Full year Financial Information at December 31,
2017
IFRS - Regulated Information - Not Audited
Cegedim: organic growth
accelerated in 2017
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 January 29, 2017, no earlier
than 5:45 pm Paris time.
The terms "business model transformation" and
"BPO" are defined in the glossary.
Cegedim announced on December 14 that it had
signed a contract for the definitive sale of its Cegelease and
Eurofarmat businesses. As a result, the consolidated 2017 financial
statements are presented according to IFRS 5, "Non-current assets
held for sale and discontinued". See annexes for more details.
Cegedim expects the deal to be finalized in the first quarter of
2018. |
Conference CALL on january 29, 2018, at
6:15PM CET |
FR: +33 1 72 72 74 03 |
USA: +1 844 286 0643 |
UK: +44(0)207 1943 759 |
PIN Code:
38032293# |
The webcast is available at the following
address: www.cegedim.fr/webcast |
Boulogne-Billancourt, France,
January 29, 2018, after the market close
Cegedim, an
innovative technology and services company, posted consolidated Q4
2017 revenues from continuing activities of €126.5 million, up 6.3%
on a reported basis and 5.2% like for like compared with the same
period in 2016.
Over the full year 2017, Cegedim posted
consolidated revenues from continuing activities of €457.4 million,
up 6.6% on a reported basis and 5.9% like for like compared with
the same period in 2016.
To continue its business model
transformation and refocus its strategy, Cegedim signed an agreement to sell its Cegelease and Eurofarmat
subsidiaries to the Société Générale Group. Cegedim expects the
deal to be finalized in the first quarter of 2018, subject to
approval by competition authorities (see press release dated
December 14, 2017*). Consolidated 2017 revenues are presented
according to IFRS 5, meaning both Cegelease
and Eurofarmat are excluded from continuing
activities.
All of the operating divisions
contributed positively to the Group's year-on-year organic revenue
growth in the fourth quarter and over the full year 2017.
Revenue trends by
division
|
Fourth quarter |
In € million |
2017 |
2016 |
Chg. L-f-l |
Chg. Reported |
Health
insurance, HR and e-services |
82.9 |
77.2 |
+5.2% |
+7.4% |
Healthcare professionals |
42.7 |
40.8 |
+5.4% |
+4.5% |
Corporate
and others |
0.9 |
1.0 |
(3.2)% |
(3.2)% |
Cegedim |
126.5 |
118.9 |
+5.2% |
+6.3% |
*
http://www.cegedim.com/communique/Cegedim_Cegelease_signature_14122017_ENG.pdf
In the fourth quarter of 2017,
Cegedim posted consolidated revenues from
continuing activities of €126.5 million, up 6.3% on a reported
basis. Excluding an unfavorable currency translation effect of 0.4%
and a 1.5% boost from acquisitions, revenues rose 5.2%.
The unfavorable currency
translation effect of €0.5 million, or 0.4%, was chiefly due to the
€0.3 million negative impact of the US dollar, which represents
2.8% of Group revenues, and the €0.1 million negative impact of the
pound sterling, which represents 10.6% of revenues.
The €1.8 million positive impact
from acquisitions, or 1.5%, was due to the acquisition of Futuramedia in France in November 2016.
In like-for-like terms, Health insurance, HR and e-services division revenues
rose by 5.2%, and Healthcare professionals
division revenues rose by 5.4%.
|
Full year |
In € million |
2017 |
2016 |
Chg. L-f-l |
Chg. Reported |
Health
insurance, HR and e-services |
291.1 |
262.4 |
+8.5% |
+10.9% |
Healthcare professionals |
162.5 |
163.6 |
+1.4% |
(0.7)% |
Corporate
and others |
3.9 |
3.3 |
+17.2% |
+17.2% |
Cegedim |
457.4 |
429.3 |
+5.9% |
+6.6% |
For the full year 2017, Cegedim posted consolidated revenues from continuing
activities of €457.4 million, up 6.6% on a reported basis.
Excluding an unfavorable currency translation effect of 0.9% and a
1.6% boost from acquisitions, revenues rose 5.9%.
The unfavorable currency
translation effect of €4.1 million, or 0.9%, was chiefly due to the
€3.7 million negative impact of the pound sterling, which
represented 10.9% of revenues.
The €7.0 million positive impact
from acquisitions, or 1.6%, was due to the acquisition of Futuramedia in France in November 2016.
