• ASSYSTEM: 2022 annual results

    Source: Nasdaq GlobeNewswire / 14 Mar 2023 12:35:00   America/New_York

    2022 annual results

    • Revenue: €493.5m (up 10.8%, with 5.4% like-for-like growth)
    • Operating profit before non-recurring items (EBITA)(1): €33.0m (up 8.2%), representing 6.7% of revenue
    • Dividend(2): €1.00 per share

    Paris La Défense, 14 March 2023, 5.35 p.m. (CET) – The Board of Directors of Assystem S.A. (ISIN: FR0000074148 - ASY), an international engineering group, reviewed today the Group’s financial statements for the year ended 31 December 2022.

    Dominique Louis, Assystem’s Chairman and Chief Executive Officer, stated:

    “The need for decarbonised energy is a central preoccupation of nations, and this need has amplified following the geopolitical and climate events of 2022. Our 6,500 employees have been working for a long time now on accelerating the energy transition, and the relevance of our strategic positioning enables us, once again, to deliver a very good commercial, operational and financial performance. During the year we also successfully integrated our recent acquisitions that will help us expand our expertise clusters in order to serve our clients across the globe. We are pursuing our long-term strategic roadmap with confidence, our main challenge now being the ability to attract and retain the best talents”.

    KEY FIGURES

    In millions of euros (€m) 2021 reported 2021 restated* 2022 reported*
    Revenue 483.1 445.4 493.5
    Operating profit before non-recurring items – EBITA(1)  32.0 30.5 33.0
    % of revenue 6.6% 6.8% 6.7%
    Consolidated profit for the period(3) 34.7 34.7 49.9
    Net debt(4) 64.7 64.7 50.9
    Dividend per share (in €)(2) 1.00 1.00 1.00

    *The reported figures for 2022 take into account the impacts on revenue and profit of applying IFRS 5 with regard to (i) the sale of Assystem’s life sciences and general industry technical assistance activities to Expleo Group in January 2022, and (ii) the agreement entered into by Assystem to sell 51% of the shares and voting rights of MPH GS – the parent company of its Staffing business – to MPH’s management. This sale took place in January 2023. The figures for 2021 have been restated accordingly in order to ensure meaningful comparisons with the figures for 2022.

    ANALYSIS OF THE 2022 INCOME STATEMENT

    • Revenue

    Assystem’s consolidated revenue totalled €493.5 million in 2022, up 10.8% on the €445.4 million recorded for 2021 (restated). Like-for-like growth came to 5.4%, changes in the scope of consolidation had a positive 3.9% impact (due to the consolidation of the India-based company STUP as from 1 July 2021 and the UK companies Schofield Lothian as from 1 October 2021 and LogiKal as from 1 December 2022), and the currency effect was a favourable 1.5%.

    Revenue from Nuclear activities totalled €344.9 million in 2022 (70% of the consolidated revenue), versus €326.3 million in 2021. This 5.7% increase breaks down as 5.2% in like-for-like growth (including a 1.8% negative effect resulting from the end of the first Kacare contract) and a 0.5% favourable currency effect. Growth continued to be led throughout the year by operations in France and the United Kingdom.  

    ET&I revenue amounted to €148.6 million in 2022, compared with €119.1 million in 2021. Year-on-year growth was 24.7% (5.9% like-for-like growth, a positive 14.6% impact from changes in the scope of consolidation (consolidation of STUP, Schofield Lothian and LogiKal), and a favourable 4.2% currency effect. Like-for-like growth was led by a major new contract won in relation to the Neom project in Saudi Arabia.

    • Operating profit before non-recurring items (EBITA) and EBITDA(5)

    Consolidated EBITA totalled €33.0 million in 2022, up 8.2% on the €30.5 million restated figure for 2021. EBITA margin narrowed to 6.7% from 6.8% in 2021, reflecting the hiring costs incurred towards the end of 2022 to support Assystem’s business growth.

    EBITA for Assystem Operations (all of the Group’s operations except for Holding activities) came to €38.5 million, representing 7.8% of revenue, compared with €36.6 million and 8.2% respectively in 2021.

