| In millions of euros IFRS (*) | 2010 | 2009 | VAR |
| Sales figures | 102,5 | 94,2 | +8,8 |
| Current operating income | 6,3 | 3,6 | +74,1 |
| As a % of sales | 6,2% | 3,8% | |
| Other operating income and expenses | (1,2) | (0,6) | |
| Operating income | 5,1 | 3 | +71,7 |
| Net income | 4,2 | 2,5 | 72,2% |
| As a % of sales | 4,1% | 2,6% |
(*) : Audited figures
A REGULAR AND DYNAMIC GROWTH
Driven by its positioning in high value-added and innovative services in the fields of Business Intelligence, Web & IT and ERP, Micropole achieved revenues of €102.5 million in its 2010 financial year, up by 8.8% (6.8% at constant scope and exchange rates). The last quarter of 2010 confirmed this very good trend with an acceleration in sales, which rose by 10.1% compared to the fourth quarter of 2009.
RESULTS ABOVE EXPECTATIONS
This good level of activity, recorded over the entire fiscal year and across all of the Group's activities, resulted in a 74.1% increase in current operating income. The operating margin before non-recurring items reached 6.2%, up 2.3 points over 12 months.
Operating profit rose by 71.1% to €5.1 million, or 5.0% of revenues. This level of income is all the more appreciable as it includes €0.9 million in non-recurring expenses related to the consolidation of all Parisian entities on the new site in Levallois-Perret.
In the end, after taking into account a stable financial result of €0.3 million (vs. €0.2 million in 2010) and a tax charge of €0.6 million including the recognition of the CVAE for €0.5 million, net income amounted to €4.2 million, an increase of 72.2% compared to the previous year.
FINANCIAL POSITION STRENGTHENED BY STRONG CASH FLOW GENERATION
The good level of earnings recorded in 2010 has enabled the Group to increase its equity to more than €57 million (vs. €53 million) and to have a positive net cash position at the end of 2010 of €0.7 million (cash of €16 million) compared to a net debt of €1.1 million at the end of 2009. The increase in cash was achieved in a context of strong investment in industrial facilities and the implementation of a share buyback program of over one million shares (€0.9 million).
SOLID GROWTH PROSPECTS IN 2011
Buoyed by strong commercial activity and innovative projects in many fields (Life Sciences, M.D.M., Sustainable IS, Extended Business Intelligence, Search Based Applications), the 2011 financial year is looking good. The merger with the Belgian company OASIS Consultants, a Gold SAP partner, will also strengthen Micropole's presence in the Northern European markets (Belgium, Luxembourg and Holland).
The group is therefore committed to several priority projects in 2011:
- A proactive recruitment policy for 450 employees,
- The strengthening of international activity, which currently represents just over 20% of total revenues, is a necessity both for the positive contribution to the Group's margins and for Micropole's ability to support its clients in the deployment of their projects. This expansion policy will be based on targeted external growth operations in the most economically dynamic geographical areas in Europe, but also, depending on opportunities, on other continents.
A NEW 3-YEAR DEVELOPMENT PLAN, DUE IN 2013
The group intends to pursue its development strategy over the next three years by targeting revenues of €150 million by the end of 2013, while reinforcing its status as a specialized player, focused on high value-added services and leader in its markets.
Based on a very good industrial positioning and a recognized image of quality, this development strategy will be based on 3 major axes:
- A balanced and strong growth around the 3 current activities with a diffusion of the business expertise and technological skills on the whole of the current and future geographical coverage of the group;
- The opening of new activities in addition to the current offers and meeting the same criteria of specialization and added value;
- A policy of external growth in France and abroad consistent with the strategy.
"After a very positive year in 2010 for Micropole, we also expect significant organic growth in 2011. The financial resources at our disposal will also enable us to pursue a dynamic external growth policy in order to achieve the objectives of our three-year plan. However, all our development will remain based on our differentiation strategy, which is the real key to our growth in the years to come", comments Christian Poyau, Chairman and CEO of Micropole.
APPENDIX
HIGHLIGHTS IN 2010
The group's historical activities (BI and Web&IT) performed well overall in the face of an economic climate that was still mixed in the first half of the year.
- Business Intelligence posted a 10% increase in revenues. The year 2010 was marked in particular by the signing of several major projects/clients, notably in the banking and automotive sectors. In addition, major trends were observed around the evolution of historical BI platforms, the advent of Agile BI (with new technological ranges and new methods of project implementation), and the priority given by organizations to EPM (Enterprise Performance Management).
- The Web & IT activity, which includes e-commerce and business applications, also posted sustained growth of 10% in 2010 with the signing of new projects/customers in the field of services.
- The ERP business suffered during the first part of the year from a weak market but benefited from a turnaround in the last quarter. This transitional year saw several partnerships, notably with Exalead for the development of Search Based Applications (SBA). Micropole strengthened its ERP offering in the Rhône-Alpes region and implemented several national projects based on SAP software.
- The Training activity has been strengthened around the implementation of e-learning projects (creation of new HRIS and training, creation of modules and educational content).
Finally, the Group's development was marked by the opening of the Lille branch, thus completing its coverage in the North region. At the end of 2010, the Micropole Group has a truly European dimension, with 9 sites in France, 3 in Switzerland, 1 in Belgium and 1 in Holland. 22% of the 2010 turnover was generated internationally.
