DJ Linedata Services: Improvement in H1 2024 earnings
Linedata Services
Linedata Services: Improvement in H1 2024 earnings
11-Sep-2024 / 17:45 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Improvement in H1 2024 earnings
Revenue: EUR89.7m (+2.5%)
Net profit: EUR10.6m (11.8% of revenue)
H1 2023 H1 2024 Change
REVENUE 87.5 89.7 +2.5%
EBITDA 21.2 22.0
+3.8%
% of revenue 24.2% 24.5%
EBIT 13.7 15.4
% of revenue 15.7% 17.2% +12.4%
NET PROFIT 8.5 10.6
+24.4%
% of revenue 9.7% 11.8%
Rounded figures
Neuilly-sur-Seine, September 11th, 2024 - Linedata (LIN:FP), the global solutions and outsourcing services provider to the investment management and credit finance industries, announces an improvement in its first-half 2024 results, driven by revenue growth and operating efficiency.
Linedata generated revenue of EUR89.7m in the first half of 2024, an increase of 2.5% in reported terms. On a constant structure and exchange rate basis, growth stood at 2.1%.
The strong growth in the Lending & Leasing business and the improved margin in the Asset Management segment contributed to the solid momentum in the Group's performance indicators.
EBITDA margin H1 2023 H1 2024 Asset Management 22.9% 24.3% Lending & Leasing 27.1% 24.9% Total 24.2% 24.5%
Analysis of results
In H1 2024, Linedata achieved an EBITDA of EUR22.0m (24.5% of revenue), representing a EUR0.8m increase compared to the same period of the previous financial year.
"Payroll costs," Linedata's main operating cost item, increased by 6.0% to EUR46.3m. This growth reflects one-off restructuring costs, a decrease in capitalized R&D expenses, and the reclassification of social security contributions totalling EUR0.5m, which were previously booked under "Taxes and duties". Restated for these items, the increase in employee expenses aligns with the business growth.
The "Purchases and external costs" item decreased by 4.3% to EUR19.1m, benefiting from an improved business mix for the Asset Management Software division in the US.
Net amortization and provisions declined EUR0.9m to EUR6.5m thanks to a decrease in amortization linked to capitalized R &D from previous financial years and the reversal of provisions for risks. As a result, operational income reached EUR15.4m, representing a year-on-year improvement of 12.4% compared with H1 2023.
The financial result amounted to -EUR1.4m, compared to EUR-1.6m for the previous financial year. This change can mainly be attributed to a reduction in average debt.
After booking a tax burden of EUR3.5m, net profit significantly increased by 24.4% to EUR10.6m, resulting in a strong net margin of 11.8% (up by 2.1 pts year-on-year vs. H1 2023).
Balance sheet analysis
The equity is stable at EUR120.4m on June, 30th 2024 compared to EUR113m on December 31st, 2023. This change mainly reflects the profit for the first half of the year.
Net debt (*) totalled EUR52.6m, representing approximately 1.0x consolidated EBITDA on a rolling 12-month period and excluding the impact of IFRS 16 (1.5x on December 31st 2023). This demonstrates the Group's ability to quickly reduce its debt, excluding external growth and capital transactions.
Outlook
Linedata expects continued organic revenue growth and solid operating profitability in the second half of 2024.
Next communication: Q3 2024 revenue on October 23rd, 2024, after trading.
*excluding IFRS 16 lease liabilities but including the property lease portfolio
ABOUT LINEDATA
With 25 years' experience and 700+ clients in 50 countries, Linedata's 1200 employees in 20 offices provide global humanized technology solutions and services for the asset management and credit industries that help its clients to evolve and to operate at the highest levels.
Headquartered in France, Linedata achieved revenues of EUR 183.3 million in 2023 and is listed on Euronext Paris compartment B FR0004156297-LIN - Reuters LDSV.PA - Bloomberg LIN:FP
www.linedata.com
Linedata Cap Value
Finance Department Financial communication
+33 (0)1 73 43 70 28 +33 (0)1 80 81 50 00
infofinances@linedata.com info@capvalue.fr
www.capvalue.fr
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Regulatory filing PDF file File: CP_Linedata - CP RS 2024_12.09.24-EN_V11092024
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Language: English
Company: Linedata Services
27 rue d'Orléans
92 200 Neuilly-sur-Seine
France
Internet: www.linedata.com
ISIN: FR0004156297
Euronext Ticker: LIN
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1986253
End of Announcement EQS News Service
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1986253 11-Sep-2024 CET/CEST
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September 11, 2024 11:45 ET (15:45 GMT)
