November 9, 2017 - 11:35 AM EST
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ASSYSTEM : Third-quarter 2017 consolidated revenue up 5.3% year on year

                   
Third-quarter 2017 consolidated revenue up 5.3% year on year

· Robust organic growth of 9.5% for Nuclear activities
· Target of achieving a significantly higher EBITA margin maintained([1])

Paris, 9 November 2017, 5.35 p.m. (CET) - Assystem S.A. (ISIN: FR0000074148 - ASY), an international engineering group, today released its consolidated revenue figures for the third quarter of 2017 and for the nine months ended 30 September 2017.

On 28 September 2017, Assystem transferred its outsourced R&D division - Global Product Solutions (GPS) - to a special-purpose acquisition company called Assystem Technologies, which is 60.8% owned by Ardian (a private equity firm) and 39.2% by Assystem. In accordance with IFRS 5, GPS's revenue has not been included in Assytem's consolidated revenue for the first nine months of 2017. The consolidated revenue figure for the first nine months of 2016 has therefore been restated in order to facilitate year-on-year comparisons. 

Consolidated revenue for the nine months ended 30 September 2017
and year-on-year changes (unaudited)

In millions of euros Nine months ended 30 Sept.
2016*
Nine months ended 30 Sept.
2017
Total year-on-year change Organic year-on-year change**
Group 278.5 293.4 +5.3% +4.9%
Energy & Infrastructure 230.5 252.6 +9.5% +8.1%
Staffing 41 .1 34.4 -16.4% -14.0%
Other 6.9 6.4 - -

* Restated in order to facilitate year-on-year comparisons.
** Based on a comparable scope of consolidation and constant exchange rates.

Based on its new scope of fully-consolidated companies, Assystem's consolidated revenue rose by 5.3% year on year in the first nine months of 2017, breaking down as 4.9% in organic growth (8.2% excluding the impact of the Staffing business), a 1.4% increase due to changes in the scope of consolidation and a 1.0% negative currency effect.

Consolidated revenue growth slowed in the third quarter to 1.6% (4.3% in organic growth, a 0.5% negative impact from changes in scope of consolidation and a 2.2% negative currency effect). This slowdown was due to (i) the unexpected negative revenue trends for Radicon and the Staffing business during the period, which trimmed an aggregate 2.4% off third-quarter organic revenue growth, and (ii) the lower number of business days compared with third-quarter 2016 (which had an estimated 1.5% adverse effect).

ENERGY & INFRASTRUCTURE 

Revenue generated by the Energy & Infrastructure business advanced 9.5% in the first nine months of 2017 to €252.6 million. Organic growth came to 8.1%, changes in scope of consolidation had a 2.2% positive impact and the currency effect was a negative 0.8%.

Revenue generated by Nuclear activities came to €149.5 million, up 8.5% as reported, or 9.5% on an organic basis. This performance was led by demand for engineering services related to (i) the construction of new reactors in France and abroad, (ii) maintenance of existing nuclear power plants in France, and (iii) decommissioning activities in France and the United Kingdom.

Revenue for Energy Transition & Infrastructures rose 11.2% to €103.1 million, with 6% organic growth. Momentum remained buoyant in the transport infrastructures and life sciences sectors but Radicon's revenue for the nine-month period decreased 11.5% at constant exchange rates, as the company suffered from delays in the start-up of Saudi infrastructure investment projects for which it has entered into engineering service contracts.

STAFFING 

At €34.4 million, revenue for the Staffing business in the first nine months of 2017 was down 14.0% year on year at constant exchange rates, or 16.4% on a reported basis. Contrary to expectations, revenue for this business is now forecast to be lower in the second half of 2017 than for second-half 2016, weighed down by (i) price squeezes on services in the oil & gas sector, (ii) an unfavourable currency effect arising from the U.S. dollar and Nigerian naira, and (iii) delays in the start-up of projects in the industry sector.   

HEADCOUNT

Based on its new scope of fully-consolidated companies, the Assystem Group had a total of 4,616 employees at 30 September 2017.

ASSYSTEM TECHNOLOGIES

In the first nine months of 2017, Assystem Technologies (formerly GPS) - in which Assystem has held a 39.2% stake since 28 September 2017 - generated revenue of €495.5 million compared with €427.9 million for the equivalent prior-year period. This robust 15.8% year-on-year increase breaks down as 12.8% in organic growth, a 4.0% positive impact from changes in scope of consolidation and a 1.0% negative currency effect.

