AUBAY: 2023 Half-Yearly Results: Operating margin from ordinary activities: 8.9% - Net income attributable to owners of the parent: EUR 17.0 million

In € thousands	H1 2023	H1 2022	Change
Revenue	274,775	258,480	+6.3%
Operating profit from ordinary activities	24,485	26,600	-8.0%
As a % of revenue	8.9%	10.3%
Cost of performance shares	(690)	(635)
Other operating income and expenses	(1,059)	(941)
Operating profit	22,736	25,024	-9.1%
Financial income/(expense)	340	(565)
Tax expense	(6,090)	(7,091)
Net income from consolidated companies	16,986	17,368	-2.2%
As a % of revenue	6.2%	6.7%
Net income attributable to owners of the parent	16,986	17,329
Headcount	7,841	7,442

Aubay's Board of Directors, which met on September 13, 2023 under Chairman Christian Aubert, approved the consolidated financial statements for the first six months of 2023. The financial statements have been reviewed by the company's Statutory Auditors who will shortly issue their reports.

Aubay posted good results in the first half of 2023, driven by organic growth of 6.3% despite a demanding basis for comparison.

Half-year operating margin from ordinary activities of 8.9%

Operating margin from ordinary activities remained at a healthy 8.9%, compared with 10.3% in the first half of 2022. This expected change was attributable to a utilization rate of 92.3% versus 95.2%, and to an unfavorable calendar effect in terms of working days. Aubay has demonstrated resilience in the face of inflation, always maintaining a good ratio between the evolution of its sales prices and its average salary.

Operating profit of €22.7 million

Operating profit was down 8.4%, after taking into account the cost of performance shares for €0.7 million and a net expense of €1.1 million under "Other operating income and expenses", primarily comprising restructuring expenses.

Slight decrease in net income attributable to owners of the parent (6.2% of net margin)

Net income attributable to owners of the parent was virtually stable at €17.0 million, compared with €17.3 million in the first half of 2022. The tax expense of €6.1 million resulted in an average tax rate of 26%, compared with 29% for the same period of the previous year.

Net cash (excluding rental liabilities) stable at €83.5 million, after dividend payment

Cash flow stood at €28.1 million or 10.2% of revenue, compared with €29.1 million in 2022. The change in WCR amounted to a negative €6.6 million compared to a negative €17.5 million for the same period of the previous year. After taking the €9.3 million dividend payout in May into account, net cash was stable at €83.5 million at June 30, 2023, and should significantly increase during the second half of the year, as is the case each year.

Proposed interim dividend of €0.50

In light of the good level of net income and the Group's excellent financial position, the Board of Directors has decided to pay an interim dividend of €0.50 per share in respect of 2023. The interim dividend will be paid on November 10, 2023.

Outlook for 2023

Although customer demand remains strong, it is lower than last year's record levels. This return to normality is taking place uniformly across all countries and sectors. Customers are showing restraint and caution in their investments, given the uncertain macroeconomic context. While this wait-and-see attitude was particularly noticeable over the summer months, sales performance in early September seems to be showing encouraging signs of improvement.

In light of this, Aubay expects its full-year results to be in the lower end of the range of its annual targets, which are:

• organic growth of between 5% and 7%, i.e., annual revenue of between €540 million and €550 million;
• operating margin from ordinary activities between 9.5% and 10.5%.

Aubay will publish its 2023 third-quarter revenue on Wednesday October 18, 2023 after the close of trading.

Glossary

Organic revenue growth: This refers to growth calculated for a constant scope of activity for a given period, excluding revenues from companies that were acquired or sold during the period. As Aubay conducts most of its business in the euro zone, any impact from changes in exchange rates is minimal.

	2023
Organic growth	+6.3%
Impact of changes in scope	0
Growth as reported	+6.3%

Operating profit from ordinary activities: this indicator corresponds to operating profit before the cost of free shares and other income and expenses that are unusual, abnormal or infrequent and that are booked separately in order to facilitate understanding of an entity's recurring operating performance.

Operating margin from ordinary activities: this indicator, which is expressed as a percentage, is the ratio of operating income from ordinary activities to revenue.

Net debt or net cash (excluding rental liabilities): this indicator represents the difference between an entity's cash and debt. If the result is negative, it is referred to as net debt. If it is positive, it is referred to as net cash.

About Aubay

Aubay is a digital services company working alongside some of the biggest names in the Banking, Finance, Insurance, Manufacturing, Energy, Transport and Telecoms sectors. With 7,841 employees in seven countries (France, Belgium, Luxembourg, Italy, Spain, Portugal and the United Kingdom) at June 30, 2023, Aubay generated revenue of €513.5 million in 2022.

