Press release from Business Wire India
Source: Steria
Tuesday, March 06, 2012 06:48 PM IST (01:18 PM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
--------------------------------------------------
Steria: 2011 Annual Results Organic Revenue Growth: +3.3%Operating Margin Rate : 7.4% Attributable Net Income up by 26.4% to ?55m
Noida, Uttar Pradesh, Pune, Maharashtra and Chennai, Tamil Nadu, India, Tuesday, March 06, 2012 -- (Business Wire India) -- -- Like-for-like revenue increased by 3.3% in the 2011 financial year relative to 2010
-- The operating margin2 rose by 7.8% to ?129.9m, or an operating margin rate of 7.4% (+30 basis points relative to 2010)
-- Despite an increase in non-recurring restructuring charges, attributable net income reached an all-time record, rising by 26.4% to ?55m
-- Underlying diluted earnings per share improved by 23.4% to ?2.73
On March 2, 2012, the Supervisory Board of Groupe Steria SCA examined the consolidated financial statements submitted by the General Management.
Operational performance 2011
In 2011, the Group saw a growth resurgence in organic growth at 3.3% (+1.5% in 2010) with a positive dynamic across all geographic regions, including the United Kingdom. Growth was notably driven by the public sector (+2.7%), and the Utilities/Energy/Transport (+7.3%) sector while Finance (stable) and Telecommunications (-4,7%) were less favourable.
This performance was achieved despite instability in the European markets from the beginning of the second half of 2011. In this regard, the fourth quarter of 2011 proved very resilient with organic growth of 2.3% and new orders entry similar to the fourth quarter of 2010.
Over the 2011 financial year as a whole, new orders entry were stable (+0.5% relative to 2010). At December 31, 2011, the book to bill ratio stood at 1.04 (versus 1.07 at end 2010).
Over the financial year, the Group's operating margin2 improved by 7.8% to ?129.9m, leading to an operating margin rate of 7.4% (+30 basis points relative to 2010).
This performance takes into account, in 2011, the ongoing investment in reinforcing the product portfolio and deploying high-performance common tools. This investment, of which first effects are starting to emerge, is aimed at strengthening the Group's profitable growth model.
In the United Kingdom, in line with expectations, like-for-like revenues saw a modest 0.8% progression, underpinned by a good performance from the public sector where revenues grew by 3.6% and from BPO which posted organic growth of 15.7%. Note also that NHS SBS , the joint-venture between Steria and the National Health Service, recorded organic revenue growth of 17.2% over the year.
Orders entry increased by 8.2% in the fourth quarter 2011, enabling the book to bill ratio to reach 1.0 at December 31, 2011.
In a very competitive market, the robustness of the Group's model was illustrated by the continued high level of the operating margin rate which stood at 10.6%, a 20 basis points increase compared to 2010.
In France, revenue growth was strong including during the fourth quarter. Organic growth amounted to 4.4% over the year benefiting from a good performance in Banking and Insurance (+11.5%) and the Public sector (+4.5%). Orders entry increased by 11.2% over the year and the book to bill ratio stood at 1.1 at December 31, 2011.
In 2011, the operating margin2 rose by 5.5% to ?37.3m, leading to an operating margin rate of 6.8%, up by 10 basis points relative to the previous year.
In Germany, the trend was positive in the Public Sector, Telecommunications and Transportation but negative in the Finance sector which limited growth to 1.0% over the year. The Group's position with major German banking institutions was, however, significantly strengthened in 2011 thanks to a successful breakthrough in recurring business through the winning of large applications maintenance contracts, an area from which the Group had hitherto been absent. The outlook is positive with orders entry up by 25.7% relative to the previous year. At December 31, 2011, the book to bill ratio stood at 1.2.
The operating margin rate saw a marked improvement, rising by 110 basis points to 7.7%.
In Other Europe, like-for-like revenues progressed by 9.0% with strong growth in Scandinavia (+10%), Switzerland (+9.8%) and Belgium/Luxembourg (+19.3%) whilst the decrease in Spain was reduced to -5.4%.
At December 31, 2011, the book to bill ratio was 1.0.
The materialisation, in particular, of a number of project risks in the first half, particularly in Denmark - risks which are now under control - led to a 30 basis point deterioration in the operating margin rate2 to 5.6%.
Financial year 2011
Other income and operating expenses amounted to ?43.3m, up by ?9.2m relative to 2010 principally due to an increase in restructuring and integration costs (?22.9m over the year) and a ?3.6m charge, with no cash impact, linked to a goodwill write-down in Sweden.
Net financial expense saw a significant improvement over the financial year to ?7.2m versus ?20.9m in 2010 mainly due to the fall in the average cost of financing and an increased return on the Group's cash deposit.
Despite an increase in non-recurring expenses over the year, 2011 attributable net income reached an all-time high of ?55m, a 26.4% increase on 2010.
Financial situation at the end of the 2011 financial year
At December 31, 2011, the Group's net financial debt, whose slight increase over the year can be explained notably by negative currency effects (?15m) and one-off costs linked to buildings optimisation (?11m), amounted to ?125.9m.
At the closing date, net financial debt represented 0.8 times the Group's EBITDA.
The renewal of all the Group's bank credit facilities amounting to ?600m in June 2011 has secured the Group's financing until June 2016.
Dividends
The solidity of the Group's financial situation and the operational outlook leads the General Management, the Groupe Steria SCA Supervisory Board and the Soderi Board of Directors to propose a dividend of ?0.35 per share (?0.24 in respect of 2010), in respect of the 2011 financial year.
Outlook
For the 2012 financial year, in the current uncertain economic environment, the Group is targeting a slight organic revenue growth with an operating margin rate2 comparable to the three last years. Free cash flow generation should return to its normative level.
An information meeting on the 2011 annual results will take place on Tuesday March 6, 2012 at 10h00 CET and will be retransmitted by webcast at www.steria.com (investors section)
Next publication: first quarter 2012 revenue on Friday May 4, 2012 before the market opening
Appendices: Consolidated income statement, consolidated balance sheet and summary cash flow statement at December 31, 2011.
A video interview with François Enaud, General Manager of Groupe Steria SCA can be viewed at
www.steria.com and www.steria.fr
Steria is listed on Euronext Paris, Eurolist (Section B)
ISIN Code: FR0000072910, Bloomberg Code: RIA FP, Reuters Code: TERI.PA
CAC MID&SMALL 190, CAC MID 100, CAC Soft&CS, CAC Technology
General Indices: SBF 120, SBF 250, SBF 80, IT CAC, NEXT 150
For further information, see the website: http://www.steria.com
To view the press release with tables, please click on the link given below:
Press release with tables
For picture(s)/data to illustrate this release click below:
http://www.BusinessWireIndia.com/attachments/Steria(1).pdf
Steria(1).pdf
CONTACT DETAILS
Sachdev Ramakrishna, Steria, +91 9871715438, sachdev.ramakrishna@steria.co.in
KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY
If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.
Submit your press release at http://www.businesswireindia.com
No comments:
Post a Comment