Assystem Reports Strong Growth for First Half of 2024

First-half 2024 Financial Overview

Assystem, a prominent international engineering group, has released its first-half 2024 results, revealing a revenue increase of €301.3 million, marking a 6.7% growth compared to the same period last year. Notably, this growth includes an organic increase of 5.8%, primarily driven by the robust demand in nuclear engineering activities, which accounted for a staggering 73% of the total revenue in this period.

Revenue Breakdown and Highlights

In the first half of 2024, Assystem's revenue was significantly bolstered by its nuclear activities, which have shown exceptional resilience and growth despite market challenges. The revenue from nuclear operations surged 10.0% on an organic basis. Specifically, operations in France saw an 8.3% rise, while international markets performed even better, with a 15.4% growth.

Revenue generated from France, accounting for 63% of the total, reached €189.6 million, up 1.7% year-over-year, reflecting a 3.7% organic growth. However, adjustments in the consolidation scope negatively impacted growth by 2.0%, mainly due to the sale of certain business sectors. By contrast, international revenue jumped to €111.7 million, with a 16.4% increase year-on-year, which included a favorable 5.9% boost from the acquisition of L&T IEL.

Operating Profit and EBITA Growth

Assystem's operating profit before non-recurring items, known as EBITA, reached €18.5 million for the first six months of 2024, a robust increase of 17.8% from €15.7 million in the first half of 2023. The EBITA margin expanded to 6.1%, up from 5.6% the previous year. This improvement is largely attributed to the effective resource utilization and enhanced operational efficiencies implemented within the group.

In terms of regional performance, EBITA in France was recorded at €11.3 million, representing a significant increase to 6.0% of revenue, a notable rise from 4.3% in the same period last year. The international segment showed EBITA of €10.1 million, accounting for 9.0% of its revenue, although this indicated a slight decrease compared to 10.9% the previous year, primarily due to unmet business targets in Saudi Arabia.

Financial Position and Outlook

Assystem ended the first half of 2024 with a consolidated profit of €5.0 million, notably lower than €21.0 million from last year’s results, affected by a negative contribution from the Expleo Group, which recorded a significant loss. Furthermore, Assystem's net cash position stood at €14.7 million, contrasting sharply with a net debt of €52.2 million noted at the end of December the previous year. This shift in liquidity was influenced partly by the proceeds from the sale of the group's stake in Framatome.

The company has laid out an optimistic forecast for 2024, targeting consolidated revenues of approximately €620 million and an EBITA margin of around 7%. This guidance rests on the premise of favorable economic conditions prevailing throughout the year.

Key Strategic Moves

Looking forward, Assystem remains strategically focused on reinforcing its presence in the nuclear industry while expanding into emerging markets like India and Saudi Arabia. The company is also aiming to enhance collaborations and partnerships with key clients, including EDF in various projects across France and the UK.

Additionally, the recent implementation of a key personnel retention plan, which includes share allocation programs, aims to bolster engagement and drive growth in innovative sectors within the engineering domain.

Frequently Asked Questions

What was Assystem's revenue in the first half of 2024?

Assystem reported a revenue of €301.3 million in the first half of 2024, which represents a 6.7% increase from the prior year.

How did Assystem's EBITA perform in H1 2024?

The operating profit before non-recurring items (EBITA) for Assystem was €18.5 million, indicating a 17.8% growth compared to €15.7 million in the same period last year.

What is the outlook for Assystem in 2024?

Assystem aims for consolidated revenues of around €620 million and an EBITA margin of approximately 7% for the full year of 2024, assuming stable economic conditions.

Which sectors contributed most to the revenue increase?

The nuclear engineering sector was the primary driver, contributing 73% to the total revenue, with significant organic growth in both domestic and international operations.

What steps is Assystem taking to enhance its operations?

The company is focusing on strengthening its resource utilization and expanding its market footprint in key regions while implementing strategic retention plans for its workforce to foster innovation and growth.

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