Revenue up 26 percent in the first half of fiscal 2016-2017
Growth in France at 15.8 percent (all of it organic)
International operations up 39.7 percent (19.2 percent from organic growth)
Annual revenue guidance adjusted upward
The SII engineering consulting group posted revenue of €205.2m for the first six months of its 2016-2017 fiscal year, which ended September 30, 2016. This was a 26-percent increase in reported revenue (and a 17.2-percent organic increase) from the same period the previous year. In the wake of a particularly successful first quarter, business in the second quarter (July through September) remained very satisfactory. At €101m, revenue was up 22.8 percent (including 13.8 percent from organic growth) from the second quarter of fiscal 2015-2016. During the period, SII relied on its high-quality operations, a strong sales network and the expertise of its consultants to take full advantage of opportunities created by ongoing investments in technology in a highly competitive, complex digital environment.
Sustained business in key sectors in France and elsewhere
In its domestic market, SII continued to provide support to the programs of its major customers, including in such key sectors as aerospace, defense and telecommunications. Other growth sectors, such as banking and insurance, energy, transportation, and retail and distribution also helped boost revenue during the first six months. Results for the period were among the best in the sector, with sales up 15.8 percent over the same period a year earlier, from exclusively organic growth (including an increase of 11.8 percent the second quarter alone, in spite of the loss of one business day). The ratio of billable hours (excluding holidays) remained above 90 percent for the full half-year, a significant improvement over the same period the previous year, which contributed to higher results.
Outside France, the SII Group continued its rapid expansion, with revenue up 39.7 percent for the period, of which 37.7 percent the second quarter alone. On a like-for-like basis, sales rose by 19.2 percent during the period, including 17.1 percent the second quarter. Operations in several countries contributed to this growth, including in Poland (where business was up 22.6 percent), Germany (184 percent, of which 11.5 percent organic) and Spain (19.6 percent). These are SII’s principal foreign markets and account for 87 percent of the Group’s international operations. Other countries where business was up in the second quarter included Romania (16.8 percent), the Czech Republic (44.1 percent), Chile (17.8 percent) and Morocco (31.4 percent). Problems remained essentially in Switzerland (where revenue fell by 55.5 percent), Belgium (21.3 percent) and the Netherlands (23.9 percent).
Outlook for fiscal 2016-2017
With its next financial announcement, SII will report on the impact the increase in business has had on its half-year financial results and financial position. Based on the growth of its business during the first six months, SII has adjusted its guidance for fiscal 2016-2017, when revenue is projected to exceed €430m (an overall increase of 20 percent). As previously announced, this increase in business should lead to yet another improvement in income and margins.
Exclusive talks are continuing with Feel Europe and are expected to rapidly lead to a final agreement on the transfer of shares in February 2017, which will require the Competition Authority’s approval.