Paris, 30 August
2017 (6.00 p.m.)
HIGHCO POSTS
HEALTHY HALF-YEAR 2017 RESULTS
Business
growth
-
H1 2017 gross profit of €42.28 M, up 2.5%
on a reported basis and 2.3% LFL1.
-
Digital businesses up 6.2% LFL, accounting for
47.3% of the Group's total gross profit in H1 2017.
Growth in
profitability
-
Adjusted headline PBIT2 of
€10.88 M, up 6.7%.
-
Adjusted operating margin2 of
25.7%, up 100 basis points.
-
Adjusted attributable net income3
up 12.8% to €6.80 M.
Strong cash
generation
-
Operating cash flow of €8.19 M, up
€1.18 M (up 16.8%) compared with H1 2016.
-
Net cash4 of
€58.88 M at 30 June 2017, up by €9.26 M compared with 31
December 2016.
Revised outlook
from July 2017 confirmed
-
Growth in gross profit revised from more than 4%
to more than 1% LFL.
-
Growth in adjusted headline PBIT2
revised from equal to or greater than 6% to between 4% and
6%.
-
Increase in adjusted operating margin (adjusted
headline PBIT/gross profit)2 maintained at
equal to or greater than 50 bp.
-
| (€ M) |
H1 2017 |
H1 2016 restated5 |
H1 2017/ H1 2016
Change restated5 |
| Gross
profit |
42.28 |
41.27 |
+2.5%
(+2.3% LFL1) |
| Adjusted headline PBIT2 |
10.88 |
10.20 |
+6.7% |
| Operating margin2 (%) |
25.7% |
24.7% |
+100 bp |
| Adjusted
recurring operating income6 |
10.78 |
10.04 |
+7.4% |
| Adjusted attributable net income3 |
6.80 |
6.03 |
+12.8% |
| Net
cash4 |
58.88 |
49.627 |
+€9.26
M |
1 Like for
like: Based on a comparable scope (i.e. including CapitalData over
six months in 2016 and 2017) and at constant exchange rates (i.e.
applying the average exchange rate over the period to data from the
compared period).
2 Adjusted
headline profit before interest & tax: Recurring operating
income before restructuring costs and excluding the cost of
performance share plans (€1.54 M in H1 2017; no costs in H1 2016).
Adjusted operating margin: Adjusted headline PBIT/Gross
profit.
3 Adjusted
attributable net income: Attributable net income excluding the
after-tax cost of performance share plans (€1.05 M in H1 2017;
no costs in H1 2016) and excluding net income from assets held
for sale and discontinued operations (income of €0.17 M in
H1 2017; income of €0.39 M in H1 2016).
4 Net cash (or
net cash surplus): Cash and cash equivalents less gross current and
non-current financial debt.
Didier Chabassieu, Chairman of the
Management Board, stated, "HighCo achieved a
healthy first half in 2017 after a remarkable year in 2016. This
first half saw continued business growth, an increase in
profitability and strong cash generation. We expect further growth
in annual earnings with a confirmed rise in profitability of
50 bp. As a result, we are moving forward with our investment
strategy in Digital, especially businesses specialised in data and
mobile technologies."
FINANCIAL PERFORMANCE IN H1
2017
Business
growth
Following the like-for-like growth
in Q1 and Q2 of 4.2% and 0.7% respectively, H1 2017 gross profit totalled €42.28 M, rising by
2.5% on a reported basis and by 2.3% on a like-for-like basis.
After an excellent year in 2016, the growth trend over the half
year remained driven by Digital, which increased 6.2% like for
like.
The strong growth
trend continued in France in H1 2017 (up
7.0% like for like to €29.98 M, i.e. 70.9% of the Group's
gross profit) despite a slowdown in Q2 2017.
International
business decreased in H1 2017 (down 7.5% like for like to
€12.30 M):
Growth in
profitability
Business growth, combined with
sound cost control, resulted in 6.7% growth in
adjusted headline PBIT to €10.88 M in H1 2017
with:
Adjusted
operating margin (adjusted headline PBIT/gross profit)
rose substantially by 100 basis points,
coming to 25.7% (versus 24.7% in H1 2016 on a restated
basis).
