AKKA - First-quarter 2017 revenue

                                                                                                                              Press release pdf here

The AKKA Technologies Group has demonstrated its ability to outperform the technology consulting sector. Its revenue increased by 22.3% to €328.3 million in the first quarter. Organic growth was a robust 11.7%. It exceeded 10% in each of the Group’s three business units.

In line with revenue growth of 22.3%, the increase in the workforce was 17.5%. This was achieved, in a dynamic market, thanks to an active recruitment policy and the consolidation of newly acquired companies. As of 31 March 2017, the Group had 14,578 employees, compared with 13,252 at the end of December 2016. The geographical breakdown was as follows: 6,480 in France, 4,617 in Germany and 3,481 in International.

France is reaping the full benefit of the success of its transformation launched in 2015. Its revenue increased by 11.4% on an organic basis to €145.2 million in the first quarter of 2017. This acceleration was accompanied by a further improvement in the operating performance. The environment remains dynamic. The market is driven by growth in the automotive and rail sectors, as well as the return to growth in the aerospace sector. AKKA Technologies continues to gain market share thanks to its positioning in mobility, digital technology and embedded computing. The good sales momentum and the acceleration of recruitments since the second half of 2016 offer the prospect of continued high growth over the full year.

Germany saw its revenue increase by 33.4% to €110.6 million. Organic growth was strong. It totalled 13.1%, after a very good year in 2016, marked by organic growth of 10.9%. The recent acquisitions of Erlkönig and Auronik have reinforced AKKA’s technological know-how, as well as its geographical and customer positioning. The AKKA Technologies Group is now a key player in the entire German OEM ecosystem, enabling it to gain significant market share among both automakers and equipment suppliers, despite an increasingly fierce competitive environment. This positioning should help drive growth in the coming quarters.

The Group’s international activities (excluding Germany) resumed double-digit organic growth half a year ahead of the Group’s internal target. Revenue totalled €72.4 million, an increase of 31.7% compared with Q1 2016. Organic growth amounted to +10.6%. The acceleration in organic growth was driven chiefly by Italy, Spain, the Czech Republic, North America and the United Kingdom. Belgium reported organic growth of 4.4%. The continued deployment of the Group’s business model in recently acquired companies and the acceleration of hiring hold out the prospect of growth for international activities in the coming quarters.

Q1 2017 HIGHLIGHTS

Three acquisitions completed in early 2017: AKKA Technologies completed the strategic acquisitions of CTP System and Edelway in Life Sciences, and GIGATRONIK in the technologies of the future.

With CTP System and Edelway, AKKA Technologies strengthens its know-how in the Life Sciences segment, becoming a close partner for the world’s top 10 healthcare companies. The organic growth of more than 10% recorded by AKKA Life Sciences during the quarter illustrates the Group’s potential for expansion in that sector.

In the space of two years, AKKA Technologies has become a leader in digital technology. The acquisition of Auronik, at the end of 2014, reinforced the Group’s know-how in embedded computing and E-Mobility (intelligent and optimised system for charging electric cars). In 2016, Erlkönig added value to the consulting business in electronic strategy, mobility and digitisation. The acquisition of GIGATRONIK, finalised in early 2017, reinforces AKKA Technologies’ leadership in digitisation in line with its customers’ strategic challenges: hybrid platforms, connected objects, Internet of Things, mobility, autonomous driving, and embedded and real-time computing.
 

OUTLOOK