SHARP GROWTH IN 2021 FULL-YEAR RESULTS

Sharp growth in 2021 full-year results

Revenue: €263.4 million, up 12%, above target

Current operating margin (excluding free shares distribution) at 9.3% of revenue
Group net income: €13.7m, up 45.5%
Dividend proposed to the General Stockholders’ Meeting: €1.60 per share

Strategic Plan 2026: Accelerating the Group’s transformation

Paris, 16 March 2022

Infotel, (code ISIN : FR0000071797 – mémo : INF), a leading digital transformation partner for key accounts in Europe, today announced the publication of its financial statements for full-year 2021, approved at the Board of Directors’ meeting held on March 16, 2022, and audited by the Statutory Auditors.

¹EBITDA is calculated as follows: Current operating income + depreciation, amortization and provisions – provisions on current assets + provisions for litigation + amortization of CIR research tax credit + provisions for retirement benefits.

Strong business growth, above targets

In an upbeat market environment characterized by strong sales momentum, Infotel reported revenue of €263.4 million for full-year 2021, up 12.0%, and up 6.1% compared to 2019, in line with the stated objective of exceeding its 2019 performance.

The Services business generated revenue of €255.0 million, up 12.4% compared to 2020, benefiting from both a solid presence among its large corporate customers and the ramp-up of new reference listings.

The Banking/Finance sector accounted for a 40.2% contribution to Services revenue at the end of December 2021. Industry accounted for 23.8 % of the Services business, with stable activity at Airbus.

With a contribution of 19.7%, Services/Transport included an increase in activity at Air France during the year. The Insurance/Retirement sector accounted for 13.1% while the Administration sector stabilized at 3.1%.

The Group’s total headcount was nearly 2,600 people at end-December 2021 while the average inter-contract rate over the year remained low at 1.8%.

Revenue from the Software business came to €8.5m, including royalties from IBM of €3.9m.

the context of a recovery in the air transportation sector, the Orlando software suite for aircraft technical documentation saw a doubling of its customer portfolio in 2021, with several prestigious contract signatures.

Solid profitability

The sales momentum observed over the full year was reflected in the results, which show very strong growth. Current operating income, excluding free shares distribution, amounted to €24.5m in 2021, up +15.3%. The current operating margin (excluding free stock) came to 9.3% of revenue.

After taking into account the free shares distribution, operating income came to €21.9 million in 2021, an increase of 23.3%.

After accounting for the tax expense, net income came to €13.7 million, up 45.5%, representing a net margin rate over the period of 5.2%.

A robust financial structure

The balance sheet totaled €250.5m at December 31, 2021, versus €227.6m at December 31, 2020, and equity increased to €104.5m versus €98.7m a year previously.

Customer receivables increased to €76.8m vs. €58.2m, reflecting the increase in business volume recorded over the year.

As of December 31, 2021, the Group did not have any financial debt. The cash position was €107.8m at the year-end.

Proposed dividend of €1.60 per share

Infotel’s Board of Directors will propose to the Annual Stockholder’s Meeting on May 25, 2022 the payment of a dividend of €1.60 per share for fiscal year 2021. The continued high pay-out policy reflects management’s confidence in the Group’s prospects.

2026 strategic plan: Accelerating the Group’s transformation

In 2022, Infotel decided to implement an ambitious new strategic plan to take advantage of growth opportunities in a buoyant market environment. In 2022, Numeum forecasts growth of 7.1% in the digital sector, of which 4.4% for digital services companies.

Driven by the fact that demand remains stronger than supply, reflecting the ongoing acceleration of digital transformation in companies, this plan aims to keep Infotel at a higher level of growth than its reference market by exploiting broad commercial potential and pursuing its innovation approach in both Services and Software.

The Group’s objective, therefore, is to double the contribution of the Software activity by 2026, by ramping up new offers (Orlando, Deepeo, Arcsys) and through the integration of new products under development.

These new ambitions will also draw on a dynamic and attractive human resources policy, which entails a reinforcement of the employee recruitment and retention plan.

The Group aims to accelerate its development through organic growth, the occasional use of offshore services to address the shortage of IT specialists in France, and a targeted acquisition policy in France and abroad.

By 2026, Infotel aims to generate revenue of more than €380 million – plus potential acquisitions – representing average organic growth of nearly 8% per year, with a current operating margin of more than 10%.

Upcoming event:
Publication of Q1 2022 revenue: May 25, 2022, after market

About Infotel

Listed on Euronext Paris since January 1999 (Compartment B, ISIN code: FR0000071797), Infotel specializes in management systems for key accounts, from mobile to very large-volume databases(big data). At the cutting edge of technological innovations, Infotel is developing its expertise around two complementary areas of activity: IT services and software publishing. Infotel made revenue of €263.4m in 2021 and employs more than 2,600 people.