05/09/2007
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30th JUNE 2007
H1-2007
• Consolidated Revenue: €86.43m
• Organic Growth: 17.92%
• Consolidated Growth: 24.90%
• EBIT: 16.02%
SWORDSOFT SUCCESSES
• INTECH becoming the insurance software provider of choice
• FIRCOSOFT the #1 watchlist filtering solution leader (Celent)
2007 ACQUISITIONS
•Proforma revenue: + €17.9m
•Consolidated revenue: + €9.5m
•Consolidated EBIT: + €1.6m
24/07/2007
ACQUISITION OF APAK IN BRISTOL (UK)
•Increase in 2007 Group revenue
Proforma revenue: + €13 M
Consolidated revenue: + €5.9 M
APAK
•Backlog: €20 M
•Accretive acquisition
•Operational margin
at 14% on 01/07/07
at 20% in 2008
On Friday 20th July, SWORD acquired APAK, a leading UK company of asset management software. APAK is based in Bristol (UK) and employs 110 staff throughout its locations in the UK and in Dubai. APAK has a current revenue of €13 M and a backlog of €20 M. APAK develops and sells a range of products:
- EPS (Electronic Proposal system) is a web-based proposal capture and processing system designed for asset management providers such as motor vehicles leasing companies.
- WFS (Wholesale Finance System) provides a web enabled finance and loan administration for finance companies, motor vehicle and equipment suppliers.
- LMS (LM software) is a modular system providing services such as deduplication, correction, full address and name analysis.
- BEAM and AURIUS are a set of CRM and workflow software to the retail banking industry.
This acquisition follows the strategy of the software department company acquisitions announced by the Group in its 2007-2010 business plan.
After this acquisition the software revenue will come to 28% of the proforma revenue.
18/07/2007
SECOND QUARTER 2007 REVENUE
Q2 2007
- Consolidated Revenue: € 44.48M
- Organic Growth: 16.41%
- Consolidated Growth: 25.10%
- EBIT: 16.69%
- Backlog: 18 MONTHS
H1-2007 (1)
• Consolidated Revenue: € 86.43M (1)
• Organic Growth: 17.92%(1)
• Consolidated Growth: 24.90%(1)
• EBIT: 16.02%(1)
(1) H1-2007 Accounts established by the company and not yet examined by the Auditors
28/05/2007
HEATH DAVIES APPOINTED TO SWORD GROUP BOARD
Heath Davies joins SWORD GROUP Board
Lyon, France 28 May 2007 it was announced today that the SWORD GROUPhas appointed Heath Davies to its main Board with immediate effect.
Mr Davies, 41, joined the Group through a UK acquisition in April 2002. Since this time he has held the roles of Sales Manager, Business Unit Director, Operations Director and most recently Chief Operating Officer.
Mr Davies has been instrumental in growing the UK revenues and profit from 5m€ in 2002 to 100m€ (est) in 2007.
The strong growth has also been complemented with EBIT levels >20% throughout the period.
Commenting on the appointment, Jacques Mottard, Chairman and CEO,” I have watched Heathgrow his business with a passion and care that has been reflected in the excellent performance of his portfolio over the past few years. His appointment to the Board will ensure that the UK needs are appropriately matched against those of the other international markets. Heaths’appointment also reflects the Groups goal of not being a French companybut a global company, a UK board appointment is the natural evolution of our international commitment.”
Mr Daviescommenting on his appointment “ I am very proud and excited to be part of a Board that has steered the Group from zero to over €400m market cap since listing in 2002. My focus will be to continue to drive the UK growth and begin to expand our offering in the USA and Asian markets through both organic and acquisitive growth.”
16/04/2007
FIRST QUARTER 2007 REVENUE
Consolidated Revenue: € 42.05 M (1)
Organic Growth: 19.52% (1)
Consolidated Growth: 24.70% (1)
Current Operating Profit: 15.31% (1)
(1) non audited figures
12/04/2007
NEW DATE OF SWORD GROUP's SHAREHOLDER MEETING: MAY 4 AT THE HQ
In order to allow a maximum of shareholders to take part in the General meeting of approval of the accounts, the Board of directors of April 6, 2007 decided to modify the date of the meeting initially fixed at April 30, 2007.
