(Boursier.com) — THE TREND
The trend remained depressed at the end of the week, with a further decline of 0.40% in the CAC40 this Friday to 7,185 points at closing… The US central bank weighed down the markets in the middle of the week, signaling a possible increase additional rate increase by the end of the year, to ensure inflation is brought back towards the 2% target… Interest rate projections for the end of 2023 range from 5.5 at 5.75%, which signals a potential new turn of the screw of a quarter of a point. Expectations have also risen regarding rates for next year, which has shaken the markets and in particular the Nasdaq…
Thus, the Fed’s various hypotheses argue for a lasting continuation of restrictive monetary policy, even if J. Powell indicated that the central bank was “close to its objective”, in other words close to the rate peak.
On the old continent, the euro zone economy will probably contract in the current quarter and is not expected to return to growth anytime soon, despite a slight recovery in activity in September, preliminary results of the monthly survey carried out by S&P Global and HCOB among purchasing managers (PMI).
The composite index, which combines services and manufacturing activity and is considered a reliable barometer of economic health, is at its lowest level in 33 months. It stood at 47.1 in September compared to 46.7 in August and a Reuters consensus of 46.5. The 50 mark separates expansion and contraction of activity…
The euro/dollar parity reaches $1.0665 this evening. A barrel of Brent is trading at $93.65.
RISING VALUES
Bastide (+11%) with Ose
Believe rises by 7% with Inventiva (+6%), SMCP and Gensight
Esso recovers almost 5% with Ubisoft (+4.5%) and Linedata
Akwel : +3% followed by Vivendi (+2%) and Waga
Eramet (+2%) Following the unilateral offer received from INEOS Enterprises on July 25, 2023 for the repurchase of 100% of the shares ofEramet Titanium & Iron (“ETI”), the group announces that it has today sold its Norwegian subsidiary for a value of $245 million. The transaction thus completed is final and is no longer subject to any conditions, all regulatory authorizations having been obtained by INEOS Enterprises prior to Eramet’s acceptance of the offer received.
ETI is a Norwegian plant processing ilmenite into titanium dioxide slag for the pigment industry. It also produces high purity cast iron for the European foundry market.
This sale, with immediate effect, allows Eramet to strengthen its balance sheet and will contribute to financing its projects in the metals necessary for the energy transition.
Icade : +1.5% with Arkema, Kering
bioMérieux (+0.8%) The group simultaneously filed a request for 510(k) accreditation and CLIA1 waiver for the BIOFIRE SPOTFIRE Respiratory/Sore Throat (R/ST) panel with the US Food and Drug Administration (FDA) . This panel already benefits from CE marking (IVDD2).
The COVID-19 pandemic has demonstrated the need for healthcare professionals to have diagnostic tests as close as possible to the patient, in order to quickly provide actionable results.
The BIOFIRE SPOTFIRE R/ST panel is a unique multiplex PCR3 test capable of detecting in approximately fifteen minutes 15 of the bacteria, viruses and viral subtypes most commonly responsible for respiratory or pharyngeal infections.
FALLING VALUES
Solutions30 (-17% to 2.20 euros!) For the entire first half of 2023, the consolidated turnover of Solutions30 amounts to €519.1 million, an increase of 16.8%.
Adjusted EBITDA stood at €27.5 million at the end of June 2023, or 5.3% of turnover, compared to €29.6 million a year earlier at 6.7% of turnover. The adjusted EBIT is 5 ME against 6.7 ME.
The Group’s share of net income reached -14.4 ME, compared to -12.3 ME.
SQLI (-5%) recorded a 5th consecutive half-year of organic growth and saw its turnover reach 128.3 million euros at the end of June 2023 (+3% compared to the end of June 2022, of which +2.3% at constant exchange rates). The Group recorded sustained growth in revenues generated by its main customers, a strategic priority, offsetting a slight decline in the rest of the customer base.
Operating profit (Ebit) reached 6.7 ME, after taking into account 3.2 ME of non-current net charges (around half linked to the recognition, without impact on cash flow, of the long-term incentive plan term implemented in 2022).
Thanks to the reduction in the net cost of debt (1.6 ME compared to 2.3 ME in the first half of 2022 which included the cost of setting up new financing) and the tax charge (1.7 ME compared to 2 ,3 ME), consolidated net profit amounts to €3.4 million, up +31% year-on-year.
As of June 30, 2023, SQLI had gross cash flow of €17.9 million (22.2 million at the start of the year). The variation mainly comes from a reduced use of deconsolidating factoring and a seasonal increase in working capital requirements.
Net financial debt (excluding IFRS 16) remains very low, at 9.2 ME, for equity of 116.3 ME, or a very reasonable leverage effect of 8%.
