SGS’s H1 results came in marginally below expectations on organic revenue growth. Despite a +20bp IFRS16 positive effect, postponed payments in GIS impacted the margin development in H1. Thus, the second half should benefit from the collection of these payments. Management remains confident and continues to see robust divisional developments going forward. The downside in our view is related to the M&A strategy which is not aggressive enough to meet the 2020 commitments, especially
18 Jul 2019
Lacklustre H1 results
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Lacklustre H1 results
SGS’s H1 results came in marginally below expectations on organic revenue growth. Despite a +20bp IFRS16 positive effect, postponed payments in GIS impacted the margin development in H1. Thus, the second half should benefit from the collection of these payments. Management remains confident and continues to see robust divisional developments going forward. The downside in our view is related to the M&A strategy which is not aggressive enough to meet the 2020 commitments, especially