RESULTS OF 1
ER
SEMESTER 2023-24
-
Gross sales
[1]
half-year growth of +18.0%
-
A current operating result in balance
The Board of Directors meeting on January 29, 2024 examined and approved the half-year accounts closed on September 30, 2023.
In €m | 2023-24 | 2022-23 | Evolution | 2022-23 | |
(6 months) | (6 months) | in €M | in % | (12 months) | |
Turnover | 11.57 | 9.80 | +1.8 | + 18% | 20.57 |
current operating income | (0.06) | (0.28) | +0.2 | +79% | (0.26) |
Profit before tax | (0.09) | (0.37) | +0.3 | +75% | (0.59) |
Consolidated net income | (0.26) | (0.35) | + 0.1 | +25% | (0.73) |
Net income Group share | (0.25) | (0.34) | + 0.1 | +26% | (0.75) |
Shareholders’ equity, Group share | 2.70 | 2.62 | + 0.1 | + 3% | 2.84 |
Net financial debt | 6.54 | 6.60 | – 0.1 | – 1% | 6.66 |
HIGHLIGHTS OF THE SEMESTER
__________
During the first half of 2023-24, the GECI International Group (the “
Company
“) recorded sustained growth in its activities with consolidated turnover up +18.0% compared to the first half of the previous financial year.
This organic growth dynamic was driven by the development of telecoms activities, encouraged by the delivery of major contracts in Brazil, and by the solidity of financial IT and High Performance Computing (HPC) activities. These favorable developments made it possible to largely offset the contraction in outsourcing activities.
The Company’s profitability continued to recover during the half-year. With sustained commercial momentum, an agile organization and controlled costs despite an inflationary context, the Company recorded a current operating profit in balance in the first half of 2023-24.
Finally, financing through the issuance of ORNAN (Cash Redeemable Bond and/or New Shares) made it possible to meet the company’s cash flow needs in the short and medium term and to continue strengthening its financial structure.
FIRST HALF RESULTS
__________
The Company’s half-year turnover as of September 30, 2023 stood at 11.6 million euros, up +18.0% compared to the first half of 2022-23 (+18.7% at a rate of constant change) and is distributed between the
Digital
at 44.9% and the
Technology
at 55.1% with International representing 40.8% of activity.
The current operating profit (ROC) is practically in balance, i.e. (0.06) million euros, compared to (0.28) million euros in the first half of the previous financial year. The good performance of the gross margin (in value) in a context of strong growth and the continued reduction in overheads (-8% over the half-year) contribute to this improvement in operational profitability.
Both business sectors, Digital and Technology, recorded encouraging results over the half-year. The Digital division’s operating profit is close to balance at (0.1) million euros, stable compared to the first half of the previous financial year thanks to good control of operating costs. The Technology division’s operating profit was positive at 0.4 million euros (+0.5 million euros compared to the first half of the previous financial year), driven by the good direction of activities.
In millions of euros | H1 2023-24 | H1 2022-23 | ||||||
Digital | Technology | Holding | Sep-23 | Digital | Technology | Holding | Sep-22 | |
Turnover | 5.19 | 6.38 |
11.57 | 5.49 | 3.86 |
9.80 | ||
ROCK | (0.10) | 0.40 | (0.36) |
(0.06) | (0.10) | (0.08) | (0.09) |
(0.28) |
|
% of sales |
(2.0)% |
6.2% |
– |
(0.5)% |
(1.7)% |
(2.1)% |
– |
(2.8)% |
After taking into account stable net financial charges and an increasing tax charge (+0.2 million euros), the net income Group share stands at (0.25) million euros as of September 30, 2023 compared to (0.34) million euros as of September 30, 2022.
FINANCIAL STRUCTURE
__________
After taking into account the half-year result, the Group’s share of shareholders’ equity as of September 30, 2023 is positive at 2.7 million euros, compared to 2.8 million euros as of March 31, 2023. They include a total amount of 0 .15 million euros capital increases occurring through the conversion of 15 ORNAN
[2]
from the draw of December 21, 2022. This financing also allowed partial repayment of the debt.
Net financial debt thus amounts to 6.5 million euros at the end of September 2023, a decrease of 0.12 million euros compared to March 31, 2023 (6.7 million euros). It includes financial debts for an amount of 0.64 million euros (including overdrafts), the factoring advance of 1.66 million euros, ORNAN and OCA debts for 0.42 million euros , the restatement of rents for 0.63 million euros, debts linked to the acquisition of the Eolen Group for 3.45 million euros (put and seller credit), a partner current account of 0.14 million euros and cash of 0.39 million euros.
