2014 annual results

Increased turnover in H2
Improved operating margin
Strong growth in operating profit

On 28 April 2015 the CS board, chaired by M. Yazid Sabeg, approved the consolidated accounts for fiscal 2014.

The objective of a return to growth in H2 2014 has been achieved, with growth of 2.6% compared to H2 2013. The group has posted revenues of €162.2m, up 0.1% on the previous year.
The order book for the year stands at €129.3m, which is lower than group forecasts due to later than expected notification of the MG2S contract by the Defense Ministry (March 2015). Worth up to €331m incl. tax over a period of 14 years, this contract will provide operational and security maintenance for three major systems forming part of the SCCOA program (command and control systems for aerospace operations).
The group has recorded a further improvement in operational profitability for fiscal 2014. The operating margin stands at €7.0m, i.e. 4.3% of revenue (up 0.6 points on 2013) and operating profit has risen significantly to €5.4m compared to €0.5m in 2013 (up 3 points).
The group successfully completed a €12m bond issue last August, with 66.9% subscribed by Sopra-Stéria Group. As of end December 2014, overall debt (after factoring of €9.3m has been taken into account) stood at €40.8m, comparable to CIR and CICE tax credits (€38.0m) recorded as assets. Net cash stood at €5.9m compared to €4.4m at end December 2013.


In Defense and Security sector, the group continues to deploy major projects and development initiatives in France and worldwide, in the field of air defense systems, geospatial intelligence, and air traffic control communication. In addition, CS now offers a complete range of innovative and exclusive cybersecurity solutions responding to the growing needs of sensitive industries and governments.
As of end December 2014, orders for this area of business stood at 20.4 months of revenue. The Defense Ministry’s notification of the multi-year SCCOA support contract in Q1 2015 reinforces the group’s visibility in this sector.
Business in the space sector has been particularly buoyant in Europe, thanks to numerous projects at the ESA in preparation for the launch of the Sentinel 2 satellite (Copernicus program).
Significant R&D investment and intense pre-sales efforts, designed to ensure diversification of business to growing cybersecurity and space applications markets in Europe, have had some effect on operational profitability this year (down 1.4 points to 3.8% of revenue compared to 2013).


In the aeronautics sector, growth in North America, production for which partly takes place in France, has made it possible to compensate for the falloff in business caused by the downsizing of major Airbus engineering programs.
The group has leveraged its unique expertise in the development and certification of secure software and in the field of digital simulation, PLM and industrial IT, to reach out to promising new clients in Aeronautics and Industry such as Renault, Valéo, and Rockwell Collins.
Buoyed by the group’s international business, operational profitability in these sectors is up
1.7 points at 4.8% of revenue.


The buoyancy of the tactical systems market (armed forces training and tactical data links) has once again enabled Diginext to record increased orders of €20.4m (€19.8m in 2013). Despite a drop in revenue of €1.0m, business remains well oriented with a book-to-bill ratio of 1.3.
Diginext has returned to two-figure operational profitability (12% of revenue), after facing difficulties in the course of a project in 2013.
Outlook  for 2015 - 2016

CS is pursuing its goals of increased focus, organic growth, and improved operational profitability. The group is intensifying its initiatives in the framework of its transformation plan: speeding up the implementation of its development strategy to strengthen its position in strategic sectors and seize new opportunities for growth in promising markets such as cybersecurity; and pursuing specific steps to control costs and improve productivity.
A detailed presentation of the 2014 accounts can be found on our corporate website: www.c-s.fr.