Contents
1. HALF-YEARLY ACTIVITY REPORT AND SIGNIFICANT EVENTS DURING THE PERIOD | |
2. CERTIFICATION OF THE HALF-YEARLY FINANCIAL REPORT | 8 |
3. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | 10 |
3.1 INTERIM CONSOLIDATED FINANCIAL STATEMENTS | 11 |
3.1.1. Interim consolidated statement of financial position | 11 |
3.1.2. Interim consolidated statement of comprehensive income | 12 |
3.1.3. Interim changes in consolidated equity | 13 |
3.1.4. Interim consolidated statement of cash flows | 14 |
3.2 NOTES | 15 |
Note 1: Information on the company and group | 15 |
Note 2: Basis of preparation | 15 |
Note 3: Scope of consolidation | 17 |
Note 4: Revenue and customers | 18 |
Note 5: Operating income | 18 |
Note 6: Income tax | 21 |
Note 7: Intangible assets and property, plant and equipment | 21 |
Note 8: Financial instruments | 22 |
Note 9: Cash | 23 |
Note 10: Related party disclosures | 23 |
Note 11: Important events after the end of the reporting period | 24 |
4. AUDITOR'S REPORT ON THE CONDENSED INTERIM CONSOLIDATED FINANCIAL | 25 |
STATEMENTS |
Solutions 30 | Financial Report for the Half-Year ended June 30, 2021 | 2 |
1. HALF-YEARLY ACTIVITY REPORT AND SIGNIFICANT EVENTS DURING THE PERIOD
Solutions 30 | Financial Report for the Half-Year ended June 30, 2021 | 3 |
1. Half-yearly activity report and significant events during the period
Key figures
In millions of euros | 06.30.2021 | 06.30.2020 | Variation |
Revenue | 441.3 | 365.1 | +20.9% |
Adjusted EBITDA | 49.5 | 41.3 | +19.8% |
As a % of revenue | 11.2% | 11.3% | |
Adjusted EBIT | 29.6 | 21.5 | +37.5% |
En As a % of revenue | 6.7% | 5.9% | |
Consolidated net income | 14.6 | 10.5 | +39.5% |
As a % of revenue | 3.3% | 2.9% | |
Net income, group share | 14.1 | 10.4 | +35.3% |
As a % of revenue | 3.2% | 2.9% | |
Financial structure figures | 06.30.2021 | 12.31.2020 | Variation |
In millions of euros | |||
Equity | 184.7 | 170.0 | +14.7 |
Net debt | 42.9 | 28.9 | +14.0 |
Net bank debt | (44.0) | (59.2) | +15.3 |
+20.9% growth in revenue in the first half of 2021
Solutions 30's consolidated revenue for the first six months of 2021 amounted to €441.3 million, up +20.9% (+17.5% organic growth) compared to the same period in 2020. Maintenance activities, which are recurrent, represent 58% of revenue. The group is accelerating its expansion outside of France, illustrating the relevance of its strategy to duplicate its success in France.
In France, over the first six months of the year, revenue reached €270.3 million, a purely organic increase of +20.5%. This growth has been bolstered by:
- A +22.3% increase in revenue from the telecom business, which remains very dynamic. Momentum for the fiber business remains strong with roll-outs in lower-density areas, increasing subscriber connections, and maintenance Solutions 30's core business which accounts for 75% of its fiber business.
- An +18.1% increase in the energy business due to a favorable base effect since smart meter installations were interrupted during the first lockdown from March 17 to May 11, 2020. This activity generates half of the revenue for the energy business, i.e. 10% of revenue in France.
- The performance of the IT business, which is back on track for growth over the six-month period, posting a +24.1% increase in revenue.
In the Benelux, over the first half of 2021, revenue was up +13.1% (+9.8% organic growth) to €74.9 million. The roll- out of ultra high-speed networks is beginning to take shape and is driving the group's sales momentum, while the start of the smart meter roll-out program in Flanders, which has been contributing to the top line since March, has been driving growth for the first six months of the year.
