|
| [November 07, 2008] |
 |
Sopra Group: Very Strong Performance in 3rd Quarter 2008
PARIS --(Business Wire)-- Regulatory News:
3rd Quarter 2008 9 months ended
30/09/08
---------------------------------------------
Total Organic Total Organic
EUR m Growth Growth(1) EUR m Growth Growth
---------------------------------------------------------------
-------
Consulting 9.1 - 1.1% - 1.1% 33.8 + 6.0% + 6.0%
SSI(2) France 160.5 + 16.6% + 14.6% 499.3 + 17.2% + 15.2%
SSI Europe 50.4 - 1.2% + 0.2% 164.2 + 5.7% + 4.5%
Axway 38.5 + 21.1% + 13.2% 110.8 + 11.2% + 9.9%
-----------------------------------------------------------------
-----
Group Total 258.5 + 12.5% + 10.7% 808.1 + 13.3% + 11.8%
(1) At comparable group structure and exchange rates.
(2) SSI: Systems and Solutions Integration.
Revenue
Sopra Group (Paris:SOP) announced third quarter 2008 consolidated revenue of EUR 258.5 million, representing total growth of +12.5% and organic growth of +10.7%. Over the nine-month period, total growth was +13.3% and organic growth was +11.8%. This was achieved thanks to an excellent all-round performance, particularly by SSI France and Axway, and reflects the significant scale of the Group's recurring business.
Information by division
Consulting (Orga Consultants): Revenue for the third quarter was EUR 9.1 million, virtually unchanged from the same period in 2007. Organic growth for the full-year is expected to be around 4% to 5%.
SSI France: this activity generated revenue of EUR 160.5 million, with total growth of +16.6% and organic growth of +14.6% over the quarter. This excellent performance was achieved across the whole range of offerings: business consulting (where technologies and business lines intersect), large-scale integration and application outsourcing contracts and the Group's application solutions. Growth was particularly strong in the public sector, services and utilities vertical segments as well as with telecom operators and the major manufacturing clients that Sopra Group serves in Paris and throughout France. With regard to the financial services sector, where performance was less robust over the period, the number of major projects currently under bid has risen sharply, which should provide a good start to 2009. Despite the ongoing possibility of a slight slowdown in the final quarter, the Group forecasts that full-year organic growth will significantly exceed the average growth rate for the sector.
SSI Europe: with revenue of EUR 50.4 million and organic growth of +0.2%, in the third quarter the Group's European business proved itself to be highly resilient. Revenue in the United Kingdom (+0.5%) and Spain (+6.0%) grew over the quarter and has grown on a cumulative basis since the beginning of the year. Revenue from other European countries was in line with forecasts. The Group anticipates organic growth of over 3% for the full year.
Axway: revenue amounted to EUR 38.5 million, representing total growth of +21.1% and organic growth of +13.2% over the quarter. At end-October, orders booked and projects in progress were fully in line with organic growth and operating margin targets, both of which exceeded 10%. Some postponements of contract signatures - mainly classified as capex for the clients concerned - may occur, although their impact on Axway's performance, which cannot be quantified at this stage, will be limited.
Comments on Group strategy
In line with its long-term strategy, Sopra Group continues to be well positioned both in its business lines and the key vertical segments in which it operates. Its highly effective and extremely cohesive management team has already demonstrated its capacity to deal with the toughest economic challenges. The pace of order intake, which has generated strong growth throughout the year, combined with the significant level of recurring business, should enable the Group to finish 2008 in positive conditions and make a good start to 2009.
As far as Axway is concerned, the integration of Tumbleweed as planned has enabled a balance to be restored between the main geographic markets, i.e. the United States and Europe / Asia. The transformation operations required to implement a pure software developer model based on the Synchrony(TM) platform are still being implemented, with the goal of solidifying a world-wide leadership position in Axway's business segment.
Overview of the financial position and results
On the basis of currently available information, Sopra Group is confident in its ability to maintain an organic growth rate that exceeds the market average for full-year 2008. Moreover, margin objectives have been maintained, although, as mentioned above, it remains possible that a higher than usual proportion of licence signatures may be postponed. No events, of which the Group is aware, that occurred during the period are likely to have a significant impact on the Group's financial position.
Significant transactions and events
As previously mentioned, the consolidation scope changed as follows:
-- Interface (France) has been consolidated since 1 August 2007,
-- Business Architects International (Belgium) has been consolidated since 1 October 2007,
-- CIBF (France) has been consolidated since 1 January 2008,
-- G2i (France) has been consolidated since 1 January 2008,
-- Tumbleweed Communications (USA) has been consolidated since 1 September 2008.
Upcoming events
Sopra Group will publish its annual results on Thursday, 12 February 2009, after the market close. An information meeting will be held at 2.30 pm on Thursday, 13 February 2009 at Hotel Meurice, 228 rue de Rivoli, Paris.
About Sopra Group
A leader in the European consulting and IT services market, Sopra Group generated revenue of 1 billion euros in 2007 and has a human and intellectual resource potential of over 12,000 people. Thanks to a longstanding culture of excellence and strong sector-specific, functional and technological know-how, the Group offers its clients an end to end approach based on a well-honed business model. Sopra Group's ambition is to allow its clients to focus on transformation projects that will give them a competitive edge and help them drive growth. Sopra Group's savoir-faire encompasses prior strategic reflection through to the supervision and implementation of major systems integration and application outsourcing projects. The Group also pursues the worldwide deployment of its activities in both application integration and business process management through its subsidiary Axway, a leading provider of Collaborative Business Solutions, with a complete range of solutions and services. For more information, please go to our website www.sopragroup.com.
Appendices
3rd Quarter
----------------------------------------------------
2007 2007 Total Organic
EUR m 2008 Reported Pro forma Growth Growth
----------------------------------------------------
Consulting 9.1 9.2 9.2 - 1.1% - 1.1%
SSI France 160.5 137.7 140.1 + 16.6% + 14.6%
SSI Europe 50.4 51.0 50.3 - 1.2% + 0.2%
Axway 38.5 31.8 34.0 + 21.1% + 13.2%
----------------------------------------------------------------
------
Group Total 258.5 229.7 233.6 + 12.5% + 10.7%
9 months ended 30/09/08
---------------------------------------------------
2008 2007 2007 Total Organic
EUR m Reported Pro forma Growth Growth
---------------------------------------------------------------
-------
Consulting 33.8 31.9 31.9 + 6.0% + 6.0%
SSI France 499.3 426.1 433.3 + 17.2% + 15.2%
SSI Europe 164.2 155.4 157.1 + 5.7% + 4.5%
Axway 110.8 99.6 100.8 + 11.2% + 9.9%
-----------------------------------------------------------------
-----
Group Total 808.1 713.0 723.1 + 13.3% + 11.8%
Sopra Group - Societe Anonyme with share capital of EUR 46,686,124 - 326 820 065 RCS Annecy - APE 5829 C
Registered office: PAE - Les Glaisins - FR 74940 Annecy-le-Vieux
[ Back To it.tmcnet.com's Homepage ]
|