Euronext, Compartment: B - ISIN FR0000063737-AUB - Reuters: AUBT.PA - Bloomberg AUB:FP

Euronext Tech Leaders

Contacts

Amaury Dugast - Actus Finance - Tel.: [phone] - [e-mail]

David Fuks - Co-Chief Operating Officer - Finance Department - Tel.: [phone] - E-mail: [e-mail]

APPENDICES

Statement of financial position as of June 30, 202 3
ASSETS (in € thousands)	June 30, 2023	Dec. 31, 2022
Goodwill	131,305	131,305
Intangible assets	468	597
Property, plant & equipment	4,654	4,978
Right of use relating to leases	20,499	13,850
Equity-accounted investees	-	-
Other financial assets	2,026	2,053
Deferred tax assets	2,423	2,603
Other non-current assets	2,290	1,782
NON-CURRENT ASSETS	163,665	157,168
Inventories and work in progress	840	926
Assets on contracts	44,855	35,458
Trade receivables	122,802	127,890
Other receivables and accruals	39,971	38,510
Marketable securities	43,223	40,272
Cash at bank and in hand	42,447	45,581
CURRENT ASSETS	294,138	288,637
TOTAL ASSETS	457,803	445,805
EQUITY AND LIABILITIES (in € thousands)	June 30, 2023	Dec. 31, 2022
Capital	6,652	6,634
Additional paid-in capital and consolidated reserves	235,982	208,443
Net income attributable to owners of the parent	16,986	35,629
Shareholders' equity attributable to the Group	259,620	250,706
Minority interests	0	0
SHAREHOLDERS' EQUITY	259,620	250,706
Borrowings and financial liabilities: non-current portion	1,606	1,611
Rental liabilities due in more than 1 year	16,661	9,720
Deferred tax liabilities	156	1
Provisions for contingencies and expenses	6,874	6,600
Other non-current liabilities	434	259
NON-CURRENT LIABILITIES	25,731	18,191
Borrowings and financial liabilities: current portion	557	832
Rental liabilities due within 1 year	4,390	4,555
Trade and other payables	39,545	39,104
Contract liabilities	16,529	25,615
Other current liabilities	111,431	106,802
CURRENT LIABILITIES	172,452	176,908
TOTAL EQUITY AND LIABILITIES	457,803	445,805

Consolidated income statement for first-half 2023

(in € thousands)	First-half 2023	%	First-half 2022	%
Revenue	274,775	100%	258,480	100%
Other operating income	235		120
Purchases used in production and external charges	(67,171)		(49,103)
Staff costs	(177,525)		(176,617)
Taxes other than on income	(2,233)		(2,197)
Amortization, depreciation and provisions	(3,783)		(3,925)
Change in inventories of work in progress and finished goods
Other operating income and expenses	187		(157)
Operating profit from ordinary activities	24,485	8.9%	26,601	10.3%
Expenses linked to restricted share units and similar awards	(690)		(635)
Current operating profit	23,795	8.7%	25,966	10.0%
Other operating income and expenses	(1,059)		(941)
Operating profit	22,736	8.3%	25,025	9.7%
Income from cash and cash equivalents
Net borrowing costs	(327)		(244)
Other financial income and expenses	667		(321)
Financial income/(expense)	(340)		(565)
Income tax expense	(6,090)	26%	(7,091)	29%
Income from equity-accounted investees
Net income before results of discontinued operations or assets held for sale	16 986		17,369
Net income after tax of discontinued operations or assets held for sale
Net income	17,369	6.2%	17,369	6.7%
Attributable to owners of the parent	16,986		17,333
Minority interests	0		39
Basic weighted average number of shares	13,289,283		13,252,256
Earnings per share	1.28		1.31
Diluted weighted average number of shares	13,366,283		13,332,256
Diluted earnings per share	1.27		1.30

Cash flow statement for first-half 2023
(in € thousands)	First-half 2023	First-half 2022
Consolidated net income (including non-controlling interests)	16,986	17,368
Income from equity-accounted investees
Net depreciation, amortization and provisions and right of use relating to leases	3,957	3,816
Non-cash expenses and income relating to share-based payments	690	635
Other non-cash items
Dividend income	(58)	(57)
Gains and losses on disposals of fixed assets	147	(6)
Cash flow after net interest expense and tax	21,722	21,756
Net borrowing costs	327	244
Tax expense (including deferred taxes)	6,090	7,091
Cash flow before net interest expense and tax (A)	28,139	29,091
Income tax payments (B)	(8,479)	(8,798)
Change in WCR ©	(6,604)	(17,463)
Net cash provided by (used in) operating activities (D) = (A+B+C)	13,056	2,830
Outflows for the acquisition of tangible and intangible fixed assets	(773)	(1,102)
Inflows from the disposal of tangible and intangible fixed assets		6
Outflows for the acquisition of financial assets	(5)	(4)
Inflows from the disposal of financial assets
Change in loans and advances granted	(36)	50
Disbursements (cash) related to business combinations, net of cash and cash equivalents
Dividends received	58	57
Net cash provided by (used in) investing activities (E)	(756)	(993)
Proceeds from capital increases
Amounts received upon the exercise of stock options
Purchases of treasury shares for cancellation
Purchases of and proceeds from the sale of treasury shares
Dividends paid in the period:
- Net dividends paid to parent company shareholders	(9,304)	(10,075)
- Dividends paid to the non-controlling shareholders of consolidated companies		(44)
Inflows from new borrowings
Repayment of loan debt	(279)	(1,272)
Repayment of rental liabilities	(2,602)	(2,818)
Net interest payments	(327)	(244)
Purchase of non-controlling minority interests
Other financial cash flows
Net cash provided by (used in) financial activities (F)	(12,512)	(14,453)
Effects of changes in foreign exchange rates (G)	27	(11)
Change in net cash (D+E+F+G)	185	(12,627)
Cash and cash equivalents at beginning of period	85,839	79,056
Cash and cash equivalents at end of period	85,654	66,429

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