Full year Financial Information at March 31, 2018 IFRS -
Regulated Information - Not Audited
Cegedim: revenue growth continues
- Revenues grew 2.6% like for like over the full year
- Business model transformation moving forward
Disclaimer: This press release is available in French and in
English. In the event of any difference between the two versions,
the original French version takes precedence. This press release
may contain inside information. It was sent to Cegedim's authorized
distributor on April 26, 2017, no earlier than 5:45 pm Paris
time.The terms "business model transformation" and "BPO" are
defined in the glossary.Owing to the disposal of the Group's
Cegelease and Eurofarmat businesses, announced in 2017 and
completed on February 28, 2018, the consolidated 2017 and 2018
financial statements are presented according to IFRS 5,
"Non-current assets held for sale and discontinued". See the
annexes for more details. The Group also applies the IFRS 15
accounting standard, "Revenue from contracts with
customers". |
Conference CALL on APRIL 26, 2018, at 6:15PM
CET |
FR: +33 1 70 71 01 59 |
USA: +1 646 722 4916 |
UK: +44 207 1943 759 |
PIN Code: 15730811# |
The webcast is available at the following
address: www.cegedim.fr/webcast |
Boulogne-Billancourt, France, April 26, 2018, after the
market close
Cegedim, an innovative technology and
services company, posted consolidated Q1 2018 revenues from
continuing activities of €111.9 million, up 1.8% on a reported
basis and 2.6% like for like compared with the same period in
2017.
The application of the new IFRS 15 accounting
standard has no material impact on Group revenue.
Cegedim's business model transformation is
progressing according to plan. As a result, the Insurance, HR and
e-services division continued to post robust growth in the first
quarter of 2018, while Healthcare professionals division revenues
fell ahead of new product launches in the UK and US.
As a reminder, the Group's first-quarter and
third-quarter revenue figures are typically slightly lower than
what it generates in the second quarter and especially the fourth
quarter.
Revenue trends by division
|
|
First quarter |
In €
million |
|
2018 |
2017 |
Chg. L-f-l |
Chg. Reported |
Health insurance, HR and
e-services |
|
72.9 |
68.6 |
+6.4% |
+6.3% |
Healthcare
professionals |
|
38.0 |
40.3 |
(3.5)% |
(5.7)% |
Corporate and others |
|
1.0 |
1.1 |
(6.5)% |
(6.5)% |
Cegedim |
|
111.9 |
110.0 |
+2.6% |
+1.8% |
In the first quarter of 2018, Cegedim posted
consolidated revenues from continuing activities of €111.9 million,
up 1.8% on a reported basis. Excluding an unfavorable currency
translation effect of 0.8%, revenues rose 2.6%. There was virtually
no impact from acquisitions or disposals in this quarter.
The unfavorable currency translation effect of
€0.9 million, or 0.8%, was chiefly due to the €0.5 million negative
impact of the US dollar, which represents 2.6% of Group revenues,
and the €0.3 million negative impact of the pound sterling, which
represents 9.8% of revenues.
In like-for-like terms, Health insurance, HR and
e-services division revenues rose by 6.4%, and Healthcare
professionals division revenues declined by 3.5%.
Analysis of business trends by division
- Health insurance, HR and e-services
The division's Q1 2018 revenues came to €72.9
million, up 6.3% on a reported basis. Currency translation had a
negative impact of 0.1%. There were no acquisitions or divestments.
Like-for-like revenues rose 6.4% over the period.The
Health insurance, HR and e-services division represented
65.1% of consolidated revenues, compared with 62.4% over the same
period a year earlier.
The businesses that made the biggest contributions to growth
were Cegedim SRH (HR management solutions), Cegedim e-business
(digitalization and data exchange), sales statistics for
pharmaceutical products, and the computerization of health
insurance companies in the UK. This performance was partially
offset by the impact of switching the health insurance company
computerization activity over to a SaaS model in France, and by the
timing of C-MEDIA campaigns (ad space in pharmacies and health
& wellness shops).
