AUBAY (EPA:AUB) - 2022 annual results: Objectives fully achieved Operating margin from ordinary activities: 10.4% - Net income attributable to owners of the parent: EUR 35.6 million - Net cash: EUR 83.4 million
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| In € thousands | 2022 | 2021 | Change |
| Revenue | 513,547 | 470,601 | +9.1% |
| Operating profit from ordinary activities | 53,168 | 49,927 | +6.5% |
| As a % of revenue | 10.4% | 10.6% | |
| Cost of performance shares | (1,606) | (1,489) | |
| Other operating income and expenses | (1,478) | (1,120) | |
| Operating profit | 50,084 | 47,318 | +5.8% |
| Financial income/(expense) | (681) | 84 | |
| Tax (expense)/income | (13,774) | (12,921) | |
| Net income from consolidated companies | 35,629 | 34,481 | +3.3% |
| As a % of revenue | 6.9% | 7.3% | |
| Net income attributable to owners of the parent | 35,629 | 34,409 | |
| Earnings per share | €2.69 | €2.60 | |
| Headcount | 7,819 | 7,306 | +7.0% |
| Net cash | 83,410 | 74,832 | +11.5% |
Aubay's Board of Directors, which met on March 22, 2023 under Chairman Christian Aubert, approved the statutory and consolidated financial statements for 2022. The financial statements have been audited by the Statutory Auditors and the auditors' report will be issued once the procedures required to publish the company's Universal Registration Document have been completed.
2022 was remarkable in every aspect. Aubay fully met all its targets for growth, profitability, recruitment and cash generation.
Operating margin from ordinary activities at 10.4%, at the higher end of the forecast range
After passing the €500 million mark in revenue, Aubay crossed the symbolic threshold of €50 million in operating profit from ordinary activities to reach €53.2 million. Despite a negative two-day calendar impact in the second half of the year, the operating margin of 10.4% was at the high end of the range communicated when the annual results were published. The Group's operating margin from ordinary activities for the period came in at 9.6% for activities in France and 11.2% for activities overseas, compared with 9.6% and 11.6%, respectively, in 2021.
Operating profit: €50.1 million
Operating profit came to €50.1 million, an increase of 5.8% and passing a new mark. This result takes into account the cost of performance shares for €1.6 million and a net expense of €1.5 million under “Other operating income and expenses”, primarily comprising restructuring expenses. The operating margin was 9.8%, among the best in the sector.
Net income, Group share: a new record
Net income, Group share also reached a new record at €35.6 million, representing 6.9% of revenue. This result takes into account a tax expense of €13.8 million, representing an effective tax rate of 28% compared with 27% in 2021.
Net cash (excluding rental liabilities) rose to €83.4 million
The Group's financial position was strengthened in 2022 thanks to excellent generation of cash from operating activities of €33.9 million, a superb performance given the strong increase in revenue. As a result, net cash increased from €74.8 million at December 31, 2021 to €83.4 million at December 31, 2022, after payment of dividends amounting to €16.7 million.
Proposed dividend of €1.20 per share
In light of this remarkable performance and the Group' excellent financial position, the Board of Directors has decided to propose a dividend of €1.20 per share in respect of 2022 to the Annual General Meeting to be held on May 16, 2023, representing a payout ratio of 45% of net income. Taking into account the interim dividend of €0.50 per share paid on November 10, 2022, the balance to be paid will amount to €0.70 per share.
Outlook for 2023
Aubay expects to achieve organic revenue growth of between 5% and 7% in 2023, i.e., a range of €540 million to €550 million, despite a very unfavorable calendar effect (two less billable days than in 2022).
Operating margin from ordinary activities is expected to be between 9.5% and 10.5%.
In a market that is tending to normalize, Aubay is confident in its ability to maintain sustainable growth in revenue while maintaining a solid operating margin.
Aubay will publish its 2023 first-quarter revenue on April 20, 2023 after the close of trading.
Glossary
Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.
| 2022 | |
| Organic growth | +9.1% |
| Impact of changes in scope | - |
| Growth as reported | +9.1% |
Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.
Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating income from ordinary activities to revenue.
Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.
About Aubay
Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 7,819 employees (31.12.2022), in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom), Aubay generated revenue of €513.5 million in 2022.
Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters : AUBT.PA - Bloomberg AUB:FP
Contacts
Amaury Dugast – Actus Finance – Tel.: +33 (0)1 53 67 36 74 - adugast@actus.fr
David Fuks – Co-Chief Operating Officer – Finance Department – Tel.: +33 (0)1 46 10 67 67 – E-mail: dfuks@aubay.com
APPENDICES
| Statement of financial position as of December 31, 202 2 | ||
| ASSETS (in € thousands) | Dec. 31, 2022 | Dec. 31, 2021 |
| Goodwill | 131,305 | 131,305 |
| Intangible assets | 597 | 917 |
| Property, plant & equipment | 4,978 | 4,156 |
| Right of use relating to leases | 13,850 | 14,152 |
| Equity-accounted investees | - | - |
| Other financial assets | 2,053 | 2,102 |
| Deferred tax assets | 2,603 | 2,653 |
| Other non-current assets | 1,782 | 354 |
| NON-CURRENT ASSETS | 157,168 | 155,639 |
| Inventories and work in progress | 926 | 491 |
| Assets on contracts | 35,458 | 32,127 |
| Trade receivables | 121,473 | 111,359 |
| Other receivables and accruals | 38,510 | 37,082 |
| Marketable securities | 40,272 | 1,026 |
| Cash at bank and in hand | 45,581 | 78,461 |
| CURRENT ASSETS | 282,220 | 260,546 |
| TOTAL ASSETS | 439,388 | 416,185 |
| EQUITY AND LIABILITIES (in € thousands) | Dec. 31, 2022 | Dec. 31, 2021 |
| Capital | 6,634 | 6,611 |
| Additional paid-in capital and consolidated reserves | 208,443 | 188,740 |
| Net income attributable to owners of the parent | 35,629 | 34,409 |
| Shareholders' equity attributable to the Group | 250,706 | 229,760 |
| Minority interests | 0 | 191 |
| SHAREHOLDERS' EQUITY | 250,706 | 229,951 |
| Borrowings and financial liabilities: non-current portion | 1,611 | 2,155 |
| Rental liabilities due in more than 1 year | 9,720 | 10,198 |
| Deferred tax liabilities | 1 | 1 |
| Provisions for contingencies and expenses | 6,600 | 6,924 |
| Other non-current liabilities | 259 | 74 |
| NON-CURRENT LIABILITIES | 18,191 | 19,352 |
| Borrowings and financial liabilities: current portion | 832 | 2,500 |
| Rental liabilities due within 1 year | 4,555 | 4,366 |
| Trade and other payables | 39,104 | 35,981 |
| Contract liabilities | 19,198 | 19,913 |
| Other current liabilities | 106,802 | 104,122 |
| CURRENT LIABILITIES | 170,491 | 166,882 |
| TOTAL EQUITY AND LIABILITIES | 439,388 | 416,185 |
| Income statement for 2022 | ||||
| In € thousands | 2022 | % | 2021 | % |
| Revenue | 513,547 | 100% | 470,601 | 100% |
| Other operating income | 733 | 409 | ||
| Purchases used in production and external charges | (118,959) | (99,319) | ||
| Staff costs | (329,662) | (310,482) | ||
| Taxes other than on income | (4,247) | (3,963) | ||
| Amortization, depreciation and provisions | (7,842) | (7,558) | ||
| Change in inventories of work in progress and finished goods | ||||
| Other operating income and expenses | (402) | 239 | ||
| Operating profit from ordinary activities | 53,168 | 10.4% | 49,927 | 10.6% |
| Expenses linked to restricted share units and similar awards | (1,606) | (1,489) | ||
| Current operating profit | 51,562 | 10.0% | 48,438 | 10.3% |
| Other operating income and expenses | (1,478) | (1,120) | ||
| Operating profit | 50,084 | 9.8% | 47,318 | 10.1% |
| Income from cash and cash equivalents | ||||
| Net borrowing costs | (478) | (494) | ||
| Other financial income and expenses | (203) | 578 | ||
