Solutions 30 : 79.8% revenue growth in the first half of 2019

79.8% revenue growth in the first half of 2019

• France: revenue up 74.4%
• Other countries: revenue up 90.3%
• Reliable, cash-generating model

Solutions 30 SE, the European leader in solutions for new technologies, today disclosed its revenue for the first half of 2019 .

In millions of euros (Unaudited figures)		HY		Q2
	2019	2018	% change		2019	2018	% change
Total		317.8	176.7	+79.8%		157.4	91.5	+72.1%
From France		202.8	116.3	+74.4%		101.5	59.5	+70.6%
From other countries		115.0	60.4	+90.3%		55.9	32.0	+74.7%

Sustained growth trend continues

Solutions 30 maintains its high growth trajectory, disclosing revenues of €317.8 million for the first half of 2019, a 79.8% increase (36.9% of which was organic growth¹). For the 2^nd quarter alone, revenue increased by 72.1%, reaching €157.4 million. Organic growth represented 32.3%.

The group continues to demonstrate the relevance of its positioning and strategy in markets driven by the economy’s digital transformation and major technology groups’ outsourcing of local services.

France: activity driven by the telecommunications and energy sectors

In France, Solutions 30 posted revenue of €202.8 million for the first half of the year, up 74.4% (20% organic growth). For the second quarter, revenue increased by 70.6% (18.6% organic growth), reaching €101.5 million. In addition to solid organic growth from fiber optic related activities and smart electricity and gas meters, CPCP has been fully consolidated since August 2018 and Sotranasa since December 2018.

Other countries: strategic deals for the future

In other countries, revenue grew by 90.3% (69.8% organic growth) to €115.0 million, contributing 36% of the group’s total revenue. For the 2^nd quarter alone, revenue amounted to €55.9 million, up 74.7% (57.8% organic growth). The 258% increase in Belgian business is mainly due to the rising importance of the outsourcing contract signed with Telenet.

In the first half of the year, the group pursued its strategy of denser national coverage and sector diversification. In Germany, the group announced two promising deals, one with Unitymedia and the other one with the country’s main gas and electricity supplier, which is launching a pilot phase for installing smart meters.

In Spain, Solutions 30 just acquired Provisiona, a company with annual revenues of €3 million and 42 employees. Provisiona specializes in managing mobile network deployment programs and operates on behalf of Europe’s two main equipment manufacturers: Ericsson and Nokia. This is a strategic acquisition as the group begins to position itself in the 5G market in Europe.

In Italy, Solutions 30 won its first contract for electric vehicle charging stations. Enel, the country’s leading electricity producer, awarded the group a maintenance contract for approximately 30% of its existing charging stations. This first contract reinforces Solutions 30’s ambitions for a sector that is expected to grow significantly in the coming years.

Solid financial structure: WCR under control and strong cash position

At the end of the first half-year, the group’s cash position reached €94.8 million, an increase of €24.9 million compared to the end of December 2018. Gross financial debt decreased by €5 million— compared with December 31, 2018— to €77.3 million. The group’s net financial debt amounted to - €17.5 million at the end of June 2019, compared to +€12.4 million at the end of December 2018. Factored receivables amounted to €46 million compared to €51 million at the end of 2018. During the first half of the year, Solutions 30 received €10 million from outsourcing operations carried out in 2018.

The group has shown its capacity to absorb sustained growth, while generating an increase in cash corresponding to approximately 6% of revenue, excluding exceptional items.

Scaling up to meet expectations for sustained and profitable growth

During the first half of the year, Solutions 30—which has traditionally prioritized growth and allocated its resources accordingly—confirmed its intention to transfer its listing to the Euronext regulated market. An action plan is currently underway to improve the group’s governance and to produce 2019 financial statements that meet IFRS standards.

At the same time and backed by a strong start of the year, Solutions 30 confirms its outlook for sustained and profitable growth and its goal to reach €1 billion in revenue over the medium term. The group will pursue its strategy of balancing organic growth with acquisitions, while seizing opportunities to expand into new geographical areas.

Solutions 30 is ideally positioned to take advantage of current and future infrastructure investments, especially in fast internet and smart meters in France and other countries. The group is also ready to capture growth in the sectors of charging stations for electric vehicles having signed its first contracts in this market, and 5G networks, as evidenced by its acquisition of Provisiona in Spain.

Webcast

A webcast in English will take place on Thursday, July 18 at 2:30 pm (CET).

Upcoming event

Half-year results, September 23, 2019 at 6:00 pm
(webcast on September 24 at 2:30 pm CET).

Definition

¹ Organic growth includes:

1. Outsourcing operations from 2018, namely local service activities from DXC Technology in Italy and from Unit-T, the new group subsidiary created to fulfill the service provision contract signed with Telenet.
2. Organic growth operated by acquired companies, which would not have happened if the acquired company had remained independent, or that originates from contracts transferred by the group. For example, when the group signed a contract last September in France for €50 million over 3 years (see press release from September 11, 2018), this contract has been partially subcontracted to CPCP which was acquired in August. It therefore contributes to the 2019 revenue of the new subsidiary yet originates from the group’s long-standing activities.

The group’s growth is detailed in the table below:

	2019 H1	2018 H1
Revenue from long-time subsidiaries	Organic growth operated by acquired companies	External growth	Total	Total
Total	221.9	20.0	75.9	317.8	176.7
From France	123.7	15.6	63.4	202.8	116.3
From other countries	98.2	4.4	12.4	115.0	60.4

About Solutions 30 SE

The Solutions 30 Group is the European leader in solutions for new technologies. Its mission is to make the technological developments that are transforming our daily lives accessible to everyone, individuals and businesses alike. Yesterday, it was computers and the Internet. Today, it’s digital technology. Tomorrow, it will be technologies that make the world even more interconnected in real time. With more than 20 million call-outs carried out since it was founded and a network of more than 8,000 local technicians, Solutions 30 currently covers all of France, Italy, Germany, the Netherlands, Belgium, Luxembourg, and Spain. The share capital of Solutions 30 SE consists of 104,057,392 shares, equal to the number of theoretical votes that can be exercised.

Solutions 30 SE is listed on Euronext Growth (ISIN FR0013379484 – code ALS30) as well as
the Frankfurt Stock Exchange on the XETRA e-listing system (FR0013379484 – code 30L3).
Indexes: MSCI Europe Small Cap | Tech40 | CAC PME
For more information, visit our website: www.solutions30.com

Contacts

Solutions 30	Listing Sponsor
Nezha Calligaro	Hervé Guyot
+352 2 837 1389 | nezha.calligaro@solutions30.com	+33 (0)1 45 63 68 60 | hguyot@genesta-finance.com
Investor Relations - France	Press Relations
Nathalie Boumendil	Samuel Beaupain
+33 (0)6 85 82 41 95 | investor.relations@solutions30.com	+352 2 777 4210 | media.relations@solutions30.com
Investor Relations - Europe & USA
John Klein
+44 (0)793 9230 260 | john.klein@solutions30.com

Attachment

• SOL30 - 2019 HY Revenue

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