The division's Q1 2018 revenues came to €38.0
million, down 5.7% on a reported basis. Currency translation had a
negative impact of 2.1%. There was virtually no impact from
acquisitions or divestments. Like-for-like revenues fell 3.5% over
the period.The Healthcare professionals
division represented 34.0% of consolidated revenues from
continuing activities, compared with 36.7% over the same period a
year earlier.
The division was negatively affected by doctor
computerization activities in the UK, the US and Spain ahead of new
product launches. This impact was partly offset by computerization
activities for doctors and allied health professionals in France.
The stability of the pharmacy computerization business in France is
particularly noteworthy.
The division's Q1 2018 revenues came to €1.0
million, down 6.5% on a reported basis and like for like. There was
no currency impact and no acquisitions or
divestments.The Corporate and others division
represented 0.9% of consolidated revenues from continuing
activities compared with 1.0% over the same period a year
earlier
Highlights
Apart from the items cited below, to the best of
the company's knowledge, there were no events or changes during the
period that would materially alter the Group's financial
situation.
- Sale of Cegedim shares held by Bpifrance
Bpifrance Participations sold 1,682,146 Cegedim shares via an
accelerated bookbuilding process to French and international
institutional investors at a price of €35 per share on February 13,
2018. In the context of the transaction, the shareholders'
agreement dated October 28, 2009, between Mr. Jean-Claude Labrune,
FCB (the family holding company controlled by Mr. Labrune), and
Bpifrance - as well as the concert between the parties - has been
terminated. Following the sale, Cegedim's free float increased to
44% of capital (vs. 32% before the transaction).
- Completed disposal of the Cegelease and Eurofarmat
On February 28, 2018, Cegedim announced that it
had completed the disposal of Cegelease and Eurofarmat to
FRANFINANCE of the Société Générale Group for an amount of €57.5
million plus reimbursement of the shareholder's loan account, which
amounted to €13 million. Of this amount, Cegedim used €30 million
to pay down its debt.
The parties have decided that Cegelease and the
Cegedim Group will continue to collaborate in France under their
current terms as part of a six-year collaboration agreement.
- Acquisition of Rue de la Paye in France
On March 30, 2018, Cegedim acquired French company Rue de la
Paye via its Cegedim SRH subsidiary. The deal will enable the Group
to market digital payroll solutions to 2 million SMEs and small
businesses in France, including - importantly - thousands of
healthcare professionals that are already Cegedim Group
clients.
Rue de la Paye's 2017 revenues were equivalent to around 1% of
Group 2017 revenues, and it earned a profit. It began contributing
to the Group's consolidation scope in April 2018.
On February 21, 2018, Cegedim S.A. received notice that French
tax authorities would perform an audit of its accounts covering the
period January 1, 2015, to December 31, 2016.
Significant post-closing transactions and events
To the best of the company's knowledge, there
were no events or changes after the accounts were closed that would
materially alter the Group's financial situation.
Outlook
- Cautiously optimistic for 2018
Building on the efforts that it executed with
success in 2017, Cegedim continues to pursue its strategy of
focusing on organic growth, fueled by a policy of sustained
innovation.
For 2018 the Group targets a moderate organic
revenue and EBITDA margin growth. The Group does not issuing any
earnings estimates or forecasts.
- Potential impact of Brexit
In 2017, the UK accounted for 10.9% of
consolidated Group revenues from continuing activities and 14.0% of
consolidated Group EBIT.
Cegedim deals in local currency in the UK, as it
does in every country where it is present. Thus, Brexit is unlikely
to have a material impact on Group EBIT.
With regard to healthcare policy, the Group has
not identified any major European programs at work in the UK and
expects UK policy to be only marginally affected by Brexit.
The figures cited above include guidance on
Cegedim's future financial performances. This forward-looking
information is based on the opinions and assumptions of the Group's
senior management at the time this press release is issued and
naturally entails risks and uncertainty. For more information on
the risks facing Cegedim, please refer to Chapter 2 points 4.2,
"Risk factors and insurance", and 5.5, "Outlook", of the 2017
Registration Document filed with the AMF on March 29, 2018, under
number D.18-0219.
