2016 Annual Results


Operational performance consistent with goals of 2016 Performance Plan:
-Organic growth: +6.2%
- Operating margin: 6.1%

The CS Board of Directors met on 10 March 2017 under the chairmanship of M. Yazid Sabeg and approved the consolidated accounts for FY 2016.


2016 Annual Results
The group has posted revenues of €176.5 M for FY 2016, up 6.2% on the previous year, reported on a like-for-like basis, at constant exchange rates, and taking into account the sale of the German subsidiary USB on 1 January 2016. France has posted growth of 4.7% and international business remains well oriented at +10%.
Orders for 2016 stood at € 174.9 M and the order book stood at 13 months of revenue by the end of the year.
The operating margin for 2016 is up 9% at €10.7M, which represents 6.1% of revenue. The permanent resolution of a long-standing dispute generated €4.4M of non-recurring costs; this has affected net profit which stands at €-1.3 M (compared to €+1.0M in 2015).
Following a Euro PP bond issue of €15M, overall debt (taking into account factoring of €8.2M) stood at €47.3M on 31 December 2016; debt stands at 1.5M after deduction of CIR and CICE credits recorded as assets of 45.8M.
 
Net cash stood at €18.9M as of end December 2016 compared to €9.2M at end December 2015.

Performance sector by sector

2016 Annual Results
The Group has posted strong growth in Defense, Space & Security (+8.8% compared to 2015), both in France and Europe. Not taking into account the effect of the MG2S contract, for which €43.3M was posted for 2015, the sales dynamic remains favorable. Over the year, the group has confirmed the relevance of its positioning in the fields of cybersecurity, zone surveillance, geo-information and space systems.
 
Defense, Space & Security posted improved profitability in 2016, up 2.8 points at 7.2% of revenue.
 

2016 Annual Results
Orders in these sectors are up 9.6% on 2015, expressed like for like and at comparable exchange rates, which represents a book-to-bill greater than 1. This performance should lead to a return to revenue growth following the 2.2% fall in 2016.
 
Efforts in training and pre-sales made in France in order to partially redeploy skills in the field of embedded avionics software, following the falloff in engineering business for Airbus, affected operating profits in this sector, which stands at 4.1% of revenue.
 

For the second consecutive year, Diginext has posted significative growth in its business, up 20%, and has consolidated its position in the fields of tactical data links, training, passenger information systems, and mobility.
The operating margin for the year stands at almost 10% of revenue.
 
Outlook for 2017
 
The transformation plan undertaken over the last three years has allowed the group to confirm a return to long-term organic growth and to achieve its goals in terms of operating margins. To accelerate this dynamic, the group has reinforced its financial resources via a bond issue of €15M, and is considering a targeted external growth strategy focusing on its core business.