In a context of slight growth in demand and thanks to the first effects of the measures implemented since the start of the year, SQLI reiterated its revenue growth objective in 2023, aims to preserve its profitability, and continues to study external growth opportunities.
Cegedim down 5% with Guerbet
Orpea declines by more than 3% with LDC, Clariane, Lhyfe, Ekinops, Imerys
Bigben loses more than 2% followed by Axway, Neoen, P&V, Genfit, ALD, Altarea, Veolia
Alten (-2%). Growth in activity stood at 12.2% over the half-year, 9.4% in France and 13.5% outside France. At constant scope and exchange rates, growth is 11.4%. Operating income from activity amounts to 188 ME, 9.2% of turnover versus 11.4% in June 2022. The integration of less profitable companies; an activity rate lower than that of 2022, an increase in structuring expenses as well as the seasonality of the activity explain the decline in the operating margin compared to June 2022.
The Group’s share of net income stands at €111.1 million, or -20.1%. Net cash stood at +340.3 ME at the end of June 2023.
Even if the pace of growth slows, Alten should achieve organic growth of around 10% in 2023, a satisfactory operating margin and will continue its targeted external growth strategy.
Getlink : -2% with Carrefour, Vicat, Michelin, Renault, Argan
Atos (-0.4%) Faced with attacks from certain shareholders on the management of the company and its ongoing restructuring project, the board of directors of the digital services company met and studied the letters sent to it were sent until September 18. The latter chose, rather than meeting the company to express their points of view and obtain answers, to publicize them, in disregard of market recommendations on dialogue between a company and its shareholders, asserts Atos.
The board of directors responded to these letters by firmly contesting the allegations contained therein and emphasizing that it had always acted in the sole corporate interest of Atos. In particular, it was recalled that:
– the proposed sale of Tech Foundations announced on August 1, 2023 would make it possible to realize, in the best possible conditions given current circumstances, the proposed separation of Eviden and Tech Foundations which was announced on June 14, 2022,
– Atos entered into exclusive negotiations with EP Equity Investment on August 1, 2023. It was not possible to announce earlier, during the general meeting on June 28, 2023 or during the communication on the first half results on July 28, 2023, an entry into exclusive negotiations which did not yet exist. It was recalled that the market had been informed as early as October 2022 of the existence of expressions of interest concerning a potential acquisition of its Tech Foundations activity,
– on August 1, 2023, an entry into exclusive negotiations for a proposed sale of Tech Foundations was announced: this project is subject to the fulfillment of various conditions. It will be submitted, as the company has committed, to the approval of shareholders, going further than the recommendation of the Financial Markets Authority which only provides for a non-binding vote on the matter,
– the shareholders will in this case be able to decide on the proposed transfer and the related capital increases, on the basis of information which will be completed during the possible signing of the final agreements and before a general meeting. At this stage, the company made a communication on August 1, 2023 on the proposed transaction that it considers appropriate,
– when reference was made during the general meeting of June 28, 2023 to a lack of capital increase, this concerned the implementation of the plan announced on June 14, 2022 which was the scenario on which the company was working. This assertion could not apply to a proposed operation which only became concrete on August 1, 2023,
– under these conditions, the recent personal indictment of managers and administrators is unfair and unjustified. In particular, the management package project, which was proposed to the entire future management team of Tech Foundations and not to certain managers only, is usual in this type of operation. In addition, this management package would be supported exclusively by EP Equity Investment if the operation materializes,
– in addition, the board of directors has always ensured respect for good practices and the social interest during the negotiations, informed by the Finexsi and BTSG firms on various subjects specified in the press release of August 1, 2023.
The systematic, unjustified criticism of the company and its orchestrated media coverage harm it as well as its teams, its employees, its long-term shareholders and its customers. It plays into the hands of short sellers and others whose interest is to see the company’s stock price decline. The company will not hesitate, if it considers it appropriate, to refer the matter to the competent courts to sanction all maneuvers aimed at destabilizing it.
Despite unfounded criticism, the company and its board of directors remain convinced of the importance of dialogue with shareholders and are always open to a constructive exchange, concludes Atos.
Sanofi (-0.4%) had announced during the second quarter earnings conference call that it expected exceptional COVID-19-related revenues of around €400 million in H2 2023.
An improvement in gross margin is anticipated for FY2023 due to growth in Specialty Medicine and COVID-19 despite the impact of Aubagio LoE.
OPEX growth is also anticipated in the second half of 2023 due to investments in launches, ‘R&D’ and autonomous expenses.
Capital gains linked to product sales should reach around 200 million euros in H2 2023 (around 600 million euros for the 2023 financial year).