2005 results: Net margin for FY2005 better than expected at 13.7% - 2006 outlook: Sales growth +50% and continued expansion in Europe
Noisy-le-Grand, 27 April 2006 - Staff&Line is releasing its annual results for the year ending 31 December 2005. Five months after its listing on Alternext, Staff&Line is holding true to its promise. Following the unveiling of 2005 sales in line with expectations and the concretisation of the European expansion, Staff&Line managers Sylvain Gauthier and Jamal Labed are happy to announce a better-than-anticipated net margin of 13.7%.
Profitability up: net margin rises 26%.
| Summary of 2005 consolidated P&L in € millions | 2005 | 2004 |
| Sales | 6,76 | 6,72 |
| Personnel costs | 4,03 | 3,83 |
| Operating profit | 0,72 | 0,72 |
| Operating margin | 10,80% | 10,80% |
| Net financial income/(expense) | 0,02 | -0,02 |
| Pre-tax profit on ordinary activities | 0,75 | 0,7 |
| Net profit* | 0,93 | 0,73 |
| Pre-tax profit on ordinary activities | 0,75 | 0,7 |
| Net margin | 13,70% | 10,80% |
Growth in software license revenues
Staff&Line is bolstering its software license revenues, which accounted for 51% of total sales in 2005, up from 46% in 2004. This figure reflects market acceptance of the EasyVista solution, the leading full-web software on the market, released at end-2004.
40% boost in export sales.
Sales in northern Europe, Switzerland and Africa enabled Staff&Line to increase its share of export revenues vis-à-vis overall sales. Export revenues will continue to grow in 2006, with the integration of the SIGHT Group, acquired in January 2006.
With its greater financial strength, Staff&Line has the means to meet its expansion goals.
Consolidated 2005 balance sheet in € 000’s
Takeoff in 2006: +50% sales growth and improved profitability
Projected growth will be driven by:
- External growth with the integration of the SIGHT Group and projected acquisition of companies in the UK and Germany.
- Organic growth powered, in France, by the migration of clients frpm the previous product generation (ACTIMA) to the new generation (EasyVista) and, in Spain, Italy and Portugal, by the launching of EasyVista via the migration of the installed base of 500 Sight clients and the acquisition of new clients.
Staff&Line projects further profitability in 2006 driven by rising license sales in France and southern Europe without a proportionate rise in costs (software publisher model).
Continued expansion in Europe
Staff&Line, the only independent player on the market, aims to become the European leader in the publication and commercialisation of IT Management software (IT infrastructure management).
The acquisition of SIGHT International, in January 2006, has already given Staff&Line a footprint in southern Europe. With a presence in Spain, Portugal and Italy, the SIGHT Group possesses an installed base of 1,000 clients. The integration of the acquisition is two-thirds along the way and should be completed by June 2006.
Staff&Line would like to continue its European expansion in 2006 and is currently studying acquisitions in the UK and Germany.
About Staff&Line
Since its creation in 1998, Staff&Line has positioned itself as a specialist on the IT management market. The company is developing a range of EasyVista applications for organisations of all sizes covering the entire life cycle of IT assets, including: incident and problem management, change management, configuration management, inventory, portals for users and tele-distribution. EasyVista is certified ITIL compatible by the independent certification organisation, PinkElephant. With operations in France, Italy, Spain and Portugal, Staff&Line boasts over 3,000 clients in the banking, insurance, industrial, office, public administration, IT outsourcing and advisory sectors. Staff&Line is a founding member of itSMF France and a member of AFDEL (French association of software publishers) of which Managing Director Jamal Labed is the spokesperson. Staff&Line is listed on the Paris Stock Exchange (Alternext). For further information, see www.staffandline.fr
| Assets | Liabilities and equity2004 | ||
| 488 | Shareholders’ equity | 6811 | |
| 3569 | Long-term debt | 111 | |
| 5601 | Current liabilities | 2736 | |
| Total Assets | 9658 | Total liabilities and equity | 9658 |
