SII Continues to Grow in Double Digit Figures

/ November 13, 2018/ France, Poland, SII

The revenue growth of SII slowed down slightly in Q2 FY19: revenues were up 14.6% yoy at CC/CS in Q2 FY10 to EUR 148m. The growth is in line with Q1 (+14.3%) although it benefitted from one additional working day, which Q1 had not. However, this is a real deceleration, when compared to full-year FY18 (+15.6% despite five less working days).

France was up 9.5% yoy at CC/CS with momentum across sectors. Again, activity has slowed down from a CC/CS growth of 12.8% in FY18 (including the working day impact).

International operations were up by 20.7% yoy at CC/CS on Q2: Poland continues to drive the activity (+36%) in line with FY18 (+35%). SII has acknowledged that it is expecting its Polish operations to slow down at some point. This slowdown is not happening yet.

Spain and Germany, the other significant geos of SII also grew, in mid-single digits. This is line with full-year FY18

SII has reiterated its guidance of reaching revenues in the range of EUR 625m-EUR640m in full-year FY119. This represents a growth of 11.5%-14.0%. At this point, SII is positioned at the higher end of the range. However, given the positive working day impact this year, we were expecting SII to beat its guidance, easily. Of course, a 14% CC/CS revenue growth is an excellent performance, by onshore and offshore standards.

The margin in FY18 (6.8%) had been impacted by the lesser working days in France, and depreciation in Spain, with the independence events in Catalonia. We are therefore expecting a definite improvement in the company’s operating margin this FY19. SII will be announcing in one month its earnings for H1 and will indicate the profitability of this year.

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