To be continued today ... AUBAY - Boursorama


(AOF) – SOLUTIONS 30 (+ 29.06% to 13.99 euros)

Solutions 30 flares, an investigation having concluded “to the unfounded and erroneous character” of the accusations brought against the specialist of solutions for new technologies. In early December, the publication of an anonymous report seeking “to demonstrate troubled links between the company and organized crime in Italy” had resulted in a fall of more than 60% of the share in a few days. The activist fund Muddy Waters was engulfed in the breach, multiplying the attacks, accusing Solutions in particular of manipulating its accounts.

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Key points

– European number 1 group in multi-technical digital equipment deployment and maintenance services created in 2003;

– Revenue of € 682 million in 2019, 64% achieved in France, ahead of the Benelux, Germany, Italy, the Iberian Peninsula, and Poland;

– 68% of revenues derived from telecoms (30% share of the French market), 16% from energy and 11% from the IT sector;

– Business model:

– combining internal and external growth (30 acquisitions since creation) with duplication of the French model in Europe in order to address large accounts and new markets, – based on 3 pillars – territorial network with 11,000 technicians, S30net platform for sharing ‘expertise and provision of human skills and large volumes of intervention;

– Open capital, Gianbeppi Fortis, co-founder and chairman of the management board, holding 16.2%, Alexander Sator chairing the supervisory board of 6 independent members;

– Very solid financial position with shareholders’ equity of € 149m at the end of June 2020 against a net debt of € 27m (cash net of debt of € 46m excluding the impact of IFRS 16) and cash of € 152m at the end of June.

Stakes

– Strategy aiming in the medium term for one billion euros in turnover via the critical size in each geographic market, the quality of human resources and the pooling of expertise;

– Innovation strategy focused on the constant improvement of the S30net platform (annual investments of 1 to 2% of turnover) and on the training of technicians in new skills;

– Environmental strategy praised by the Ecovadis rating agency and presenting 2 components – offer of innovative services with less environmental impact and involvement of suppliers and partners in the group’s CSR effort;

– Recurring revenues, drawn 63% from maintenance activities;

– Acceleration of the generation of free self-financing through the use of factoring;

– Confirmation of breakthroughs in mobility (electric vehicle charging stations), 5G networks and the maintenance of connected objects.

Challenges

– Sensitivity of turnover, for 45% of the total, to the first three customers – telecom and energy;

– Growth in new business driven mainly by the deployment of optical fibers in Europe and energy meters, such as Linky, in France;

– Impact of the pandemic: 14% increase in turnover at the end of June and 32% decline in net profit, affected by the Polish zloty exchange losses and the increase in depreciation;

– Response to the pandemic: adaptation of operating methods to protect the health of employees, continuity of services (most of the activities considered essential), effort on working capital;

– 2020 targets: confidence in the ability to generate profitable, double-digit revenue growth.

Threatened jobs

According to forecasts from the Professional Union of Digital Actors (Syntec Numérique), the decline in activity should reach 4.6% for the whole of 2020. However, the end of the year was more lenient for professionals. . The situation has improved slightly since September, in terms of calls for tenders and the order book.

Technology consulting players will have suffered particularly in 2020, recording a 12.3% drop in their activity. They are, in fact, very present in two sectors particularly affected by the health crisis, civil aeronautics and the automobile. The risk of job cuts is greatest in technology consulting. Syntec Numérique assesses the positions in danger in this niche at 10,000.

Very cautious, professionals expect a rebound of 1% for the sector in 2021.

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