AUBAY (EPA:AUB) - 2023 annual results : Operating margin from ordinary activities: 8.9% - Net income attributable to owners of the parent: EUR 33.4 million - Record net cash: EUR 93 million - Dividend maintained at EUR 1.20 per share
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| In € thousands | 2023 | 2022 | Change |
| Revenue | 534,116 | 513,547 | +4.0% |
| Operating profit from ordinary activities | 47,385 | 53,168 | -10.9% |
| As a % of revenue | 8.9% | 10.4% | |
| Cost of performance shares | (1,328) | (1,606) | |
| Other operating income and expenses | (3,728) | (1,478) | |
| Operating profit | 42,329 | 50,084 | -15.5% |
| Financial income/(expense) | 1,047 | (681) | |
| Tax (expense)/income | (9,968) | (13,774) | |
| Net income from consolidated companies | 33,408 | 35,629 | -6.2% |
| As a % of revenue | 6.3% | 6.9% | |
| Net income attributable to owners of the parent | 33,408 | 35,629 | |
| Headcount | 7,779 | 7,819 | -0.5% |
| Net cash | 92,992 | 83,410 | +11.5% |
Aubay's Board of Directors, which met on March 20, 2024 under Chairman Christian Aubert, approved the statutory and consolidated financial statements for 2023. 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.
2023 ended with a solid performance, demonstrating the Group's ability to adapt and seize opportunities in a more challenging market environment, particularly in the second and third quarters, after the exceptional momentum of 2021 and 2022.
Annual revenue amounted to €534.1 million, up 4.0% in purely organic terms, with dynamic growth of 6.5% in France (to €280.5 million) and 1.4% internationally (to €253.6 million), with Italy in the process of stabilizing its business.
Operating margin from ordinary activities at 8.9%, at the higher end of the forecast range
Against this backdrop, the management resources deployed by the Group and the achievement of a slightly better-than-expected productivity rate enabled operating margin from ordinary activities to be at the top end of the range revised in October.
At 8.9%, it remains among the highest on the market. Aubay thus demonstrates its resilience confronted with external impacts, maintaining a good ratio between the evolution of its sales prices and its average salary in a more normalized environment.
Operating profit: €42.3 million
Operating profit came to €42.3 million, including the cost of free shares, down on the previous year at €1.3 million (vs. €1.6 million in 2022), and an exceptional restructuring provision in Italy of €1.6 million.
Net margin maintained at 6.3%
Group financial loss improved with a growth of €1.0 million after a loss of €0.7 million in 2022, including €1.8 million in financial income from cash investments and €0.8 million in financial expenses, half of which relates to IFRS 16 debts. Tax rate fell from 28% to 23% across the Group. Net income attributable to owners of the parent, came to €33.4 million, down by a moderate 6.2% compared to last year's record level net income (€35.6 million).
Financial position
Cash flow generated by the Group's activities reached an exceptional €41.7 million (vs. €33.9 million in 2022), enabling net cash to exceed the Group's expectations, at €93.0 million, after dividend payments of €15.9 million and the cancellation of treasury shares for the amount of €8.6 million (reminder: 239,850 cancelled shares on December 28, 2023).
Proposed dividend of €1.20 per share maintained
In light of this solidly maintained performance and the Group's high cash-assets, the Board of Directors has decided to propose an unchanged dividend of €1.20 per share in respect of 2023 to the Annual General Meeting to be held on May 14, 2024, representing a payout ratio of 47% of net income. Taking into account the interim dividend of €0.50 per share paid on November 10, 2023, the balance to be paid will amount to €0.70 per share.
CSR strategy guided by an ambitious roadmap
Aubay has delivered another year of responsible and sustainable growth and improved all of its roadmap indicators:
| Environment | Social | Governance | ||
| Electrical consumption | DIVERSITY | (percentage of women in management) vs. 33% in 2022 |
% of women in management positions |
|
| -26% | down vs. 2018 | 35% | 44% | |
| Paper consumption | INCLUSION | (employment rate of disabled people in France) vs. 3.2% in 2022 |
Anti-corruption training rate |
|
| -77% | down vs. 2018 | 3.3% | 96% | |
| Transition towards renewable energy |
TRAINING | (in hours) vs. 2022 |
||
| 68% | of renewable energy sites on the rise |
+21% | ||
| SPONSORSHIP | (in value) vs. 2022 |
|||
| +22% | ||||
These excellent performances have been recognized by the main rating agencies:
| ecovadis | 2023 Score : 78/100 | Platinum medal |
| EthiFinance | 2023 Score : 68/100 | |
| Humpact | 2023 Score : 4.5/5 | Ranked 27th/295 |
| CDP | 2023 Score : B score | Vs C in 2022 |
Outlook for 2024
Aubay continues to evolve in a market marked by the cautiousness of its major customers, particularly in the banking sector. There are a high number of projects, but cost management remains a key issue for several of the Group's strategic customers.
