Paris, November 29, 2023 – 6 p.m.
Revenue: €538.4m (up 12.8 percent
Operating income: €48.5m (operating margin: 9.00 percent)
SII Group, which specialises in engineering business, has announced its half-yearly results, which will approved by the Management Board on December 4, 2023, and which are currently under audit
Eric Matteucci, Chairman of the Management Board commented: « The SII group ended this first half of the financial year 2023-2024 on plan. There is a contrast between sales at the top end of our forecast and an operating margin at the bottom end of our ambition. However, this performance is set against a backdrop that is becoming increasingly complex with each passing month. I would therefore like to pay tribute to the work carried out by our teams, both in France and internationally, which has enabled us to post good results once again. We are entering the second half of the year with vigilance and confidence. »
Appreciable Business Growth in the first half of the year
The SII group posted a turnover of €538.4m in the first half of 2023-2024, up 12.8%. Business growth is in line with the targets announced. In a difficult environment marked by a calendar with 3 fewer working days, a slowdown in the economy and a sensitive geopolitical context, this performance should be highlighted.
In France, sales increased by 12.8% (of which 3.4% was organic) to €214.4m. The performance was driven by the sector Aerospace-Defence remained the leading contributor to turnover in the first half of the year. The group has adjusted its recruitment policy to adapt to the fall in demand. During the first half 723 new employees joined the Group’s workforce in France. At the same time, staff turnover returned to a level (21.3%) close to historical levels.
Outside France, sales grew at a more sustained rate of 16.5% (of which 13.8% was organic). Sales for the half-year came to €324.0m. Poland, the largest contributor to sales, continued to expand, with growth of 16.8% (including 12.5% at constant exchange rates). Germany is also continuing the strong upturn begun last year, with entirely organic growth of 35.2% over the period. The Aerospace and Automotive sectors accounted for the bulk of performance. Other countries, such as Romania, the United Kingdom, the Czech Republic, Sweden and Switzerland, played a full part in the growth of the Group’s international activities. Spain (-14.2%) and Belgium (-21.9%) posted significant declines with the discontinuation of a number of unprofitable activities.
Overall, growth as driven mainly by several sectors, including Aerospace-Space-Defence (+11.1%), Energy (+22.9%), Automotive (+34.9%) and Healthcare (+23.7%).
Profitability was maintained
The SII Group’s results were impacted by 3 fewer working days in the first half than in the previous year. On the other hand, the TACE (Rate of Activity Excluded Leaves) in France is in fall of more than 1 percent on this period. Lastly, investments in structuring the Group continued during this semester. Despite all the unfavourable factors, operating margin was maintained at a satisfactory level of 9.00% for the SII Group as a whole.
The operating margin stood at 3.6% in France, impacted by three fewer working days and the fall in TACE. The international operating margin came to 12.6%, boosted by a rebound in business in Germany, a very good performance in Poland and several subsidiaries, which helped to offset the negative impact of the calendar.
After taking into account the financial result and taxes, the net result amounted to €41.1 million, i.e. a net margin of 7.6%.
At September 30, 2023, the balance sheet showed a net cash position (excluding IFRS 16) of €169.7m, compared with €163.7m at the end of March 2023. Shareholders’ equity stood at €282.0 m, compared with €266.5 m at the end of March 2023.
Outlook
As expected, the SII Group continued to grow at a strong pace during the first half of its 2023-2024 financial.
However, the changing geopolitical and, above all, economic climate on a global scale makes it difficult to project over a time horizon longer than q quarter. In line with the announcement made at the time of the first-half revenue’s publication, the SII Group confirms that it expects to achieve growth of between 7 and 10% for the third quarter of its 2023-2024 financial year.
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