from ALTEN (EPA:ATE)
ALTEN: 2024 annual results
2024 ANNUAL RESULTS
§ SLIGHT ORGANIC DECLINE: - 0,2%
§ OPERATING MARGIN ON ACTIVITY: 9.1% OF REVENUE
€ million
| 2023 | 2024 | YoY change. |
Revenue § France § International | 4,068.8 1 297.9 2 770.9 | 4,143.3 1 360.3 2 783.0 | + 1.8% + 4.8% +0.4% |
Operating Profit on Activity As % of Revenue | 382.8 9.4% | 376.5 9.1% | - 1.6% |
Operating Profit As % of Revenue | 319.9 7.9% | 277.0 6.7% | -13.4% |
Net income. Group share As % of Revenue | 233.2 5.7% | 186.4 4.5% | - 20.1% |
Free cash flow | 183.7 (1) | 333.2 | + 81.4% |
As % of Revenue | 4.5% | 8.0% |
|
Gearing | -14.6% | -12.5% |
|
Headcount | 57,000 | 57,700 | + 1.2% |
(1) Adjusted for exceptional tax of €37.1m on the divestment capital gain Audit ongoing
BUSINESS IN 2024: + 1.8%
Growth of activity stands at 1.8% in France, 4.8% outside of France. On a like-for-like basis, at constant scope and exchange rates, activity is slightly declining: -0.2% (+4.8% in France and -2.6% outside of France).
The Defence & Security, Civil Aeronautics, Rail and Energy sectors continue to grow.
Organic growth remained satisfactory in France and Southern Europe. Conversely, the decline in business was in the UK, Germany and Northern Europe. In Asia and North America, activity declined slightly.
OPERATING MARGIN ON ACTIVITY: 9.1% OF REVENUE
The operating profit on activity amounts to €376.5M, which is 9.1% of the turnover. In 2023, the operating result amounted to €382.8M, which was 9.4% of the turnover.
The slowdown in activity has resulted in a slight decrease in the activity rate and a lower coverage of structural costs. Difficulties encountered in certain geographies, particularly in the UK in the Public Sector and in Germany in the Automotive and Civil Aeronautics sectors, have impacted the operating profit on activity.
A favorable calendar, along with several actions taken to reduce costs related to underactivity and operating expenses (SG&A), have resulted in an operating margin on activity exceeding 9%, a satisfactory level given the economic context.
Ingénierie et Conseil en Technologies
OPERATING PROFIT: 6.7% OF REVENUE
The operating profit amounts to €277.0M (6.7% of turnover). It includes €20.3M in share-based payments, €44M in goodwill impairments in the UK and Germany, €32.1M in non-recurring costs (including €14.9M in restructuring costs, particularly in Germany), as well as a €3.2M loss on the disposal of a company in Asia.
NET INCOME, GROUP SHARE: 4.5% OF REVENUE
The financial result amounted to €3.3M. After taking into account €94M of tax expenses, Group net income came to €186.4M.
NET CASH POSITION: €275.5M / GEARING: - 12.5%
Cash flow (excluding IFRS16) came to €370.7m (8.9% of revenue) in line with operating profit from activity. The Working Capital Requirement decreased by €91.6M, mainly due to a significant reduction in DSO. Capex remained low (€17M, of 0.4% of revenue), and taxes paid amounted to €110.6M.
Free cash flow therefore stands at €333.2M (8% of revenue), an increase of 81.4% compared to 2023.
After accounting for net financial investments (-€310.1M), dividends paid (-€52.1M), and other financing flows (+€7.5M), net cash stands at +€275.5M at the end of 2024.
ALTEN self funded external growth and dividends. Its investment capacity remains intact (gearing: -12.5%).
EXTERNAL GROWTH:
§ 2 ACQUISITIONS OVERSEAS
In Asia (Vietnam/Japan): a company specialising in software development (€20m revenue, 950 consultants) In Poland: a company specialising in IT services (€18m revenue, 250 consultants)
§ ACQUISITION OF WORLDGRID
At the end of November, ALTEN finalized the acquisition of WORLDGRID, European leader specializing in Energy and Utilities solutions in France, Germany and Spain, particularly in the Nuclear sector (Estimated 2024 revenue: €170M; 1,100 employees).
§ DIVESTITURE IN ASIA
At the end of December 2024, ALTEN divested a subsidiary located in Asia (China/Japan). (2024 revenue: €8.9M; 230 consultants).
OUTLOOK FOR 2025 :
The slowdown in activity, particularly in Europe, intensified throughout 2024, notably in the Automotive, Life Sciences, Civil Aeronautics, and Tertiary sectors.
