SYNERGIE: 1st HALF OF 2016, MARKED RISE IN CURRENT OPERATING PROFIT: +10.2%

14 september 2016

Strong increase in turnover in the first half of 2016

Marked rise in current operating profit: +10.2%

The Board of Directors of SYNERGIE, chaired by Daniel Augereau , met on 14 September 2016 and approved the financial statements for the six months ended 30 June 2016. The limited audit procedures for these financial statements are complete and the related report is being issued.

	Audited consolidated data - in €m	H1 2016	H1 2015
	Turnover	942.8	859.0
	Current operating profit (1)	42.8	38.9
	Operating profit	41.3	37.7
	Profit before tax	38.9	39.1
	Net profit	26.2	26.1
	Net profit, Group share	25.9	25.8
(1) Before amortisation and write-downs of intangible assets

€942.8m in turnover for the half-year

With a 615-strong branch network and extensive international operations spanning 15 countries in Europe as well as Canada and Australia, the Group generated consolidated turnover of €942.8m in the six months to 30 June 2015, up 10% from the same period in 2015 (9% on a like-for-like basis). The return to strong growth in France, where turnover was up 11% over the half-year (in a market that had grown by 5.2% at end-July, according to Prisme figures), combined with continuing international development (+8%) contributed to this result.

SYNERGIE thus continues to outperform all of its markets by relying on innovative offers such as Open Centers, employment agencies for the service and high-tech sectors and Global Cross Sourcing (international skills sourcing), and benefiting from a firm foothold in high-growth sectors such as aeronautics, shipbuilding and renewable energies.

A marked improvement in operating profitability

The Group saw a marked increase of 10.2% in operating profit in the first half of 2016, with particularly strong growth in international markets (+27%).

In France, in a highly competitive market, SYNERGIE carried out new investments (development of IT tools, websites, training of permanent and temporary staff) partly financed by the CICE competitiveness and employment tax credit and for which the benefits in terms of profitability are expected to materialise in the second half of the year.

In international markets, the outperformance recorded in the Benelux countries and in southern Europe contributed significantly to the upswing in overall profitability. The Group's other countries are expecting a significant increase in turnover in the second half of the year thanks to the acquisition of major new accounts.

The successful integration of the German subsidiary CAVALLO is of particular note. Consolidated as from mid-February 2016, the company has seen both turnover and profitability increase compared with the last financial year.

Current operating profit came to €42.8m and stood at 4.5% of turnover - the same level as in 2015 despite a €2m payroll expense in France for temporary employees' statutory mutual insurance, which was introduced on 1 January 2016. 

The impact of Brexit on the euro/sterling exchange rate at 30 June 2016 led to the recognition of a €2.1m exchange loss, compared with a €1.9m exchange gain at 30 June 2015.

Taking into account the above items and a €12.8m tax expense, net profit for the half-year came to €26.2m.

A solid financial structure

The excellent performance of SYNERGIE's businesses enabled the Group to strengthen its financial structure, with shareholders' equity of €331.9m at 30 June 2016 and a still comfortably positive cash position net of any debt of €66.5m (including available CICE receivables).

The cash flow from operations thus provides the Group with the necessary resources to continue to expand its branch network and carry out new acquisitions both in France and abroad, where negotiations are at an advanced stage in the United Kingdom.

A favourable outlook

The number of assigned personnel - i.e. full-time-equivalent employees working for clients - has exceeded 63,000 every day since July, in a continuation of double-digit growth.

Thanks to these performances and its financial solidity, SYNERGIE Group intends to expand further over the second six months of the year and confirms its objective of achieving turnover of nearly €2 billion in 2016.

Next event:

Publication of turnover for the third quarter of 2016 on Wednesday 26 October 2016 after the stock market closes.

Paris, 14 September 2016, 5.45pm

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