(AOF) – Engineering group, Alten announces that its operating margin on activity increased by 31.2% to 419.6 million euros, despite wage inflation partially offset by price increases, thanks to an improvement in the activity rate and rigorous management of structural costs. In addition, the stronger contribution from international, which is more profitable, enabled the operating margin on business activity to reach 11.1% of revenue (compared to 10.9% in 2021). Operating profit amounted to 592.9 million euros, (ie 15.7% of turnover).
This operating profit includes the profit from the sale of a business for 216.3 million euros, share-based payments for 29.7 million euros and non-recurring costs of 13.3 million euros (of which 10, 6 million euros in price supplements related to acquisitions). As for its net income, Group share, it amounted to 457.6 million euros.
Turnover increases by 29.3% in 2022: +14.2% in France, +37.6% outside France. At constant scope and exchange rates, growth was +17.7% (+12.3% in France and +20.7% outside France).
Most geographic areas are experiencing strong growth, greater than or equal to 10%. All business sectors are growing, in particular Civil Aeronautics, Automotive, Defense & Security, Life Sciences, Electronics and Banking/Insurance.
As for its outlook, Alten indicates that “the beginning of the year 2023 is in line with the trends observed in 2022. Demand remains solid. Growth in activity will depend on the evolution of the geopolitical and macroeconomic environments” .
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Key points
– European leader in technology consulting created in 1988, involved in outsourced engineering and R&D and information systems and internal networks;
– Turnover of €2.3 billion split between France for 35% and international, although North America for 13%, Germany for 9%, Spain for 7%, Italy for 7%…;
– Customer portfolio balanced between BFA, services and public sector for 24%, energy and life sciences for 20%, automotive for 16%, aeronautics and space for 12%;
– Business model positioned on high-level engineering (75% of revenues in systems & products, network deployment and production engineering) and IT services to companies (consulting & PMT, cybersecurity, cloud infrastructures ) targeting 75% of international revenues in the medium term;
– Open capital, the founder Simon Azoulay, Chairman and CEO of the 9-member Board of Directors, being a minority with 14.83% of the shares and 24.25% of the voting rights;
– Very healthy financial situation, with shareholders’ equity at 58% of the balance sheet and a leverage effect of 4.1 at the end of June, with external growth being self-financed.
Challenges
– Development strategy by deploying cross-functional structures, sector diversification and international acquisitions;
– Innovation strategy designed as a vector of growth with 2 strengths – mastery of customer businesses combined with the capacity for multi-sector expertise:
– R&D efforts concentrated on 9 programs and 100 projects,
– breakdown of R&D: 36% in smart and connected systems, 23% in digital, 22% in security, 19% in sustainable innovation;
– Environmental strategy for responsible digital among the best rated in the sector:
– optimization of the environmental impact of internal systems,
– support from Innovation Labs for measurement and eco-design solutions,
– providing the customer with expertise in the transition of the digital sector;
– Benefits of the partnership in nano-edge technology with STMicroelectronics
Challenges
– Key indicators of the sector related to salaries (essential operating expenses): evolution of the workforce, mission time of consultants and billing rate (over 90%);
– Massive recruitments in 2022 (42,000, to reach 50,000 in 2024):
– Recurring speculation on the sale of the 9.2% position in Ausy;
– Maintaining the ability to pass on salary increases to contracts;
– Rebound in revenue growth in Switzerland;
– After a 31% increase in turnover and a 56% increase in net profit in the 1st half, 2022 objective: continuation of targeted acquisitions, “satisfactory organic growth”, and targeted external growth.
Learn more about the IT / DSE sector (digital service companies)
Growth hampered by recruitment
According to a study for Numeum, the digital professional organization, 79% of companies in the sector consider that their growth is hampered by the shortage of talent in the face of demand driven by digital transformation. Digital services companies forecast 5% growth for 2022. Several levers are activated by companies to attract talent, in particular remuneration, while average salaries have generally increased in the IT sector. New work organisations, career development prospects and meaningful assignments are other assets. Capgemini has therefore adopted a new agreement offering up to 70% telework to all employees. These adaptations are essential as a report from the Department of Research, Studies and Statistics (Dares) and France Strategy establishes that IT professions will be among those who will recruit the most by 2030. .