Due to the organic decline in the last quarter of 2024 (-2.7%) and one working day less than in the first half of 2024, ALTEN potential business in January is 3.4% less than the 2024 average business level (excluding acquisitions).
For the time being, there are no signs of a recovery, but business seems to be stabilizing. The improvement in the macroeconomic context (lower interest rates) and geopolitical situation should allow for a return to growth during the second semester.
Next release: 24 April after market closing: Quarter 1 2025 revenue
About ALTEN
For more information: www.alten.com/investisseurs / Journalists’ details: alten@hopscotch.fr
As a European Leader in Engineering and Technology Consulting (ETC), ALTEN carries out design and research projects for Technical and IT divisions of major clients in industry, telecoms and services. ALTEN’s stock is listed in compartment A of the Euronext Paris market (ISIN FR0000071946); it is part of the SBF 120, the IT CAC 50 index and MIDCAP100, and is eligible for the deferred Settlement Service (SRD).
APPENDIX TO PRESS RELEASE:
Definition of alternative performance measures and reconciliation with IFRS standards
The ALTEN Group uses alternative performance measures especially selected to follow up on its operational activities. The Group has chosen these measures as they supply additional information allowing the users of periodic financial information to have a comprehensive understanding of the Group’s performance. Such alternative performance measures are complementary to IFRS standards.
Revenue growth on a like-for-like basis (i.e. organic growth)
Growth on a like-for-like basis (and constant exchange rate) is calculated excluding the effects of exchange rate variations and the variations of the consolidation scope on a chosen period.
Exchange rate impacts are measured by converting the revenue of the period with the average exchange rate from the previous period.
Scope variation impacts are measured excluding acquisitions, revenue of the period and for transfers, revenue of the previous period, in order to create a scope which is identical to the previous period.
This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period.
Business trends in 2024
€m | FY 2023 Revenue | FY 2024 Revenue | % Change |
Revenue on a like-for-like basis | 4,051.0 | 4,042,2 | -0.2% |
France | 1,297.8 | 1,360.3 | 4.8% |
International | 2,753.1 | 2,682.0 | -2.6% |
Scope variation | 17.8 | 98.7 | 2.0% |
France | - | - | |
International | 17.8 | 98.7 | 2.9% |
Exchange rate impact | 2.4 | 0.1% | |
France | - | - | |
International | 2.4 | 0.1% | |
Group revenue | 4,068.8 | 4,143.3 | 1.8% |
France | 1,297.9 | 1,360.3 | 4.8% |
International | 2,770.9 | 2,783.0 | 0.4% |
Operating Profit on Activity
Operating Profit on Activity is the operating income before taking into account the costs on share-based payments, results from significant transfers of assets, goodwill impairment, as well as other significant and uncommon elements considered as miscellaneous fees and operational activities.
Since payments on share-based compensation have noticeable heterogeneous annual changes, the tables included in our financial statements show the operational performance of the Group and make it possible to compare with previous or selected periods.
Net cash position (or net debt)
Net debt - as defined and used within the Group, stands for cash flow and assimilated elements of cash flow less gross financial debt (bank loans and other assimilated financial debts). This measure is called ‘net cash position’ when the amount of cash flow or assimilated elements is higher than the financial debt; conversely, it is called ‘net debt’.
Free cash flow
Free cash flow corresponds to net cash flow from operating activities minus net operating investments and net cash flow from financing activities related to payments of leasing debts. nt liés aux remboursements des dettes de location.
