ALTEN: 2024 annual results

2024 ANNUAL RESULTS

§ SLIGHT ORGANIC DECLINE: - 0,2%

§ OPERATING MARGIN ON ACTIVITY: 9.1% OF REVENUE

                          ⁽¹⁾ Adjusted for exceptional tax of €37.1m on the divestment capital gain                                Audit ongoing

BUSINESS IN 2024: + 1.8%

Growth of activity stands at 1.8% in France, 4.8% outside of France. On a like-for-like basis, at constant scope and exchange rates, activity is slightly declining: -0.2% (+4.8% in France and -2.6% outside of France).

The Defence & Security, Civil Aeronautics, Rail and Energy sectors continue to grow. 

Organic growth remained satisfactory in France and Southern Europe. Conversely, the decline in business was in the UK, Germany and Northern Europe. In Asia and North America, activity declined slightly.

OPERATING MARGIN ON ACTIVITY: 9.1% OF REVENUE

The operating profit on activity amounts to €376.5M, which is 9.1% of the turnover. In 2023, the operating result amounted to €382.8M, which was 9.4% of the turnover.

The slowdown in activity has resulted in a slight decrease in the activity rate and a lower coverage of structural costs. Difficulties encountered in certain geographies, particularly in the UK in the Public Sector and in Germany in the Automotive and Civil Aeronautics sectors, have impacted the operating profit on activity.

A favorable calendar, along with several actions taken to reduce costs related to underactivity and operating expenses (SG&A), have resulted in an operating margin on activity exceeding 9%, a satisfactory level given the economic context.

Ingénierie et Conseil en Technologies

OPERATING PROFIT: 6.7% OF REVENUE

The operating profit amounts to €277.0M (6.7% of turnover). It includes €20.3M in share-based payments, €44M in goodwill impairments in the UK and Germany, €32.1M in non-recurring costs (including €14.9M in restructuring costs, particularly in Germany), as well as a €3.2M loss on the disposal of a company in Asia.

NET INCOME, GROUP SHARE: 4.5% OF REVENUE

The financial result amounted to €3.3M. After taking into account €94M of tax expenses, Group net income came to €186.4M.

NET CASH POSITION: €275.5M / GEARING: - 12.5%

Cash flow (excluding IFRS16) came to €370.7m (8.9% of revenue) in line with operating profit from activity. The Working Capital Requirement decreased by €91.6M, mainly due to a significant reduction in DSO. Capex remained low (€17M, of 0.4% of revenue), and taxes paid amounted to €110.6M. 

Free cash flow therefore stands at €333.2M (8% of revenue), an increase of 81.4% compared to 2023. 

After accounting for net financial investments (-€310.1M), dividends paid (-€52.1M), and other financing flows (+€7.5M), net cash stands at +€275.5M at the end of 2024.

ALTEN self funded external growth and dividends. Its investment capacity remains intact (gearing: -12.5%).

EXTERNAL GROWTH: 

§  2 ACQUISITIONS OVERSEAS

In Asia (Vietnam/Japan): a company specialising in software development (€20m revenue, 950 consultants) In Poland: a company specialising in IT services (€18m revenue, 250 consultants)

§  ACQUISITION OF WORLDGRID

At the end of November, ALTEN finalized the acquisition of WORLDGRID, European leader specializing in Energy and Utilities solutions in France, Germany and Spain, particularly in the Nuclear sector (Estimated 2024 revenue: €170M; 1,100 employees).

§  DIVESTITURE IN ASIA

At the end of December 2024, ALTEN divested a subsidiary located in Asia (China/Japan). (2024 revenue: €8.9M; 230 consultants).

OUTLOOK FOR 2025 :

The slowdown in activity, particularly in Europe, intensified throughout 2024, notably in the Automotive, Life Sciences, Civil Aeronautics, and Tertiary sectors.

Due to the organic decline in the last quarter of 2024 (-2.7%) and one working day less than in the first half of 2024, ALTEN potential business in January is 3.4% less than the 2024 average business level (excluding acquisitions).

For the time being, there are no signs of a recovery, but business seems to be stabilizing. The improvement in the macroeconomic context (lower interest rates) and geopolitical situation should allow for a return to growth during the second semester.

Next release: 24 April after market closing: Quarter 1 2025 revenue

About ALTEN

For more information: www.alten.com/investisseurs  / Journalists’ details: alten@hopscotch.fr

As a European Leader in Engineering and Technology Consulting (ETC), ALTEN carries out design and research projects for Technical and IT divisions of major clients in industry, telecoms and services. ALTEN’s stock is listed in compartment A of the Euronext Paris market (ISIN FR0000071946); it is part of the SBF 120, the IT CAC 50 index and MIDCAP100, and is eligible for the deferred Settlement Service (SRD).

APPENDIX TO PRESS RELEASE:

Definition of alternative performance measures and reconciliation with IFRS standards

The ALTEN Group uses alternative performance measures especially selected to follow up on its operational activities. The Group has chosen these measures as they supply additional information allowing the users of periodic financial information to have a comprehensive understanding of the Group’s performance. Such alternative performance measures are complementary to IFRS standards.

Revenue growth on a like-for-like basis (i.e. organic growth)

Growth on a like-for-like basis (and constant exchange rate) is calculated excluding the effects of exchange rate variations and the variations of the consolidation scope on a chosen period.

Exchange rate impacts are measured by converting the revenue of the period with the average exchange rate from the previous period. 

Scope variation impacts are measured excluding acquisitions, revenue of the period and for transfers, revenue of the previous period, in order to create a scope which is identical to the previous period.

This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period. 

Business trends in 2024

Operating Profit on Activity

Operating Profit on Activity is the operating income before taking into account the costs on share-based payments, results from significant transfers of assets, goodwill impairment, as well as other significant and uncommon elements considered as miscellaneous fees and operational activities.

Since payments on share-based compensation have noticeable heterogeneous annual changes, the tables included in our financial statements show the operational performance of the Group and make it possible to compare with previous or selected periods.

Net cash position (or net debt)

Net debt - as defined and used within the Group, stands for cash flow and assimilated elements of cash flow less gross financial debt (bank loans and other assimilated financial debts). This measure is called ‘net cash position’ when the amount of cash flow or assimilated elements is higher than the financial debt; conversely, it is called ‘net debt’.

Free cash flow

Free cash flow corresponds to net cash flow from operating activities minus net operating investments and net cash flow from financing activities related to payments of leasing debts. nt liés aux remboursements des dettes de location.

ASSET

                               TOTAL ASSETS                                                                                    3 411 725             ^{3 642 681}

LIABILITIES

                           TOTAL LIABILITIES                                                                                    3 411 725               3 642 681

INCOME STATEMENT

                                OPERATING PROFIT ON ACTIVITY                                            382 818       376 544

                               PROFIT ATTRIBUTABLE TO THE GROUP                                     233 205       186 419

CASH FLOW STATEMENT