PRODWARE: Annual Results 2016

  • 46.6% recurring revenue (Saas) increase
  • EBITDA margin at 18.2% (+2.0 point), is €31.9m
  • Progression of 66.3% of Net income Group share, with €9.4m

PARIS--()--Regulatory News:

PRODWARE (Paris:ALPRO):

Under IFRS

Audited - in €m

  2016   2015   Variation
Consolidated revenue   175.8   181.8   - 3.3%*
EBITDA

As % of revenue

  31.9

18.2%

  29.5

16.2%

  + 8.3%

+ 2.0 pts

Current operating income

As % of revenue

  15.8

9.0%

  15.4

8.7%

  +2.6%

+ 0.3 pt

Operating income

As % of revenue

  14.8

8.4%

  9.8

5.4%

  + 50.6%

+ 3.0 pts

Net Income, Group share

As % of revenue

  9.4

5.4%

  5.7

3.1%

  + 66.3%

+ 2.3 pts

* on a comparable basis, the change is -0,8%

On a comparable basis, turnover nearly stable
In 2016, the revenue of Prodware amounts to €175.8m against €181.8m in 2015, fall of 3.3%. On a comparable basis, the activity is nearly stable (- 0.8%).
This evolution is related to the change of sales model towards Saas which generates a reduced immediate turnover but brings a recurrence of activity on the other hand.
In 2016, the sales in Saas mode increase by 46.6% and represent from now on a little more than 10% of the total revenue against 7% in 2015, either €18.5m in 2016 against €12.6m in 2015.
The turnover on the French-speaking zone is established to €77.4m, in fall of 3.2%. The activity with International reaches €98.5m, in progression of 2.9% compared to 2015. It accounts for from now on 56.0% of the activity of the Group against 52.7% in 2015.

Progression of profitability

In 2016, Prodware appreciably improves its profitability after one year 2015 marked by nonrecurring costs of integration of the European subsidiaries.
The EBITDA arises in rise of 8.3% to €31.9m, or 18.2% of the turnover.

After a rise of €2.3m of depreciation of assets following the progression of the investments in the change of the Group’s offering, the current operating income amounts to €15.8m against €15.4m in 2015.

The rate of current operating income arises thus to 9.0% of the turnover, in rise of 0.3 point compared to 2015.

Thanks to the high reduction of the expenses of European subsidiaries integration, the operating income shows a growth from 50.6% to €14.8m against €9.8m in 2015.

The establishment of a €79m Euro PP loan in January 2016 intended to finance the change of the Group’s offering and to refinance its debt MLT, generates a rise of €2.1m of the financial expenses on the exercise, including €1.7m nonrecurring (financial expenses related to this fund raising).

After taking into account a financial result of €(5.6)m, the Group’s share of net income totalled €9.4m, or a rise of 66.3%.

Solid balance sheet
At December 31st, 2016, Prodware’s balance sheet showed €118.9m in equity, up 8.0% from the end of 2015.
Following the establishment of the €79m Euro PP loan, the group’s net debt ratio remained under control at 57.6% versus 42.1% at 31 December 2015.

Dividend
With confidence from its outlook, Prodware wishes to propose to the general meeting of June 19th, 2017, the distribution of a dividend of 0.04 € per action, compared to 0.03 € last year.

After financial closure event : acquisition of NEREA
In order to reinforce its positions and to make a complete offer around Dynamics 365 in the Benelux countries, Prodware carried out the acquisition of NEREA.
NEREA is a leader in Belgium and in Luxembourg on the Microsoft Dynamics CRM solutions and specialized in the consulting and the implementation of these. This company presented a turnover of €3.5m in 2016. The new company represents, from now, a team of more than 230 people in Benelux countries.

Outlook

Prodware intends to continue its plan of transformation leading the evolution of its strong value-added offer towards Technologies Consulting and the Implementation of Information system, carried by the digital one.

The Group continues its efforts to address in priority the most profitable market sectors in an economic model based more and more on the strong value-added recurring services and the publishing, particularly around the digital one.

Next publication: Turnover of the 1st quarter 2017: 10 may 2017 after close of trading.

About Prodware

Founded in 1989, Prodware (www.prodware.fr) is an international group, publishing/integration of management software.
Prodware is considered like the Microsoft’s premier partner in the EMEA region and has nearly 1,230 employees supporting 19,000 customers in 14 countries.
Armed with a powerful R&D structure, unique expertise in industrializing best practices and top-notch strategic alliances, the group aims to deploy its Prodware Adjust solution worldwide.
Prodware is a corporate citizen and supports its customers in their sustainable development approach with its range of GreenITude services (www.greenitude.fr). Prodware is one of the top companies in the Gaia Index.

Prodware is a company eligible for FCPI (innovation funds), SRI funds and SME PEA (equity savings plan) and is part of the EnterNext PEA-PME 150 index.

ALTERNEXT

ISIN FR0010313486 - ALPRO - FTSE 972 IT services
Prodware is FCPI eligible - A responsible company, Prodware is a member of the Global Compact.

Contacts

PRODWARE
Stéphane Conrard
Chief Financial Officer
Tel: +33 (0)9 79 99 90 00
investisseurs@prodware.fr
or
PRESS
Gilles Broquelet
CAP VALUE
Tel: +33 (0)1 80 81 50 01
gbroquelet@capvalue.fr

Contacts

PRODWARE
Stéphane Conrard
Chief Financial Officer
Tel: +33 (0)9 79 99 90 00
investisseurs@prodware.fr
or
PRESS
Gilles Broquelet
CAP VALUE
Tel: +33 (0)1 80 81 50 01
gbroquelet@capvalue.fr