H1 2013 results


Continued improvement in operating profitability
Successful equity increase of €15 million


The CS Board Meeting, held on August 30, 2013 and chaired by Mr. Yazid Sabeg, approved the Company financial statements for first half 2013.

First-half results 2013 1

 First-half results 2013 1

€M

H1 2012

H2 2012

H1 2013

Order intake

62.0

103.3

71.3

Revenues

85.9

86.9

84.2

Operating margin
% of revenues

3.5

4.0%

3.7

4.3%

4.0

4.7%

Operating income

2.3

-0.4

2.2

Pre-tax income from continuing activities

0.8

-6.4

1.4

Income from operating activities

-0.4

-7.6

0.3

Net income

0.8

1.8

0.2

1 The accounts have been submitted to a limited review by the auditors.


In a persistent difficult economic context, impacted by budget restriction in public administration, CS revenues amount to € 84.2 million in H1 2013, down 2.0% compared to H1 2012.  In France, revenue was € 71.0 million (-2.0% versus H1 2012) and € 13.2 million abroad (-1.8% versus H1 2012).

 

At end-June 2013, the Group recorded an order intake of 71.3 million, up 15.1% compared to H1 2012, the order book stood at more than 14 months of sales.

 

In H1 2013, the operating margin improved from € 4.0 million from € 3.5 million in H1 2012, representing 4.7% of sales. After taking into account "other operating income and expenses", operating income (€-1.8 million including € -0.7 million due to the Group refinancing), operating income mounted to € 2.2 million (€2.3 million in H1 2012 and € 0,4 million in H2 2012).

 

The result from continuing activities was € 0.3 million versus € 0.4 million in H1 2012.

 

As of June 30, 2013, net cash amounted to € 2.7 million (€ 3.7 million attend-December 2012). The total debt (after taking into account € 6.9 million of deconsolidating factoring) amounted to € 29.7 million (€ 17.5 million at end-December 2012 and € 13.8 million at end-June 2012). The group has also € 24.0 million financial assets due to Research Tax Credit and CICE (Competitiveness & Employment Tax Credit)

 

 

Restated from the increasing of Equity (settlement reached on August 14, 2013) and from the implementation of the agreement concluded on June 5, 2013 with banking and financial partners, the consolidated Balance Sheet is in net improvement: cash net improves to €17.6 million and total debt decreased from € 29.7 million to € 7.4 million; consolidated the Group’s equity are strengthened to € 36.0 million, bringing the gearing to 21%.

 

Headcount

As of June 30, 2013, there were 1,672 employees compared with 2,708 employees as of December 31, 2012 and 1,745 employees as of June 30, 2012. The group hired 77 new employees during first half of 2013, and posted staff turnover of 13% (11% in 2012). The average occupation rate for billable employees totaled 82.5% (81.5% in 2012).

 

Performance by operating sector

* H1 2012 figures restated for the changes in the scope of Security business distributed among the Defense, Space & Security Activities and Aerospace, Energy & Industries.

 

Defense, Space & Security:


€M

€M

H1 2012*

H1 2013

Order intake

26.5

27.9

Revenues

43.4

44.1

Operating margin
% of revenues

2.0

4.6%

2.9

6.6%


Given the consolidation of its positions in Defense (SIA program and deployment of air defense C2) and growth in the European Space sector, this Activity recorded a slight increase in order intake (+5.3%) and revenues (+1.6%) as of June 30, 2013. The backlog remains high at 20 months of sales. Steadily improving for several semesters, the operating margin rises 6.6%.

 

Aeronautics, Energy & Industry: favorable momentum in aeronautics


€M

€M

H1 2012*

H1 2013

Order intake

33.0

35.7

Revenues

35.1

32.1

Operating margin

% of revenues

0.9

2.6%

1.1

3.5%


In the aeronautics sector, CS has a multi-domestic organization development centers embedded software that allows it to meet the needs of its clients and to optimize the execution of its projects. In this area, the group has consolidated its positions with its traditional customers (Airbus, Pratt & Whitney) and intensifies its presence in new accounts (Eurocopter, MBDA ...).

In the sectors of Energy, Industry and Services, is currently conducting a CS transformation plan to benefit from growth opportunities in IT contracts from clients in the public and private sectors

 

 

Products (Diginext) : continued efforts in R&D


En M€

En M€

H1 2012

H1 2013

Order intake

2.9

9.2

Revenues

7.8

8.4

Operating margin
% of revenues

0.5

6.9%

0.4

4.2%


Thanks to its innovative position in the field of training and tactical data links, Diginext continue to grow and to maintain its R&D efforts to confirm its technological leadership.

 

2013 Issues

 

To cope with shrinking state budgets, CS initiated a policy of diversification with private sector clients on IT markets (infrastructure and secure cloud, Big Data, high performance computing and simulation), which should allow benefit medium-term growth opportunities to balancing of its activities.

 

Strengthening its capital the Group will able to accelerate its transformation through the acquisition of new talent in the commercial field and in specific technology areas, increasing research efforts and development, and finally initiating a selective acquisition policy of small companies active in areas and / or geographies corresponding to the Group's businesses.


Read the detailed H1 2013 consolidated financial statements and the presentation on the website of the company: www.c-s.fr (on the “Investors ” tab).


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). For more information, please go to: www.c-s.fr
 
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