Paris, February 07, 2007
Non audited figures
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In million euros (m€)
|
2006
|
2005
|
Var
|
Q4 2006
|
Q4 2005
|
Var.
|
|
Turnover
|
266.7
|
198.8
|
+34%
|
80.7
|
56.2
|
+44%
|
|
Operating margin (*)
|
22.2
|
13.9
|
+60%
|
8.3
|
5.3
|
+56%
|
|
In % of turnover
|
8.3%
|
7.0%
|
|
10.3%
|
9.5%
|
|
|
Current Operating Profit
|
21.8
|
13.9
|
+57%
|
8.2
|
5.3
|
+54%
|
|
In % of turnover
|
8.2%
|
7.0%
|
|
10.1%
|
9.5%
|
|
(*): excluding the impact of intangible assets resulting from acquisitions (IFRS 3 & 38)
Devoteam achieved €267m revenues in 2006, growing by 34% over the period with a €22m operating margin, up 60%, amounting to 8.3% of turnover.
These performances have been achieved through sustained organic growth (+18%), with international business doubling and the solution arm improving its margins.
Quarterly results analysis
The 44% rise in Devoteam's sales revenue during Q4, at more than €80m, reflects both a dynamic end of year and the integration of the acquisitions of Tertio in the UK and Guidance in Benelux. The Group completed nearly 100 net recruitments during the quarter, thereby bringing its head count up to 2,800.
The current operating profit gains 54% at 10.1% of sales revenue over the period, driven by:
- improved margins for the Solutions arm (78% of revenue), which benefited from the strong rise in customer demand volumes and rising prices;
- the Group's growing globalisation, with 40% of sales revenue generated outside France during Q4, versus 24% a year earlier.
Analysis per geographic area
|
In million euros (m€)
|
FY 2006
|
FY 2005
|
|
France
|
International
|
France
|
International
|
|
Turnover
|
174
|
93
|
154
|
45
|
|
Growth
|
13%
|
106%
|
34%
|
26%
|
Present in more than 15 countries, Devoteam accelerates its globalisation, which now accounts for 35% of the Group's activity, but nearly 45% of profits in 2006. The acquisitions completed during the year have enabled the Group to strengthen its positions in Scandinavia and Benelux, where it now generates over 10% of its revenue and has more than 300 consultants in each region.
Furthermore, Devoteam enjoys strong presence in parts of the world with strong growth potential, such as Spain, Africa, and the Middle East, with more than 300 consultants scattered throughout these countries.
Analysis per business line
|
In million euros
(m€)
|
FY 2006
|
FY 2005
|
|
Consulting
|
Solutions
|
Consulting
|
Solutions
|
|
Turnover
|
60
|
207
|
40
|
159
|
|
Growth
|
50%
|
30%
|
32%
|
32%
|
The organic growth of Consulting activities is particularly high in Denmark, Austria, and the Middle East, while in 2006 the Solutions arm focused its efforts on restoring its margins.
The collaboration and harmonisation of offers between Group entities generate significant contracts in promising areas:
- the Scandinavian knowledge in public service modernisation helps to capture consulting assignments in the Middle East;
- the full understanding of key software vendors' administration solutions is a key asset for the management and optimisation of the clients' IS; - Devoteam telecom's positioning in Morocco, France, and Spain serves the convergence projects conducted by equipment manufacturers;
- the competences accumulated around IT security and infrastructures' virtualisation enables the Group to create a European centre of excellence.
Analysis per client vertical
The financial sector (24% of the Group's revenue) is very dynamic as a result of its good economic health, the new regulatory constraints, and the international expansion of French banks that are attempting to pool their information systems.
The telecom sector, which accounts for 24% of Devoteam's revenue is organising itself to cope with the arrival of media and retail players (MVNO, etc.) and invests significantly in the services offers.
The Group's 10 main clients remain the same from one year to another and represent approximately 41% of Devoteam revenue.
Outlook
In 2007, Devoteam anticipates a turnover growth in excess of 20% and operating profit up by 25%.
The Group's cash position & short term investments at €85m, provides it with leeway to pursue its international expansion.
Devoteam board of Directors will adopt its 2006 audited financial statements on March 9th and publish them on March 14th; a financial information meeting will be held on March 15th and the General Meeting is due on May 25th.
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