Q2 Revenue 2017/2018

Q2 Revenue 2017/2018

Revenue up 26.3 percent in first half of fiscal 2017-2018

Growth of 34.1 percent in France (including 10.4 percent from organic growth)
International business up 17.6 percent (including 16.2-percent organic growth)

Confirmation of objectives for the year

The SII engineering group has released its first-half revenue data for fiscal 2017-2018.

Management Board chairman Eric Matteucci observed that “Growth was strong in the first half of the current fiscal year, as revenue rose by 26.3 percent. The Group confirmed its ability to perform, in France and elsewhere. The period was marked by growth in our principal sectors and by the integration of Feel Europe. Thanks to our staff’s commitment and efficiency, I am confident that we will continue to produce good results and can reaffirm our previously announced objectives for the year.”

The SII Group’s revenue increased by 26.3 percent to €259.2m in the six-month period ended September 30, 2017. Business was boosted by high organic growth in the Group’s traditional sectors, and by the integration of Feel Europe, acquired in the second half of fiscal 2017-2018 (and which generated revenue of €25.6m for the half). On a constant foreign-exchange and consolidation basis, revenue rose by 13.2 percent, despite the adverse impact of the calendar (which had four fewer business days than the first half of fiscal 2016-2017).

Sales in the second-quarter (July through September) were up 28.4 percent compared with the previous year (with 15.7 percent accounted for by organic growth). At €129.7m, they slightly exceeded those of the first quarter of the fiscal year. In its efforts to best serve all of its customers, the SII Group continues to develop its expertise and to rely on the dedication of its staff.

Sustained growth in France and in international operations

SII generated revenue of €144.8m in France, or 34.1 percent more than during the same period a year ago. Growth was particularly strong in the second quarter, when revenue exceeded the previous year’s by 37.4 percent. All of the Group’s lines of business contributed to growth, including the traditional sectors (aerospace, defense and telecommunications) as well as those into which it has been diversifying (energy, transportation and commerce & distribution). The acquisition of Feel Europe caused the portion of revenue accounted for by banking and insurance to rise sharply.

The SII Group’s international operations continued to expand, posting growth of 17.6 percent (of which 16.2 percent was organic) and bringing the half-year’s revenue to €114.4m. The improvement was primarily attributable to increased sales in Poland (up 30 percent), which provides the largest source of revenue outside France. Increases in Romania (18 percent), Chile (9 percent), Canada (300 percent), the Netherlands (32 percent), Morocco (159 percent) and Colombia (104 percent) also contributed significantly to the period’s results. The takeoff of the subsidiary in the United Kingdom was encouraging. Business was stable in Germany and grew slightly (by 2 percent) in Spain, while it declined by 4 percent in Belgium and the Czech Republic.(-4%).

Outlook for 2017-2018

The SII Group views the first half’s significant growth as evidence that it can meet its objective for fiscal 2017-2018, when it anticipates a 24-percent increase in revenue, to €545m, combined with a somewhat smaller improvement in operating income, due in part to an unfavorable calendar (with five fewer business days in the year).

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