Revenue up 29.3% for the first quarter of fiscal 2016/2017
Operations in France up 20.3%
International operations up 41.6%
Results confirm SII has entered a new period of major growth
A particularly strong first quarter
The SII engineering consultancy group posted revenue of €104.2m for the first quarter of its 2016-2017 fiscal year, an increase of 29.3 percent compared with the same period a year ago. The significant growth in business volume was attributable to an improved economic environment, a French market characterized by an increase in new investment programs among major customers, and a favorable base effect related to a higher number of working days than in the first quarter of 2015-2016. It also reflects the business volume (€8.5m) generated by the CADCON Group, which has been included in the results of SII Holding GmbH from January 1, 2016. Consolidated organic growth is up 18.8 percent, revealing strong business growth at all of the Group's geographic entities.
Strong growth of business in France and abroad
The SII Group generated revenue of €56.1m in France, an increase of 20.3 percent from the same period the previous year. This reflects clearly evident renewed growth in investments since late 2015 in the Group's traditional segments, such as aerospace and defense, banking and insurance, and telecommunications. New segments (energy, services, transportation, health, retail and distribution) also helped sustain growth in France and diversify the Group's sources of revenue. The ratio of billable hours (excluding holidays) continued to improve, with an average ratio above 90 percent for the quarter.
International operations continued to expand significantly, with a growth rate of 41.6 percent (21.4 percent of which was organic and excluding currency effects) in just the first quarter. Growth among the Group's subsidiaries in Poland (33.6 percent), Romania (40.4 percent), the Czech Republic (99.8 percent), Chile (35.1 percent), and Spain (16.6%) was particularly high. However, the strengthening of the euro against most of those countries' currencies tempered their performance. Our long-standing German subsidiary, SII Deutschland, continued to improve its results, posting negative growth of 2 percent (compared with 10.4 percent for the previous fiscal year). Growth is still on the decline in Switzerland and the Netherlands. Belgium had a difficult first quarter, with negative growth of 10 percent.
SII entering a new era of growth
This significant increase in quarterly revenue puts SII on track to meet its goal of achieving consolidated revenue growth of 16 to 18 percent, including 8 to 10 percent organic growth, for the 2016-2017 fiscal year. It also confirms that SII has entered a new period of strong business growth and attests to the quality of the service provided by the Group's FUNgineers* and their ability to find new ways to assist major customers.
The Group is continuing exclusive discussions to acquire the FEEL EUROPE Group. However, given the estimated time needed to complete the remaining steps, the acquisition may not be finalized until the fourth quarter of 2016.
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.
*Name for the community of SII engineers, who embody the values of diversity in expertise, versatility, technology, technical expertise, autonomy, and career development..