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2010 annual results: growth in revenue and profitability
Revenue: +20.6%, ROP: +38%, RNet: +23.5%
Proposed dividend: €2.5 per share
Good outlook for 2011
Bagnolet, March 10, 2011
Meeting on 9 March 2011, Infotel’s Board of Directors approved the consolidated financial statements for the 2010 financial year ended 30/12/2010. These accounts have been audited and are available on infotel’s website: www.infotel.com.
| In M€ at 31 December | 2010 | 2009 | Δ 2010 / 2009 |
| 1st quarter | 27,8 | 22,2 | + 25,6 % |
| 2nd quarter | 26,9 | 20,7 | + 29,8 % |
| 3rd quarter | 24,6 | 21,9 | + 12,1 % |
| 4th quarter | 28,3 | 24,4 | + 15,9 % |
| Annual turnover | 107,6 | 89,2 | + 20,6 % |
| including Services revenue | 102,2 | 83,6 | + 22,2 % |
| including Softwares revenue | 5,4 | 5,7 | (5,2 %) |
| Operating income | 9,6* | 7,0 | + 38,0 % |
| % of turnover | 8,9 % | 7,8 % | |
| CEO net income | 6,4 | 5,2 | + 23,5 % |
| % of turnover | 6,0 % | 5,8 % |
* after reclassification of the CVAE in taxes for an amount of €0.87 million
Activity: Infotel reaches the €100 million mark
Infotel generated revenue of €107.6 million in 2010, up 20.6% compared to 2009. This growth was driven by the dynamism of the Services division (95% of turnover), which grew by 22.4%, as well as by the acquisition of Addax (consolidated as of 1 January 2010), which contributed €5.1 million to the year.
On a like-for-like basis, revenue amounted to €104.3 million, representing organic growth of 16.8%, well above the market average.
Pro forma annual revenue (excluding Harwell Management’s equity accounting from 1 July 2010) reached €109.5 million, in line with the target that Infotel had set for 2010.
Results: strong increase in profitability
Operating income for the year amounted to €9.6 million, representing an operating margin rate of 8.9% of revenue, compared to 7.8% for the 2009 financial year. Excluding the reclassification of the CVAE for an amount of €0.87 million, the operating margin would amount to 8.1% of revenue.
This clear improvement in profitability over the full year is the result of the combination of a very good 1st half (9.1% operating margin) and a 2nd half (8.7% operating margin) marked in particular by the negative impact of Harwell’s equity accounting and a more intense use of subcontracting due to the increase in activity.
Operating expenses grew less than turnover: personnel costs represented 45.8% of 2010 revenue (compared to 49.6% in 2009), and external subcontracting costs reached 35.1% of turnover (compared to 32.5% in 2009).
Net income Group share amounted to €6.4 million (6% of turnover), an increase of 23.5%.
Infotel’s financial position at 31 December 2010 remains particularly solid with €38.1 million in equity, no debt and a still high level of cash (€19.6 million) following the acquisition of Addax.
Proposed dividend: €2.5 per share
The Board of Directors will propose to the Annual General Meeting on 25 May 2011 the payment of a dividend of €2.5 per share for the 2010 financial year.
Outlook for 2011: continued momentum of growth and increased profitability
Infotel has good prospects within its 2 business areas and is approaching the 2011 financial year with confidence.
The Services business is experiencing robust momentum. The Software business is expected to benefit from several growth drivers such as the agreement with IBM for the distribution of Merge Backup software, the commercialization of the new test support software “Infoscope Tests” and sales of Arcsys archiving and dematerialization software.
The Group also anticipates the continued improvement in margins, in particular due to the recovery in IBM sales, which generate royalties, and the continued increase in the level of services.
As part of this strategy, Infotel announces the creation of a consulting subsidiary specializing in the project management of IT projects. Called Infotel Business Consulting (IBC), this structure will offer a complementary offer to Infotel’s project management services.
The Group is targeting revenue of €120 million (excluding external growth) for 2011, associated with an increase in profitability.
Next appointment:
Publication of revenue for the 1st quarter of 2011: May 4, 2011 (after the stock market)
About Infotel
Listed on Compartment C of Euronext Paris since January 1999 (Isin code FR0000071797), Infotel is the specialist in the management of databases and their Web applications. At the forefront of technological innovations, Infotel develops its expertise around two complementary areas of expertise: IT services and high-tech software publishing. As part of its “Ambitions 2012” plan, Infotel has set itself two main objectives: to achieve almost all of its services in Service Centers and to become a key player in dematerialization. In 2010, Infotel had a total turnover of €107.6 million.
