Full year Financial Information at March 31,
2018
IFRS - Regulated Information - Not Audited
Cegedim: revenue growth
continues
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
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.
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).
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.
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
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.
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.com
And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and
Facebook.
|
Aude Balleydier
Cegedim Media
Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Marina Rosoff
For Madis Phileo
Media Relations
Tel: +33 (0)6 71 58 00 34
marina@madisphileo.com |
|
Cegedim_Revenue_1Q2018_ENG
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Source: Cegedim SA via Globenewswire
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