Press Release

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Paris, 18 March 2009

GFI Informatique: 2008 results
Revenue: +11.6%
Operating profit on ordinary activities stable at €44.9 million

Jacques Tordjman passes on management of
GFI Informatique to Vincent Rouaix

 

 

 

The Board of Directors met on 17 March 2009 under the chairmanship of Mr Jacques Tordjman and approved the consolidated financial statements for the year ended 31 December 2008:

Note: determined in accordance with International Financial Reporting Standards (IFRS)

Statement by Jacques Tordjman, Chairman and CEO:

“While the fallout from the global crisis affected activity in the fourth quarter, GFI Informatique achieved its targets for 2008 in terms of revenue, which rose for the fifth year running. Thanks to the implementation of its Plan for Sustainable and Profitable Development, the Group maintained a steady performance in 2008 despite the onset of the financial crisis in the last quarter. Working capital requirements were significantly improved. At international level, restructuring was completed in Italy and business resumed a sustainable growth trajectory in Spain.”

Analysis of key indicators

Revenue: Revenue rose for the fifth consecutive year, up 11.6% to €768.1 million. This represents growth of 2.9% at constant consolidation scope and exchange rates. 

Operating profit on ordinary activities: Operating profit on ordinary activities came to €44.9 million, giving an operating margin on ordinary activities of 5.8%, compared with 6.5% in 2007.

Other operating expenses came to €12.9 million and were essentially made up of:

• €5 million in net restructuring expenses, of which €2.9 million in France and €2.1 million outside France
• €2.8 million in provisions for liabilities, relating essentially to trade disputes
• a €0.9 million dilution gain on the sale of minority interests to Canadian fund FSTQ as part of the acquisition of Canadian company Bell Business Solutions
• €6 million in goodwill depreciation in respect of the Italian subsidiary.

The group share of net profit for the year was €14.3 million, close to that posted in 2007.

Net debt amounted to €92.3 million at 31 December 2008.

The debt-to-equity ratio (gearing) came to 40% owing to acquisitions completed in 2008.

On the occasion of the Annual General Meeting, the Board of Directors will propose the payment of a dividend of €0.22 per share for 2008, on a par with that paid in 2007.

Review of activity

• France

The Group’s operating margin on ordinary activities came to 6.3%. The effects of the economic slowdown fed through into fourth quarter activity, particularly in the banking and financial sectors. Revenue was down by 1.5% in the last quarter notably as a result of delays in initiating business with recently signed customers. Major cost-saving measures were implemented in 2008 and these will show their full effect in 2009.
Price pressure became significantly more acute over the last quarter. Client demands have essentially concerned guaranteed-results business and outsourcing projects as well as lower-cost practices such as offshoring, industrialisation and mass treatment. Thanks to its industrialisation capacity and service centres GFI Informatique is equipped to rise to these challenges, and the number of contracts with an obligation of results rose sharply in 2008. The service centres employ over 1,000 people.

• International

Spain & Portugal: Spain turned in an excellent Q4 performance with organic growth of 4.4% thanks to the successful reorganisation of its business portfolio in 2008 focusing on ERP integration (SAP), Basque region technical assistance and e.Government. Portugal saw the progressive take off of the new offerings in the areas of electronic transactions and payment systems, CRM and SOA architectures.
Italy: this subsidiary generated an improved performance through a selective approach to revenue sources, development of its security offering (around 10% of revenues) and continued penetration into the utilities sector. It completed its restructuring plan and this had the desired effect. Client accounts fell sharply by €10 million and WCR improved by €4.6 million.
Canada: integration of the recently acquired Accovia and Bell Business Solutions is going to plan. Overall growth is strong, with 60% of business generated by the software applications division. The profit margin in Canada came to 11.8%.
Morocco: local business is continuing to grow steadily, while the Group’s offshore platform here, which forms part of the France division now boasts a workforce in excess of 150 engineers working on renewable projects.

Belgium, Germany & Switzerland: business picked up slightly in Germany.

Outlook

The priority for 2009 is to continue generating cash while maintaining a stable level of activity and earnings; further out GFI Informatique remains committed to the objectives laid out in its long-term development plan.

In implementing the Plan for Sustainable and Profitable Growth the Group has acquired a tool that will enable it to adapt its structure to economic developments as they unfold in 2009.

Governance

Jacques Tordjman passes on management of GFI Informatique to Vincent Rouaix

Jacques Tordjman has decided to relinquish his managerial responsibilities at GFI Informatique, which he founded 15 years ago, and has proposed Vincent Rouaix, the company’s Deputy CEO and member of the Board, to succeed him as Chairman and CEO.

The GFI Informatique Board of Directors met on 17 March 2009 and accepted this proposal. With effect from today Vincent Rouaix is appointed to replace Jacques Tordjman as CEO of GFI Informatique. Mr Tordjman will continue to chair the Board of Directors until the Annual General Meeting of 20 May 2009, when Vincent Rouaix will become Chairman and CEO.

The Board members unanimously acclaimed Jacques Tordjman’s exceptional contribution to GFI Informatique as its founder and the architect of its success. Formed in 1995, the company has become one of France’s leading software companies and a major player in the European IT services market.

Jacques Tordjman: “Having spent 15 years at the helm of GFI Informatique, I am happy to pass on the Group’s management to Vincent Rouaix, with whom I have been working with this objective in mind for three years now. I would like to extend a sincere vote of thanks to all the Group’s employees and all members of the Board. I am also indebted to all the Group’s clients and partners for their loyalty as well as to our shareholders, all of whom have supported us in an often difficult environment. Together we have built a solid and widely recognised company. I have every confidence that Vincent Rouaix and his team will pursue the company’s growth trajectory and rise to the challenges of the future.”

Vincent Rouaix: “I am deeply honoured to take over from Jacques Tordjman and I thank the Board for the trust it has placed in me. GFI Informatique is in a position of strength today both in France and at European level, and offers a comprehensive range of value added solutions. GFI and all of its teams will continue to pursue the company’s growth strategy and commit all our resources to meeting its one-billion-euro revenue target.”

For further information, please contact

Press relations: Martine Canaque 
Email: mcanaque@gfi.fr – Tél. +33 (0)1 53 93 43 80 – 06 81 42 53 48

About GFI Informatique

GFI Informatique is a major player in the IT services sector, providing four strategic offerings: consulting, systems integration, infrastructures and production and solutions. The group caters mainly for large corporates, public bodies and local authorities. As part of its industrialisation policy, the group has 11 skills centres, two national design and production service centres and three offshore centres. GFI Informatique recorded 2008 revenue of €768.1m and its workforce stood at close to 10,000 at the end of 2008. The group has over 40 branches in France and nine international agencies in Southern and Northern Europe, Morocco and Canada.  For more information, go to www.gfi.fr

Appendices

 

Consolidated balance sheet

 

Consolidated income statement

Consolidated cash flow statement

 

Analysis of results by geographic area