Regulatory News:

In the first half-year, 2007, ESR Group (Paris:ESRP) carried further the turn-around initiated in fiscal year 2006 and sold its (non consolidated) 44% stake in Phenix Energy as well as its 75% share in Valexa (the dealings started in the first half year and were closed on July 12).

Excluding Valexa, consolidated revenue reached € 38.5 million, up 1.6% (or € 39.2 million including Valexa). Consolidated revenue for the second quarter was € 19.4 million, up 6.6%. This increase indicates a marked revival in the group's business. Several noteworthy contracts were signed during this first half-year:

  • in the telecom industry, ESR won, from a major actor in the business, a contract on operating datacenters amounting to € 3 million over a 2-year period.
  • in the services industry, a contract for the roll-out of 1,500 workstations was signed with a major airline.
  • a major public sector account picked ESR for the administration of its IT infrastructure, for the administration of its security system and for Unix operation analysis.

Excluding Valexa, the positive evolution of the business, the noticeable drop in the off-assignment rate below 5% and the broader effect of turn-around steps taken in the second half-year of 2006 allowed ESR to report a significant positive operating income (excluding net income from discontinued operations).

Selling the stakes in Phenix and Valexa brought € 2.7 million in cash as part of the debt reducing strategy of the group. Together with cash-flow from operations, this resulted in a € 4.2 million decrease in the net overall debt of the group during this first half-year:

in million € 31 Dec 2006 30 Jun 2007 (*)
Factor 13.9 12.3
Other bank debt 3.5 3.5
Rescheduled tax and social debt 5.7 2.8
Gross overall debt (a) 23.1 18.6
     
Cash (b) 2.9 2.6
     
Net overall debt (a-b) 20.2 16.0

(*): including proceeds from sale of Valexa

(Non audited figures)

On October 10th, after stock exchange close, ESR will issue a detailed presentation of its first half-year results.

Shareholders' information of the ESR Group available on www.esr.fr

ESR is a major player of the IT infrastructure market. The group also develops high added value consulting expertises on IT systems security and storage.

Clients of the group are the largest institutions in the sectors of telecoms, bank and insurance, services, industry and public sector.

ESR covers all the French national market and follows his clients abroad. 

                 ESR - 2, rue de Paris - 92190 Meudon - France -
                      Tél: +33.(0)1.47.65.14.00
  Section C - Eurolist by Euronext Paris - ISIN FR0000072969 - ESRP

ESR Group
Jean-Guy Barboteau, Chairman & CEO
jean-guy.barboteau@esr.fr
or
Florent Barboteau, Managing Director
florent.barboteau@esr.fr