The new date is fixed at Friday May 4, 2007, 10 a.m., at the HQ, 9, Avenue Charles of Gaulle 69370 Didier Saint Au Mont D'or.
SWORD REINFORCES ITS DEVELOPMENT IN
EMERGING COUNTRIES
NEXTECH - Brasil
LYODSSOFT - China
SWORD COMPLETES ITS PRODUCT OFFERING
ACHIEVER - UK
On March 28th, SWORD GROUP acquired NEXTECH, a leading Brasilian
software company
NEXTECH is based in Belo Horizonte (Brasil) and employs 28 staff
NEXTECH generated $ 1.7 M of revenue in 2006 and predicts revenue growth
of over 40% in 2007. Following on from this in 2007 NEXTECH is forecasting
an annual revenue growth rate of over 20%.
NEXTECH is a reseller of “FUSION”, a software solution created by CIMAGE,
a UK based SWORD GROUP company. FUSION is a leading Document
Management system in the emerging countries such as China and Brasil
NEXTECH will be consolidated into the groups financial statements as of the
1st April 2007
On 14th February, SWORD GROUP acquired a 3% stake in LYODSSOFT
LYODSSOFT is a Hong-Kong based company that resells SWORD products
in China
This acquisition will improve Swords global presence through a strategic
partnership in Asia.
LYODSSOFT will become affiliated with SWORD GROUP but the accounts will not be consolidated
These two acquisitions reinforce SWORDS strategic goal of developing a
presence in emerging countries.
On April 5th, SWORD GROUP acquired ACHIEVER, a leading British software
company.
ACHIEVER is based in Alton (UK) and employs 25 staff. ACHIEVER generated £ 1.9 M of revenue in 2006 and predicts revenue growth of over 20% in 2007.
ACHIEVER develops and produces a GRC Management product (Governance, Risk and Compliance Management) which it sells to large companies. The product allows companies to define, record, maintain and monitor their corporate governance requirements and to comply with their regulatory environment.
ACHIEVER will be consolidated into the groups financial statements as of 1st
April 2007. The solution created by ACHIEVER complements the other existing
compliance based products within the SWORD GROUP.
28/03/2007
SWORD Group Capital Increase: Exercise in full of the over-allotment option
Lyon, March 28, 2007 – SWORD Groupannounced that, in connection with the capital increase launched on March 1, 2007, Bryan, Garnier & Co, acting as Sole Lead Manager and Bookrunner, has exercised today in full and in anticipation of the deadline set by the transaction timetable, the 15% over-allotment option granted by SWORD Group, with respect to a total of 215 625 additional new shares.
The 215 625 additional new shares are expected to be admitted for listing on Eurolist market of Euronext Paris S.A. on April 2, 2007.
Upon completion of the capital increase and taking into account the exercise of the over-allotment option, 1 653 125 new shares have been issued. The gross proceeds of the issuance, after full exercise of the over-allotment option, amount to approximately €66.1 million, including issuance premium.
Disclaimer
This press release must not be published, released or distributed, directly or indirectly, in the United States, Canada, Japan or Australia. This press release and the information contained herein do not constitute an offer to sell or subscribe, nor the solicitation of an order to purchase or subscribe, securities in any country other than France.
This document is not an offer of securities for sale, nor the solicitation of an offer to purchase securities in the United States. Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended, (“US Securities Act”), or are exempt from registration thereunder. The shares of SWORD Group referred to in this press release have not been and are will not be registered under the U.S. Securities Act and SWORD Group does not intend to make a private placement or a public offer of such securities in the United States.
