| Press release |
| 4 April 2018 |
2017: STRONG GROWTH IN PROFIT
Turnover: €2,323.2 MILLION (+16.6%)
Current operating profit: €127.5 MILLION (+27.3%)
Net profit: €81.5 MILLION (+25.4%)
The Board of Directors of SYNERGIE, chaired by Daniel AUGEREAU, met on 4 April 2018 and approved the financial statements for the year ended 31 December 2017. The auditing procedures for these financial statements are complete and the corresponding report is being issued.
| Consolidated results - in € million | 2017 | 2016 | change |
| Turnover | 2,323.2 | 1,991.8 | +16.6% |
| Current operating profit (1) | 127.5 | 100.1 | +27.3% |
| Operating profit | 116.2 | 96.0 | +21.0% |
| Profit before tax | 115.1 | 93.2 | +23.6% |
| Tax on profit | (33.6) | (28.2) | |
| Net profit | 81.5 | 65.0 | +25.4% |
| Net profit, Group share | 79.9 | 64.1 |
(1) Before amortisation and impairment of intangible assets
Record turnover of €2,323.2 million
The SYNERGIE Group, Europe's fifth largest human resources management company, posted turnover of €2,323.2 million in 2017, up 16.6% in relation to 2016 (+16.2% on a like-for-like basis).
Its international business (which accounts for 50.5% of consolidated turnover) posted turnover of €1,172.6 million, registering strong growth (+22.3%), with excellent results in countries in which SYNERGIE has extensive operations, and in southern Europe (+31.3%).
Turnover in France reached €1,150.6 million, up 11.4%, outperforming the market (+10.9% according to Prism'emploi).
A marked improvement in profitability
SYNERGIE posted consolidated current operating profit of €127.5 million, up 27.3% (+21.1% in France and 39% outside France) with a strong improvement in the margin on turnover from 5% in 2016 to 5.5% in 2017.
Investments carried out within France over the past two years (recruitment of consultants, digitisation and development of IT tools) and the increase in the CICE competitiveness and employment tax rate contributed to this increase. Particular emphasis was placed on the development of training for temporary employees over the course of the year, as a key attribute in meeting client needs.
Internationally, the strong growth achieved in southern Europe and the Benelux countries contributed to the improvement in the Group's profitability, with most countries posting a higher gross margin than that of France.
Goodwill impairment of €8.6 million was recognised in the United Kingdom related to the consequences of Brexit.
Taking into account the above items and a €33.6 million tax expense, net profit (+25.4%) reached €81.5 million compared with €65.0 million in 2016.
An excellent financial structure
With more than €435.7 million in shareholders' equity and a positive cash position of €153.6 million (net of all debt and including available CICE competitiveness and employment tax credits), SYNERGIE has all the resources it needs to pursue its growth and carry out more acquisitions in France and abroad.
SYNERGIE has looked closely at candidates in Nordic countries, Germany and Eastern countries with a view to optimising its sourcing, and has studied the potential integration of a French IT group to complement its services offering and provide the resources needed to pursue its digitisation.
Outlook for 2018
SYNERGIE once again confirmed its strength across all its markets during the first few months of the year, with consolidated growth at end-February surpassing 15%, underpinning its turnover target for the current year of €2.6 billion.
Dividends: €0.80 per share
A dividend of €0.80 will be proposed at the Shareholders' Meeting of 14 June 2018, with a payment date of 22 June 2018.
Upcoming events:
Publication of turnover for the first quarter of 2018 on Wednesday 25 April 2018 after the stock market closes
Combined Ordinary and Extraordinary Shareholders' Meeting on Thursday 14 June 2018
