(AOF) – Down at the opening, Alten shares have since recovered and increased by 0.71% to 142 euros. The engineering and IT services specialist unveiled annual results last night without any real surprises. In 2023, Alten recorded operating income down 8.8% to 382.8 million euros, or 9.4% of turnover compared to 11.1% a year earlier.
“The integration of less profitable companies, a satisfactory activity rate but lower than that of 2022, exceptionally high; an increase in structuring expenses as well as an unfavorable calendar explain the decline in the operating margin compared to that of 2022 “, explained the engineering and IT services specialist.
Already published, turnover amounted to 4.07 billion euros, an increase of 7.6%. At constant scope and exchange rates, growth is 9% (10.2% in France and 8.4% outside France).
Satisfactory organic growth in sight in 2024
The published free cash flow amounts to 146.6 million euros. Corrected for the exceptional tax on a capital gain on sale made in 2022 in the amount of 37.1 million euros, it amounted to 183.7 million euros.
“As expected, organic growth slowed during 2023, reflecting the normalization of the economy,” commented Alten. The latter warns that this “slowdown should be confirmed during the first half of 2024, before a probable rebound in the second half”.
Alten plans to “achieve satisfactory organic growth in 2024 and will continue its targeted external growth strategy”. The market currently expects growth of 4.2%. Alten ended 2023 with a net cash position of €297 million.
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Key points
– European leader in technology consulting created in 1988, involved in outsourced engineering and R&D and internal information systems and networks;
– Turnover of €2.3 billion distributed between France for 35% and international, including North America for 13%, Germany for 9%, Spain for 7%, Italy for 7%…;
– Balanced client portfolio 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 businesses (consulting & PMT, cybersecurity, cloud infrastructures ) aiming for 75% of international revenues in the medium term;
– Open capital, the founder Simon Azoulay, president 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 equity at 58% of the balance sheet and leverage of 4.1 at the end of June, external growth being self-financed.
Challenges
– Development strategy through deployment of cross-functional structures, sectoral diversification and international acquisitions;
– Innovation strategy designed as a vector of growth with 2 strengths – mastery of client businesses combined with the capacity for multi-sector expertise:
– R&D efforts concentrated on 9 programs and 100 projects,
– distribution of R&D: 36% in intelligent and connected systems, 23% in digital, 22% in security, 19% in sustainable innovation;
– Environmental strategy for responsible digital technology 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 client with expertise in the transition of the digital sector;
– Benefits of the partnership in nano-edge technology with STMicroelectronics
Challenges
– Key sector indicators linked to salaries (essentially operating costs): change in workforce, consultant mission time and invoicing rate (greater than 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 capacity to pass on salary increases to contracts;
– Rise in income growth in Switzerland;
– After an increase of 31% in turnover and 56% in net profit in the first half, 2022 objective: continuation of targeted acquisitions, “satisfactory organic growth”, and targeted external growth.
Find out more about the IT / ESN sector (digital service companies)
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Artificial intelligence now regulated in Europe
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