Third-quarter 2015 revenue


Faster growth in Q3: +19.7% to €254.4 million, with organic growth of 3.3%



Organic growth in all BUs
Acquisition of Corialis, the fourth company to join AKKA since the end of 2014

Q3-2014 REVENUE





Revenue

(€ million)
Q3-2015
Q3-2014
% change
% change

organic*



 
 
 
 
 


Total Group
254.4
212.5
+19.7%
+3.3%


 
 
 
 
 


France
115.4
101.0
+14.3%
+2.2%


 
 
 
 
 


Germany
85.0
80.4
+5.8%
+2.0%


 
 
 
 
 


International (excl. Germany)
53.9
31.2
+73.0%
+10.0%


* Adjusted for currency effects and acquisitions.



AKKA Technologies recorded revenue growth of 19.7% to €254.4 million in Q3-2015, vs €212.5 million in Q3-2014. The acceleration of growth in Q3 resulted from the faster pace of organic growth and the resumption of the acquisition policy initiated by the Group in late 2014.

The group's three BUs recorded organic growth over the quarter. The return to growth of the France BU, which began in Q2, earlier than initially expected, was confirmed in Q3. Combined with the rebound in the German operations and the continued expansion of international operations at a fast pace, it helped boost organic growth in the third quarter (+3.3%, vs +1.3% in H1-2015).

In the first nine months of the year, the Group recorded revenue of €716.0 million, an increase of 10%, with organic growth of 2.0%. Operations outside France (Germany + international) recorded growth of almost 16.8% over the period (+4.4% organic).

Q3-2014 REVENUE BY REGION

France recorded growth of 14.3% in Q3-2015 revenue to €115.4 million, with organic growth of 2.2%. The return to organic growth in Q2, a half-year earlier than initially expected, was confirmed in Q3. It coincided with the initial effects of the consolidation of Matis on 1 July. The fourth quarter is expected to see a continuation of the same trend, thereby allowing French operations to record an increase in full-year revenue, in line with the Group's original objectives.

Germany recorded revenue growth of 5.8% to €85.0 million in Q3-2015. After the slight decline in the second quarter, the swift resumption of organic growth (+2.0%) is notably attributable to business momentum in the legacy regions of Hamburg and Munich. The discussions for the implementation of MBtech 2.0, aimed at allowing the continued expansion of our German operations, are proving longer than expected.

International operations (excluding Germany) intensified their rapid and profitable growth. Their Q3 revenue was €53.9 million, an increase of 73.0% compared with Q3-2014, thanks notably to the acquisitions of Epsco, Matis and Corialis. The vast majority of countries or regions benefited, recording strong growth. The list includes Switzerland, Spain and Italy (+74%, +102% and +99% respectively, with organic growth above 20%), and Belgium (+69%, with organic growth of 4%). Adjusted for these acquisitions and exchange rates, international operations posted a 10.0% increase in revenue on an organic basis.

DIVERSIFICATION – ACQUISITIONS

With the acquisitions of German company Auronik and Italian company Epsco, specialised in processes, AKKA Technologies has again been active in the acquisition market since late 2014.

During the first half of 2015, the Group also acquired 80% of Matis. This French technology consulting company, founded in 1994, has over 1,000 employees. It reported revenue of €82.5 million in 2014, 65% in France and 35% internationally. Matis is truly a complementary fit with the AKKA Group in terms of sectors, geographies and customers.

AKKA Technologies also acquired Corialis during the third quarter of 2015. This company, which was founded in 2002 and boasts excellent margins, reported revenue of approximately €30 million in 2014. It generates most of its revenue internationally, in the MEA region. Its acquisition complements that of Epsco. It fits into the Group's strategy of increasing the proportion of high value-added activities while accelerating its expansion in the processes and commissioning segments, and in the energy sector.

