Staff&Line: annual turnover increased by +60%, ahead of its business plan
St Albans, UK, February 20th 2007 - Staff&Line, the European leader in IT Management, recorded a turnover of 10.8 million euros at the close of its 2006 financial year, an increase of 60% compared to the previous year.
| Turnover in €m | 2005 | 2006 | Variation | Organic growth |
| Q1 T/O | 1,3 | 2 | 54% | 13% |
| Q2 T/O | 1,5 | 2,4 | 60% | 14% |
| Q3 T/O | 1,5 | 2,1 | 40% | 13% |
| Q4 T/O | 2,5 | 4,3 | 72% | 22% |
| Annual Turnover | 6,8 | 10,8 | 60% | 17% |
An exceptional fourth quarter
The company achieved a turnover of 4.3 million euros for the fourth quarter alone, organically growing by 22% making this the best quarter on record since the Company was founded. This better than forecast performance (growing 2 to 3 times faster than the market) is the result of the excellent take up of its flagship EasyVista software, a real ERP for information systems infrastructure management.
However, it is worth noting that owing to the seasonal nature of sales, the second half performance is always expected to be higer than the first six months of the year.
The annual turnover of Staff&Line includes 12 months revenue of the three companies acquired in the Sight International group in January 2006. However it includes only 2 months of the acquisition of SAM UK which completed on 31st October 2006.. The contribution of these subsidiaries to the total turnover of Staff&Line for the 2006 financial year is 27%.
2006: a very good commercial year
Staff&Line achieved very good commercial performance, notably in France due to the dynamic activity of the EasyVista solution.
The annual turnover is mainly supported by:
- The increase in the sales of licences excluding acquired subsidiaries (+22%) which causes a mechanically related increase in services sales (+20%)
- The inclusion of the turnover of acquired subsidiaries, mainly comprising services sales (86%)
In total the weight of business achieved outside France represents 34% of total turnover against 13% for the previous year.
The year of European investment and deployment
2006 was the first year that Staff&Line formerly had a presence in Spain, Portugal, Italy and the UK, following the two acquisitions of Sight International and SAM UK. These acquisitions had the objective of allowing Staff&Line to acquire technical teams capable of deploying its products to its new European customers.
Due to a rapid subsidiary integration plan, the first sales have already been achieved during October in Southern Europe and during December in England. Nevertheless, these licence sales, 11% of the turnover achieved in the companies acquired, mean little, for the following reasons:
- The new customers had not planned significant investment in IT Management solutions in their 2006 budget, which has led them to subscribe to a test product of more restricted scope.
- Staff&Line was lead to grant preferential commercial conditions so as to acquire reputation in these new markets.
This commercial investment will naturally impact the level of margin in the subsidiaries in 2006 in conformance with the business plan; these investments being the guarantee for the pursuit of growth in 2007 that will be accompanied by an increase in profitability.
These first sales prove that there is interest from European customers in the product range. This new awareness combined with Staff&Line’s competitive approach, winning 100% of deals tendered for, puts Staff&Line in strong position going into 2007.
The full effect of the integration of the subsidiaries will only be visible from the 2007 financial year.
2007 outlook
Due to its new commercial product, EasyVista 2007, Staff&Line should see the same success with its subsidiaries as achieved in France. The company management forecast turnover growth in the order of 30 to 40% for the coming financial year.
About EasyVista
EasyVista is Staff&Line’s market-leading third generation IT Management solution that has been ITIL® designed from the ground up. It is a fully integrated suite with modules covering the entire life cycle of IT assets, including : asset management, incident and problem management, change management, configuration management (CMDB), inventory, portals for users and software distribution. The software is an easy-to-deploy, easy-to-use, and low cost product, offering a complete service solution to users at any level.
About Staff&Line
Staff&Line is a ‘pure player ISV’, pioneering innovative, out-of-the-box, web-based technology. Since its creation in 1988, the company has positioned itself as a specialist in the IT management market. The company has developed their range of EasyVista applications for organisations of all sizes and is certified ITIL® compatible by the independent certification organisation PinkElephant. With operations in France, the UK, Italy, Spain and Portugal, Staff&Line boasts over 3,300 clients in the banking, insurance, industrial, office, public administration, IT outsourcing and advisory sectors. Staff&Line is a founding member of itSMF France, and are also members in the UK. Staff&Line is listed on the Paris Stock Exchange (Alternext). For further information, please visit : www.staffandline.co.uk
