We analyse the financial profile of the French IT consultancy GFI Informatique, based on our Corporate Finance Analysis of its latest financial and investment data. Find out about its main financial variables (turnover, growth, ebitda, profitability, etc.) and their evolution over the last few years.
We analyse the financial profile of the French IT consultancy GFI Informatique, based on our Corporate Finance Analysis of its latest financial and investment data. Find out about its main financial variables (turnover, growth, ebitda, profitability, etc.) and their evolution over the last few years.
About GFI Informatique
GFI Informatique is one of the world's most competitive IT consultancies. Listed on the Paris Stock Exchange, since 2011 the group has experienced exponential growth, doubling market figures, thanks to its organic growth and its numerous acquisitions.
The Group has 14,000 employees, achieved a turnover of more than €1,015M in 2016 and is present in 16 countries in Europe, Africa and the Americas.
GFI offers its solutions in a long list of sectors: Banking, Finance and Insurance; Distribution and Services; Energy, Chemicals and Utilities; Industry, Aerospace and Transport; Public Sector; and Telecommunications, Media and Entertainment.
Based in Saint-Ouen (France), the IT consultancy offers consulting services; applications; software package support and integration; infrastructure, outsourcing and subcontracting; and software publishing. Its solutions are mainly aimed at Smart Cities, Factory 4.0, Omnicommerce, Digital Banking and Cybersecurity.
GFI Informatique Corporate Finance Analysis
| Company | Description | Country | Amount | Year |
|---|---|---|---|---|
| Apartment List | Apartment List is a mobile-friendly flat rental marketplace. It is a cross-platform application that connects potential renters with available rental properties in the US. | USA | $50M | 2018 |
| $30M | 2016 | |||
| $23M | 2013 | |||
| Zig Bang | Zig Bang is a flat search app. Users can search for rental properties filtering by number of rooms, number of occupants and price. | South Korea | $33M | 2015 |
| $21,3M | 2015 | |||
| $18M | 2015 | |||
| Navent | Navent Group emerged as an online platform to provide the highest quality job opportunities and flat listings to people living in Latin America, as most listings in the region were only available in print. | Argentina | $20M | 2014 |
| Rentals.com | RealScout is an online search engine for local flat listings that allows users to customise search criteria such as "natural light", "high ceilings", "large backyards" and "gourmet kitchens". | USA | $9,7M | 2014 |
| PayasUgym | 99.co is a map-based property search engine that offers tenants, buyers and agents a fast and efficient search experience. | Singapore | $7,9M | 2017 |
GFI Informatique Valuation Multiples
| Company | Description | Country | Amount | Year |
|---|---|---|---|---|
| Loot Crate | Loot Crate is a monthly subscription service that offers geek, gaming and pop-culture collectibles and accessories, such as sportswear and gadgets to its subscribers. It offers subscription boxes in the US and worldwide. | USA | $18,5M | 2016 |
| SportPursuit | SportPursuit is the UK's first specialist online sports retail website, offering high quality sports products and services from the world's best brands. | United Kingdom | £9,5M | 2015 |
| ROKA Sports | ROKA Sports manufactures and markets innovative technical clothing and equipment for elite athletes. | USA | $12M | 2016 |
| Abom | Abom is a group of inventors, scientists and designers with a mission to create world-class equipment. | USA | $9,7M | 2016 |
| Alltricks | Alltricks is an online retail platform specialising in bicycle spare parts, with a portfolio of more than 80,000 products and 50,000 customers across Europe. | France | €7,3M | 2017 |
Looking at the latest available financial data of GFI Informatique, referring to the first half of 2017, we conclude that the Group has seen strong growth (over 12%), even more significant at international level (83.2%), with an operating margin of 6% and an increase in its net income of 2%.
Group revenue for the first half of 2017 was €562.1M, an increase of 11.91TTP1T compared to the same period last year. The Group's operating margin was €25.3M (an increase of 6%).
Strong international growth and increased profitability
With €143.6M in revenue, GFI Informatique's international business accounted for 25.5% of sales in the first half of 2017, compared to 15.6% in the first half of the previous year. Due to the acquisitions emissions in 2016 (Impaq, Efron and Roff), growth reached 83.2%.
The operating margin also improved significantly to €9.7M (6.8%), compared to €3.9M (4.9%) in the same period of 2016.
As for GFI's headcount, it amounted to 14,345 employees as at 30 June 2017, compared to 14,100 employees as at 31 December 2016.
Operating profit and net income grow
Operating income amounted to €19.1m in the first half of 2017, 71 pct higher than in the previous year (€17.8m). This is mainly due to the improvement in the operating margin and the decrease in other fixed operating income and expenses.
On the other hand, restructuring costs of €5.1M were €1.5M higher because they were mostly incurred in the first half of this year, whereas, due to the substantial acquisitions In the second half of 2016, these same costs had a proportionally greater impact in the second half of the previous year.
As a result, net profit after tax amounted to €8.4m compared to €8.2m in 2016, an increase of 21Q2011Q.
Reasonable leverage in spite of the acquisitions of 2016
Net debt stood at €153.5M, resulting in a debt ratio of 52%, a modest increase from the previous year following the acquisitions in 2016 (mainly Impaq, Roff and Efron).
On the other hand, investment in fixed assets decreased from €20.2M to €16.6M. Most of this decrease in investments is related to the acquisition of 3SI's e-commerce solutions last year and the licenses required to operate them.