    The Group’s “Holding company” expenses had a €5.5 million negative impact on consolidated EBITA in 2022 versus a €6.1 million negative impact in 2021.

    Excluding the impact of IFRS 16, consolidated EBITDA(5) amounted to €39.6 million in 2022, representing 8.0% of revenue, compared with €35.8 million and 8.0% respectively in 2021 (restated).

    • Operating profit and other income statement items

    After taking into account €1.8 million in share-based payments and €1.2 million in net non-recurring expense for the period, consolidated operating profit totalled €30.0 million in 2022, compared with €30.2 million in 2021.

    Expleo Group – in which Assystem holds 37.22% of the capital and 38.94% of the quasi-equity instruments issued by that company (convertible bonds with capitalised interest) – contributed €9.8 million to consolidated profit, breaking down as €11.9 million in coupons on the convertible bonds less Assystem’s €2.1 million share of Expleo Group’s loss for the period. In 2021, Expleo Group contributed €6.0 million, including €10.9 million in coupons on the convertible bonds.

    Assystem recorded net financial income of €2.9 million in 2022, versus €1.6 million in 2021. The 2022 figure breaks down as €4.1 million in dividends received from Framatome (€2.4 million in 2021). It also includes €4.3 million recognised as a result of applying IAS 29 (Financial Reporting in Hyperinflationary Economies) related to the Group’s Turkish subsidiary, but this had no impact on consolidated cash.

    After deducting an income tax expense of €6.6 million (€7.2 million in 2021), consolidated profit from continuing operations rose 18.4% to €36.1 million from €30.5 million in 2021 (restated).
    Profit from discontinued operations, as determined in accordance with IFRS 5, came to €13.8 million (businesses sold to Expleo and MPH classified as discontinued operations under IFRS 5).

    Consolidated profit for the period totalled €49.9 million, versus €34.7 million in 2021.

    • Information about Expleo Group

     Revenue generated by Expleo Group amounted to €1.27 billion in 2022, up 23% year on year (including the Life Sciences business acquired from Assystem).

    Expleo Group’s EBITDA (including the impact of IFRS 16) surged 36% to €126 million in 2022, representing 9.9% of consolidated revenue.

    Expleo Group’s consolidated profit before recognition of the capitalised interest on its quasi-equity instruments was €31.3 million.

    FREE CASH FLOW(6) AND NET DEBT

    Free cash flow from continuing operations for 2022 (excluding the impact of IFRS 16) represented a net inflow of €26.5 million, or 5.4% of consolidated revenue. For purposes of comparison, for 2020 and 2021 combined, free cash flow from continuing operations (excluding the IFRS 16 impact) represented a net inflow of €51.2 million, or 5.6% of combined revenue for those two years.

    The Group had net debt (excluding the IFRS 16 impact) of €50.9 million at 31 December 2022. This was €13.8 million lower than one year earlier, breaking down as follows:

    • €(26.5) million due to the impact of free cash flow from continuing operations;
    • a €4.7 million impact from the free cash flow of discontinued operations;
    • a €14.7 million dividend payment to Assystem shareholders for 2021;
    • a €(2.9) million net-of-tax impact arising from disposals and acquisitions(7);
    • a €3.8 million net cash inflow for other movements, including €4.1 million in dividends received from Framatome and €0.1 million paid for purchases of Assystem shares.

    RECOMMENDED DIVIDEND FOR 2022

    At the Annual General Meeting to be held on 5 June 2023, Assystem will recommend the payment of a dividend of €1.00 per share for 2022, unchanged year-on-year. If this dividend is approved by the shareholders, it would represent a total payout of €14.8 million(8).

    TWO NEW ACQUISITIONS CARRIED OUT IN JANUARY 2023

    Assystem is continuing its bolt-on acquisition strategy aimed at reinforcing its skills clusters in France, the United Kingdom and India. Having acquired the Anglo-Australian company LogiKal, specialised in Project Management, Assystem carried out two new external growth transactions in January (OREKA Ingénierie, specialised in digital visualisation and simulation tools, and RELSAFE PRA Consulting, specialised in nuclear safety).

