Wavestone: net margin pinch in 2022/2023


(Boursier.com) — At the end of the 2022/23 financial year, the turnover of Wavestone amounted to 532.3 ME, up +13% over one year.

At constant exchange rates, it amounts to 528.6 ME, in line with the objective of a consolidated turnover of more than 525 ME.

At constant exchange rates and scope, annual growth was +7%.

In 2022/23, current operating income amounted to 77 ME, against 74.8 ME a year earlier, an increase of +3%.

The current operating margin thus stood at 14.5%, in line with the level communicated on March 8, 2023, which included a dose of caution vis-à-vis the initial target of 15% due to the decline in the activity rate in the 4th quarter.

Net income group share came to €50.1 million at the end of the 2022/23 financial year, down slightly from 2021/22. The net margin stood at 9.4% in 2022/23, compared to 10.9% a year earlier.

At the end of the 2022/23 financial year, Wavestone generated cash flow of €83.8 million, up +6% compared to the previous financial year.

The Board of Directors will propose to the General Meeting of Shareholders of July 27, 2023 the payment of a dividend of 0.38 Euro per share for the 2022/23 financial year, identical to that paid in 2022, representing 15% of net income group share.

The 2023/24 financial year begins in a less buoyant market environment, in which it is difficult to identify lasting sectoral trends. Despite this context, Wavestone intends to gradually restore its level of activity during the year.

Throughout the year, the firm will make the intensity and agility of commercial action its priority, in order to take advantage of market segments and clients presenting the best development opportunities. In terms of recruitment, the firm will on the other hand slow down its efforts, due to the market environment, but also to the fall in turnover.

The firm is also continuing its actions in terms of external growth, giving priority to the United Kingdom and the United States, without excluding tactical operations in other geographies. The firm also remains attentive to opportunities for more transformative mergers.

For the 2023/24 financial year, Wavestone has set itself the objective of achieving organic growth at least equal to that of the past financial year, despite an unfavorable day effect.

Taking into account the impact of the full-year consolidation of PEN Partnership and Coeus Consulting, Wavestone is targeting consolidated revenue of more than €580 million for the 2023/24 financial year, i.e. total growth of 9%.

In terms of profitability, the firm aims to achieve an annual current operating margin of around 15%. It should be noted that the growth and profitability of the 1st half of the financial year will be penalized by an unfavorable day effect of -2.4% compared to the 1st half of the previous financial year.

The objectives mentioned above are at constant exchange rates and excluding new acquisitions.



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