Prodware: Business Resilience in the 1st Half Of 2020
- Revenues: -6.4%
- Continued growth in SaaS sales: +17.4%
IFRS revenues Unaudited data - in €m
A business model showing good resilience to the Covid-19
Prodware generated €85.2 million in revenue in the 1st half of
2020, compared with €91.0 million in the same period in 2019,
representing a 6.4% decrease.
The good start of the 2020 financial year, with positive
operational indicators, enabled Prodware to achieve a first quarter
with a slight growth. From mid-March 2020, the company suffered
from the consequences of the health crisis with an impact on its
integration and consulting activities, with consultants unable to
access the sites of certain customers for several weeks.
It should be noted that the rapid implementation of a remote
communication infrastructure and remote working solutions, offered
to customers, made it possible to partially offset the effects of
drastic social distancing measures. The turnover of integration
services thus fell by 18.7% in H1 to set at € 35.7 million.
Sales in software licenses were almost stable at € 29.1 million
and represented 34.2% of total income, a level slightly up by 1.5
points compared to the same period in the previous fiscal year.
Conversely, the first half of 2020 saw a continued increase in
sales of SaaS solutions. The major strategic shift that Prodware
initiated several years ago shifting towards a subscription income
model continues to bear fruit and is proving particularly well
suited to deteriorating economic conditions. SaaS revenue amounted
to € 20.4 million, up 17.4% compared to the same period last
By geography, international business represents 64% of total
activity, up 3.1 points compared to the first half of 2019, thanks
to the very rapid adoption of remote working by customers,
including remote implementation of projects.
Prodware plans to gradually resume its activity during the
second half of the year with the reopening of its customers' sites,
the reinforced adoption of new remote working processes and the
launch of new projects.
In the second quarter, Prodware paid very close attention to its
expenses and CAPEX to preserve its profitability and cash flow as
much as possible. Exceptional cost reduction measures have been
taken from the start of the lockdown, in particular the use of
partial unemployment schemes (in countries where applicable), a
hiring freeze of non-strategic personnel and, more generally, a
drastic reduction in non-strategic expenses. Consequently, the
one-off decrease in activity during the last quarter will not have
any impacts on the half-year profits.
Beyond the cyclical effect of the health crisis, it has indeed
accelerated fundamental changes in the behaviours of economic
players. Changes such as the sustainable increase in remote working
mode, more and more companies going digital, the rollout of
“Industry 4.0” as a direct response to the Government's intention
to promote a massive and competitive reindustrialization policy,
have strengthened the Group’s determination and confidence for the
future thanks to its expertise in consulting, developing and
deploying innovative industry-specific business solutions.
Next publication: Financial Results for the 1st half of
2020 and Revenue for the 3rd quarter of 2020: 14 October 2020 after
close of trading.
With 30 years of experience and know-how in IT innovation, we
strive to provide value and expertise to our customers around the
world. Whether we’re implementing the most ambitious cloud
strategies, developing AI-powered decision-making tools, or
creating IoT applications, Prodware is always at the cutting edge
of innovation. Since its inception, Prodware has leveraged
technological progress to help businesses prepare for the future by
helping them build the business processes of tomorrow for the
manufacturing, sales, distribution, finance, and business service
industries. The Prodware group includes nearly 1,300 employees
across 13 countries. It generated revenues of €188 million in 2019.
Prodware SA is listed on Euronext Growth and is eligible for FCPI
(innovation funds) and SME PEA (equity savings plan). For more
information, visit www.prodwaregroup.com/fr-fr/
EURONEXT GROWTH (formerly ALTERNEXT)
ISIN FR0010313486 - ALPRO - FTSE 972 IT services Prodware is
FCPI-eligible – Prodware, a socially responsible company, is a
member of the Global Compact.
version on businesswire.com: https://www.businesswire.com/news/home/20200720005428/en/
PRODWARE Stéphane Conrard Chief Financial Officer Tel.:
+33 (0)9 79 99 90 00 email@example.com
PRESS Gilles Broquelet CAP VALUE Tel.: +33 (0)1 80 81 50
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