KEYRUS: Half-year results 2022

Turnover: €167.2m +18.6% (organic growth* +13.6%)

Current operating profit: €5.3 million

Operating profit: €4.3 million

Net income: €3.1 million

In millions of euros

H1.2022

S1.2021

Turnover

167.2

141.0

current operating income

5.3

3.6

Operating income

4.3

2.7

Net profit

3.1

3.7

Net income (Group share)

1.8

1.6

Levallois-Perret, September 22, 2022:

The Board of Directors of

Keyrus

met on September 22, 2022 and approved the consolidated financial statements for the first half of 2022.

Operational performance

The group

Keyrus

recorded consolidated revenue of €167.2 million for the first half of 2022, up 18.6% compared to the first half of 2021 (+13.6% at constant scope and exchange rates). In published data, revenue from the Key Accounts segment increased by 22.6% and that from the Mid-Market segment increased by 6.7%.

The progress of

Key Account activities

up €23.8 million (+15.8% in organic growth), is appreciable in almost the majority of regions, particularly in North America (+38% in organic growth) and in the United Kingdom where the very strong growth is mainly due to the signing of new contracts at the end of the previous financial year.

Growth in Belgium, where the improvement in profitability is notable, in Canada, driven in particular by the new office in Toronto, and in Israel, where technological partnerships are dynamic, confirm the Group’s net rebound in the 1

er

half of 2022. The recovery is however slower in France where profitability is not at the expected level.

Finally, the reorganization of the activities of Keyrus Life Science has not yet produced the expected results.

The

Mid-market activities

driven by the Absys Group subsidiary Cyborg, posted organic growth of 6.7% for the first half of 2022. Order intake was up 19.2% over 12 rolling months.

The share of contractual recurrence, representing 52.6% of revenue, continues to grow at a faster rate than revenue without recurrence.

However, during the 1

er

half of 2022, Absys Cyborg’s profitability is lower than the previous year due to an increase in the payroll and investments in training for new recruits.

In addition, the company Azuneed, carrying the SaaS employee management portal solution and owned by Absys Cyborg, was sold to its main partner Sage. Absys Cyborg remains the distributor of the solution.

The Group’s current operating income stood at €5.3m compared to €3.6m at June 30, 2021. This increase is mainly driven by the growth in Key Accounts activities.

Operating income and net income Group share amount to €4.3m and €3.1m respectively, compared to €2.7m and €3.7m in 2021. The drop in net income is due to the increase in the cost indebtedness and the decline in financial income.

The latter includes, as in 2021, a non-recurring item resulting from the revaluation of equity securities of the start-up Rivery.io, incubated in our Israeli subsidiary. However, this product represents €1.5 million in 2022 compared to €2.9 million during the previous financial year.

Net debt amounted to €42.8 million as of June 30, 2022 compared to €33.9 million a year earlier and €24.8 million as of December 31, 2021. This increase is mainly due to disbursements related to external growth operations carried out in course of 1

er

half of 2022 and the reimbursement of social and tax charges carried over to 2020 in the context of the pandemic.

The Group’s net cash** stood at €41.4m compared to €48.5m at the end of the 2021 financial year.

As of June 30, 2022, the cash forecasts do not show any financing difficulties, and the Group complies with its banking covenants.

Summary operating income statement by operating segment

Large accounts

Mid Market

Total

In €m

S1 2022

S1 2021

S1 2022

S1 2021

S1 2022

S1 2021

Turnover

129.5

105.6

37.7

35.4

167.2

141.0

current operating income

4.1

1.2

1.2

2.4

5.3

3.6

Operating income

2.9

0.5

1.4

2.3

4.3

2.8

Outlook

the

Key Accounts segment

continues to consolidate its portfolio of offers – Data Intelligence – Digital Experience – Management & Transformation. In order to strengthen its value proposition, the group continues to acquire key resources.

Thus, the Group consolidates its strategic trajectory based on the construction of an integrated digital service offer in order to support its customers in the transformation of their ‘Data assets’ into actions.

The Group’s Management ensures the proper integration of its recent acquisitions in France and Latin America. Furthermore, the return to more normative profitability on the French market remains one of the Group’s major priorities.

the

Mid-market segment

led by our subsidiary Absys Cyborg anticipates a strategy of organic growth as well as the strengthening of the share of recurring revenues in its overall revenue, firmly anchored with its historical partners Sage and Microsoft.

Absys Cyborg will continue to invest in its publishing offers for innovative solutions and the hosting of its customers in the Private Cloud.

Eric Cohen

Chairman and Chief Executive Officer, comments:

“Our performance in the first half of 2022, in line with the 2021 financial year, demonstrates the resilience of the Keyrus group and its ability to optimize the effects of the economic rebound. We have proven our ability to protect our margins while strengthening growth dynamics in most of our regions.

We will have to be attentive to the management of the consequences of inflation, pressure on wages, shortages of resources and more complicated financing methods while preserving our margins and our quality of service. The second half of 2022 and the coming financial year will therefore be periods marked by high stakes.

* DEFINITION OF THE CONCEPT OF ORGANIC REVENUE GROWTH

The notion of organic revenue growth consists of presenting the revenue for the previous year (N-1, here financial year 2021) restated in such a way as to use the exchange rates and the scope of consolidation of the current year (N, here the 2022 financial year). The Group then calculates organic N-1 revenue by:

  • Using the exchange rates for year N to calculate the published turnover of companies outside the Euro zone for year N-1;

  • Adding to the turnover published for year N-1 the turnover N-1 of the companies entered in the scope of consolidation in year N;

  • Subtracting from the turnover published for the year N-1 the turnover N-1 of the companies that left the scope of consolidation in the year N.

In 2022, the restatements to go from published 2021 revenue to organic 2021 revenue are as follows:

Meuros

Amounts

S1. 2021 published

141.0

GC perimeter effects

2.9

MM perimeter effects

Exchange rate variations

(3.3)

H1.2021 organic

147.2

** NET CASH

Cash and cash equivalents, recorded as balance sheet assets, less bank overdrafts

_______________________________

ABOUT KEYRUS


International player in consulting and technologies, specialist in Data and Digital,

Keyrus

Its mission is to help companies take advantage of the Data and Digital paradigm to increase their performance, facilitate and accelerate their transformation, and generate new levers for growth and competitiveness.

Placing innovation at the heart of its strategy,

Keyrus

develops a unique market value proposition based on five major service groups, each comprising multiple offerings:

.

Automation and Artificial Intelligence

.

Human-centric digital experience

. Implementing Data and Analytics

.

Cloud and Security

. Transformation and Innovation


Drawing on the cumulative experience of 3,300 employees present in 22 countries and on 4 continents,

Keyrus

is a leading international data, consulting and technology expert.

Keyrus

is listed on Euronext Growth Paris.

(ALKEY – ISIN code: FR0004029411 – Reuters: KEYR.PA – Bloomberg: ALKEY: FP).

More information on www.keyrus.fr


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