In this demanding market, 2024 performance will nevertheless benefit from a positive calendar effect (+2 days on average), and the Group will maintain a constant focus over its productivity and the preservation of its margins.
Against this backdrop, our ambition for 2024 remains to post revenue of between €534 and €550 million and an operating margin of between 8.5% and 9.5%.
Aubay will publish its 2024 first-quarter revenue on April 24, 2024 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.
| 2023 | |
| Organic growth | +4.0% |
| Impact of changes in scope | - |
| Growth as reported | +4.0% |
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 7,779 employees in seven countries at December 31, 2023 (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom). Aubay generated revenue of €534.1 million in 2023.
Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters : AUBT.PA - Bloomberg AUB:FP
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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 3 | ||
| ASSETS (in € thousands) | Dec. 31, 2023 | Dec. 31, 2022 |
| Goodwill | 131,305 | 131,305 |
| Intangible assets | 884 | 597 |
| Property, plant & equipment | 4,283 | 4,978 |
| Right of use relating to leases | 19,829 | 13,850 |
| Equity-accounted investees | - | - |
| Other financial assets | 2,181 | 2,053 |
| Deferred tax assets | 3,929 | 2,603 |
| Other non-current assets | 1,530 | 1,782 |
| NON-CURRENT ASSETS | 163,941 | 157,168 |
| Inventories and work in progress | 736 | 926 |
| Assets on contracts | 34,932 | 35,458 |
| Trade receivables | 121,914 | 127,890 |
| Other receivables and accruals | 41,139 | 38,510 |
| Marketable securities | 42,330 | 40,272 |
| Cash at bank and in hand | 52,566 | 45,581 |
| CURRENT ASSETS | 293,617 | 288,637 |
| TOTAL ASSETS | 457,558 | 445,805 |
| EQUITY AND LIABILITIES (in € thousands) | Dec. 31, 2023 | Dec. 31, 2022 |
| Capital | 6,532 | 6,634 |
| Additional paid-in capital and consolidated reserves | 221411 | 208,443 |
| Net income attributable to owners of the parent | 33,408 | 35,629 |
| Shareholders' equity attributable to the Group | 261,351 | 250,706 |
| Minority interests | 0 | 0 |
| SHAREHOLDERS' EQUITY | 261,351 | 250,706 |
| Borrowings and financial liabilities: non-current portion | 1,078 | 1,611 |
| Rental liabilities due in more than 1 year | 15,439 | 9,720 |
| Deferred tax liabilities | 1 | 1 |
| Provisions for contingencies and expenses | 8,896 | 6,600 |
| Other non-current liabilities | 358 | 259 |
| NON-CURRENT LIABILITIES | 25,772 | 18,191 |
| Borrowings and financial liabilities: current portion | 824 | 832 |
| Rental liabilities due within 1 year | 5,084 | 4,555 |
| Trade and other payables | 36,917 | 39,104 |
| Contract liabilities | 20,595 | 25,615 |
| Other current liabilities | 107,015 | 106,802 |
| CURRENT LIABILITIES | 170,435 | 176,908 |
| TOTAL EQUITY AND LIABILITIES | 457,558 | 445,805 |
| Income statement for 2023 | ||||
| In € thousands | 2023 | % | 2022 | % |
| Revenue | 534,116 | 100% | 513,547 | 100% |
| Other operating income | 236 | 733 | ||
| Purchases used in production and external charges | (131,913) | (118,959) | ||
| Staff costs | (342,543) | (329,662) | ||
| Taxes other than on income | (4,509) | (4,247) | ||
| Amortization, depreciation and provisions | (8,038) | (7,842) | ||
| Change in inventories of work in progress and finished goods | ||||
| Other operating income and expenses | 36 | (402) | ||
| Operating profit from ordinary activities | 47,385 | 8.9% | 53,168 | 10.4% |
| Expenses linked to restricted share units and similar awards | (1,328) | (1,606) | ||
| Current operating profit | 46,057 | 8.6% | 51,562 | 10.0% |
| Other operating income and expenses | (3,728) | (1,478) | ||
