H1 results 2016

Revenue: organic growth (*) of 9.1%
Operating profit up 1.4 pts

CS board met on September 9th, 2016 under the chairmanship of M. Yazid Sabeg and approved the group consolidated financial accounts for H1 2016.

Compared to H1 2015, the group reached an organic growth of 9.1% (+6.3% reported) in H1 2016. Domestic business has seen a dynamic growth of more than 5% while international business continues to grow at +21% on a like-for-like basis compared to H1 2015.

The group’s operating margin improves at 4.1 M€, (4.7% of revenue), compared to 3.7 M€ in H1 2015. After “other operating income and expenses”, operating profit has increased by 1.4 points to 3.1 M€ (3.5% of revenue) compared to 1.7 M€ in H1 2015.

The financial result has not been favorably impacted by exchange rates and stands at -1.5 M€ compared to -0.2 M€ in H1 2015. Compared to 0.4 M€ in H1 2015, Net profit is 0.6 M€ for the period ending June, 2016.

(*) Organic growth rate is reported on a like-for-like basis and thus takes account of the sale of the German subsidiary USB GmbH, effective as of 1 January 2016.

On June 30th 2016, after restatement of a CIR1 2012 tax credit that was reimbursed in July 2016 (instead of June 2015) and taking into account 5.6 M€ of factor financing the financial indebtness stand at 39.4 M€ (47.9 M€ excluding restatement), to be viewed alongside CIR and CICE2 tax credits assets of 37.5 M€ (46.0 M€ excluding the restatement). Net cash stood at 9.1 M€ (8.3 M€ excluding restatement) compared to 9.2 M€ as of end December 2015 and 5.2 M€ as of end June 2015.


As of 30 June 2016, headcount was stable overall with 1,789 employees compared to 1,773 on 31 December 2015 (excluding USB); in France staff levels have dropped 1.6% whereas they have grown 11.6% internationally. The group has recruited 137 new staff members over the last half year.

Performance sector by sector

The group’s Defense, Space and Security business has grown sharply (+13.4% compared to H1 2015), in both France and Europe. In the Defense sector, the sales momentum is favorable (+90% of orders taken, excluding the effect of the MG2S contract of which 43.3 M€ was reported for H1 2015), in particular thanks to the contract for the renovation of ground-air communication systems at 6 NATO air bases. In the space sector, the group has obtained renewed orders for key products and service offering from CNES and ESA, confirming its position as a recognized player in the European space sector, and has increased its revenue with ESA by 10%.

The operational profitability of this sector has increased by 2.2 points to 6.4% of revenue.

1 CIR = Crédit d’Impôt pour la Recherche (research-related tax credit)
1 CICE = Crédit d’Impôt pour le Compétitivité et l’Emploi (tax credit for competitiveness and employment)

Expressed on a like for like basis, revenue from this sector is almost stable. Development in the North American market is still very favorable and early successes have been achieved in the US, where the group has been operating since June 2015.

Business remains significantly impaired in France by the continuing drop in engineering services carried out for Airbus. To compensate for this, the group is intensifying initiatives already undertaken to optimize the management of its resources and to promote its offerings, in particular in the field of digital continuity and secured systems.

Loss of business in France combined with sustained pre-sales efforts have impacted operational profitability in this sector, which stands at 3.3%.

Diginext business has made a further leap forward both in terms of revenue (almost 25% growth compared to H1 2015) and orders (+ 56% compared to H1 2015).

International business is especially well oriented, with the doubleing of the amount of orders. A significant event this half-year was winning the contract for the European RANGER project that aims to deploy Stradivarius (HF maritime surveillance radar) in the framework of experiments in Italy, Greece and France.

Having returned to growth and recorded an increase in operational profitability, the group is consolidating its fundamentals, pursuing its policy of focused development, and concentrating its efforts, in the short term, on improving performance in the French Aeronautics, Energy and Industry sector.

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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