Revenue from Aerospace and Automotive activities amounted to €281.8 million and €174.6 million respectively, representing year-on-year rises of 13.2% for Aerospace (with 11.8% organic growth) and 23.9% for Automotive (17.5% organic growth). 

SHARE BUYBACK OFFER

The Group's information memorandum (note d 'information) relating to its proposed share buyback offer was granted visa n° 17-570 by the Autorité des marchés financiers on 31 October 2017. The main characteristics of the offer are as follows:
- Maximum total amount: €225 million
- Per-share purchase price: €37.50
- Maximum number of shares that may be bought back: 6 million, representing 28.35% of Assystem's outstanding shares([2]).

The offer period will run from 24 November 2017 to 14 December 2017 (with a settlement/delivery date of 22 December 2017), provided that the Company's shareholders approve the corresponding resolutions at the Extraordinary General Meeting to be held on 22 November 2017.

OUTLOOK FOR FULL-YEAR 2017

In view of the revenue trends for Radicon and the Staffing business, the Group has revised its targets for full-year 2017 as follows:

  • organic revenue growth of between 8.0% and 8.5% at constant exchange rates for the Energy & Infrastructure business (versus c. 10% previously);
  • c. €45 million in revenue for the Staffing business (versus €50 million previously).

The Group is standing by its target of achieving a significant increase in EBITA margin, based on its current scope of fully-consolidated companies.

The target for net cash at 31 December 2017, as revised to take into account the maximum amount of the share buyback offer, is now approximately €40 million([3]).

2018 FINANCIAL CALENDAR

  • 7 February: Full-year 2017 revenue
  • 19 March:   Full-year 2017 results - Presentation meeting on 20 March at 8.30 a.m.
  • 26 April:       First-quarter 2018 revenue
  • 16 May:       Annual General Meeting

ABOUT ASSYSTEM
Assystem is an international engineering group. As a key participant in the industry for 50 years, the Group supports its clients in managing their capital expenditure throughout the product life cycle. Assystem S.A. is listed on Euronext Paris.
For more information please visit www.assystem.com
Follow Assystem on Twitter: @Assystem

CONTACTS

Philippe Chevallier
CFO & Deputy CEO
Tel.: +33 (0)1 55 65 03 10

 

Anne-Charlotte Dagorn
Communications Director
[email protected]
Tel.: +33 (0)6 83 03 70 29

 
Agnès Villeret
Investor relations - Komodo
[email protected]
Tel.: +33 (0)6 83 28 04 15

 


BREAKDOWN OF REVENUE BY QUARTER

In millions of euros Q1 2016* Q1 2017* Total year-on-year change Organic year-on-year change**
Group 94.4 103.1 +9.3% +6.3%
         
Energy & Infrastructure 77.4 88.4 +14.2% +10.4%
Staffing 14.6 12.2 -16.4% -16.4%
Other 2.4 2.5 - -
         
In millions of euros Q2 2016* Q2 2017 Total year-on-year change Organic year-on-year change**
Group 96.6 101.4 +4.9% +4.1%
         
Energy & Infrastructure 79.3 87.0 +9.7% +8.0%
Staffing 14.8 12.1 -18.5% -18.5%
Other 2.5 2.3 - -
         
In millions of euros Q3 2016* Q3 2017 Total year-on-year change Organic year-on-year change**
Group 87.5 88.9 +1.6% +4.3%
         
Energy & Infrastructure 73.8 77.1 +4.5% +5.8%
Staffing 11.7 10.1 -13.7% -5.2%
Other 2.0 1.7 - -
         

* Restated in order to facilitate year-on-year comparisons.
   ** Based on a comparable scope of consolidation and constant exchange rates.



(1) Based on the Group's current scope of fully-consolidated companies.

(2) Representing the number of shares making up the Company's capital less the number of shares held in treasury.

([3]) Taking into account (i) an estimated €35 million in net cash generated by the operating and investing activities of continuing operations in second-half 2017 (excluding the impact of any acquisitions but including €9 million from the receipt of a research tax credit receivable) and (ii) the completion of the transfer of control of GPS on 28 September 2017 (generating net cash proceeds of €404 million), and based on the assumption that the following will take place before 31 December 2017: the settlement-delivery of shares under the share buyback offer (€225 million) and the investment in the capital of New Areva NP (€125 million).




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ASSYSTEM via Globenewswire


Source: Thomson Reuters ONE (November 9, 2017 - 11:35 AM EST)

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