OBJECTIVES – SHORT- AND MEDIUM-TERM OUTLOOK

Each of the Group's three BUs recorded organic revenue growth in the third quarter. The resumption of growth in France since Q2 and in Germany since Q3 allows the Group to confirm its objective of organic revenue growth in 2015, and to complete the first stage of its 2018 strategic plan.

The continued growth of international activities at a sustained pace confirms the validity of the Group's business model.

The resumption of the acquisition policy will take the Group across the symbolic threshold of €1 billion in revenue in 2015 on a pro-forma basis. The 2018 objectives are confirmed:




Revenue of €1.2 billion,
Profit from business operations* of €100 million,
Recurring operating margin of between 8% and 10%,
Control of financial equilibrium.

 


* Profit from business operations calculated before non-recurring items.


 


Next releases: Q4-2015 revenue on Tuesday 9 February 2016

Full-year 2015 results on Tuesday 12 April 2016


 


REVENUE BY QUARTER





Revenue

(€ million)
Q1-2015
Q2-2015
Q3-2015
9 months


 
 
 
 
 


France
108.9
111.3
115.4
335.6


Of which Matis
 
 
12.2
12.2


Change
-3.7%
+0.3%
+14.3%
3.2%


Organic change
-3.7%
+0.3%
+2.2%
-0.5%


 
 
 
 
 


Germany
80.4
78.9
85.0
244.3


Change
+6.4%
+2.1%
+5.8%
+4.8 %


Organic change
+2.0%
-2.1%
+2.0%
+0.6%


 
 
 
 
 


International (excl. Germany)
36.8
45.4
53.9
136.1


Of which Matis
 
 
8.3
8.3


Change
+24.4%
+42.5%
+73.0%
+47.0%


Organic change
+18.1%
+12.2%
+10.0%
13.4%


 
 
 
 
 


Total Group
226.1
235.6
254.4
716.0


Of which Matis
 
 
20.5
20.5


Change
+3.6%
+7.0%
+19.7%
+10.0%


Organic change
+1.3%
+1.2%
+3.3%
+2.0%



Change in revenue by BU at constant scope and exchange rates.

 


About AKKA Technologies


“The best way to predict the future is to invent it. Let's share our passion for technology.”


An engineering and technology consultancy and European leader in the mobility segment, AKKA Technologies operates in 20 countries through 21 centres of excellence building on expertise and synergies forged across the entire Group. Driven by a determination to innovate and a passion for technology, it combines an entrepreneurial spirit with a consistent and visionary strategy. Its understanding of the challenges facing its customers and its positioning across the entire product life cycle enable it to assist major customers on high value-added turnkey projects. With a differentiating positioning symbolised above all by the AKKA Research in-house research centre and a broad international footprint around its unique Franco-German base, AKKA Technologies is poised to become the best in class in large transnational contracts.

With nearly 11,000 talented employees, AKKA Technologies delivered revenue of €885.6 million in 2014, 50% of which internationally. It aims to lift this to €1.2 billion by 2018.

AKKA Technologies is listed on Euronext Paris TM – Segment B – ISIN code: FR0004180537.

CAC® Small, CAC® Mid & Small, CAC® All-Tradable, CAC® All-Share indices

For more information, please visit www.akka.eu

Follow us on: https://twitter.com/AKKA_Tech


 


In case of discrepancy between the French and English versions of this press release, only the French version should be deemed valid.


 






AKKA Technology contacts
 


Nicolas Valtille

Group CFO

Tel.: +33 4 7892 6083

finances@akka.eu
Dov Lévy

Investor Relations & Corporate Development

Tel.: +33 1 5669 2652

dov.levy@akka.eu


 
 


Actus contacts

Amalia Naveira / Marie-Claude Triquet


Analyst/Investor/Press Relations

Tel.: +33 4 7218 0493

anaveira@actus.fr / mctriquet@actus.fr
 

Information réglementée
Information financière trimestrielle :

- Information financière du troisième trimestre
Full and original press release in PDF:


http://www.actusnews.com/documents_communiques/ACTUS-0-42112-cp-akka_technologies-121115.pdf

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