2015 annual results Strong increase in profits and in the dividend payout
SQLI, the partner of reference for businesses and brands in defining, implementing, and managing their digital transformation, is announcing financial performances that have strongly progressed and anticipates a continuation of this virtuous dynamic in 2016 and beyond.
Organic growth of 7% in 2015
SQLI generated 2015 turnover up +11% to €179.0 M compared to €161.6 M the previous year. This performance mainly came from organic growth (+7%).The business dynamic was supported by numerous large scale digital projects that called on both the group's marketing expertise and its technological know-how in France and abroad.
This distinctive positioning is reflected in the company winning such contracts as the Auchan Group's digital shopping mall (AUSHOPPING), which won the 1st Trade Prize in the 2016 Trophées de la Transformation Numérique (Digital Transformation Awards) or 2 major projects for the SNCF Group (overhaul of the interface of the ticket ordering terminals in train stations and the website of the Transilien train services). The Group also benefited from the ramping up of 3 major multi-year contracts with Nespresso, RTE and the Seb Group.
Net profit up +40%
Thanks to on-going improvement of operational steering indicators (productivity, operational excellence, share of Offshore projects), this growth in turnover has resulted in a 116% increase in the current operating income which stands at €10.8 M. The current operating margin is now therefore at 7% of turnover in the second half of 2015 and 6% for the year as a whole (3% a year earlier).
Operational income is up 60% to €6.7 M after taking account of €4.1 M in non-current charges primarily related to the reorganisation of the company (integration of acquisitions and management consolidation).
At €3.6 M, net income attributable to the group is up 40% over the year. It takes into account a financial charge of €0.6 M and a tax charge of €2.5 M.
Positive net cash flow and dividend increase
The strong generation of cash flow over the year (+€8.0 M cash flow) enabled the sustained growth to be financed while continuing to pay back the debt. Thus on 31 December 2015, SQLI has a healthy balance sheet with gross cash of €18.2 M and net cash of €1.2 M for an equity amount of €72.6 M.
The Group also has €34 M of additional financing possibilities (exercise of outstanding warrants and options and authorised lines of credit).In this context, at the next General Meeting the Board of Directors will propose the payment of a dividend of €0.60 per share compared to €0.45 in 2015.
Before this payment, SQLI has already paid out nearly €6.5 M to shareholders (in dividends, share and warrant buybacks) in 3 years.
Towards a new cycle of profitable growth
Thanks to this very good business and financial dynamic, SQLI is anticipating another year of profitable growth ahead. The Group is thus setting the target for 2016 to achieve a two-digit annual increase in turnover and reach a current operating margin of at least 8% by the end of the year.
The Group intends to leverage the organisation in place to drive what will be primarily organic growth supplemented by additional targeted external growth operations.2016 will also be the year of the launch of the new strategic development plan.
After a cycle of 3 years essentially focused on redefining the group's missions, its value proposition and its development base, SQLI is now aiming for an ambitious deployment in particular by acting on 3 turnover and profitability growth levers:
- The creation of a consultancy business, to be rolled out under the new brand SQLI Consulting and intended to support the Group's customers in developing their digital-induced business models;
- The enhancement of business offers illustrated at the start of this year by the creation of a Smart utilities offer;
- The development of the capacity to develop abroad with, in addition to the opening of a new office in Zurich, the ambition to launch SQLI's business in the United Kingdom in 2016.
This new strategic plan will be unveiled before the end of the 1sthalf 2016 and will carry the SQLI Group's ambition and vision forward to 2020.SQLI will publish its 1st quarter 2016 turnover after the close of stock market trading on 12 May.