Additional information
Revenue figures for Q1 2018 have not been
audited by the Statutory Auditors.
|
June
19, 2018, at 9:30 am CET July 26, 2018, after the market
close |
Cegedim
shareholders' meeting Second-quarter 2018 revenues |
Financial calendar, H1 2018
April 26, 2018, at 6:15pm (Paris
time) |
The Group will hold a conference call hosted by Jan
Eryk Umiastowski, Cegedim Chief Investment Officer and Head of
Investor Relations. The webcast is available at the following
address: www.cegedim.fr/webcast The presentation on Q1 2018
revenues is available on the website and on the Group's financial
communications app, Cegedim IR. |
Contact Numbers : |
France: +33 1 70 71 01 59 United States:
+1 646 722 4916 UK and others: +44
207 1943 759 |
PIN Code: 15730811# |
Appendices
Breakdown of revenues from continuing activities by quarter
and division
In
€ thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
72,923 |
|
|
|
|
|
Healthcare
professionals |
|
38,029 |
|
|
|
|
|
Corporate and others |
|
989 |
|
|
|
|
|
Cegedim |
|
111,941 |
|
|
|
|
|
In
€ thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
68,610 |
71,653 |
67,958 |
82,856 |
291,077 |
|
Healthcare
professionals |
|
40,320 |
41,495 |
37,999 |
42,672 |
162,486 |
|
Corporate and others |
|
1,058 |
933 |
961 |
926 |
3,878 |
|
Cegedim |
|
109,989 |
114,081 |
106,918 |
126,454 |
457,441 |
|
Breakdown of revenues from continuing activities by
geographic zone and division
In
€ thousands |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
97.0% |
3.0% |
- |
- |
Healthcare
professionals |
|
62.2% |
29.9% |
7.9% |
- |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
85.2% |
12.1% |
2.7% |
- |
Breakdown of revenues from continuing activities by currency
and division
In
€ thousands |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
97.0% |
2.1% |
- |
1.0% |
Healthcare
professionals |
|
65.9% |
25.0% |
7.6% |
1.5% |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
86.4% |
9.8% |
2.6% |
1.2% |
Application of IFRS 5
On December 14, 2017, Cegedim announced that it had signed a
contract for the definitive sale of its Cegelease and Eurofarmat
businesses. The deal was finalized on February 28, 2018. As a
result, the consolidated 2017 and Q1 2018 financial statements are
presented according to IFRS 5, "Non-current assets held for sale
and discontinued". IFRS 5 governs the accounting treatment for
non-current assets held for sale.
In practice, their contribution to each line of Cegedim's
consolidated income statement (before minority interests) is
combined into the "Net profit from activities sold or held for
sale" line, and the group share of their net profit is excluded
from Cegedim's adjusted net profit. Earlier periods have also been
restated so that the information presented is comparable.
The table below shows the impact of the restatement:
in
€ thousands |
|
Q1 2018 |
Q1 2017 |
Change |
Revenue from continuing activities |
|
111,941 |
109,989 |
+1.8% |
Revenue from assets held
for sale |
|
2,211 |
3,926 |
(43.7)% |
IFRS 5 restatement |
|
(182) |
(209) |
(13.2)% |
Group revenues |
|
113,970 |
113,705 |
+0.2% |
Glossary
BPO
(Business Process Outsourcing): BPO is the contracting of
non-core business activities and functions to a third-party
provider. Cegedim provides BPO services for human resources,
Revenue Cycle Management in the US and management services for
insurance companies, provident institutions and mutual insurers.
Business model transformation: Cegedim decided in fall 2015
to switch all of its offerings over to SaaS format, to develop a
complete BPO offering, and to materially increase its R&D
efforts. This is reflected in the Group's revamped business model.
The change has altered the Group's revenue recognition and
negatively affected short-term profitability Corporate and
others: This division encompasses the activities the Group
performs as the parent company of a listed entity, as well as the
support it provides to the three operating divisions. EPS:
Earnings Per Share is a specific financial indicator defined by the
Group as the net profit (loss) for the period divided by the
weighted average of the number of shares in circulation.