In other countries, the group posted revenue of €96.1 million for the first half of 2021, up +28.8% (+15.5% organic growth) compared to the first half of 2020. In Italy, revenue was up +54% thanks to the rapid ramp-up of the contract signed at the beginning of the year with TIM. In Spain, revenue was up +44%, thanks to the telecoms portfolio. Half-yearly revenue was stable for Germany and Poland. In the United Kingdom, where the group has been operating since the end of 2020, revenue reached €7.4 million.
Solutions 30 | Financial Report for the Half-Year ended June 30, 2021 | 4 |
Stability of the EBITDA margin, considering the rapid ramp-up of new contracts
Reconciliation between operating income and adjusted EBITDA
In thousands of euros | 06.30.2021 | 06.30.2020 | ||
Operating income | 17,532 | 16,193 | ||
Depreciation of IFRS 16 rights of use | 12,268 | 11,195 | ||
Increases in operational provisions | 7,658 | 8,628 | ||
Customer relationship amortization | 7,276 | 5,602 | ||
Other non-current operating income | - | (270) | ||
Other non-current operating expenses | 4,789 | - | ||
Adjusted EBITDA | 49,525 | 41,348 | ||
As a % of revenue | 11.2 % | 11.3 % | ||
Reconciliation between operating income and adjusted EBIT | ||||
In thousands of euros | 06.30.2021 | 06.30.2020 | ||
Operating income | 17,532 | 16,193 | ||
Customer relationship amortization | 7,276 | 5,602 | ||
Other non-current operating income | - | (270) | ||
Other non-current operating expenses | 4,789 | - | ||
Adjusted EBIT | 29,598 | 21,525 | ||
As a % of revenue | 6.8 % | 6.0 % | ||
earlier due to ramp-ups in the energy and telecom | ||||
During the first half of 2021, the priority was to invest in | businesses. | |||
recruiting and training teams to take on the significant | ||||
increase in workload from contracts the group signed and | In other countries, EBITDA was €1.7 million, representing | |||
to support the roll-out of new technologies in several | 1.8% of revenue, compared with 3.4% a year earlier. In | |||
European countries. The group is preparing to accelerate | Italy and Spain, the ramp-up of major contracts signed in | |||
its growth in several countries, given the sales momentum | the telecoms sector has had a temporary impact on | |||
and new contracts signed since the end of 2020. | profitability. In Germany, restructuring the organization to | |||
Adjusted EBITDA was €49.5 million at the end of June | prepare for future growth is weighing on profitability. | |||
2021, up +19.8% compared to the first half of 2020. The | After accounting for €7.7 million in impairments and | |||
operating margin was 11.2%, virtually unchanged | operational provisions, and after amortizing the usage | |||
compared to the first half of 2020 (11.3%). Because of the | rights for leased assets (IFRS 16), worth €12.3 million, | |||
workload ramp-up, operating costs increased by + 1.7 | adjusted EBIT stood at €29.6 million, i.e. 6.7% of revenue | |||
points compared with the first half of 2020 and | compared with 5.9% for the first half of 2020. | |||
represented 79.9% of revenue, while the burden of | ||||
structural costs fell to 8.8% of revenue compared with | The first half of the year includes €4.8 million of other | |||
10.4% in the first half of 2020. | current operating expenses, which mainly consist of | |||
exceptional expenses incurred by the group to put an end | ||||
In France, adjusted EBITDA amounted to €41.9 million, | to the violent smear campaign against it. | |||
representing a margin of 15.5%, up +1.1 points compared | ||||
to the first half of 2020. The sheer volume of the fiber | Customer relationship amortization amounted to €7.3 | |||
business is driving margins, while the energy business is | million in 2021, compared to €5.6 million a year earlier. | |||
preparing to wind down smart electricity meter roll-outs, | After taking into account a tax expense of €3.6 million | |||
which will be offset by the need to install charging stations | compared to €3.7 million a year earlier, and financial | |||
and activities related to the energy transition and | income of €0.7 million compared to (€2.0) million a year | |||
renewable energies. | earlier, the group's share of net income reached €14.1 | |||
In the Benelux, adjusted EBITDA was €10.4 million, | million, compared to €10.4 million in the first half of 2020. | |||
resulting in a margin of 13.8% compared to 14.1% a year |
Solutions 30 | Financial Report for the Half-Year ended June 30, 2021 | 5 |
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Solutions 30 SE published this content on 29 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2021 16:21:05 UTC.