| Financial income/(expense) | (681) | 84 | ||
| Income tax expense | (13,774) | 28% | (12,921) | 27% |
| Income from equity-accounted investees | ||||
| Net income before results of discontinued operations or assets held for sale | 35,629 | 34,481 | ||
| Net income after tax of discontinued operations or assets held for sale | ||||
| Net income | 35,629 | 6.9% | 34,481 | 7.3% |
| Attributable to owners of the parent | 35,629 | 34,409 | ||
| Minority interests | 0 | 72 | ||
| Basic weighted average number of shares | 13,250,487 | 13,209,435 | ||
| Earnings per share | 2.69 | 2.60 | ||
| Diluted weighted average number of shares | 13,330,487 | 13,283,935 | ||
| Diluted earnings per share* | 2.67 | 2.59 |
| Cash flow statement for 2022 | ||
| (in € thousands) | 2022 | 2021 |
| Consolidated net income (including non-controlling interests) | 35,629 | 34,481 |
| Income from equity-accounted investees | ||
| Net depreciation, amortization and provisions and right of use relating to leases | 7,600 | 7,161 |
| Non-cash expenses and income relating to share-based payments | 1,606 | 1,489 |
| Other non-cash items | ||
| Dividend income | (57) | |
| Gains and losses on disposals of fixed assets | 15 | 1 |
| Cash flow after net interest expense and tax | 44,793 | 43,132 |
| Net borrowing costs | 478 | 494 |
| Tax expense (including deferred taxes) | 13,774 | 12,921 |
| Cash flow before net interest expense and tax (A) | 59,045 | 56,547 |
| Income tax payments (B) | (17,318) | (11,485) |
| Change in trade and other receivables (C) | (15,157) | (13,215) |
| Change in trade and other payables (C) | 7,302 | 13,959 |
| Change in WCR linked to operations (including debt related to employee benefits) | (7,855) | 744 |
| Net cash provided by (used in) operating activities (D) = (A+B+C) | 33,872 | 45,806 |
| Outflows for the acquisition of tangible and intangible fixed assets | (2,376) | (1,034) |
| Inflows from the disposal of tangible and intangible fixed assets | 68 | |
| Outflows for the acquisition of financial assets | (4) | |
| Inflows from the disposal of financial assets | ||
| Change in loans and advances granted | 24 | 99 |
| Disbursements (cash) related to business combinations, net of cash and cash equivalents | ||
| Dividends received | 57 | |
| Other operating cash flows | ||
| Net cash provided by (used in) investing activities (E) | (2,231) | (935) |
| Proceeds from capital increases | ||
| Amounts received upon the exercise of stock options | ||
| Purchases of treasury shares for cancellation | ||
| Purchases of and proceeds from the sale of treasury shares | ||
| Dividends paid in the period: | ||
| - Net dividends paid to parent company shareholders | (16,701) | (8,851) |
| - Dividends paid to the non-controlling shareholders of consolidated companies | (44) | (25) |
| Inflows from new borrowings | ||
| Repayment of loan debt | (1,806) | (3,374) |
| Repayment of rental liabilities | (5,541) | (5,323) |
| Net interest payments | (478) | (494) |
| Purchase of non-controlling minority interests | (258) | |
| Other financial cash flows | ||
| Net cash provided by (used in) financial activities (F) | (24,828) | (18,067) |
| Effects of changes in foreign exchange rates (G) | (30) | 47 |
| Change in net cash (D+E+F+G) | 6,783 | 26,851 |
| Cash and cash equivalents at the beginning of the period | 79,056 | 52,205 |
| Cash and cash equivalents at end of period | 85,839 | 79,056 |
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Inside Information:
- News release on accounts, results
Full and original press release in PDF: https://www.actusnews.com/news/79016-aubay-ra-2022_veng.pdf