    OUTLOOK FOR 2023

    In order to complete its strategic refocusing, Assystem plans to sell its business activities in the Pacific area in 2023. In 2022, these activities generated €12.7 million in revenue, which was recognized in ET&I.

    Taking into account this disposal, the integration of the three acquisitions carried out since end-2022, and the impact of major growth investments in skills to be made in 2023 to support the Group's medium-term growth, Assystem’s targets for 2023 are as follows:

    • consolidated revenue of between €540 million and €560 million;
    • and EBITA over €35 million.

    These targets are based on macroeconomic, geopolitical and health context comparable to the one in place at the beginning of the year.

    2023 FINANCIAL CALENDAR

    • 27 April:                First-quarter 2023 revenue release
    • 5 June:                 Annual General Meeting
    • 25 July:                First-half 2023 revenue release
    • 13 September:     First-half 2023 results release – Results presentation on 14 September at 8.30 a.m. (CEST)
    • 26 October:         Third-quarter 2023 revenue release

     ABOUT ASSYSTEM

    As one of the world’s leading independent nuclear engineering companies, Assystem’s main mission is to help accelerate energy transition. In the 12 countries where the Group operates, the skills of its 6,500 experts are being put to the service of developing the production and use of carbon-free electricity (nuclear and renewables) as well as green hydrogen.

    With over 55 years’ experience in highly regulated sectors subject to stringent safety and security constraints, the Group provides engineering and digital services and solutions to optimise the cost and performance of its clients’ complex infrastructure assets throughout their life cycles.

    To find out more visit www.assystem.com / Follow Assystem on Twitter: @Assystem

    CONTACTS 

    Malène Korvin – Chief Financial Officer - mkorvin@assystem.com - Tel.: +33 (0)1 41 25 29 00

    Anne-Charlotte Dagorn – Communications Director – acdagorn@assystem.com - Tel.: +33 (0)6 83 03 70 29

    Agnès Villeret – Komodo – Investor relations - agnes.villeret@agence-komodo.com – Tel.: +33 (0)6 83 28 04 15

    APPENDICES

    1/ Revenue and EBITA by Business

    In millions of euros 2021
    reported     		2021
    restated(1)     		2022
    reported     		Total year-on-year change(2) Like-for-like change(2,3)
    Group 483.1 445.4 493.5 +10.8% +5.4%
    Nuclear 326.3 326.3 344.9 +5.7% +5.2%
    ET&I(4) 156.8 119.1 148.6 +24.7% +5.9%

    (1) Restated to enable meaningful year-on-year comparisons.
    (2) Compared with restated 2021 data.
    (3) Based on a comparable scope of consolidation and constant exchange rates.
    (4) UK-based LogiKal consolidated since 1 December 2022.

    • EBITA(5)

    In millions of euros 2021 restated % of revenue 2022
    reported     		% of revenue
    Group 30.5 6.8% 33.0 6.7%
    Assystem Operations 36.6 8.2% 38.5 7.8%
    Holding company and Other (6.1) - (5.5)  

    (5) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees other than Expleo Group (€0.7 million in 2021 and €1.2m in 2022).

    2/ Consolidated financial statements

    • Consolidated statement of financial position

    In millions of euros 31 Dec. 2021 31 Dec. 2022
    ASSETS    
    Goodwill 97.0 122.2
    Intangible assets 4.4 3.6
    Property, plant and equipment 12.9 11.7
    Right-of-use assets 33.2 30.6
    Investment property 1.3 1.3
    Equity-accounted investees 1.0 1.4
    Expleo Group shares 41.3 37.1
    Expleo Group convertible bonds 132.3 144.2
    Expleo Group shares and convertible bonds 173.6 181.3
    Other non-current financial assets(1) 147.7 141.3
    Deferred tax assets 8.8 8.3
    Non-current assets 479.9 501.7
    Trade receivables 169.3 163.6
    Other receivables 27.7 23.8
    Income tax receivables 3.4 4.2
    Other current assets 0.3 1.3
    Cash and cash equivalents(2) 25.7 28.5
    Assets classified as held for sale 18.3 16.3
    Current assets 244.7 237.7
    TOTAL ASSETS 724.6 739.4
         
