First-half 2006 results and second-half outlook
- Turnover up sharply
- Net profit in line with expectations
- Continued expansion in Europe
Noisy-le-Grand, 21 September 2006 - Staff&Line, the specialist in IT Management, has released first-half 2006 results for the period ending 30 June 2006. These consolidated figures include three companies from SIGHT acquired early this year: Staff and Line Software y Servicios in Spain, Staff and Line Italia in Italy and Staff and Line Software & Soluçoes in Portugal.
The first-half was highlighted by robust sales.
- Turnover surged to €4.37m, up 58% year-on-year and 13% organic growth.
- EasyVista continued to be a success: license sales climbed 18%, fuelled by EasyVista, which represents 90% of license sales (65% in 2005).
- Penetration in Europe is proceeding apace: International sales, which now account for 33% of total turnover (16% in 2005), surged by over 300% €1.437m from €450,000.
First-half earnings structurally in red given seasonal sales effect.
As stated during the IPO, the operating profit/loss in the first half is not a good indicator of Staff&Line’s annual profitability, since it includes costs not directly related to sales on the period, notably R&D and marketing costs. Roughly 40% of annual turnover is generated in the first six months in comparison with 50% of annual costs.
Summary of H1 2006 consolidated P&L
| € 000s) | 30.06.2006 |
30.06.2005 |
| Sales | 4 376 |
2 756 |
| Personnel costs | 3 049 |
1 965 |
| Purchasing and outsourcing | 1 820 |
951 |
| Operating profit | (493) |
2 756 |
| Net financial income/(expense) | (28) |
28 |
| Pre-tax profit on ordinary activities | (521) |
(132) |
| Net profit* | (407) |
(134) |
*A deferred tax asset in the amount of €125,000 was used in 30/06/2006
Following the integration of the SIGHT group, personnel costs remain proportionately stable. The rise in outsourcing costs is related to the integration of the SIGHT group (initial translation, recruitment, training costs), which has a one-off negative impact of earnings.
The group has the means to pursue its expansion based on its financial soundness.
Summary of consolidated balance sheet at H1 2006 in €000s
| Assets | 30.06.2006 | Liabilities and Equity | 30.06.2006 | |
| Fixed assets | 1 109 |
Shareholders’ equity | 6 369 |
|
| Current assets | 3 923 |
Long-term debt* | 569 |
|
| Cash position (cash + mktble securities) | 4 986 |
Current liabilities | 2 290 |
|
| Other assets | 494 |
Other liabilities and equity | 1 284 |
|
| Total Assets | 10 512 |
Total liabilities and equity | 10 512 |
including € 539,000 in debt less than one year
On 30 June 2006 and following the acquisition of SIGHT, Staff&Line had a cash position of €5m, with little debt.
Continued expansion in Europe
Staff&Line, the only independent player on the market, aims to become the European leader in the publication and commercialisation of IT Management software. The acquisition of the SIGHT group in January 2006, the integration of which was completed in June, is helping Staff&Line to significantly bolster its positions in southern Europe. The recent acquisition of SAM UK, the impact of which will mainly be felt in 2007, opens the door to one of the biggest markets in Europe.
As announced previously, Staff&Line intends to continue expanding in Europe and is studying an acquisition in Germany.
In regard to Staff&Line:
Staff&Line has positioned itself as a specialist on the IT management market since its creation in 1988. The company is developing a range of EasyVista applications for organisations of all sizes covering the entire life cycle of IT assets, including: incident and problem management, change management, configuration management, inventory, portals for users and tele-distribution. EasyVista is certified ITIL compatible by the independent certification organisation, PinkElephant. With operations in France, Italy, Spain and Portugal, Staff&Line boasts over 3,300 clients in the banking, insurance, industrial, office, public administration, IT outsourcing and advisory sectors. Staff&Line is a founding member of itSMF France and a member of AFDEL (Association Française Des Editeurs de Logiciels). Staff&Line is listed on the Paris Stock Exchange (Alternext). For further information, please visit us at www.staffandline.fr
YOUR CONTACTS
Jamal LABED Marie-Hélène RIVIERE
Phone: +33 (0)1 55 85 91 08 Phone: +33 (0)1 42 26 30 72
jlabed@staffandline.com mh.riviere@investor-relations.fr
CODES:
ISIN: FR 0010246322
Mnemo ALSTA
Listed on Alternext since 20 October 2005
www.staffandline.fr
