- +5% organic growth (at constant exchange rates), accelerating strongly in H2
- Net income of +1.1 million euros
- Positive outlook for Q1 2019
Levallois-Perret, April 10, 2019. Initiated in the second half of 2018, the TARGET 21 plan is already having a positive impact on the Group's annual results. In particular, thefourth quarter marked a notable acceleration in the pace of business growth, despite the continued strong pressure on resources. Given this progress and the favorable outlook for Q1 2019, Micropole reaffirms its ambitions within the framework of the TARGET 21 plan, namely a positioning focused on innovation and added value, as well as a turnover of €160 million and a current operating income of over 8% by 2021.
| In millions of euros - IFRS (Under audit) | 2018 | 2017* | 2017Published |
| Sales figures | 109,3 | 107,7 | 114,0 |
| Current operating income | 4,6 | 3,6 | 3,6 |
| As a % of sales | 4,2% | 3,3% | 3,2% |
| Non-operating income and expenses | (1,6) | (2,0) | (2,0) |
| Operating income | 3,0 | 1,6 | 1,6 |
| As a % of sales | 2,7% | 1,5% | 1,4% |
| Income from continuing operations (excluding IDA impact) | 1,1 | 0,6 | 0,6 |
| IDA Impact | - | (2,2) | (2,2) |
| Income from discontinued operations | - | (0,3) | (0,3) |
| Net income | 1,1 | (1,9) | (1,9) |
Micropole, an international consulting and innovative technology group specializing in Digital Experience, Data Intelligence & Performance and Data Governance & Architecture, generated revenues of €109.3 million in 2018 compared to €107.7 million for the same period in 2017*. On a like-for-like basis, the increase was 5%.
Profit from recurring operations rose sharply (+28%) to EUR 4.6 million. This increase is mainly due to :
- An increase in price positioning, linked to good recognition in its markets of the added value provided by the Group's offerings (in France: IDF ARPU +5.9% and regional ARPU +4%).
- To the restructuring efforts carried out in 2017 (business disposals, divestments and rationalizations).
Operating income, meanwhile, doubled to €3.0 million, linked in particular to the effect of restructuring carried out in 2017, completed in 2018.
This good annual performance, which accelerated sharply in thefourth quarter, particularly in Europe (Europe excluding Micropole Learning Solutions), reflects the following
- The good positioning of the Group, which offers high value-added digital and data transformation solutions, at the forefront of its markets.
- Ongoing innovation by the Group's R&D teams around technologies that anticipate future customer challenges. Investments in 2018 focused in particular on the creation of the Openground. This innovation laboratory and technological showcase of the Group has enabled us to carry out work in particular on Artificial Intelligence, via facial or voice recognition, IOT, the use of behavioral and emotional analysis tools or developments around the Blockchain.
- The rise of innovative offerings, created around skills hubs in partnership with Amazon AWS, Microsoft Azure, Salesforce and Alibaba Cloud. These cloud offerings are true gas pedals of data projects, making technological solutions more accessible and bringing real efficiency gains in the processing of all data.
- The ongoing work initiated as part of the implementation of the TARGET 21 plan, in particular on the operational levers of all the Group's areas of operation, namely commercial and operational efficiency, HR strategy and new business models.
Net income, group share, was positive at €1.1 million. As a reminder, net income for 2017 had been unfavorably impacted by a non-recurring effect related to the reduction of certain deferred tax assets.
As of December 31, 2018, cash and cash equivalents amounted to €11.9 million with net financial debt of €12.3 million, for equity of €49.2 million.
Despite the ongoing strain on resources, 2018 was characterized by particularly active recruitment activity, leading to the integration of nearly 380 new employees over the year, in line with the objectives announced at the beginning of the period. The Group also renewed its Happy at Work and Happy Trainees certifications in 2018. Micropole continues to accelerate its Employer Brand policy geared towards recruiting and retaining talent. The Group is looking for profiles of business consultants and Data experts for all its locations to carry out its many innovative projects and assignments.
Perspectives
The first quarter of fiscal 2019 looks favorable, supported by good commercial momentum.
To support its development ambitions, the Group also strengthened its management team in the first quarter with the appointments to the Executive Committee of Laëtitia Desfossés as Chief Financial Officer, Strategy & Development, and Anne-Flore Le Gal as Director of Human Resources.