Both of the divisions grew their
like-for-like revenues. Health insurance, HR and
e-services division revenues from continuing activities rose by
8.5%, and Healthcare professionals division
revenues rose by 1.4%.
Analysis of business trends by
division
The division's Q4
2017 revenues came to €82.9 million, up 7.4% on a reported basis.
The November 2016 Futuramedia acquisition in France
made a positive contribution of 2.3%. Currency translation had a
negative impact of 0.1%. Like-for-like revenues rose 5.2% over the
period.
The division's 2017 revenues came to €291.1
million, up 10.9% on a reported basis. The November 2016
Futuramedia acquisition in France made a positive contribution of 2.6%.
Currency translation had a negative impact of 0.2%. Like-for-like
revenues rose 8.5% over the period.
The businesses that made the biggest contributions
to growth were C-MEDIA, merger between
RNP and Futuramedia, (ad
space in pharmacies and health & wellness shops), Cegedim SRH (HR management solutions), Cegedim e-business (digitalization
and data exchange), sales statistics for pharmaceutical products,
and - in the field of health insurance - third-party payment flow
management and BPO activities.
The Health
insurance, HR and e-services division represented 63.6% of
consolidated revenues, compared with 61.1% over the same period a
year earlier.
The division's Q4
2017 revenues came to €42.7 million, up 4.5% on a reported basis.
Currency translation had a negative impact of 1.0%. There was
virtually no impact from acquisitions or divestments. Like-for-like
revenues rose 5.4% over the period.
The division's 2017 revenues came to €162.5
million, down 0.7% on a reported basis. Currencies had a negative
impact of 2.2%. There was virtually no impact from acquisitions or
divestments. Like-for-like revenues rose 1.4% over the
period.
The businesses that made the
biggest contributions to growth were software for doctors and
allied health professionals in France, Belgium, and the US, and the
BCB medication database. After a rather mixed
start to the year, business in the UK and with pharmacists returned
to growth.
The Healthcare
professionals division represented 35.5% of consolidated
revenues from continuing activities, compared with 38.1% over the
same period a year earlier.
The division's Q4
2017 revenues came to €0.9 million, down 3.2% on a reported basis
and like for like. There was no currency impact and no acquisitions
or divestments.
The division's 2017 revenues came to €3.9 million,
up 17.2% on a reported basis and like for like. There was no
currency impact and no acquisitions or divestments.
The Corporate and others division represented
0.8% of consolidated revenues from continuing activities in 2017
and 2016.
For the full year
2017, revenues from activities held for sale came to €13.0 million,
up 3.7% on a reported basis and like for like. There was no
currency impact and no acquisitions or divestments.
Without applying IFRS 5, Group
revenues would amount to €470.0 million, up 6.6% on a reported
basis and 5.9% like for like compared with FY 2016.
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.
In keeping with the wishes of
Bpifrance, in March 2017 Ms. Anne-Sophie Hérelle was appointed to
replace Ms. Valérie Raoul-Desprez on the Board of Directors. The
permanent representative of Bpifrance is now Ms. Marie
Artaud-Dewitte, Deputy Head of Legal Affairs at Bpifrance
Investissements. She replaces Ms. Anne-Sophie Hérelle.
On May 22, 2017, the Group signed
a factoring agreement with a French bank. The non-recourse
agreement covers total receivables of €38.0 million. The agreement
is for an open-ended time period.
The amount of trade receivables
sold under the agreement came to €18.8 million at June 30,
2017.
Cegedim
carried out two zero-premium swap agreements in the first half of
2017 under which it receives the 1-month Euribor rate if it exceeds
0%, receives nothing otherwise, and pays:
-
A fixed rate of 0.2680% on a notional amount of
€50 million starting February 28, 2017, and maturing on February
26, 2021.
-
A fixed rate of 0.2750% on a notional amount of
€30 million starting May 31, 2017, and maturing on December 31,
2020.
As part of the BPO contract
Cegedim signed with the Klesia group in
September 2016, the two companies created an economic interest
group (GIE), held 50/50. In January 2017, Cegedim lent Isiaklé €9 million for a period of 10
years at an interest rate of 1m Euribor plus a margin of 1.1%. The
GIE is accounted for in Cegedim's consolidated
accounts using the equity method.
On February 23, 2017, Cegedim acquired UK company B.B.M.
Systems through its Alliadis Europe Ltd
subsidiary. B.B.M.
Systems had 2016 revenues of around €0.7 million and earned a
profit. It began contributing to the Group's scope of consolidation
on March 1, 2017.