This document is not an invitation nor is it intended to be an inducement to engage an investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"). This document is in any event directed only at (i) persons outside the United Kingdom; or (ii) persons in the United Kingdom that are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC including any relevant implementing measure in each relevant member state that are also (a) persons authorized under FSMA or otherwise having professional experience in matters relating to investments and qualifying as investment professionals under article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order"); or (b) institutions or corporations qualifying as high net worth persons under article 49(2) (a) to (d) of the Financial Promotion Order; or (c) any other persons to whom this document for the purposes of Section 21 of FSMA can otherwise lawfully be made (all such persons together being referred to as "Relevant Persons"). Any person in the United Kingdom that is not a Relevant Person should not act or rely on this document.
The release, publication or distribution of this press release in certain jurisdictions may be restricted by laws or regulations. Therefore, persons in such jurisdictions into which this press release is released, published or distributed must inform themselves about and comply with such laws or regulations.
Bryan, Garnier & Co. is acting exclusively for SWORD Group and no one else in connection with the capital increase. Bryan, Garnier & Co. will not regard any other person (whether or not a recipient of this announcement) as its clients and will not be responsible to anyone other than SWORD Group for providing the protections afforded to its clients nor for giving advice in relation to the capital increase, the contents of this announcement or any transaction or arrangement referred to herein.
13/02/2007
2006 ANNUAL ACCOUNTS
YTD 2006
- Consolidated Revenue: € 142.01 M
- Organic Growth: 21.49 %
- Consolidated Growth: 39.92 %
- Net attributable profit: + 44,70%
-Dividend: + 40%
€K 2006 2005
Revenue 142 005 101 491
Current operating profit 22 222 15 651
Opérating profit 23 949 16 710
Profit after income tax 15 748 11 060
Net attributable profit 15 632 10 803
Audited by the auditors
Analysis
· The operating profit under IFRS is 16.86%
· Consolidated revenue for 2006 has outperformed the Business Plan (€
142M / € 140M)
· Acquisitions in 2006 were in highly profitable sectors: Oil & Gas, Pharma
Products
Outlook for 2007
· Achieve Group growth and profitability targets:
- Organic growth of 15%
- Operational profit of 15%
· Acquisition policy
- The group will continue to actively pursue its acquisition strategy
(€ 17.5 million per annum):
a/ Small targeted acquisitions which provide a strategic fit with current
operations (geographical or technical)
b/ Larger acquisitions to develop new strategic directions (geographical
and technical)
· 2007 budget
- The consolidated revenue for 2007 will be in excess of € 180 million. This
will include € 7.3 million generated by acquisitions achieved in 2007
- The profitability of the companies acquired during 2006 will comply with
group norms by the 1st July 2007
- Budgeted organic growth of 15.5 % will be targeted (excluding
acquisitions)
€M
2006 2007
Consolidated Actual Budget
Revenue 142.01 180.30
Operating profit 23.95 > 27
22/01/2007
FOURTH QUARTER REVENUE 2006
Q4 2006 (1)
- Consolidated Revenue: € 38.14 M (1)
- Organic Growth: 25.94 % (1)
- Consolidated Growth: 30.76 % (1)
YTD 2006 (1)
- Consolidated Revenue: € 142.01 M (1)
-Pro-forma Revenue: € 152.10 M (1)
- Organic Growth: 21.49 % (1)
- Consolidated Growth: 39.92 % (1)
- Current Operating Profit: 15.65 % (1)
- Operating Profit: 16.86 % (1)
- Net profit: 11.01 % (1)
€M 2006 (1) 2005 %
Q4 Revenue 38.14 29.16 30.76
Annual Revenue 142.01 101.49 39.92
(1) non audited by the auditors
Analysis
· During 2006 SWORD enjoyed both growth rates and profitability in excess of budgeted
figures
· Changes in group structure in 2006:
