H1 23 results in line

H1 23 EBIT in line H1 23 EBIT (restated from asset sale) came at EUR15.7m, slightly down YoY; operating margin contracted 120bps to 5.6% driven by a pick-up in hiring costs over the past 12 months as previously indicated by management. To prepare for future nuclear projects, the group increased headcount by ~10% over the past year. Net profit was broadly stable excluding discontinued operations. We have not made any changes to our forecast in this update. Good performance at Expleo Expleo deliv

Solid Q2 23 trends

Nuclear business remains in good shape The Nuclear business posted 16% LFL growth (similar to Q1 trends) thanks to robust growth across the board, including in France and the UK, against a modest comparison basis. The non-nuclear business was flat on an organic basis as the ramp-up of Saudi Arabia''s major infrastructure contract is now behind. Outlook lifted The group now expects 1) sales at EUR570m, implying 14% LFL growth (vs. ''9% to 12%'' previously) as nuclear sales should benefit from g

Solid start to the year

Sales beat across the board Q1 22 sales came in at EUR144m, up 19.6%, of which 16.4% was LFL. We were expecting sales of EUR134m and organic growth at 10.5%. The upside to forecasts was driven by both nuclear and non-nuclear activities. Nuclear sales were up 15.7% LFL, accelerating from +9.5% in Q4 22 thanks to robust growth from the maintenance of the installed base in France (lifetime extension, decommissioning) and strong growth from new build in the UK. Non-nuclear sales gained 32.1%, o.w. 1

Staffing for the next nuclear cycle

FY 2022 results were in line with consensus FY 22 EBIT came in line with our estimates at EUR33m, up 8.2% restated for disposals, implying an EBIT margin of 6.7%, down 10bps YoY due to a pick-up in hiring towards the end of the year. FY net profit tracked better than anticipated at EUR49m thanks to higher contribution from equity-accounted Expleo and a lower-than-expected tax rate. Robust recovery at Expleo The PandL contribution of Expleo improved from EUR6m to EUR10m, reflecting the continued

Solid finish to the year

Acceleration in Q4 sales thanks to nuclear Q4 22 sales came in at EUR133m, up 10.4%, of which +8.4% LFL (vs. our EUR129m estimate, up 6% LFL) marking a pickup vs. previous quarters as trends in nuclear improved (+9.5%) thanks to good underlying business and more limited drag resulting from the end of the Kacare contract. The non-nuclear activity remained healthy (+5.7% LFL), driven by the Neom project contract in Saudi Arabia. EBITA margin seen at 6.7% for 2022 vs. 6.8% previously guided due to

Good set of H1 22 results

H1 22 EBIT well oriented H1 22 EBIT (restated for asset disposals) came out at EUR16.4m up 17% in line with our EUR16.3m estimate as operating margin expanded 30bps on higher activity in both Nuclear and non nuclear activities (H1 22 sales were already published on 29 July and showed 12% growth o.w. 4.6% LFL). The PandL contribution of Expleo improved from -EUR1m to EUR3.1m benefiting from the turnaround of the business (sales up 24% LFL) although its operating profitability has yet to catch up

Good Q2 22 trends

LFL growth tracking better thanks to non-nuclear Q2 22 sales were up 13.9% at EUR121.5m of which +6% was LFL as non nuclear activities caught up while the nuclear business remained steady. Organic growth tracked better than expected (BNPPE at +4% LFL). Q2 sales included the contribution from STUP and Schofield Lothian acquired in H2 22. Nuclear business remained well oriented despite contract phasing The Nuclear business posted 3.4% LFL growth thanks to good progression in France and the UK, o

Q1 22 sales slightly shy due to contract phasing

Q1 22 LFL comes short due to contract phasing in non-nuclear Q1 22 sales came in at EUR125m up 9.2%, of which 2.3% was LFL. We were expecting sales of EUR122m and organic growth at 5.1%. The shortfall to our forecasts was mainly due to the non-nuclear business. Nuclear sales were up 6.3%, consistent with our estimates and driven by good level of activity in France and the UK. The non-nuclear business saw a stronger contribution from MandA but lower organic growth (-6.6%) due to unfavourable ph

Stars aligning

France''s new nuclear program comes on top of the current uptick in lifetime extension and provides Assystem with multi-year visibility. There is also a high likelihood that equity-accounted Expleo could be put up for sale. We have upgraded our forecasts and valuation. Enhanced visibility in nuclear France''s plans to launch a program for 14 new nuclear reactors over the next thirty years is excellent news for Assystem owing to its dominant market share in domestic engineering services. This

Good medium-term visibility

FY results boosted by Expleo''s contribution FY 2021 EBIT came broadly in line with expectations at EUR32m (+55% YOY restated for disposals) thanks to top-line growth and margin recovery across the board. Net profit tracked significantly higher at EUR35m (vs. EUR24m expected) driven by a sharp rebound at equity-accounted Expleo that saw a EUR52m YOY upturn in its contribution thanks to the recovery in outsourced RandD end markets, notably in H2 21. Guidance implies 5% to 6% organic growth M

Q4 21 sales driven nuclear by activities

Slight shortfall in Q4 sales due to covid and contract headwind Q4 21 sales came out at EUR129.7m up 9.5% of which +0.9% LFL (vs. our EUR134m estimate up 5% LFL) marking a slowdown vs. previous quarters as trends were affected by covid (absenteeism) and the effect of the wind down of the ENEC contract. Excluding those headwinds, revenues were up 4.5%. The nuclear activity continued to be a steady engine growing 3% LFL and 6% excluding covid and contract headwind. EBIT margin guidance maintaine

Steady trends in Q3 21

Q3 21 trends were slightly ahead of estimates Assystem posted Q3 21 sales of EUR128.2m up 11%, of which 7.2% was LFL. We were expecting sales of EUR124m and a 6% LFL gain. The upside to our numbers was mainly driven by non-nuclear activities. Solid trends across the board Nuclear grew 6.7% LFL as robust growth in France (maintenance and lifetime extensions) and the UK (mostly new build) was offset by the wind-down of the ENEC contract in UAE. Non-nuclear activities were up 7.5%, benefiting

Solid H1 21 results

H1 21 EBIT broadly in line with expectations Assystem posted H1 21 EBIT of EUR 16.6m up 77% coming broadly in line with our estimates and tracking 6% above H1 19 level. Profits were not disclosed by division but Nuclear was said to be the main driver of H1 performance with a contribution significantly above pre-covid levels. Net profit came out at EUR11.5m up from EUR0.5m last year driven by the operating performance but also an improved contribution from Expleo (from negative EUR6m to negative

Robust trends in Q2 21

Better-than-expected Q2 21 sales trends Q2 21 sales came in at EUR126m up 17.7%, including +20% organic growth. This comes 7% above our expectation of EUR117m sales up 12% LFL. Top line was driven by a rebound in both Nuclear and non-nuclear activities against a low comparison base. Pick-up in nuclear activities The nuclear business grew 22% LFL in Q2 21 benefiting from strong dynamic in both new build (notably in the UK) and maintenance operations (France) which helped more than offset the

Solid Q1 21 sales

Solid Q1 21 trading update Assystem posted Q1 21 sales of EUR128m up 4.1%, o.w. +6.1% LFL. Q1 revenues were 2% ahead of our estimates (were aiming at EUR125m up 4.9% organically) with the upside mainly driven by nuclear activities. Rebound in nuclear activities Assystem''s nuclear division grew 9% LFL (vs. Exane at +7%) reflecting double-digit growth in the UK (driven by new build), sustained activity in France (maintenance and life extension programs), and strong growth in Saudi Arabia, p

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