2017 Half Year Results


Order intake up 10.6%
Revenue up 1.2%
Increase in profitability


The CS Board, which met on 28th July 2017 under the chairmanship of Mr Yazid Sabeg. approved the half-year consolidated accounts for 2017.
 
2017 Half Year Results (1)

In H1 2017, the Group recorded a 10.6% increase in new orders compared with H1 2016. Revenues rose by 1.2%. While business with customers in France fell by 4.4%, revenues from international customers rose by 18% compared to H1 2016. The book-to-bill ratio is 1.04; the backlog is more than 13 months of sales.

The group's operating margin increased by 25% to € 5.1 million, or 5.7% of sales (€ 4.1 million in H1 2016). After taking into account "other operating income and expenses", operating income stood at 4.3% of sales (3.5% in H1 2016).

The financial result stood at € -1.7M compared to € -1.5M in H1 2016, taking into account the cumulative first half of the group's financing measures (Euro PP 2016 and convertible bond 2014). The net profit stood at € 1.0M compared to € 0.6M on June 30 2016.

As of end June 2017, shareholders' equity stood at € 41.2M compared with € 32.8M on 31 December 2016. The conversion of the convertible bonds held by Sopra Steria, i.e. approximately 2/3 of the convertible bonds issued in 2014, contributed to this rise.

As of June 30, 2017, after converting the convertible bonds, the overall debt stood at € 50.0M. After taking into account the deconsolidating factor of €6.7M and deducting receivables from CIR and CICE recognized as assets for an amount of € 50.8M, the economic debt stood at € 5.9M.

Net cash amounted to €10.9M, compared to €8.3M at the end of June 2016.

Payroll
As of 30 June 2017, the group employed 1,809 people, down 1.6% compared to the end of the previous year; In France the workforce was stable and decreased by 5.5% in international terms over the same period.

Performance per operating sector

Defense, Space & Security 

The Group recorded growth in its Defense, Space & Security divisions In Europe, thanks in particular to the deployment of communication systems on several NATO air bases and to favorable dynamics in the space sector. Order intake increased by nearly 16% compared to the first half of 2016.
The operating margin for these activities slightly increased to 6.6% of sales.
 
Aeronautics, Energy & Industry

After having been penalized for several semesters by the decline in engineering services for Airbus, performance has improved, with an increase in sales compared to the first half of 2016.
The operating margin for this activity increased by 2.3 points to 5.6% of sales.
 
Products (Diginext)

After recording nearly 25% growth in sales in H1 2016, Diginext's business is stabilizing. Business development has continued to grow (+ 17.4% compared to H1 2016).
The operating margin is temporarily penalized by difficulties on one project and a less favorable product mix.

Prospects

After the successful implementation of its Performance 2016 transformation plan, the strengthening of its financial resources (Euro PP and conversion of CBs) and the acquisition of shares by Sopra Steria, CS is entering a new phase of its development and considering an external growth policy targeted to its core businesses, the Ambition 2021 Plan.
 
CS is a major actor in the design, integration and operation of mission critical systems. CS is listed on the Euronext Paris stock markets – Compartment C (Shares: Euroclear 7896 / ISIN FR 0007317813). 
 
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