Good resilience through an unprecedented crisis, confirming the strength of SPIE’s fundamentals
Cergy, July 29th, 2020
H1 2020: resilient performance, good recovery from June onwards
- Revenue: €3,022 million, down -6.8% vs. H1 2019R (-9.0% on an organic basis)
- Severe impact from lockdowns in Q2: -17.1% organic contraction, starting from -24.9% in April and recovering to -6.4% in June, resulting in under-absorption of fixed costs
- EBITA: €93.3 million or 3.1% of revenue (4.8% in H1 2019)
- Activity now nearly back to normal
Excellent cash collection supporting significant net debt reduction vs. June 2019
- Strong improvement in working capital, at (15) days of revenue at end June 2020 excluding the benefit of government deferral schemes, vs. (7) days at end June 2019
- Excellent cash collection across the Group, highlighting SPIE’s rigorous management and the quality of our customer base
- €377 million decrease in net debt vs. June 2019
- Leverage2 at end June 2020: 3.6x, lower than end June 2019 level (3.9x)
- High liquidity maintained, at €1.1 billion at end June 2020
Trading in H2 2020 expected close to last year’s level, reflecting SPIE’s resilience as a provider of mission-critical services across a broad customer portfolio
- H2 2020 revenue expected close to H2 2019 level on an organic basis
- H2 2020 EBITA margin expected within 50 basis points from H2 2019 level (7.0%)
- Continued robust cash generation leading to a limited increase in year-end leverage2 in 2020, expected at maximum 3.0x. Significant decrease expected in 2021
- Guidance based on the assumption of no major deterioration of the Covid-19 situation
SPIE well positioned to benefit from upcoming stimulus investments in energy efficiency, renewables, clean mobility and connectivity
- High exposure to potential stimulus investments, with a c.35% green share of revenue per the E.U. taxonomy and a leading expertise in information & communication technologies
Gauthier Louette, Chairman & CEO, declared: ‘The Covid-19 pandemic resulted in unprecedented business disruptions and health and safety challenges, to which SPIE’s employees have reacted remarkably well and I wish to thank all of them for their commitment. Given the abruptness of this crisis, our H1 results reflect a good resilience and illustrate the mission-critical nature of our services, the embedded discipline of our entire organisation, as well as the good balance of our geographical footprint. We achieved an excellent cash collection across the Group, highlighting the rigour of our management and the outstanding quality of our customer base.
The evolution of the Covid-19 epidemic remains unpredictable and we are facing an uncertain economic context. However, assuming no major deterioration of the sanitary situation, the swift recovery observed in June makes us confident that SPIE’s revenue and margins can be close to normal in the second half of the year, and that we will deliver a robust free cash flow in 2020. With c. 35% of our activities contributing substantially to climate change mitigation as per the EU taxonomy, and a leading expertise in information and communication technologies, we are well positioned to benefit from upcoming economic stimulus plans.”
Read the complete 2020 Half-Year results here.
 H1 2019 figures have been restated to account for the contribution of SPIE UK’s schools facility management activity. Previously under a divesture process, it was presented as a discontinued operation in accordance with IFRS 5. As part of SPIE UK’s reorganisation, the divesture process has been stopped and this activity, with a realigned service portfolio, has been reintegrated into the continued perimeter.
 Excluding IFRS 16.
 Based on FY19 revenue and on the European Union draft taxonomy for sustainable activities as of February 2020.