Half-year results as of June 30, 2020

Paris, 16 September 2020, 5.45pm

*HALF YEAR RESULTS:**TURNOVER €1 BILLION*

*CONSOLIDATED NET PROFIT €10 MILLION*

The Executive Board of SYNERGIE, chaired by Daniel AUGEREAU, met on 14 September 2020 and approved the interim financial statements for the period ended 30 June 2020. The limited audit procedures for these financial statements are complete and the related report is being issued. 

Consolidated - in € million *2020* *2019*   * * * *  
Turnover *1,000.6* *1,295.6* * *
EBITDA 39.9 64.8  
Current operating profit (1) 30.0 54.5  
Profit before tax 22.6 50.6  
Tax expense (2)  (12.6)  (23.4)  
Net profit *10.0* *27.2* * *

(1) before amortisation and impairment of intangible assets

(2) including the French value-added contribution for businesses (CVAE) of €6.1 million in 2020 and €8.5 million in 2019

*Activity*

After a first quarter during which business performed particularly well, the Covid-19 pandemic significantly affected the employment market in France and abroad.

Against this exceptionally challenging backdrop, SYNERGIE mobilised its teams and succeeded in posting consolidated turnover of €1,000.6 million, 22.8% lower than in 2019 (23.3% on a like-for-like basis).

By acting fast, the Group succeeded in diversifying its customer base and extending its services in the environment, renewable energies, digital technology, agri-food, logistics and medical sectors to offset the slowdown in the aeronautics and, to a lesser degree, automotive construction sectors. This resilience helped limit the downturn in business to 37.1% in the second quarter.

In France, turnover reached €454 million, a decrease of -28% compared with -31% for the market, according to PRISM’EMPLOI, with temporary employment showing a resumption after the sudden drop-off in the second half of March.

International business held up better, reaching €546.6 million (54.6% of the consolidated total) compared with €664.8 million in 2019, a decrease of only 17.8%.

*Results*

SYNERGIE showed very good resilience during this unprecedented crisis by swiftly adapting its organisation to preserve its teams and ensure continuity of service for customers in their ongoing business.

Country-specific action plans were set up, including the implementation of government measures aimed at preserving employment and supporting companies. In addition, costs were cut in all of the subsidiaries.

Thanks to these measures, the vast majority of the group's geographical entities generated positive current operating profit.

In France, operating margin reached €13.8 million compared with €34.1 million in 2019, demonstrating good resilience despite the considerable fall in activity.

Current operating profit from the international business reached €16.2 million compared with €20.5 million in 2019, underpinned by good resilience in Italy and Belgium.

The digital services activity maintained a margin on turnover of 10%, showing the success of the Group's diversification in these activities, a segment in which it has been operating since 2018 (acquisition of DCS EASYWARE in France followed by TIGLOO in Spain, generating total turnover of €32.2 million over the first six months).

After taking into account amortisation and impairment of intangible assets of €5.4 million and financial expenses of €1.9 million (of which €0.9 million linked to exchange rate fluctuations), pre-tax profit came out at €22.6 million.

The tax expense of €12.6 million factors in the French value-added contribution for businesses (CVAE) in the amount of €6.1 million.

Net profit came to €10 million, demonstrating SYNERGIE’s capacity to continue making a profit in an economic environment reeling from an unprecedented crisis.

*Financial situation*

The financial structure was bolstered with shareholders’ equity of €552.9 million and a sharp increase in the cash position due to a reduction in working capital requirement of €100 million over the period, limited investment and the decision not to pay dividends.

*Outlook*

In an environment in which human resources are a core concern in company structures, with increased demand for services and flexibility, SYNERGIE plans to remain the preferred partner of these companies.

Thanks to a very solid financial structure, SYNERGIE holds further attributes underpinning its confidence in its ability to withstand this health crisis and make turnover in excess of €2 billion in 2020.

*Next event:*
Publication of turnover for the third quarter of 2020 on Wednesday 28 October 2020 after the stock market closes.

*Attachment*

· 747 - Half Year Results 2020