a/ Sale of 3 entities in 2006 SWORD Nord, SWORD Consulting and IDP (Business Unit)
b/ Acquisition of 2 companies: STELLON in Lausanne in July and RTE in Glasgow in
November
· During the financial year ending 31st Dec 2006 the revenue produced by the companies
disposed of amounted to € 8 100 K
The consolidated revenue produced by the companies disposed of during the year, not
included in pro-forma sales, amounts to € 6 469 K,
· Non-current operating income is derived from the disposal of group companies during
the financial year
Outlook for 2007
·Achieve Group growth and profitability targets:
- Organic growth of 15%
- Operational profit of 15%
· Acquisition policy
- The group will continue to actively pursue its acquisition strategy (€ 17.5 million per
annum):
a/ Small targeted acquisitions which provide a strategic fit with current operations
(geographical or technical)
b/ Larger acquisitions to develop new strategic directions (geographical and technical)
· 2007 budget
- The consolidated revenue for 2007 will be in excess of € 180 million. This will include €
7.3 million generated by acquisitions achieved in 2007
- The profitability of the companies acquired during 2006 will comply with group norms
by the 1st July 2007
- Budgeted organic growth of 15 % will be targeted (excluding acquisitions)
€M 2007
Revenue (excluding acquisitions) 173
Consolidated revenue generated by 2007 acquisitions 7.3
Consolidated revenue FY2007 180.3
Non-consolidated revenue generated by acquisitions 10.2
Pro-forma revenue 190.5
14/12/2006
POSITIVE OUTLOOK 2007 BUSINESS PLAN
SWORD GROUP
2007 BUDGET
• Consolidated revenue: : €180.3 M
• Organic growth: 15% (1)
• Net operating profit > 15% (1)
• € 17,5 M of revenue to be generated via acquisitions of which €7,3 M will
be consolidated
(1) excluding acquisitions made in 2006
• The business plan created for 2007 which has already been positively restated at the end of 2005 is again to be positively restated in order to take into account the excellent contributions generated by our product department and disposals (€8.5 M) which have been achieved during 2006
• The consolidated revenue for 2007 will be in excess of €180 million.This will include an additional €7.3 million generated by acquisitions which will be carried out in 2007
•The profitability of the companies acquired during 2006 will be in line with group norms by the 1st July 2007
• Internal organic growth of 15% will be targeted (excluding recently acquired companies)
• The breakdown of revenue in 2006 will be as follows:
€M
2007 Original target 2004 Restatement at end of 2005 Restatement at end of 2006
Revenue excluding contribution from acquisitions 159 165.7 173
Consolidated revenue generated via 2007 acquisitions 7.3 7.3 7.3
Consolidated revenue FY2007 166.3 173 180.3
Non-consolidated revenue generated from acquisitions 10.2 10.2 10.2
Proforma revenue 176.5 182.2 190.5
20/11/2006
ACQUISITION OF REAL TIME ENGINEERING LIMITED IN GLASGOW (UK) - SALE OF A BUSINESS UNIT IN PARIS (FRANCE) - CREATION OF NEW SUBSIDUARY IN PARIS
SWORD GROUP
• Increase in 2006 proforma revenue
+ €15M (RTE)
- € 3M (IDP)
+ €12 M
• Over performance anticipated in 2006 and 2007 compared to the original business plan
RTE
• Backlog: €9.6 M
• Accrutive acquisition
• Operational margin at 15% as of 01/07/07
•On Friday 17th November,SWORDacquiredReal Time Engineering Limited, a leading UK provider of business consultancy led solutions underpinned by leading edge products
Real Time is headquartered in Glasgow (Scotland) and employs 140 staff throughout its 4 UK locations: Glasgow, Aberdeen, Edinburgh and London, as well as an office in Qatar supporting oil and gas operations in the region
Real Time has a current revenue of €15 M
Real Time provides solutions to the niche markets of government, oil and gas, energy, transport and telecoms
-In the public sector, Real Time develops projects in the areas of practitioner management and Police / Judicial systems
