Q2 revenue 2020/2021
The SII engineering group has released its first-half revenue data for fiscal 2020-2021.
Management Board chairman Eric MATTEUCCI commented that: “The first half of the 2020-2021 financial
year experienced a low point in activity in April and May and has shown a slow and continuous recovery in
activity since June 2020. The second quarter of the financial year shows encouraging signs for the rest of the
year, although caution is still necessary in view of the latest measures taken by governments to tackle the
health crisis. All our teams remain mobilized to ensure that we are able to continue our activities and win new
markets. All the energy deployed allows us to be confident about our ability to return to growth.”
* excluding the effect of exchange rates (2019-2020 exchange rates applied to 2020-2021 revenue)
SII Group, a specialist in engineering businesses, registered revenues of €301.12 million during the first half of the 2020/2021 financial year. After a first quarter down by 7.3% at constant rates (-9.3% at current rates) penalized by the strict lockdowns, the second quarter showed a gradual recovery of the activity illustrated by a more limited decline of 4.5% at constant rates (-6.2% at current rates). In the semester, the SII group benefited from its sectoral and geographic diversification, which has helped the activity to resist in this adverse climate. Activity shows slight growth overseas: +6.2% at constant rates (+2.7% at current rates).
Growth of the activity overseas and gradual recovery of the activity in France
In France, SII Group registered revenues of €67.6 million during the first half of 2020/2021. After a more than 20% decline in activity in the first quarter (€67.7 million), the second quarter showed a gradual recovery with €72.6 million, a 13.2% decrease compared to the second quarter in the previous financial year. The diversity of the business sectors in which the group intervenes has favored this incipient recovery. The health and economic crisis has mainly affected the aeronautical, automotive, transport and tourism sectors. The lockdown created major organizational difficulties for the continuation of activities in the defense sector during the first quarter. Activities in this sector largely recovered gradually in the second quarter. To reduce the impacts of the health and economic crisis, the group resorted to part-time activity for this entire period.
Furthermore, sectors such as telecommunications, energy and banking have generally resisted since the start of the crisis.
Overseas, the half-yearly turnover shows 6.2% growth at constant exchange rates. The situation remains very varied according to the scale of the health crisis and the group's sectors of intervention in each country. Difficulties appeared in countries where the SII Group is exposed to the aeronautical sector (Germany, Canada, the Netherlands), the automotive sector (Germany, Spain, Czech Republic), transport and tourism (Spain). However, Poland, where exposure to different sectors is very diversified, registered exceptional resistance (+20.8% at constant rates). Three other countries supported international performance with a rate of growth in two figures (at constant rates): Romania (+13.5%), Columbia (+19.8%) and the United Kingdom (+50.6%). Changes in exchange rates slightly reduces performance at current rates outside France, which stands at +2.7%.
After a first quarter greatly penalized by the lockdown, the second quarter showed a partial recovery of activities existing before the lockdown accompanied by the launch of new projects.
The current evolution of the health crisis in several countries calls for great caution but the new lockdowns have not resulted in the sudden and large-scale stoppage of projects in progress. On the basis of the situation to date, the next quarter might, once again, show an improvement in the situation in France and a good resistance among our activities overseas.
Improvement in international operating margin
10% organic growth expected in 2021-2022
Return to growth in France in Q4: +3.0%
International growth: +8.2%
Continued gradual recovery in activity in France
International activity still growing in Q3: +1,8%