The SII engineering consulting group has released its revenue figures for the fiscal year 2019/2020.
Management board chairman Eric Matteucci commented that: «In a context made particularly difficult by the COVID-19 crisis, the SII group has delivered 6.9% growth in its business over the entire year. At the end of the financial year, business was greatly impacted firstly in France but also Spain and Germany. However, the digital sector has shown its resilience as well as its relevance in ensuring continuity of service in many economic sectors. It is encouraging for the future. Thank you to all our employees and customers for having made this possible.»
For the 2019/2020 financial year, SII group revenue was €675.1m, an increase of 6.9%. Growth continues both in France and internationally with revenue up 1.3% and 13.6%. Fourth quarter revenue was €175.7m, a rise of 1.8% year on year.
Growth of business over the entire year
SII group revenue in France was €346.3m for the entire fiscal year, progressing by 1.3%. Final quarter business produced revenue totaling €87.9m (-6.5% on Q4 2018/2019). The lockdown linked to the COVID-19 crisis reduced the production level by about 20% in France from 16 March 2020. If there had been no lockdown, the SII group would have returned to growth in its revenue for this last quarter. Among our customers’ sectors of activity, defense and aviation have been most affected.
Overseas, total growth continues at a sustained rate (+13.6%) and represents 48.70% of the group’s revenue at €328.2 M. The COVID-19 crisis has had a more pronounced impact in Spain and Germany. Business over the 4th quarter rose +12.2% year on year to €87.8 M. This new performance, achieved in a very different context according to country, is a result of strong business in the following countries: Poland (+22.6%), Romania (+33.9%), Netherlands (+29.2%), Morocco (+12.6%), Colombia (+14.5%) and United Kingdom (+91.6%). For this quarter, troubled by the health crisis, the situation is stable in Germany (2.7%), Canada (-2.3%), Belgium (-3.9%), and the Czech Republic (-4.2%) and has declined in Spain (-11.8%) and Chile (-13.5%).
Outlook
Despite an end to the fiscal year marked by the health crisis, the SII group has delivered 6.9% growth. This growth is in line with the targets announced at the start of the fiscal year on 11 June 2019, but below the targets revised on 11 February 2020, thus highlighting the impact of the health crisis. As announced in the press release of 14 April, net and operating margins will be impacted by the effects of the lockdown, especially in France.
In an environment where visibility is very low and where lockdown easing measures are just beginning, the SII group is not yet able to define a revenue target for the 2020/2021 fiscal year. Business in the first quarter of the 2020/2021 fiscal year will be particularly affected in France with an expected decrease of between -20% and -25%. International business will also be affected but to a lesser extent (between -5% and -10% according to our initial estimates). The SII group will provide further details of its 2020/2021 outlook when it publishes its annual results.
Attachment: Revenue by quarter
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