- Focus on offers around digital and data
- Consolidated revenues of €92m
- Doubling of the operating margin from H1 to H2
2014 was a year of transformation for Micropole: deployment of its strategy of focusing on its high value-added consulting and integration offerings, arbitrations and disposals of other activities, in particular ERP. These actions have mechanically impacted the group's revenues and results. Today, Micropole's positioning is perfectly in line with market issues and customer expectations. The significant improvement in operational indicators at the end of 2014 and the beginning of 2015 confirms the relevance and consistency of the strategy deployed.
|
IN MILLIONS OF EUROS (under audit) |
2014 | 2013* |
|---|---|---|
| Sales figures | 91,8 | 98,6 |
| Current operating income | 2,0 | 3,8 |
| in % of sales | 2,2% | 3,9% |
| Other operating income and expenses | (0,1) | 0,5 |
| Operating income | 1,9 | 4,3 |
| Net income from continuing operations | 0,4 | 2,9 |
| Net income from discontinued operations | (9,8) | (1,7) |
| Result for the year | (9,4) | 1,2 |
* All comparative data have been restated for the effects of the sale of the ERP business announced in September 2014, as well as for businesses in the process of being sold, in accordance with IFRS 5.
2014 Results
Micropole, an international consulting and digital technologies group, achieved revenues of €91.8 million in its 2014 fiscal year, at constant scope and exchange rates, compared with €98.6 million in the previous year.
Current operating income amounted to €2 million compared to €3.8 million in 2013. The gradual improvement in the main operating indicators over the second half of 2014 enabled the current operating income to double compared to the first half (€1.3 million in H2 vs. €0.7 million in H1). It was based on the marketing of new offerings and the various profitability improvement actions undertaken as of Q2 2014.
Income from operations was EUR 1.9 million compared to EUR 4.3 million in 2013. Net income from continuing operations was EUR 0.4 million compared to EUR 2.9 million in 2013.
Net income including discontinued operations showed a loss of 9.4 million Euro. It includes an exceptional amortization of the book value of goodwill compared to the estimated value of the disposal of 4.3 million euro, this adjustment having no effect on the group's cash flow.
At December 31, 2014, cash and cash equivalents amounted to 8.3 million euros with net financial debt of 13.7 million euros for shareholders' equity of 50.4 million euros.
Acceleration of the performance of Digital and Data related offers
Faced with major changes in the market, Micropole decided at the end of the 2013 financial year to make major changes to its strategy. The fundamental axes are the focus on high value-added services, on innovative offerings around Digital and Data, as well as international. Deployed in 2014, this repositioning was accompanied by accelerated investments in certain offerings (notably the integrated Digital Agency Wide), operational reorganizations, arbitrations on other activities, as well as the sale of the ERP. At present, this work is almost complete in all of the Group's areas of operation.
In a context of significant internal transformation and a global economic environment that has deteriorated in Europe over the past two years, the evolution of the Group's activities in its various markets has been as follows:
- In France, the Consulting, Financial Performance Management and Big Data activities recorded good progress. Digital Transformation, which is booming, gained momentum during the year, with a marked acceleration in S2 (strategic consulting, customer relations and customer knowledge). Still very dynamic, the regional agencies continued their significant growth throughout 2014. For reasons of strategic choices, license sales and outsourcing activities, on the other hand, marked a clear decline.
- The Swiss business, impacted by the sale of the ERP part of the business as well as by the transformation of offerings and teams, nevertheless recorded an increase in its Digital Transformation and Performance Management services from the second half of the year.
- The Benelux zone, whose activities have been refocused around Performance Management, experienced very strong growth over the whole of 2014 (+30% of sales compared to 2013). In synergy with the French teams, new offerings were implemented (Customer Knowledge), as well as packaged solutions (Big Data).
- Finally, our agencies in China (Beijing, Shanghai and Hong Kong) have continued to progress and confirm their good growth prospects. However, the business has not yet reached a significant size to have a noticeable impact on the group's indicators.
Sale of ERP activities
As part of its transformation plan, Micropole has chosen to divest from non-strategic activities with low growth and margin potential. In September 2014, Micropole therefore sold its ERP business in France, Switzerland and Belgium. These arbitrations mechanically impacted the group's workforce, which stood at nearly 1,100 employees at the end of 2014, compared with 1,300 at the beginning of 2014.
Outlook for 2015
The year opens with a positive outlook, supported by the Syntec Numérique indicators, which forecast growth of 1.7% for the Consulting and Services sector in 2015. The Group's repositioning around complementary offerings in line with the expectations of the Business Units has enabled Micropole to gain in both relevance and performance. At the forefront of market trends, these new areas of expertise now cover all of our clients' needs in terms of digital and data issues: marketing, customer knowledge and experience, mobility, and strategic and operational management of the company.
" The quality of Micropole's positioning is clearly bearing fruit with our clients and partners, and all of the Group's operational indicators are improving. The Micropole Group is now on the right track for a return to growth in 2015 ", commented Christian Poyau, Chairman and CEO of Micropole.