    EQUITY AND LIABILITIES 31 Dec. 2021 31 Dec. 2022
    Share capital 15.7 15.7
    Consolidated reserves 307.3 334.8
    Profit for the period attributable to owners of the parent 34.2 48.9
    Equity attributable to owners of the parent 357.2 399.4
    Non-controlling interests 1.3 2.1
    Total equity 358.5 401.5
    Long-term debt and non-current financial liabilities(2) 89.8 76.0
    Non-current lease liabilities 26.5 24.7
    Pension and other employee benefit obligations 22.4 19.3
    Long-term provisions 16.3 17.0
    Deferred tax liabilities 0.1 0.4
    Non-current liabilities 155.1 137.4
    Short-term debt and current financial liabilities(2) 0.5 3.4
    Current lease liabilities 8.2 7.6
    Trade payables 34.8 35.3
    Due to suppliers of non-current assets 0.2 0.1
    Accrued taxes and payroll costs 107.2 98.8
    Income tax liabilities 2.2 3.3
    Short-term provisions 2.6 3.3
    Other current liabilities 46.3 42.4
    Liabilities directly associated with assets classified as held for sale 9.0 6.3
    Current liabilities 211.0 200.5
    TOTAL EQUITY AND LIABILITIES 724.6 739.4

    (1) Including Framatome shares, representing €134.0 million at 31 December 2022.
    (2) Net debt totalled €50.9 million at 31 December 2022, breaking down as:

    • - Short- and long-term debt and current and non-current financial liabilities: €79.4 million
    • - Cash and cash equivalents: €28.5 million.
    • Consolidated income statement

    In millions of euros 2021
    restated     		2022
    reported
         
    Revenue 445.4 493.5
    Payroll costs (308.1) (343.2)
    Other operating income and expenses (91.9) (101.1)
    Taxes other than on income (0.8) (1.1)
    Depreciation, amortisation and provisions for recurring operating items, net (14.8) (16.3)
         
    Operating profit before non-recurring items (EBITA) 29.8 31.8
    Share of profit of equity-accounted investees       
    0.7     		 

    1.2
         
    EBITA including share of profit of equity-accounted investees  

    30.5     		 

    33.0
    Non-recurring income and expenses  

    1.2     		 

    (1.2)
    Share-based payments (1.5) (1.8)
         
    Operating profit 30.2 30.0
    Share of profit/(loss) of Expleo Group  

    (4.9)     		 

    (2.1)
    Income from Expleo Group convertible bonds 10.9 11.9
    Net financial income/(expense) on cash and debt 0.3 (1.5)
    Other financial income and expenses 1.2 4.4
         
    Profit from continuing operations before tax 37.7 42.7
         
    Income tax expense (7.2) (6.6)
         
    Profit from continuing operations 30.5 36.1
         
    Profit from discontinued operations 4.2 13.8
         
    Consolidated profit for the period 34.7 49.9
    Attributable to:    
    Owners of the parent 34.2 48.9
    Non-controlling interests 0.5 1.0
    • Consolidated statement of cash flows

    In millions of euros 2021
    restated     		2022
    reported
    CASH FLOWS FROM OPERATING ACTIVITIES    
    EBITA including share of profit of equity-accounted investees 30.5 33.0
    Depreciation, amortisation and provisions for recurring operating items, net 14.8 16.3
         
    EBITDA 45.3 49.3
         
    Change in operating working capital requirement (27.2) (4.3)
    Income tax paid (6.7) (5.9)
    Other cash flows (4.0) 1.0
         
    Net cash generated from/(used in) operating activities of discontinued operations 4.5 (4.6)
    Net cash generated from operating activities 11.9 35.5
    O/w: - continuing operations 7.4 40.1
                - discontinued operations 4.5 (4.6)
    CASH FLOWS FROM INVESTING ACTIVITIES    
         
