(AOF) – Solutions 30 posted sales up 11.6% to 246.1 million euros in the fourth quarter. Internal growth came out at 10.1%. It was supported by Benelux, which recorded purely organic growth of 51.3% to 69.9 million euros. In France, Solutions 30 achieved a turnover of 106.8 million euros, down 7.5%. Order intake for the year reached nearly 920 million euros, “a historically high level”.
The complete financial results of this “transition” exercise will be published on April 20 after the market closes. They should show an EBITDA margin that is still under pressure from time to time due to the continued increase in expenses incurred over the half-year; price increases obtained later than expected and the impact of the tightening of operational conditions for the execution of contracts in the telecoms sector in France.
“For the 2023 financial year, the good momentum at the end of 2022 as well as the excellent commercial activity for the financial year confirm the prospects for a return to double-digit growth, making it possible to cross the turnover”, specifies Solutions 30. Revenues reached 903 million euros in 2022.
Solutions 30 is now aiming for a turnover of around 2.5 billion euros in the medium term. To finance this strong growth, the group explains that it has implemented a prudent financial policy aimed at maximizing cash generation and thus self-financing the increase in working capital requirements, while maintaining a low-indebtedness balance sheet structure.
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Key points
– European number 1 in multi-technical services for the deployment and maintenance of technical services, created in 2003;
– Turnover of €874 million achieved 58% in France, 15% in Benelux and the rest in Italy, the Iberian Peninsula, Germany and Poland;
– Revenues derived 43% from telecoms (30% share of the French market), ahead of energy and the IT sector;
– “Better, faster, smarter” business model:
– combining internal and external growth with duplication of the French model in Europe in order to address large accounts and new markets,
– based on 4 pillars: sectoral and geographic diversification, targeted acquisitions, and unique operational organization with the S3net platform for sharing expertise and providing human skills;
– Open capital, Gianbeppi Fortis, co-founder and chairman of the management board, holding less than 5%, ahead of Karim Rachedi with 7.3%, Alexander Sator chairing the six-member supervisory board;
– Very solid financial position with shareholders’ equity of €197 million against net debt of €33 million.
Challenges
– Growth strategy based on self-financing of development, geographical transition towards a rebalancing of invoicing and operational transition in France;
– Innovation strategy focused on the constant improvement of the S3net platform (annual investments of 1 to 2% of turnover) and on the new market for connected equipment via the “ideas laboratory”;
– Environmental strategy with 2 components – offer of innovative services with less environmental impact and involvement of suppliers and partners in the group’s CSR effort;
– Recurring revenues, drawn 57% from maintenance activities and continued contract wins.
Challenges
– Sensitivity of turnover, for more than 1/3% of the total, to the first three customers;
– Inflation offset by price increases on all contracts, existing and new, and strict cost control;
– Reconquest of investors after the erosion of 2022 sales, due to the low deployment of optical fiber in Europe, to disruptions in supply chains;
– Execution of the activity recovery plan in France: regaining market share in telecoms (waiting for a 2nd phase of consolidation), expansion of offers in energy, connected objects, mobility and electrification vehicles, and strengthening synergies with the reassignment of technicians to high-potential activities;
– Recurrent speculation on the entry of a reference shareholder into the capital;
– After stable turnover in 2022, 2023 objective of more sustained growth, accompanied by an improvement in profitability.
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. .