- STRONG ORGANIC GROWTH: 10.7%
- A SATISFACTORY OPERATING MARGIN ON ACTIVITY: 9.9% OF REVENUE
- 7 ACQUISITIONS OVERSEAS
BUSINESS 2019 IN SHARP GROWTH: +15.6%
Revenue reaches €2,624.0 M growing by 15.6% as compared to 2018. On a like-for-like basis, business grows by 10.7% (10.2% in France and 11.2% outside France).
All business sectors are growing and more specifically Rail/Naval, Aerospace and Defence & Security.
A SATISFACTORY OPERATING PROFIT ON ACTIVITY: 9.9% OF REVENUE
The operating profit on activity increases more quickly than the activity itself (+16.4%) accounting for €260.8 M. Despite adverse calendar effect and activity rate, along with continuous structuring efforts to support our growth, the operating margin on activity has slightly increased, up to 9.94% of revenue. It reached 10.8% of revenue in the second half.
Operating profit reaches €238.2 M including €5.2 M of share-based payments (without cash impact), €11.6 M of non-recurring costs mainly associated with acquisition and restructuring costs, as well as social and tax adjustments (following audits), and €5.8 M of goodwill depreciation.
NET PROFIT, GROUP SHARE: €164.2 M OR 6.3% OF REVENUE
Financial result accounts for – €3.4 M. After taking into account tax expenses of – €77.3 M, earnings from equity affiliates of €6.1 M, and minority interests of – €0.6 M, net income equals €164.2 M.
NET CASH FLOW: €74.9 M / GEARING: – 6.7%
Cash flow reaches €272 M (before taking into accounts IFRS16 effects) and grows by 12.4% as compared to 2018. Free cash flow reaches €160.3 M and has almost doubled as compared to 2018 (+94%) thanks to a very good control of WCR and low Capex. Financial investments (€66.8 M) and dividends (€33.4 M) were entirely self-financed. Therefore net cash position equals €74.9 M at the end of 2019, with a gearing of – 6.7%.
EXTERNAL GROWTH: 7 ACQUISITIONS IN 2019
ALTEN has also consolidated its position on an international level by completing 7 acquisitions outside France in 2019 (5 in Europe, 1 in Asia and 1 in the US), with 830 consultants and €65 M of revenue.
OUTLOOK FOR 2020:
Following two years of a very strong organic growth (>10%), growth should get back to normal standards in 2020, in respect with the trend experienced in the second half of 2019.
ALTEN will pursue a satisfactory growth, more rapidly than the market, and will accelerate its development thanks to a targeted external growth more specifically on an international level