    Acquisitions of property, plant and equipment and intangible assets, net of disposals – continuing operations, o/w: (4.9) (3.9)
    Acquisitions of property, plant and equipment and intangible assets (5.0) (4.0)
    Proceeds from disposals of property, plant and equipment and intangible assets 0.1 0.1
         
    Free cash flow 7.0 31.6
    O/w: - continuing operations 2.5 36.2
    - discontinued operations 4.5 (4.6)
         
    Acquisitions of shares and businesses (23.8) (19.8)
    Other movements, net 2.4 6.1
    Net cash generated from/(used in) investing activities – discontinued operations

          		(0.3) 25.9
    Net cash generated from/(used in) investing activities (26.6) 8.3
    O/w: - continuing operations (26.3) (17.6)
    - discontinued operations (0.3) 25.9
    CASH FLOWS FROM FINANCING ACTIVITIES    
    Net financial income received/(expenses paid) (0.6) (2.8)
    Proceeds from new borrowings 24.0 -
    Repayments of borrowings and movements in other financial liabilities (2.0) (12.0)
    Repayments of lease liabilities* (10.1) (9.8)
    Dividends paid (14.7) (14.7)
    Other movements in equity of the parent company (1.4) (0.1)
    Net cash generated from/(used in) financing activities (4.8) (39.4)
         
    Net increase/(decrease) in cash and cash equivalents (19.5) 4.4
         

    * Including interest expense.

    3/ Movements in net debt

    In millions of euros - excluding ifrs 16 impact    
    Net debt at 31 Dec. 2021 64.7  
    Free cash flow from continuing operations (26.5)  
    Free cash flow from discontinued operations 4.7  
    Dividends paid to Assystem shareholders 14.7  
    Net tax effect of disposals and acquisitions in 2022 (2.9)  
    Other movements (3.8) Including €(4.1) million in dividends received from Framatome
    Net debt at 31 Dec. 2022 50.9  

    4/ Information about the Company’s capital

    Number of shares At 31 Dec. 2021 At 31 Dec. 2022
    Ordinary shares outstanding 15,668,216 15,668,216
    Treasury shares 876,771 833,400
    Free shares and performance shares outstanding 216,300 268,425
    Weighted average number of shares outstanding 14,776,162 14,812,512
    Weighted average number of diluted shares 14,492,462 15,080,937

    Ownership structure at 28 February 2023

    In % Shares Exercisable voting rights
    HDL Development(1) 57.93% 74.79%
    Free float(2) 36.78% 25.21%
    Treasury shares 5.29% -

    (1)  HDL Development is a holding company that is 91.22%-controlled by Dominique Louis (Assystem’s Chairman and Chief Executive Officer), notably through HDL, which itself holds 0.85% of Assystem’s capital.
    (2)  Including 0.85% held by HDL.

    (1) Operating profit before non-recurring items (EBITA - Earning Before Interest and Taxes - from Activity) including share of profit of equity-accounted investees other than Expleo Group (€0.7m in 2021 (restated) and €1.2m in 2022).
    (2) Dividend for 2022 that will be recommended at the 5 June 2023 Shareholders’ Meeting.

    (3) Including profit attributable to non-controlling interests, amounting to €0.5m in 2021 and €1.0m in 2022. Profit for the period attributable to owners of the parent therefore totalled €34.2m in 2021 and €48.9m in 2022.
    (4) Debt less cash and cash equivalents, excluding the IFRS 16 impact.
    (5) EBITA excluding the impact of IFRS 16 (€32.3 million in 2022) and before depreciation and amortisation expense and net provisions for non-recurring items excluding the IFRS 16 impact.

    (6) Corresponding to net cash generated from operating activities less capital expenditure, net of disposals.
    (7) Including a net debt impact of €(26.1) million from net disposals, €19.8 million from acquisitions, and a €3.4 million impact on consolidated cash arising from the deconsolidation of MPH.
    (8) Corresponding to €1.00 multiplied by the 14,839,120 outstanding shares carrying dividend rights at 28 February 2023.

     

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