2024 Annual results
-0,2%
Slight organic decline
9,1% of revenue
Operating margin on activity
BUSINESS IN 2024: +1,8%
Growth of activity stands at 1.8% in France, 4.8% outside of France. On a like-for-like basis, at constant scope and exchange rates, activity is slightly declining: -0.2% (+4.8% in France and -2.6% outside of France).
The Defence & Security, Civil Aeronautics, Rail and Energy sectors continue to grow.
Organic growth remained satisfactory in France and Southern Europe. Conversely, the decline in business was in the UK, Germany and Northern Europe. In Asia and North America, activity declined slightly.
OPERATING MARGIN ON ACTIVITY: 9.1% OF REVENUE
The operating profit on activity amounts to €376.5M, which is 9.1% of the turnover. In 2023, the operating result amounted to €382.8M, which was 9.4% of the turnover.
The slowdown in activity has resulted in a slight decrease in the activity rate and a lower coverage of structural costs. Difficulties encountered in certain geographies, particularly in the UK in the Public Sector and in Germany in the Automotive and Civil Aeronautics sectors, have impacted the operating profit on activity.
A favorable calendar, along with several actions taken to reduce costs related to underactivity and operating expenses (SG&A), have resulted in an operating margin on activity exceeding 9%, a satisfactory level given the economic context.
OPERATING PROFIT: 6.7% OF REVENUE
The operating profit amounts to €277.0M (6.7% of turnover). It includes €20.3M in share-based payments, €44M in goodwill impairments in the UK and Germany, €32.1M in non-recurring costs (including €14.9M in restructuring costs, particularly in Germany), as well as a €3.2M loss on the disposal of a company in Asia.
NET INCOME, GROUP SHARE: 4.5% OF REVENUE
The financial result amounted to €3.3M. After taking into account €94M of tax expenses, Group net income came to €186.4M.
NET CASH POSITION: €275.5M / GEARING: – 12.5%
Cash flow (excluding IFRS16) came to €370.7m (8.9% of revenue) in line with operating profit from activity.
The Working Capital Requirement decreased by €91.6M, mainly due to a significant reduction in DSO. Capex remained low (€17M, of 0.4% of revenue), and taxes paid amounted to €110.6M.
Free cash flow therefore stands at €333.2M (8% of revenue), an increase of 81.4% compared to 2023.
After accounting for net financial investments (-€310.1M), dividends paid (-€52.1M), and other financing flows (+€7.5M), net cash stands at +€275.5M at the end of 2024.
ALTEN self funded external growth and dividends. Its investment capacity remains intact (gearing: -12.5%).
EXTERNAL GROWTH:
2 ACQUISITIONS OVERSEAS
In Asia (Vietnam/Japan): a company specialising in software development (€20m revenue, 950 consultants)
In Poland: a company specialising in IT services (€18m revenue, 250 consultants)
ACQUISITIONS OF WORLDGRID
At the end of November, ALTEN finalized the acquisition of WORLDGRID, European leader specializing in Energy and Utilities solutions in France, Germany and Spain, particularly in the Nuclear sector (Estimated 2024 revenue: €170M; 1,100 employees).
DIVESTITURE IN ASIA
At the end of December 2024, ALTEN divested a subsidiary located in Asia (China/Japan).
(2024 revenue: €8.9M; 230 consultants).
OUTLOOK FOR 2025 :
The slowdown in activity, particularly in Europe, intensified throughout 2024, notably in the Automotive, Life Sciences, Civil Aeronautics, and Tertiary sectors.
Due to the organic decline in the last quarter of 2024 (-2.7%) and one working day less than in the first half of 2024, ALTEN potential business in January is 3.4% less than the 2024 average business level (excluding acquisitions).
For the time being, there are no signs of a recovery, but business seems to be stabilizing. The improvement in the macroeconomic context (lower interest rates) and geopolitical situation should allow for a return to growth during the second semester.
Next release: 24 April after market closing: Quarter 1 2025 revenue