On May 3, 2017, Cegedim acquired UK company Adaptive
Apps through its In Practice Systems Ltd
subsidiary. Adaptive Apps had 2016 revenues of
around €1.5 million and earned a profit. It began contributing to
the Group's scope of consolidation in May 2017.
On February 10, 2017, Cegedim was ordered to pay €4,636,000 to the Tessi
company for failing to meet certain obligations with respect to an
asset sale made on July 2, 2007. The sum was paid on July 21, 2017.
Cegedim has appealed the ruling.
Cegedim,
jointly with IQVIA (formerly IMS Health), is being sued by Euris
for unfair competition. Cegedim has filed a
motion claiming that IQVIA should be the sole defendant. After
consulting with its external legal counsel, the Group has decided
not to record any provisions.
On October 20, 2017, the court of
Nîmes ordered Alliadis to pay a fine of €2
million as part of a case involving a pharmacist from Remoulins. A
subsequent hearing on November 24 set the fine at €187,500.
Cegedim has asked for the case to be dismissed
and is appealing the ruling.
The terms of the deal are detailed
in the press release dated December 14, 2017
http://www.cegedim.com/communique/Cegedim_Cegelease_signature_14122017_ENG.pdf.
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
Based on its performance in the
fourth quarter of 2017, the Group is revising significantly upwards
its outlook for EBITDA from continuing activities in FY 2017. The
Group now expects 2017 EBITDA from continuing activities to exceed
€72 million.
Cegedim will
discuss its outlook for 2018 when it announces its 2017 results on
March 20, 2018, after the market close.
The Group does not communicate
earnings estimates or forecasts.
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 points 2.4, "Risk factors and
insurance", and 3.7, "Outlook", of the 2016 Registration Document
filed with the AMF on March 29, 2017, under number D.17-0255.
In 2017, the UK accounted for
10.9% of consolidated Group revenues from continuing activities. It
represented 14.8% of consolidated Group EBIT before special items
in 2016.
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 consolidated Group
EBIT before special items.
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.
Additional information
Revenue figures for FY 2017 have
not yet been audited by the Statutory Auditors.
|
March 20, 2018, after the market
close
March 21, 2018, at 11:00 am CET
April 26, 2018, after the market
close
June 19, 2018, at 9:30 am CET
|
FY 2017 results
Analyst meeting (SFAF) in Cegedim's auditorium
First-quarter 2018 revenues
Cegedim shareholders' meeting
|
Financial calendar, H1
2018
January 29, 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 FY 2017 revenues is available:
The website:
http://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
The Group's financial communications app, Cegedim IR. To download
the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx |
Contact Numbers : |
France: +33 1 72 72 74 03
United States:
+1 844 286 0643
UK and others: +44
(0)207 1943 759 |
PIN Code: 38032293# |
Appendices
Breakdown of revenues from
continuing activities by quarter and division
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 |
|
In € thousands |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
59,735 |
64,855 |
60,615 |
77,151 |
262,356 |
|
Healthcare professionals |
42,857 |
41,028 |
38,865 |
40,838 |
163,588 |
|
Corporate
and others |
797 |
781 |
773 |
957 |
3,308 |
|
Cegedim |
103,389 |
106,664 |
100,253 |
118,945 |
429,251 |
|
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 |
96.5% |
3.5% |
- |
- |
Healthcare professionals |
59.0% |
31.7% |
9.3% |
- |
Corporate
and others |
99.5% |
0.5% |
- |
- |
Cegedim |
83.2% |
13.5% |
3.3% |
- |
Breakdown of revenues from
continuing activities by currency and division
In € thousands |
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
96.5% |
2.5% |
- |
1.0% |
Healthcare professionals |
63.3% |
26.2% |
9.2% |
1.4% |
Corporate
and others |
100.0% |
- |
- |
- |
Cegedim |
84.7% |
10.9% |
3.3% |
1.1% |
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 is expected to take
effect following the release of this document, in the first quarter
of 2018. As a result, the consolidated 2017 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 |
2017 |
2016 |
Change |
Revenue from continuing activities |
457,441 |
429,251 |
+6.6% |
Revenue
from assets held for sale |
13,001 |
12,537 |
+3.7% |
IFRS 5
restatement |
-490 |
-942 |
- |
Group revenues |
469,952 |
440,846 |
+6.6% |
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.
|
Glossary
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 |
Follow Cegedim:
|
Cegedim_Revenue
_FY2017_ENG
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: Cegedim SA via Globenewswire
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