| Operating profit | 42,329 | 7.9% | 50,084 | 9.8% |
| Income from cash and cash equivalents | ||||
| Net borrowing costs | (771) | (478) | ||
| Other financial income and expenses | 1,818 | (203) | ||
| Financial income/(expense) | 1,047 | (681) | ||
| Income tax expense | (9,968) | 23% | (13,774) | 28% |
| Income from equity-accounted investees | ||||
| Net income before results of discontinued operations or assets held for sale | 33,408 | 35,629 | ||
| Net income after tax of discontinued operations or assets held for sale | ||||
| Net income | 33,408 | 6.3% | 35,629 | 6.9% |
| Attributable to owners of the parent | 33,408 | 35,629 | ||
| Minority interests | 0 | 0 | ||
| Basic weighted average number of shares | 13,055,712 | 13,250,487 | ||
| Earnings per share | 2.56 | 2.69 | ||
| Diluted weighted average number of shares | 13,129,462 | 13,330,487 | ||
| Diluted earnings per share* | 2.54 | 2.67 |
| Cash flow statement for 2023 | ||
| (in € thousands) | 2023 | 2022 |
| Consolidated net income (including non-controlling interests) | 35,629 | 35,629 |
| Income from equity-accounted investees | ||
| Net depreciation, amortization and provisions and right of use relating to leases | 8,993 | 7,600 |
| Non-cash expenses and income relating to share-based payments | 1,228 | 1,606 |
| Other non-cash items | ||
| Dividend income | (58) | (57) |
| Gains and losses on disposals of fixed assets | 208 | 15 |
| Cash flow after net interest expense and tax | 43,779 | 44,793 |
| Net borrowing costs | 771 | 478 |
| Tax expense (including deferred taxes) | 9,968 | 13,774 |
| Cash flow before net interest expense and tax (A) | 54,518 | 59,045 |
| Income tax payments (B) | (10,979) | (17,318) |
| Change in trade and other receivables (C) | 5,132 | (15,157) |
| Change in trade and other payables (C) | (6,973) | 7,302 |
| Change in WCR linked to operations (including debt related to employee benefits) | (1,841) | (7,855) |
| Net cash provided by (used in) operating activities (D) = (A+B+C) | 41,698 | 33,872 |
| Outflows for the acquisition of tangible and intangible fixed assets | (1,805) | (2,376) |
| Inflows from the disposal of tangible and intangible fixed assets | 17 | 68 |
| Outflows for the acquisition of financial assets | (5) | (4) |
| Inflows from the disposal of financial assets | ||
| Change in loans and advances granted | (74) | 24 |
| Disbursements (cash) related to business combinations, net of cash and cash equivalents | ||
| Dividends received | 58 | 57 |
| Other operating cash flows | ||
| Net cash provided by (used in) investing activities (E) | (1,809) | (2,231) |
| 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 | (6,614) | |
| Dividends paid in the period: | ||
| - Net dividends paid to parent company shareholders | (15,901) | (16,701) |
| - Dividends paid to the non-controlling shareholders of consolidated companies | (44) | |
| Inflows from new borrowings | ||
| Repayment of loan debt | (559) | (1,806) |
| Repayment of rental liabilities | (5,025) | (5,541) |
| Net interest payments | (771) | (478) |
| Purchase of non-controlling minority interests | (258) | |
| Other financial cash flows | ||
| Net cash provided by (used in) financial activities (F) | (30,870) | (24,828) |
| Effects of changes in foreign exchange rates (G) | 9 | (30) |
| Change in net cash (D+E+F+G) | 9,028 | 6,783 |
| Cash and cash equivalents at the beginning of the period | 85,839 | 79,056 |
| Cash and cash equivalents at end of period | 94,867 | 85,839 |
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Inside Information:
- News release on accounts, results
Full and original press release in PDF: https://www.actusnews.com/news/84675-financial-statement-aubay-ra-2023-veng.pdf