Saint-Ouen (France), 26 April 2018 – In the first quarter of 2018, Gfi Informatique recorded a 6.5% increase in revenue to €298.8 million, up 5.5% in France and 9.5% abroad.

FIRST QUARTER 2018 REVENUE GROWTH OF 6.5%, INCLUDING 6.2% ORGANIC GROWTH
ROBUST GROWTH IN FRANCE AND ABROAD
LAUNCH OF THE FRIENDLY BID TO ACQUIRE REALDOLMEN

The application of IFRS 15 on 1 January 2018 resulted in the Group recognising revenue of €1 million in this respect, i.e. 0.3% of total revenue.

“The Group recorded very strong growth in the first quarter, in line with the excellent fourth quarter of 2017, both in France and abroad. These good performances are particularly welcome at a time when the Group is seeking to strengthen its presence in Belgium and Luxembourg by launching a friendly bid to acquire the Realdolmen group” said Vincent Rouaix, Chairman and Chief Executive Officer of Gfi Informatique.

STRONG GROWTH IN FIRST QUARTER ACTIVITY IN FRANCE AND ABROAD

  • In France: Revenue growth of 5.5%, including 5.4% organic growth

In the first quarter, Gfi Informatique generated revenue of €221.8 million in France, representing growth of 5.5%, including 5.4% organic growth. Like in the fourth quarter, France enjoyed robust growth thanks to commercial successes and recruitment successes, bearing witness to its strong attractiveness. This performance is all the more remarkable in that the first quarter had one less working day.

Headcount came to 9.924, up from 9.576 the previous year.

The average daily rate (ADR) in Services was virtually unchanged (+€11) compared with the same period a year earlier, while the activity ratio improved by 1.2 points.

Business activity was vigorous in this quarter and the rolling book-to-bill ratio stood at 1.33 at 31 March 2018.

  • International (26% of the total): Continued very strong growth

International sales in the quarter totalled €77.0 million. Organic growth came to 8.7%. These excellent figures are the result both of the strong performance of historical activities and of the contribution of Efron and Roff, acquired in the fourth quarter of 2016.

  • Iberia-LatAm (€58.4 million in revenue, or 20% of the total): this region recorded strong growth of 7.9%, including 6.9% organic growth. Spain and Portugal continued to post robust organic growth, with increases of 2.7% and 6.7%, respectively. LatAm achieved the best performance, due notably to the ramping up of the activities in Brazil and Mexico.
  • Northern and Eastern Europe (€13.9 million in revenue, or 5% of the total): the region recorded an excellent quarter with overall growth of 11.1%, including 11.4% organic growth. Growth continued to be driven by Poland and Switzerland, which benefited from the activities outsourced by Nokia in 2017.
  • Africa: the region recorded robust, sustained growth of 32.3%. Continuing its strategy of expanding as an SAP integrator in Africa, Gfi Morocco also bought a minority stake in ValuePass, a Moroccan leader in this field.

FRIENDLY TENDER OFFER OVER REALDOLMEN

Presentation
Realdolmen, a leader in Belux, is recognized for its IT application and IT infrastructure services, and its offers regarding CRM, digital transformation and outsourcing services for medium-sized companies. Realdolmen also provides specific solutions in healthcare and finance.

Realdolmen is an independent ICT expert with over 1,200 highly skilled ICT professionals, serving more than 1,000 customers in the Benelux with their strategical, tactical and operational ICT demands. Realdolmen revenues were €245 million[1] with an operating margin and a net result of respectively €12 million and €11 million.

The Gfi Informatique offer received the unanimous support of the Board of Directors of Realdolmen.

Motivations
Gfi Informatique aims to strengthen its foothold in Belgium and Luxembourg, this operation is in line with its international expansion strategy. Gfi Informatique will rely on the management and employees of Realdolmen to continue to develop the Benelux platform.

Summary of the offer
Gfi Informatique offers €37 per share and an equivalent price of €11.03 per warrant, which represents a premium of 11% compared to Realdolmen's last closing price on 22 February 2018, the day before the announcement of the offer, and a premium of 22% and 28% compared to the volume weighted average share price over 3 months and 6 months, respectively. The total consideration if all shares and warrants were contributed would amount to €194 million.

Calendar
On 24 April 2018, the Belgian Financial Services and Markets Authority (FSMA) approved the Prospectus relating to the tender offer of Gfi Informatique, including the Response Memorandum of Realdolmen (the “Prospectus”).

The initial acceptance period of the offer started today 26 April 2018, and will end on 31 May 2018.

FINANCIAL POSITION

There are currently no known events that could affect the Group’s financial position.

In connection with the friendly bid for Realdolmen, the Group has secured 100% financing subject to the deal’s success.

PROPOSED DIVIDEND

The Board of Directors will propose to the next General Shareholders’ Meeting distribution of a dividend of €0.15 per share in respect of 2017, i.e. a total dividend of €10 million.

OUTLOOK

In the short term, the Group hopes its friendly bid for Realdolmen will be accepted and will announce the outcome of this on 4 June 2018.

Business indicators and the quality of the business portfolio enable the Group to confirm its 2018 guidance for like-for-like revenue and operating margin growth, with the same seasonal trends as last year.


Next event: Annual General Meeting, 8 June 2018.


Disclaimer:

The items in this press release other than historical facts are estimates. They do not constitute guarantees because of the inherent difficulties in forecasting results. Actual results may differ considerably from explicit or implicit forecasts.

About Gfi Informatique

Gfi Informatique is a major player in value-added IT services and software in Europe, and occupies a strategic position in its differentiated approach to global firms and niche entities. With its multi-specialist profile, the Group serves its customers with a unique combination of proximity, sector organisation and industrial-quality solutions. The Group has around 15,000 employees and generated revenue of €1,132 million in 2017.
Gfi Informatique is listed on Euronext Paris, NYSE Euronext (Compartment B) – ISIN: FR0004038099.

 

[1] On the basis of the latest accounts published on 31 March 2017 (12 months financial year).

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