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Linedata Services: First-half results 2022 EBITDA: +0.4% NET PROFIT: +12.4%

·4-min read

Linedata Services
Linedata Services: First-half results 2022 EBITDA: +0.4% NET PROFIT: +12.4%

12-Sep-2022 / 17:45 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

 

First-half results 2022

EBITDA: +0.4%

NET PROFIT: +12.4%

 

 

 

H1 2021

H1 2022

Change

REVENUE

75.9

82.9

+9.3%

EBITDA

% of revenue

22.6

29.8%

22.7

27.4%

+0.4%

 

EBIT

% of revenue

15.3

20.2%

14.7

17.7%

-4.4%

 

NET PROFIT

% of revenue

11.0

14.5%

12.3

14.9%

+12.4%

 

        Rounded figures

 

 

Neuilly-sur-Seine, 12 September 2022 – Linedata (Euronext Paris: LIN), the global solutions and outsourcing services provider to the investment management and credit finance industries, released its first-half 2022 results, in line with expectations.

 

 

Linedata generated first-half revenue of €82.9m, up 9.3% on a reported basis (+3.7% in organic terms). This performance was driven by the strength of the Services business and continued steady client migrations to new platforms (notably AMP and EKIP360).

 

During the first half, the Group continued its R&D investments in its solutions and returned to normal business in terms of travel and professional trade gatherings. It also recruited new talent to strengthen its sales and marketing teams. As a result, the EBITDA margin for the first half contracted (-2.4 pts). This reflects, however, a return to a more normative level compared to the previous year, which was not typical of a normal level of business activity.

 

 

EBITDA margin

H1 2021

H1 2022

Asset Management

29.2%

25.0%

Lending & Leasing

31.1%

32.6%

Total

29.8%

27.4%

 

 

Analysis of results

 

Group EBITDA was almost flat (+0.4%) at €22.7m. Payroll costs increased by 12.2% to €40.1m. This reflects new recruitments over the period but also an overall increase in employee costs due to a 2022 policy of increasing compensation, to increase the attractiveness of Linedata in a very competitive labour market. The “Purchases and external costs” item increased by 22.9% to €18.6m. This increase can be attributed to the end of the freeze on travel and participation in professional trade shows and, also, to a significant use of outsourcing to support the strong increase in the Services business.

 

EBIT was €14.7m, down 4.4% compared with H1 2021. It reflects an increase in allocations to amortisation linked to capitalised R&D relative to the new platforms (in particular Linedata AMP and Linedata EKIP360).

 

The financial result was €1.8m versus €0.9m a year earlier. This improvement can be attributed notably to forex gains but also to a lasting decline in the cost of debt following the the replacement in 2021 of a redeemed bond debt by a new syndicated loan offering better financial terms.

 

After taxes of €4.1m, net profit was €12.3m, up 12.4%, bringing the net margin to 14.9% (+0.4 pts vs. H1 2021).

 

 

Balance sheet analysis

 

Shareholders’ equity stood at €146.6m at end-June 2022 versus €145.8m at end-December 2021. This notably includes the integration of net profit from the first half and restatements following the acquisition of company shares during the period in the amount of €9.3m

 

Net debt (*) was down €7.1m to €36.1m, representing 0.8 times consolidated EBITDA on a 12-month moving average excluding IFRS 16.

 

Appointment

 

Linedata has announced the appointment of Mrs Dounia El Hasnaoui to the position of Group CFO, to replace Mr Arnaud Allmang, who is moving to a different position within the Group’s Management Team. After first gaining experience at an auditing firm, Dounia spent 12 years with a major digital services company, notably in the finance department working with operating entities.

 

Outlook

 

During the second half of the year, Linedata will step up its commercial efforts and continue with migration projects for its installed base with a view to confirming the return to organic growth seen in H1 2022.

 

Next communication: Q3 2022 revenue on 20 October 2022 after trading.

 

*excluding IFRS 16 lease liabilities but including the property lease portfolio

 

 

 

ABOUT LINEDATA

 

With 20 years’ experience and 700+ clients in 50 countries, Linedata’s 1100 employees in 20 offices provide global humanized technology solutions and services for the asset management and credit industries that help its clients to evolve and to operate at the highest levels.

Headquartered in France, Linedata achieved revenues of EUR 160.2 million in 2021 and is listed on Euronext Paris compartment B FR0004156297-LIN – Reuters LDSV.PA – Bloomberg LIN:FP.

www.linedata.com

 

Linedata

Finance Department

+33 (0)1 73 43 70 28

infofinances@linedata.com

 

Cap Value

Financial communication

Gilles Broquelet

+33 (0)1 80 81 50 00

info@capvalue.fr

www.capvalue.fr

 

 

Regulatory filing PDF file

File: pdf


Language:

English

Company:

Linedata Services

27 rue d'Orléans

92 200 Neuilly-sur-Seine

France

Internet:

www.linedata.com

ISIN:

FR0004156297

Euronext Ticker:

LIN

AMF Category:

Inside information / News release on accounts, results

EQS News ID:

1440629

 

End of Announcement

EQS News Service

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