banking / Finance 24.0% 23%
Insurance 6.0% 7%
Manufacturing 16.0% 16%
Services 19.0% 21%
Telecoms 13.0% 13%
Public Sector 16.0% 14%
Retail 6.0% 6%
-----------------------------------------------
100.0% 100%
*T
(1) Calculated on the basis of the weighted average number of
ordinary shares in circulation.
(2) Cash flow from operations less net interest expense and
corporate income tax paid, change in working capital requirements and
operating investments net of disposals.
Sopra Group - Societe Anonyme with share capital of EUR 45,867,340
- 326 820 065 RCS Annecy - APE 722A
Registered office: PAE - Les Glaisins - F-74940 Annecy-le-Vieux -
Tel.: +33 (0)4 50 33 30 30
Head office: 9 bis, rue de Presbourg - F-75116 Paris - Tel.: +33
(0)1 40 67 29 29