(Boursier.com) — The group Wavestone posted a turnover of €276.7 million for the first half of its 2023-2024 financial year, up +17%, including +12% at constant exchange rates and scope. In the second quarter, Wavestone achieved consolidated revenue of €133.4 million, dynamic growth of +16% year-on-year and +14% organically.
The firm indicates that it consolidated the recovery of its activity rate in the 2nd quarter after the significant drop at the end of the 2022-2023 financial year (71% in the 4th quarter of 2022/23). The activity rate thus rose to 73% over the past quarter as well as over the entire first half. The average daily rate stood at 900 euros over the half-year, an increase of +1.1% compared to the average selling price observed over the entire 2022-2023 financial year (890 euros). As of September 30, 2023, turnover continued to decline and now stabilized at 14% over 12 rolling months, compared to 15% as of June 30, 2023 and 16% for the entire previous year.
At mid-year, due to the uncertain economic environment and the decline in turnover, Wavestone is maintaining a slower recruitment rate compared to the previous year. As of September 30, 2023, Wavestone had 4,305 employees compared to 4,406 at the end of March at the end of the 2022-2023 financial year. Despite the moderation of recruitment efforts, the firm is targeting an increasing workforce over the entire 2023-2024 financial year.
Wavestone warns that recent months have, however, been marked by a deterioration in the economic environment, characterized by increased volatility and an increasingly marked wait-and-see attitude on the part of principals in committing their expenses. If this deterioration in the economic context significantly impacts demand in certain sectors of activity (banking, retail, services and public sector), others such as insurance, energy, luxury or transport remain better oriented. Furthermore, the firm notes good resilience of technological projects (cybersecurity, IT infrastructures, AI & Data).
The order backlog fell to 3.6 months as of September 30, 2023, compared to 4 months as of March 31, 2023 and 4.2 months as of June 30, reflecting the traditional slowdown in order intake during the summer, as well as as the deterioration of the market context. Geographically, the dynamic of activity in the United Kingdom remains strong, reinforced by the successful integration of PEN Partnership and Coeus Consulting. In the United States, however, Wavestone is operating in a currently difficult market environment, which has led the firm to slow down its recruitment efforts in the region in recent months.
Wavestone, however, confirms its annual financial objectives: to achieve organic growth at least equal to that of the 2022-2023 financial year (+7%), despite an unfavorable day effect (-1.6% over the entire financial year) . On a total scope, including the effect of the full-year consolidation of PEN Partnership and Coeus Consulting, Wavestone is therefore targeting a turnover of more than €580 million, i.e. total growth of +9%, for an annual current operating margin in around 15%.