On 20th September 2019, the SFAF meeting was held in Paris to present the results of the first half of 2019 of the CIS Group.
Reinforced governance
The Group's corporate governance was strengthened by two high-level appointments, Denis Gasquet as special advisor to Régis Arnoux and Yannick Morillon as Deputy Chief Executive Officer.
Commercial momentum confirmed
Group revenue grew in the first half of 2019 from 7.7% to €124.3 million. This dynamic growth continued in the second quarter which showed a gain of 15.6% from last year's same period.
CIS' robust commercial momentum has been solidified by the signature of new contracts totalling €160 million since the beginning of 2019. These commercial successes are highlighted notably by the opening of new operating countries, which include Senegal and Malawi.
The period was also marked by the completion of a strategic acquisition in Brazil, reinforcing CIS' position as one of the leaders in the Brazilian offshore market.
Half-year results
Current operating profit amounted to €5.1 million compared to €5.4 million in the first half of 2018. Profitability was impacted in particular by the loss of a major contract in Algeria at the beginning of H2 2018 and by an increase in consumed products due to the start of new contracts.
Net profit increased by 3.4% to €2.8 million, benefiting from a positive contribution from the financial results and the favourable change in tax rates.
Net profit attributable to Group shareholders reached €2.5 million, a 4.4% increase from one year earlier, despite the negative €0.1 million impact from IFRS 16's application.
Financial position
On 30 June 2019, shareholders' equity amounted to €59.1 million (compared to €59.4 million at 31/12/18). The Group posted net cash of €43.9 million (compared to €48.4 million at 31/12/18).
Financial debt amounted to €37.8 million (compared to €17.8 million at 31/12/18) after taking into account the application of IFRS 16 resulting in the recognition of a non-cash lease liability in the amount of €10.8 million and bank borrowings to finance external growth in the amount of €7.3 million.
Outlook
Based on the new commercial successes of the third quarter (press release "CIS: sustained commercial momentum in Q3 2019 " published on 2 September) with a gain of €136 million in new contracts, the opening of two new subsidiaries in sub-Saharan Africa (Gabon and Cameroon) and the high volume of ongoing tenders CIS confirms its confidence to achieve double-difit growth in the second half of 2019 (at constant exchange rates).