The growth in adjusted headline
PBIT and the drop in restructuring costs (€0.10 M in
H1 2017 versus €0.16 M in H1 2016 on a restated
basis), led to a 7.4% rise in adjusted recurring
operating income to €10.78 M (as against €10.04 M in
H1 2016 on a restated basis).
Half-year operating income,
including the cost of performance share plans (€1.54 M in H1 2017),
amounted to €9.24 M, down 7.9%.
Half-year
adjusted attributable net income climbed 12.8% to €6.80 M
and half-year attributable net income came to €5.93 M.
The Group reported adjusted
half-year EPS of €0.33, up 13.2% (up 11.9% on a diluted basis) from
H1 2016.
Furthermore, with the cancellation
of combined put and call options on a 49% stake in the subsidiary
High Connexion, the corresponding share in net income will be
recognised under non-controlling interests (NCIs) as of H2 2017.
For information purposes, this cancellation would have lowered
adjusted 2016 EPS8 from €0.42 to
€0.38.
5 In
application of IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations, the businesses in the United Kingdom were
classified and presented as discontinued operations as of the third
quarter of 2016. For reasons of consistency, the data reported for
H1 2016 have been restated to account for the impact of the UK
businesses. Net income and the loss on the sale of these businesses
are presented net of tax as a single item in the consolidated
income statement under Net income from assets held for sale or
discontinued operations.
6 Adjusted
recurring operating income: Recurring operating income excluding
the cost of performance share plans.
7 At 31
December 2016.
8 EPS excluding
the after-tax cost of performance share plans and excluding net
income from assets held for sale or discontinued operations (MRM
and POS Media).
Strong cash generation
Half-year cash flow rose sharply
by 16.8% to €8.19 M. As such, the net cash
position was up by €9.26 M to €58.88 M at 30 June
2017. Working capital improved by €3.48 M. Excluding operating
working capital (€54.88 M at 30 June 2017), net debt came
out negative at €4 M, down by €5.78 M with respect to
31 December 2016.
HIGHLIGHTS
Digital
strategy
Gross profit in Digital grew 6.2%
in H1 2017. Digital businesses represented 47.3% of the
Group's gross profit as at end-June 2017, up from 46.6% at
end-2016.
-
Fully digital DRIVE TO STORE
solutions
Although total volumes of
digital coupons issued fell over the half-year
(down 17%), "next-generation" solutions (Load to Card and Click
& Collect) grew sharply (up 16%), representing nearly
10 million digital coupons issued over the period. HighCo
signed with a new retailer (Franprix) for its Load to Card solution
and now wants to take it a step further to combine brand loyalty
programmes with different retailers.
After several years of strong
growth, despite further growth in the volume of push SMS and
notifications (up 8%), mobile businesses fell
slightly with the impact of the price repositioning for Internet+
Mobile services.
Brand content and targeted media
on social networks upheld their excellent
performance, rising further in H1 2017 with the acquisition of
new clients such as eBay.
At the same time, the Group
continues to develop its hyper-personalisation
solution for advertising and promotional messages for advertisers
(CapitalData's Data Management Platform). While renewing targeting
campaigns for its long-standing advertiser clients, the Group now
develops web-to-store programmatic campaigns
as an effective alternative for paper flyers for retailers, with
new retailers from Casino group (Géant Casino, Monoprix and Leader
Price).
-
Strong growth in the
digitisation of IN-STORE solutions
Digital services continue to grow
significantly in the still predominantly "paper-based" area of
IN-STORE solutions. The proportion increased from 23.6% for
H1 2016 to 33% for H1 2017.
Point-of-sale
paper coupon and media businesses rose further in France but
declined in Belgium. The Group's main contracts with its retail
partners remained in effect over the period. In Belgium, digital coupon and media kiosks installed at the end of
2016 in the Carrefour network posted good initial results.
After signing with a new client
(Intermarché), and as Click & Collect continues to expand,
HighCo offers a unique media and targeted coupon offer now deployed
across nearly 90% (in value) of Click &
Collect websites in France.
-
Growth trend remains strong for
DATA solutions
The share of digital DATA
solutions rose from 36.3% at end-June 2016 to 38.3% at end-June
2017.
