Press release from Business Wire India
Source: Steria
Friday, July 29, 2011 02:27 PM IST (08:57 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
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Steria Reports Organic Revenue Growth of 5.6% in the Second Quarter of 2011
15.5% increase in underlying attributable net income in the first half of 2011

Noida, Uttar Pradesh, Pune, Maharashtra and Chennai, Tamil Nadu, India, Friday, July 29, 2011 — (Business Wire India) — — Like-for-like revenue increased by 3.4% in the first half of 2011 relative to the first half of 2010.
— Revenue growth saw a marked acceleration during the second quarter to +5.6% compared with +1.3% during the first quarter thanks to a continued positive dynamic in Continental Europe and a return to growth in the United Kingdom.
— The operating margin[1] was stable versus the first half of 2010, leading to an operating margin rate of 6.7%.
— First half 2011 attributable net income increased by 15.5% to ?38.3 million.
— The pipeline, measured as a multiple of revenues, saw growth across all regions and stood at 2.5 times versus 2.2 times at the end of June 2010.

On July 28, 2011, the Supervisory Board of Groupe Steria SCA examined the consolidated financial statements submitted by the General Management.

Second quarter 2011 activity

During the second quarter 2011, the Group enjoyed a good commercial dynamic which continued in the month of June despite an unsettled European environment.

On a like-for-like basis, revenue growth in second quarter 2011 revenues saw a marked acceleration to +5.6% compared with +1.3% during the first quarter of 2011. This increase was mainly explained by a return to revenue growth in the United Kingdom and an acceleration in the revenue growth of the Other Europe zone.

At the end of the first half 2011, the book to bill ratio stood at 1.03 (compared with 1.13 at June 30, 2010, a figure that had been significantly inflated during June 2010 by the Cleveland Police contract amounting to ?200 million).

At June 30, 2011, the pipeline, measured as a multiple of revenue, was up across all the Group’s geographic areas and stood at 2.5 times versus 2.2 times in the previous year.

In the United Kingdom, excluding currency impact, revenue growth was in line with expectations, returning to positive territory during the second quarter with growth of 3.4% versus the second quarter of 2010. A significant highlight of the quarter was the first contract extension with the Cleveland Police Authority increasing the scope of activities. This extension to the original contract illustrates both the Group’s effectiveness in terms of service execution and the potential scope for generating cost savings in the UK public sector via Business Process Outsourcing services. It should also be noted that NHS SBS, Steria’s joint venture with the NHS, recorded 20.5% revenue growth for the first half[5]. At June 30 2011, the book to bill ratio stood at 0.94 with the pipeline increasing to 2.6 times revenue versus 2.3 times at June 30, 2010.

In France, organic revenue growth amounted to 3.8%. Second quarter activity remained dynamic and was notably characterised by a strong trend in the public and financial sectors. At June 30, 2011, the book to bill ratio was similar to that of the previous year at 1.05.

In Germany, organic revenue growth was 4.3% driven by a strong dynamic in the public sector. New orders saw a significant increase enabling the book to bill ratio to reach 1.16 at June 30, 2011 versus 0.98 in the previous year.

The Other Europe region made strong progress during the first half 2011 with like-for-like revenue growth of 14.7%. Scandinavia, Belgium/Luxembourg and Switzerland all posted double-digit growth rates whilst revenue in Spain decreased during the quarter. At June 30, 2011, the book to bill ratio for the region stood at 1.09 versus 0.99 at June 30, 2010.

Results for the first half 2011

For the first half of 2011, the Group’s operating margin1 amounted to ?57.6 million versus ?57.1 million in 2010, leading to an operating margin rate of 6.7%.

The other income and operating expenses for the half year notably included ?7.8 million of non-recurring costs linked to the rationalisation and optimisation of premises during 2011 in France and India within the framework of the transformation programmes implemented by the Group.

Net financial expense saw a significant improvement to -?1.7 million (versus -?9.7 million in the first half 2010) mainly due to a marked reduction in the net cost of financing.
Attributable net income amounted to ?22.0 million during the first half 2011 compared with ?25.2 million in 2010. Excluding non-recurring items including those linked to the rationalisation of buildings, attributable net income rose by 15.5% to ?38.3 million.

Outlook

The Group confirms its full year 2011 guidance for organic revenue growth of between 3% and 4% and an operating margin rate1 at least equal to that of 2010.

An information meeting on the first half 2011 results will take place on July 29, 2011 at 9:00am CET by webcast at www.steria.com (investors section).

Next publication: third quarter 2011 revenue on Wednesday November 2, 2011 after market close

Appendices: Consolidated income statement, consolidated balance sheet, summary cash flow statement and operating margin rate1 by geographical region at June 30, 2011.

A video interview with Fran├žois Enaud, General Manager of Steria SCA can be viewed at www.steria.com

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CONTACT DETAILS
Sachdev Ramakrishna, Director – Marketing, Steria India Ltd., +91 (120) 4085000 X 5319, sachdev.ramakrishna@steria.co.in

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY

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