Annual financial statements for fiscal 2015/2016 : enhanced overall results

Annual financial statements for fiscal 2015/2016 : enhanced overall results

Operating income from business up 18.7 percent
Operating income up 24.6 percent
Net income after minority interests up 16.9 percent

Objectives for fiscal 2016/2017 :

Revenue increase of 16 to 18 percent
Further improvements in income and margins

Revenue exceeds the target set for fiscal 2015-2016

The SII engineering consulting group reported net sales of €360.1 million for the fiscal year ended March 31, 2016, bettering the target of 340 to 350 million euros announced by management with its half-yearly results. The Group’s performance (which represented an increase in revenue of 13.7 percent from fiscal 2014-2015, including 10.9 percent in organic growth) was attributable to a faster expansion of the business generated by all SII entities starting in the second half of fiscal 2015-2016. Growth was remarkable and evident in both French and international operations, in the Paris region and the rest of France, and in the Group’s traditional sectors as well as in those in which it has been diversifying.

Staff increases in keeping with overall growth – a total of 976 new hires for the year

In response to the surge in business, SII accelerated its hiring in France at the end of the first half of fiscal 2015-2016. In all, 708 new persons were hired over the twelve months of the year (as compared with 456 in fiscal 2014-2015), including 440 during the second half alone. The billable-hours ratio (excluding paid leaves) for the year was up more than two points to 89.5 percent, from 87.3 percent a year ago.

In international operations, another year of double-digit growth (14.4 percent on a like-for-like basis, 24.9 percent on a consolidated basis) resulted in continued hiring, with the total workforce averaging 2,632 at the end of March 2016, as against 2,205 a year earlier.

Improved income and margins for the year

At the same time as business volume rose in fiscal 2015-2016 from the previous year, so did the Group’s income :

- Operating income from business was up 18.7 percent (relative increase in headcount, careful management of pricing and pay mix, and high ratio of billable hours)
- Overall operating income improved by 24.6 percent (reflecting an increase of 0.53 points in the operating margin, to 6 percent of revenue
- Net income after minority interests increased by 16.9 percent (after interest income and taxes)

Cash flow totaled €6.15 million in fiscal 2015-2016, with the Group’s self-financing capacity rising by €4.5 million to €27.9 million, as did change in working capital, while the increase in tax expenses reflected the ongoing growth of sales. The Group had net cash of €12 million at the end of the period and boosted its equity to €103.2 million.

Proposed dividend of €0.09 per share

In keeping with its established dividend distribution policy, SII will propose to the shareholders’ meeting of September 15, 2016 that a dividend of €0.09 per share be paid out.

Guidance for fiscal 2016-2017 and merger with Feel Europe – a new dimension for SII in the future

With positive indicators in the sector, strong embedded growth and in anticipation of the full consolidation of Cadcon over twelve months, the SII Group has set an overall revenue growth target of between 16 and 18 percent for fiscal 2016-2017. It also expects margins and profits to continue improving throughout the Group. The objective for consolidated results assumes organic growth of 8 to 10 percent in all lines of business.

The outlook also takes into account current discussions with the shareholders of Feel Europe (annual revenue of €59 million in 2015) concerning the purchase of all of that company’s stock. The acquisition could be finalized in September 2016 and would significantly add to the volume of SII’s business already in the current fiscal year, when 12-month pro-forma consolidated revenue is projected at close to 500 million euros. This would represent a new milestone in SII’s development, at the same time as it would enable the Group to further diversify the sectors in which it operates.

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