SPIE (EPA:SPIE) - SPIE - 2016 1st QUARTER TRADING UPDATE

Transparency directive : regulatory news

29/04/2016 07:00

Press Release

2016 1st QUARTER TRADING UPDATE

Cergy, April 29th, 2016

Q1 2016 Highlights

* EBITA at EUR57.1 million
* EBITA margin at 4.8%, up 17 bps year-on-year, with progress in all segments

* Stable revenue overall across European businesses, with encouraging signs in
  France
* Oil & Gas revenue down significantly in a continued challenging industry
  context

In millions of euros
(unaudited figures)       Q1 2016   Q1 2015    Change

Revenue                   1,193.0   1,266.0    -5.8%
EBITA                        57.1      58.5    -2.4%
EBITA margin                 4.8%      4.6%   +17 bps

Gauthier Louette, Chairman & CEO, commented: 'SPIE has made an encouraging start
to the year. We saw continued positive momentum in the Germany & Central Europe
and North-Western Europe segments. In Oil & Gas, the environment has been
increasingly challenging and the activity level in our services business was
weak. In France, we are seeing some positive signs and have initiated
organisational changes that will better position us to seize growth
opportunities. Overall, we recorded a good EBITA margin improvement with
progresses in all our segments.'

Consolidated revenue was EUR1,193.0 million in Q1 2016, down 5.8% year-on-year.
While revenue was in line with our expectations in all of our major geographies,
this contraction is due to our Oil & Gas activities, which were significantly
down against a very strong Q1 2015. Excluding Oil & Gas, revenue was stable in
Q1 2016.

EBITA was EUR57.1 million, with EBITA margin at 4.8%, up 17 basis points
compared to Q1 2015. Margin improvements were reported in all segments.

Group 2016 outlook confirmed: 'We expect 2016 to be another year of EBITA
growth, excellent cash conversion and strong M&A activity.'

Comments by segment

France

Revenue in the France segment was in line with expectations, with good trends in
the Industrial and Telecom sectors, and we are seeing encouraging signs of a
gradual improvement going forward. Margins improved again, as we remained
selective on orders and active in managing our highly flexible cost base. The
creation of two nationwide entities dedicated to our Technical Facility
Management and Infrastructure and Telecom services activities will enhance
SPIE's client offering and enable us to seize further growth opportunities,
particularly in the digital field.

Germany & Central Europe

In Germany, underlying trends were robust, EBITA margin reported a strong
year-on-year increase and the integration of Hartmann Elektrotechnik GmbH was
successfully carried out. In Switzerland, we are proceeding with the
restructuring and streamlining of our activities, in preparation for the merger
of our various subsidiaries.

North-Western Europe

The North-Western Europe segment reported good revenue growth supported by the
acquisitions, in 2015, of Leven Energy Services in the UK and Numac in the
Netherlands and by dynamic business trends in Belgium and the Netherlands. The
segment delivered a moderate increase in EBITA margin.

Oil & Gas and Nuclear

Nuclear activities reported increased revenue and improved EBITA margin in Q1
2016.

In Oil & Gas, revenue was markedly down against Q1 2015, where we recorded our
highest quarterly revenue ever in the service activities. Against a continued
backdrop of significantly reduced customer activity, we protected margins in
these activities. The OCTG(1) business reported a sharp drop in volume, with a
limited EBITA impact. Visibility for the balance of the year remains weak.

Acquisitions

On April 28th, 2016, SPIE announced the signing of an agreement for the
acquisition of the RDI group,  a French specialist in managed services, IT
infrastructure integration, application and cloud services, with 2015 revenue of
EUR36 million, which will further strengthen our ICT services.

We are in advanced discussions on other potential acquisitions in both France
and Germany, some of which could be signed in Q2 2016. Our acquisitions pipeline
remains strong, particularly in the field of ICT.

Governance

In accordance with agreements in place between SPIE and its principal
shareholders Clayton, Dubillier & Rice, Ardian and Caisse de Dépôt et
Placement du Québec, Mr. Eric Rouzier has resigned from his office as a
Director of SPIE SA following the placing of 7.8% of SPIE's share capital by
Clayax Acquisition Luxembourg 5 SCA. His resignation is effective April 29th,
2016. As a  consequence, Clayton, Dubillier & Rice is now represented by only
two Directors.

