(AOF) – At the end of the 2023/24 financial year, Wavestone generated net income, group share, of 58.2 million euros, an increase of 16%. Recurring operating profit amounted to €101.3 million, up 32%, representing a recurring operating margin of 14.5%, stable over one year. It was expected at around 15% by the consulting firm specializing in business transformation. On a pro forma basis, established as if the acquisitions of Q_Perior and Aspirant Consulting had taken place on April 1, 2023, the recurring operating margin amounted to 13.1%.
Already published, Wavestone’s consolidated turnover amounted to 701.1 million euros, up 32%, including 9% internal growth.
Over the entire financial year, the firm recruited around 800 new employees, excluding Q_Perior and Aspirant Consulting. At the end of the 2023/24 financial year, turnover stood at 14% compared to 16% for the entire previous financial year.
Wavestone delivered solid operating cash flow of €83.1 million in 2023/24, double the €41.1 million recorded the previous financial year (+102%).
The board of directors will propose to the General Meeting of Shareholders of July 25, 2024 the payment of a dividend of 0.38 euros per share for the 2023/24 financial year, identical to that paid in 2022/23, representing 16% of net profit, group share.
“The start of 2024 is marked by demand which remains sluggish, and a wait-and-see attitude which continues in the implementation of new consulting expenses. This situation should last at least until the end of the first half of financial year 2024/25,” the company commented on its outlook.
In this economic environment, “in addition to the success of the combination with Q_Perior, the firm intends to maintain the priority given to sales and favor profitability over growth.” Consequently, Wavestone intends to maintain a slowed recruitment policy in 2024/25 by targeting around 1,000 recruitments across the entire scope.
For the 2024/25 financial year, Wavestone has set itself the objectives of achieving growth of around 3% to 5%, i.e. a consolidated turnover of between 972 and 991 million euros, and a recurring operating margin greater than 13%.
Finally, the company recalls that Pascal Imbert announced in 2021 that he would leave his position as general manager in the coming years. The transition to a new organization of the firm’s general management is planned from 2025 or 2026, once the Q_Perior integration process is finalized. In order to better guide and support the work in progress, a tight and dedicated nomination committee was created on April 1, 2024.
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