The SII engineering consulting group reported consolidated revenue of €205.21 million for the first half of fiscal 2016-2017, which ended September 30, 2016, an increase of 26 percent from the first six months of the previous year.
Business grew by 15.8 percent in France, helped by an increase in average direct headcount of 7.8 percent from the first half of 2015-2016 (compared with a 2.2-percent decline from H1 2014-2015 to H1 2015-2016), an average billable hours ratio of 91.1 percent (89.2 percent in H1 2015-2016) and two additional business days in the period.
The Group’s international operations continued to grow significantly during the period, with the 39.7-percent increase in business volume presaging an eleventh consecutive year of double-digit growth. SII subsidiaries in Poland, Germany (where Cadcon contributed revenue of €16.6m for the period) and Spain accounted for 87 percent of the total business volume. Those countries are increasingly driving the Group’s international business.
SII’s good performance indicators also reflect the company’s successful recent diversification into sectors such as banking (up 38 percent), energy (up 53 percent), transportation and tourism (up 38 percent), retail and distribution (up 25 percent), automobile manufacturing (up 122 percent) and healthcare (up 90 percent).
The SII Group is also keeping pace with its ambitious hiring plan, as 1,277 persons joined its staff during the first half of the year, representing more than half of the target of 2,000 new employees for the year as a whole.
The combination of all of these positive developments helped produce strong results for the period.
Sharp increase in operating margin and sound financial structure
As we announced in a press release on November 15, 2016, the Group’s good health was reflected in all of its financial results and margins, which improved significantly:
- Operating income: up 87.2 percent;
- Net margin: up 1.85 points to 5.02 percent, from 3.17 percent a year ago;
- Net income after minority interests: up 97.7 percent.
The Group maintained its net cash balances at €12.4m on September 30, 2016, compared with €12.8m at the end of the previous period. Shareholder’s equity on the same date amounted to €113.4m, up from €103.2m six months earlier.
Positive outlook for fiscal 2016-2017 as a whole
In light of the results of the first half of fiscal 2016-2017, the SII Group estimates that consolidated revenue for fiscal 2016-2017 ought to grow by 20 percent and will exceed €430 million. At the same time, it expects a further improvement in income and margins.
Feel Europe agreement signed
As part of ongoing negotiations with Feel Europe, the parties signed an agreement today pertaining to the purchase of all of that company’s stock. The acquisition is expected to become final in the first quarter of 2017, subject to a few purely administrative conditions precedent and the approval of the Competition Authorities.