Full year Financial Information at December 31, 2017 IFRS -
Regulated Information - Not Audited
Cegedim: organic growth accelerated in 2017
- Revenues grew 5.9% like for like over the full year
- Outlook for consolidated 2017 EBITDA raised significantly
- Cegelease business sold
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
- Health insurance, HR and e-services
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.
- Assets held for sale (Cegelease and Eurofarmat)
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.
- Changes to Cegedim SA's Board of Directors
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.
- Non-recourse factoring agreement
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.
- Partial interest rate hedging
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.
- B.B.M. Systems and Adaptive Apps acquisitions in the UK
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.
- Divestment of Cegelease and Eurofarmat
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.
- Potential impact of Brexit
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.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 |
Follow Cegedim:
|
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