ASSET
ITEM | December 2023 | December 2024 |
Goodwills | 1 132 806 | 1 392 108 |
Right of use | 238 600 | 253 998 |
Intangible assets | 6 956 | 7 461 |
Tangible assets | 54 174 | 52 460 |
Investments in associates | 1 238 | 1 191 |
Non-current financial assets | 43 141 | 125 922 |
Deferred tax assets | 18 711 | 25 078 |
NON CURRENT ASSETS | 1 495 627 | 1 858 218 |
Trade receivables | 1 044 287 | 1 063 565 |
Assets associated with client agreements | 278 833 | 250 035 |
Other current assets | 225 203 | 150 071 |
Current tax assets | 44 373 | 32 694 |
Cash and cash equivalents | 323 402 | 288 098 |
CURRENT ASSETS | 1 916 098 | 1 784 463 |
TOTAL ASSETS 3 411 725 3 642 681
LIABILITIES
ITEM | December 2023 | December 2024 |
Capital | 36 878 | 37 468 |
Premiums | 60 250 | 60 250 |
Consolidated reserves | 1 706 803 | 1 925 213 |
Consolidated earnings | 233 205 | 186 419 |
SHAREHOLDERS' EQUITY | 2 037 137 | 2 209 350 |
MINORITY INTERESTS | -1 | 0 |
Employee benefits | 22 484 | 32 961 |
Provisions | 10 454 | 10 008 |
Non-current financial liability | 8 675 | 9 190 |
Non-current Lease debt | 189 378 | 200 466 |
Other non-current liabilities | 4 332 | 4 263 |
Deferred tax liabilities | 1 264 | 3 038 |
NON CURRENT LIABILITIES | 236 588 | 259 926 |
Provisions | 7 247 | 11 019 |
Current financial liabilities | 104 226 | 90 605 |
Current lease debt | 66 081 | 70 624 |
Trade payables | 160 744 | 174 118 |
Other current liabilities | 553 277 | 547 251 |
Assets associated with client agreements | 209 770 | 246 323 |
Current tax liabilities | 36 656 | 33 464 |
CURRENT LIABILITIES | 1 138 001 | 1 173 405 |
TOTAL LIABILITIES 3 411 725 3 642 681
INCOME STATEMENT
ITEM | 2023 | 2024 |
NET REVENUE | 4 068 797 | 4 143 287 |
Purchase consumed | -449 107 | -437 185 |
Payroll expenses | -2 823 809 | -2 937 932 |
External charges | -303 406 | -273 862 |
Taxes other than on income | -12 605 | -16 741 |
Depreciation and amortization | -92 040 | -94 460 |
Other operating income and expenses Other activity products | -5 012 | -6 563 |
OPERATING PROFIT ON ACTIVITY 382 818 376 544
Share based payments | -32 282 | -20 261 |
OPERATING PROFIT ON ACTIVITY BEFORE EXCEPTIONALS | 350 536 | 356 283 |
Non recurrent profit | -30 637 | -32 082 |
Result of disposal | -3 193 | |
Impairment of goodwill | -43 989 | |
OPERATING PROFIT | 319 899 | 277 019 |
Net borrowing costs | 1 952 | 2 397 |
Other financial income and expenses | -1 800 | 942 |
FINANCIAL INCOME | 152 | 3 339 |
Share of earning of equity affiliates | 75 | 30 |
Income tax expense | -86 920 | -93 968 |
NET OVERALL EARNINGS | 233 205 | 186 419 |
PROFIT ATTRIBUTABLE TO MINORITY INTERESTS | 0 | 0 |
PROFIT ATTRIBUTABLE TO THE GROUP 233 205 186 419
CASH FLOW STATEMENT
ITEM | 2023 | 2024 | ||
CASH FLOW | 455 863 | 449 422 | ||
Consolidated net earnings | 233 205 | 186 419 | ||
Earnings from associates | -75 | -30 | ||
Depreciation, provisions and other calculated expenses | 103 947 | 148 712 | ||
Share-based payments | 32 282 | 20 261 | ||
Income tax expense | 86 920 | 93 968 | ||
Capital gains or losses from disposal | 343 | 2 068 | ||
Net borrowings costs | -1 952 | -2 397 | ||
Financial cost on update and provisions | 1 191 | 421 | ||
Tax paid | -123 654 | -110 587 | ||
Change in working capital requirements | -91 088 | 91 562 | ||
NET CASH FLOW GENERATED BY ACTIVITY | 241 122 | 430 397 | ||
Acquisition / Disposal on assets | -97 214 | -14 799 | ||
Impact of change in scope of consolidation and earn-outs paid | -223 039 | -311 266 | ||
NET CASH FLOW ON INVESTMENTS | -320 253 | -326 065 | ||
Net financial interest paid | 1 639 | 2 249 | ||
Dividends paid to shareholders | -51 421 | -52 110 | ||
Capital increase | 0 | 0 | ||
Buy back of shares | 683 | -636 | ||
Repayment of long-term financial debt | -1 645 | -1 270 | ||
Change in current financial liabilities | -71 912 | -13 830 | ||
Change in lease debts | -70 007 | -75 802 | ||
NET CASH FLOW FROM FINANCING OPERATIONS | -192 663 | -141 400 | ||
CHANGE IN CASH RELATED TO FOREIGN EXHANGE POSITION CHANGE IN CASH POSITION Cash and cash equivalent Cash investiments over 3 months Bank loans Overtdrafts NET CASH POSITION | -6 539 -278 333 323 402 86 107 -109 889 -2 624 296 997 | 1 764 -35 304 288 098 86 960 -99 204 -337 275 517 | ||