(Boursier.com) — Alten fell 1.3% this Friday to 143.90 euros, while the group unveiled strong half-year results, the pace of activity remaining “very sustained”… The operating profit from activity amounted to 208.6 million euros over the first 6 months of the year, a leap of 52.1% over one year, for revenues of 1.86 billion euros (+30.9%).
Business growth was +18.4% in France and +38% internationally. At constant scope and exchange rates, growth was 19.8% (14.5% in France and 22.8% outside France). All business sectors are growing and have exceeded their pre-crisis level, including Civil Aeronautics and Automotive. Most geographic areas are showing strong organic growth, above 15%. Only Scandinavia and Switzerland (7% of turnover in total) have growth of less than 5%.
The significant improvement in the activity rate, the strong growth of the international business, which is more profitable, and the rigorous management of structural costs enabled the operating margin to increase to 11.4% despite the evolution of salaries (9, 8% in June 2021). After taking into account the tax charge for 48.3 ME, the net income, Group share amounted to 139 ME.
Cash flow (excluding IFRS16) stood at €213.8 million, up 51% compared to June 2021. Working capital requirement increased by €154.6 million due to the strong increase in activity and seasonality. The DSO is also progressing. Capex represents 11 ME. As a result, the free cash flow amounts to 1.1 ME. Alten has self-financed its internal and external growth and its dividends and has an intact investment capacity (gearing: -4.1%).
No fear for the future
While the first half of 2022 was a continuation of 2021, Alten should achieve organic growth and a satisfactory operating margin in the second half of the year and will continue its targeted external growth strategy, specifies the group’s management.
“We were expecting a solid publication, but Alten manages to do even better (MOA 11.4% +160bp vs PZP 10.8% +100bp)” comments Portzamparc who believes that “the supporting factors (strong growth, activity rate higher than the standard, etc.) were known, but contributed more markedly”… The analyst continues: “Note that cash generation is almost nil in this H1, but this is not a surprise due to strong growth (turnover +31% including +20% LFL) and the fact that June 30 is the high point of working capital… We are expecting a constructive message from today’s meeting, which will highlight the uncertainties but also the absence slowdown in demand for the moment” concludes the analyst who remains on the buy side, aiming for a price of 143.90 euros.