Although the volume of paper
coupons cleared in France and Belgium fell, the share increased
slightly in the volume of coupons cleared
digitally, covering coupons from e-commerce websites, in-store
kiosks and downloads to loyalty cards.
With more than 300 campaigns for
digital cashback offers launched in H1 2017, e-CBO campaigns continued to grow, up 26%. These
digital DATA tools now include a new solution, e-GWPs, featuring fully dematerialised management of
gift-with-purchase offers.
Lastly, the Group plans to
continue supporting its brands and retailer clients in new market
trends, namely with gamification. This
solution encompasses a comprehensive, fully digital range of
services, from game development to media coverage and prize
shipment.
Governance
HighCo announces that Didier
Chabassieu is currently facing health problems. However, he
continues to carry out his duties as Chairman of the Management
Board alongside Cécile Collina-Hue, member of the Management Board
and Managing Director. The Executive Committee, made up of business
unit managers and experts serving in their positions since 2013,
supports them in ensuring the Group's day-to-day operations, and
strategic and managerial issues.
2017
GUIDANCE
Given the performance reported for
the first half of the year and the outlook expected for the second
half, the Group has confirmed its revised guidance for 2017
announced in July, as follows:
-
Growth in 2017 gross profit revised from more
than 4% to more than 1% like for like (2016 gross profit: up 11.8%
like for like), with the Group's share of digital business expected
to reach its target of 50% (2016: 46.6%);
-
Growth in adjusted headline PBIT2
revised from equal to or greater than 6% to between 4% and 6%
(adjusted 2016 headline PBIT: €14.1 M);
-
Rise in adjusted operating margin2
maintained at equal to or greater than 50 bp (adjusted 2016
operating margin: 17.4%).
As a reminder, the Group's financial resources
will be allocated as a priority to:
-
Capital expenditure, for between €1.5 M and
€2 M (€1.08 M in 2016, €0.70 M in
H1 2017);
-
Share buybacks totalling between €0.5 M and
€1 M (€0.66 M in 2016, €0.25 M in
H1 2017).
The Group continues to review acquisitions and
investments in the Digital sector, especially businesses
specialised in data and mobile technologies.
A conference call with analysts will take place on
Thursday, 31 August 2017 at 11 a.m. The presentation will
be available online on the Company's website www.highco.com.
HighCo
is deeply saddened by the loss this summer of its founder, Frédéric
Chevalier.
Frédéric Chevalier imagined, dreamt, founded, developed and guided
HighCo. He was an ambitious, visionary and talented leader in its
soul and will remain so forever.
HighCo and the people at HighCo will be paying tribute to him in
the weeks to come.
About HighCo
Since its creation, HighCo has placed innovation at the
heart of its values, offering its clients - brands and retailers -
Intelligent Marketing Solutions to influence shopper behaviour with
the right deal, in the right place, at the right time and on the
right channel.
Listed in compartment C of
Euronext Paris, and eligible for the "long only" DSS, HighCo has
more than 700 employees and since 2010 has been included in
the Gaia Index, a selection of 70 responsible Small and Mid
Caps.
Your contacts
Cécile
Collina-Hue
Cynthia Lerat
Managing
Director
Press Relations
+33 1 77 75 65
06
+33 1 77 75 65 16
comfi@highco.com
c.lerat@highco.com
Upcoming events
Publications take place after market close.
Conference call on 2017 half-year
earnings: Thursday, 31 August 2017 (11.00 a.m. CET)
Q3 and 9-month YTD 2017 Gross Profit: Wednesday, 18 October
2017
Q4 and FY 2017 Gross Profit: Wednesday, 24 January 2018
HighCo is a
component stock of the indices CAC® Small (CACS), CAC®
Mid&Small (CACMS) and CAC® All-Tradable (CACT).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For further financial information and press
releases, go to www.highco.com
This
English translation is for the convenience of English-speaking
readers. Consequently, the translation may not be relied upon to
sustain any legal claim, nor should it be used as the basis of any
legal opinion. HighCo expressly disclaims all liability for any
inaccuracy herein.
Download the press
release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: HIGHCO via Globenewswire
High (EU:HCO)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
High (EU:HCO)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