POST-CLOSING EVENTS
__________
Regrouping of GECI International shares
As indicated in its press releases dated November 15, 2023 and January 8, 2024, the Company carried out a consolidation operation of its shares by exchange of one (1) new share with a par value of 1 euro to issue ten thousand (10,000) old shares with a par value of 0.0001 euros to be regrouped. This operation took effect on January 5, 2024.
The objective of this grouping is to reduce the number of Company securities in circulation, a source of volatility and management difficulties, and to restore dynamism to the Company’s stock market life.
Following the merger operation, the share capital of the Company now amounts to 465,477.00 euros divided into 465,477 ordinary shares of 1 euro par value each.
The Company reminds that the period of suspension of the rights of holders of securities giving access to capital ended on January 6, 2024.
OUTLOOK
__________
The growth in turnover, the continued strengthening of the financial situation and the expected improvement in profitability confirm the Group in the relevance of the strategy implemented and in its ability to pursue sustainable growth.
In a disruptive environment driven by the new challenges of the digital, ecological and energy transformation of organizations and companies, the Company is pursuing its strategy of innovation and redeployment in strong growth markets, particularly in the field of HPC where the prospects, around Big Data, Cloud and Artificial Intelligence, are considerable.
At the same time, the Company is expanding its technological alliances and commercial partnerships, particularly in France and Brazil, to strengthen its IT and telecoms activities.
These alliances also aim to promote the marketing of a range of intelligent solutions with high potential for the smart city market (smart cities and associated systems such as traffic systems, public lighting, parking lots, residences, internet of things, etc.).
With the spirit of innovation that has characterized it since its creation, its mastery of complex projects, its ability to boost new technologies, the Company aims to pursue profitable growth.
The half-yearly financial report is available on the company’s website (www.geci.net).
NEXT MEETING
Annual turnover 2023-24, May 15, 2024 after market close.
ABOUT GECI INTERNATIONAL
__________
“Smart Solutions for a Smart World”
GECI International is a Group specializing in Technology and Digital. Since its origin in 1980, the Group has innovated to design and develop intelligent solutions, products and services for the Research, Industry and Services sectors.
With its recognized know-how, its ecosystem of technological partnerships, its commercial alliances and its highly qualified skills on a global scale, GECI International positions itself, with agility, across the entire value chain – advice and expertise, development and integration, outsourcing and training – to support companies and organizations in their search for competitive strategy.
GECI International is also deploying a new entrepreneurial dynamic with the development of new intelligent and technological offers in the areas of “smart cities” and the world of transport.
GECI International is listed on the Euronext Growth Paris market. ISIN code (share): FR001400M1R1 – ALGEC.
CONTACTS
__________
GECI International – Investor Relations
Such. : +33 (0)1 46 12 00 00 / [email protected]
CALYPTUS Agency – Cyril Combe
Such. : +33 (0)1 53 65 68 68 / [email protected]
[1]
after adjustment following reporting of financial elements from subsidiaries. Compared to the turnover communicated on November 14, 2023, the turnover was notably adjusted for Brazil by +0.02 million euros. Brazil’s turnover of 4.72 million euros takes into account a negative exchange rate effect of 0.07 million euros, or 0.6% of total turnover, taking into account of the revaluation of the Brazilian real against the euro during the half-year.
[2]
Upon authorization of the Extraordinary General Meeting of November 12, 2020, the Group implemented financing on the same day for a total net nominal amount of up to 9.3 million euros through the issue of a maximum number of 1,000 ORNAN reserved for YA II PN, Ltd. During the half-year, the Group carried out the conversion of 15 ORNAN, which gave rise to the creation of 200,000,000 new shares. There remained at the closing date, 15 ORNAN, which were fully converted during the month of October 2023 with the creation of 975,000,000 new shares.
Furthermore, upon authorization of the Combined General Meeting of September 29, 2022, the Company implemented financing on May 12, 2023 for a total net nominal amount of up to 9.3 million euros through the issuance of a maximum number of 1,000 ORNAN reserved for YA II PN, Ltd. During the half-year, the Company carried out a drawing of 25 ORNAN on June 25, 2023. Of these 25 ORNAN drawn, 11 were converted in November 2023 and were the subject of the creation of 1,100,000,000 new shares, while that 14 were converted in January 2024 after regrouping of shares, and were the subject of the creation of 115,641 shares. At the closing date, there remained 975 ORNAN (undrawn), representing a gross envelope of 9.75 million euros.
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