Analyst and investor conference call

Speakers:
Gauthier Louette, Chairman & CEO
Denis Chêne, CFO

Date: Friday, April 29th, 2016
9:00 am Paris time - 8:00 am London time

(1) Oil Country Tubular Goods : activities mainly related to trading of tubular
goods (casing/ tubing) in Angola as part of development projects and pipe yard
management

About SPIE

As the independent European leader in multi-technical services in the areas of
energy and communications, SPIE supports its customers to design, build, operate
and maintain energy-efficient and environmentally-friendly facilities. With
38,000 employees working from close to 600 sites in 38 countries, SPIE achieved
in 2015 consolidated revenues of EUR5.3 billion and consolidated EBITA of
EUR351 million.

New SPIE IR App: easy access to the latest financial information on SPIE when
you are on the move. Available for iPad, iPhone and Android devices.

www.spie.com
https://www.facebook.com/SPIEgroup
http://twitter.com/spiegroup

Disclaimer

Certain information included in this press release are not historical facts but
are forward-looking statements. These forward-looking statements are based on
current beliefs, expectations and assumptions, including, without limitation,
assumptions regarding present and future business  strategies and the
environment in which SPIE operates, and involve known and unknown risks,
uncertainties and other factors, which may cause actual results, performance or
achievements, or industry results or other events, to be materially different
from those expressed or implied by these forward-looking statements.

Forward-looking statements speak only as of the date of this press release and
SPIE expressly disclaims any obligation or undertaking to release any update or
revisions to any forward-looking statements included in this press release to
reflect any change in expectations or any change in events, conditions or
circumstances on which these forward-looking statements are based. Such  forward
looking statements are for illustrative purposes only. Forward-looking
information and statements are not guarantees of future performances and are
subject to various risks and uncertainties, many of  which are difficult to
predict and generally beyond the control of SPIE. Actual results could differ
materially from those expressed in, or implied or projected by, forward-looking
information and statements. These risks and uncertainties include those
discussed or identified under Chapter 4 "Facteurs de Risques" in the Document de
Base dated 19 May 2015 and the Actualisation du  Document de Base dated 29 May
2015, filed by SPIE with the AMF and available on the website of the Company
(www.spie.com) and of the AMF (www.amf-france.org).

Appendix

Reconciliation between revenue (as per management accounts) and revenue under
IFRS

In millions of euros
(unaudited)                     Q1 2016   Q1 2015

Revenue
(as per management accounts)    1,193.0   1,266.0
SONAID*                            (4.4)     31.2
Holding activities                 11.2      10.8
Others                              1.2       6.3
Revenue under IFRS              1,201.0   1,314.3

* Since January 1st, 2016, SONAID is consolidated in the Group's IFRS accounts
under the Equity Method (previously fully consolidated). In Q1 2015, SONAID's
contribution to the Group's Revenue under IFRS was EUR69.3 million.

Reconciliation between EBITA and Operating income

In millions of euros
(unaudited)              Q1 2016  Q1 2015
EBITA                     57.1     58.5
Intangible amortisation
(allocated goodwill)     (10.8)    (6.8)
Discontinued activities
and restructuring costs    0.0      0.0
Financial commissions     (0.4)    (0.5)
Non-controlling interests (0.8)     0.9
Others                     0.3      2.7
Operating Income          45.4     54.8

Contacts

SPIE
Thomas Guillois
Investor Relations Director
Tél. : + 33 (0)1 34 41 80 72
thomas.guillois@spie.com

SPIE
Pascal Omnès
Communication Director
Tél. : + 33 (0)1 34 41 81 11
pascal.omnes@spie.com

Brunswick
Agnès Catineau
Tél. : + 33 (0)1 53 96 83 84
acatineau@brunswickgroup.com

SPIE's latest news

03/11/2023 06:52

SPIE (EPA:SPIE) - SPIE - 2016 1st QUARTER TRADING UPDATE

Transparency directive : regulatory news

SPIE's latest news

Other stories