The Econocom Group Board of Directors, who met on 28 February 2013, with Mr Jean-Louis Bouchard acting as chairman, finalised the 2012 fu ll-year results.
Econocom, the European leader in business-to-business ICT infrastructure management, reported good results for 2012, a year which was notable for:
- Sustained investments to improve the Group’s commercial appeal by launching innovative new cloud solutions (viCUBE, viSPACE, etc.).
- The integration of targeted acquisitions in order to strengthen both its expertise (virtualisation, cloud, mobile computing and security) and international scope (Spain and Mexico).
- A dynamic shareholder return policy (buying back and cancelling shares, dividends).
Record full-year results
Consolidated revenue stands at €1.54 billion. Given the dateon which the companies the group acquired were integrated, their contribution to the 2012 consolidated revenue is limited (€12 million).
Thanks to the improved performance of IT Services and Telecoms, good cost control and the continuing effect of synergies resulting from the successful integration of ECS, the Group posted recurring operating profit of €74.1 million(1), an 11% rise on the previous year.
Net profit for the year excluding non-controlling interests stands at €47.4 million, more than twice as much as in 2011 (€21.5 million). In addition to improved operational performances, the Group also benefited from a significant drop in nonrecurring costs.
Net earnings per share(1) amount to €0.51, a rise of more than 120% on the previous year.
A healthy financial structure
Econocom has succeeded in maintaining a healthy financial structure whilst making significant investments and continuing its shareholder return policy.
During the year, Econocom generated cash flow of €86.1 million, a 45% increase on the previous year. At the end of December, cash stands at €80 million and net financial debt amounts to €31 million. Gross debt consists essentially of convertible bonds (€81 million, convertible at a rate of €5.25 per share) which mature in June 2016.
Consolidated shareholders’ equity amounted to €157.2 million at the end of 2012.
Outlook for 2013 and beyond
2012 marked the end of the Horizon 2012 strategic plan which resulted in revenue doubling and recurring operating profit increasing threefold in 5 years.
The Group’s sales during the past few months, sustained productivity and a refocusing on its strategic businesses, combined with the external growth opportunities currently under negotiation mean the Group can expect growth, both organic and via external growth, in revenue and recurring operating profit in 2013.
2013 will also be devoted to launching the new 5-year strategic plan which should enable Econocom to enter into a new cycle of profitable mixed growth.
After two years of substantial increase in the dividend (over 33% in two years), the Econocom Board of Directors will invite shareholders to vote, at the Annual General Meeting, to maintain the payment of a gross dividend of €0.10 per share. The Group opts to use its cash for strategic investments as part of its new 5-year plan and continue its share buyback policy.
Next press release: the 2013 first-quarter trading statement will be published after the close of trading on 17 April 2013.
(1) Before amortisation of the ECS customer portfolio (€2 M/year)