Operating expenses: Operating expenses is defined as
purchases used, external expenses and payroll costs. Revenue at
constant exchange rate: When changes in revenue at constant
exchange rate are referred to, it means that the impact of exchange
rate fluctuations has been excluded. The term "at constant exchange
rate" covers the fluctuation resulting from applying the exchange
rates for the preceding period to the current fiscal year, all
other factors remaining equal. Revenue on a like-for-like
basis: The effect of changes in scope is corrected by restating
the sales for the previous period as follows: by removing the
portion of sales originating in the entity or the rights acquired
for a period identical to the period during which they were held to
the current period; similarly, when an entity is transferred, the
sales for the portion in question in the previous period are
eliminated. Life-for-like data (L-f-l): At constant scope
and exchange rates. Internal growth: Internal growth covers
growth resulting from the development of an existing contract,
particularly due to an increase in rates and/or the volumes
distributed or processed, new contracts, acquisitions of assets
allocated to a contract or a specific project. |
|
External growth: External growth covers acquisitions during
the current fiscal year, as well as those which have had a partial
impact on the previous fiscal year, net of sales of entities and/or
assets. EBIT: Earnings Before Interest and Taxes. EBIT
corresponds to net revenue minus operating expenses (such as
salaries, social charges, materials, energy, research, services,
external services, advertising, etc.). It is the operating income
for the Cegedim Group. EBIT before special items: This is
EBIT restated to take account of non-current items, such as losses
on tangible and intangible assets, restructuring, etc. It
corresponds to the operating income from recurring operations for
the Cegedim Group. EBITDA: Earnings before interest, taxes,
depreciation and amortization. EBITDA is the term used when
amortization or depreciation and revaluations are not taken into
account. "D" stands for depreciation of tangible assets (such as
buildings, machines or vehicles), while "A" stands for amortization
of intangible assets (such as patents, licenses and goodwill).
EBITDA is restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the gross operating earnings from recurring
operations for the Cegedim Group. Adjusted EBITDA :
Consolidated EBITDA adjusted, for 2016, for the €4.0m of
negative impact from impairment of receivables in the Healthcare
Professional division Net Financial Debt: This represents
the Company's net debt (non-current and current financial debt,
bank loans, debt restated at amortized cost and interest on loans)
net of cash and cash equivalents and excluding revaluation of debt
derivatives. Free cash flow: Free cash flow is cash
generated, net of the cash part of the following items: (i) changes
in working capital requirements, (ii) transactions on equity
(changes in capital, dividends paid and received), (iii) capital
expenditure net of transfers, (iv) net financial interest paid and
(v) taxes paid. EBIT margin: EBIT margin is defined as the
ratio of EBIT/revenue. EBIT margin before special
items: EBIT margin before special items is defined as the ratio
of EBIT before special items/revenue. Net cash: Net cash is
defined as cash and cash equivalent minus overdraft. |
About
Cegedim: Founded in 1969, Cegedim is an innovative technology and
services company in the field of digital data flow management for
healthcare ecosystems and B2B, and a business software publisher
for healthcare and insurance professionals. Cegedim employs more
than 4,200 people in more than 10 countries and generated revenue
of €457 million in 2017. Cegedim SA is listed in Paris (EURONEXT:
CGM).To learn more, please visit: www.cegedim.comAnd follow Cegedim
on Twitter: @CegedimGroup, LinkedIn and Facebook. |
Aude
BalleydierCegedim Media Relations and Communications
ManagerTel.: +33 (0)1 49 09 68 81aude.balleydier@cegedim.com |
Jan Eryk
UmiastowskiCegedimChief Investment Officerand head of
Investor RelationsTel.: +33 (0)1 49 09 33
36janeryk.umiastowski@cegedim.com |
Marina RosoffFor
Madis Phileo Media RelationsTel: +33 (0)6 71 58
00 34marina@madisphileo.com |
|
- Cegedim_Revenue_1Q2018_ENG.pdf
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