28.07.20

Finance

Revenues for the 1st half of 2020: €134.0m

    Revenues for the 1st half of 2020: €134.0m
    H1 growth: -7.9% (-10.1% in organic* terms)

    CA Keyrus 2020

    Levallois, 28 July 2020 – the Keyrus Group recorded revenues of 134.0 million euros in the first half of 2020, down by 7.9% (-10.1% at constant scope and exchange rates) as compared with the first half of 2019.

    Consolidated revenues in the second quarter of 2020 were €63.4m, down by 11.2% as compared with the second quarter of 2019 (-14.7% at constant scope and exchange rates).

    Large Account activities declined by 13.3% compared to the second quarter of 2019 (-17.4% at constant scope and exchange rates). Mid-Market activities decreased by 3.7% (-4.7% at constant scope and exchange rates).

    The Large Account segment suffered a significant decrease in revenues in the first half of this year, amounting to -10.0% (-12.7% at constant scope and exchange rates). This decrease is primarily concentrated in France and the rest of Europe, where, to date, the health crisis has had the greatest impact on the economy. While Latin America has not yet been severely affected in economic terms, and has thus been able to limit the drop in its activity, North America remains the Group’s geographical zone posting the strongest organic growth.

    Keyrus’s acquisition of Impetus, a company providing consulting services focused on performance management and supported by the Anaplan solution, has not only bolstered Keyrus’s presence in North America, but has also supplemented it with business expertise in the field of simulation and planning. This company has been integrated into the scope of consolidation since 1 March 2020, and it recorded revenues of €2.1m over the period.

    Mid-Market activities experienced a resilient first half of 2020, with revenues remaining almost unchanged as compared with the first half of 2019 (-1.0% at constant scope and exchange rates).

    The proportion of contractual recurring business - accounting for 45% of revenues - continues to increase (+14%), partially absorbing the decline in service provision business in the second quarter caused by the health crisis.

    The initiative, launched 2 years ago, to develop the solution portfolio around Cloud offerings, both for software publishing and managed services, will serve to bolster recurring revenues and enable Absys Cyborg to pursue its investments, in order to transform its business model and retain its leadership on the French market.

    Even if the Group remains confident of its ability to overcome the financial impact of the health crisis, the second half of this year looks uncertain, due to a slowdown in orders in the second quarter, and the budgetary restrictions being applied by companies to cope with the recession.  

    In July 2020, the Group obtained the agreement of its funding partners for a government-backed loan of €10m that, added to available cash, will strengthen Keyrus’s financial capacity to absorb the impact of this unprecedented crisis.

    Keyrus will publish its results for the first half of 2020 after market close on 24 September 2020.

    Breakdown of revenues by operational sector

    CA revenues Keyrus

    * DEFINITION OF THE NOTION OF ORGANIC GROWTH IN REVENUES

    The notion of organic growth in revenues involves presenting the revenues of the preceding year (N-1, in this case, the 2019 financial year) restated in such a way as to apply the exchange rates and scope of consolidation of the current year (N, in this case, the 2020 financial year). The Group then calculates a figure for organic N-1 revenues by:
    . using the exchange rates of year N to calculate the reported revenues of companies outside the Eurozone in year N-1 ;
    . adding to the reported revenues for year N-1 the N-1 revenues of companies that came within the scope of consolidation in year N ;
    . deducting from the reported revenues for year N-1 the N-1 revenues of companies that went out of the scope of consolidation in year N.

    In 2020, the adjustments to go from reported 2019 revenues to organic 2019 revenues look as follows:

    graph Keyrus CA 2020