-In the oil and gas sector, Real Time delivers specialised solutions to major companies including pipeline leak detection, product tracking and production data analysis
-In the transport sector, Real Time works in partnership with the National Air Traffic Service with its product for air traffic controllers and also provides BAA with a resource management system for airports and airlines
-In the energy sector, Real Timeis specialised in energy trading and regulatory systems mainly for nuclear power generating companies
-In the telecom sector,Real Time is specialised in energy trading and regulatory systems mainly for nuclear power generating companies
-In the telecom sector, Real Time provides solutions in the areas of service provisioning, rebates and payment systems
In 2007, RTE will grow by 5% and will raise its profitability (EBIT) from 8% to 15%, reaching 15% in July 2007
•On Wednesday 15th November, SWORDsold to its management its Business Unit (IDP) based in Paris. IDP employs 30 staff and generates revenue of €3 M. This BU leaves the consolidated perimeter on November 1st
• In November SWORD starts a new subsidiary in Paris, this subsidiary will be specialised in E-Content Management integration systems targeting large contracts (greater than €1 M)
• Details of the updated 2007 Business Plan will be announced in December
17/10/2006
THIRD QUARTER 2006 REVENUE
Q3 2006 (1)
- Consolidated Revenue: € 34.67 M (1)
- Consolidated Growth: 32.52 % (1)
- Organic Growth: 17.13 % (1)
- Current Operating Profit: 15.77 % (1)
- Operating Profit: 19.01 % (1)
YTD 2006 (1)
- Consolidated Revenue: € 103,87 M (1)
- Consolidated Growth: + 43,61 % (1)
- Organic Growth: + 17,30 % (1)
- Current Operating Profit: 15,80 % (1)
- Operating Profit: 17,51 % (1)
€M Q3
2006 (1) 2005 %
Revenue 34.67 26.16 +32.52%
(1) non audited by the auditors
Analysis
· In the third quarter SWORD has continued to demonstrate strong organic growth. Both the organic growth and the operating profitability levels are outperforming budget
· The profit before tax includes profits generated from the disposal of non core activities
Outlook
· In spite of the disposal of certain non core business activities (SWORD NORD and SWORD CONSULTING), and the absence of new acquisitions in Q3, the strong levels of organic growth mean that SWORD is still on target to achieve its budgeted annual revenue of € 140M
·The group will continue to follow its current successful strategy in 2007:
-Geographical location of acquisitions (Anglo-Saxon Countires)
-Organic Growth (> 15%)
-Operating profit (> 15%)
·As per the 2005-2007 business plan created in 2004 SWORDconfirms its intention to carry out a new acqusition in the near future
Summary of the Income Statements
€K 2005 2006 (1)
Revenue 26 164 34 673
(+32.52%) 103 870
Current Operating Profit 4 191 5 467
(+30.45%) 16 411
Operating Profit 4 513 6 593
(+46.09%) 18 184
Net attributable Profit 2 611 4 360
(+66.99%) 12 023
(1)non audited by the Auditors
> SWORD GROUP
Founded in December 2000
Chairman and Founder: Jacques MOTTARD
1 351 employees at 30/09/2006
Eurolist Compartment B
Isin Code: FR0004180578
Next Economy Segment
ICB: 9533 Computer Services
IT CAC, CAC Small 90, CAC Mid and Small 190 and SBF 250
> Next press release:
Forth Quarter revenue: January 23rd, 2007
23/09/2006
SWORD GROUP pursues its concentration in highly regulated markets and compliance management and disposes of its French subsidiary
On the 22nd September SWORD GROUP disposed of its French subsidiary SWORD CONSULTING to MALTEM
SWORD CONSULTING targets mainly management consulting in the payment field
REASONS FOR DISPOSAL
This disposal fits in with the SWORD strategy of refocusing upon its core activities within France, namely the high value added integration systems and the development of its FIRCOSOFT suite of products
This strategic refocusing upon core activities was reflected in 2005 by the disposal of the
SWORD logistics management consulting
SWORD CONSULTING KEY FINANCIAL INFORMATION
The disposal annual turnover comes to € 2.7M. The profits on this disposal will be reflected in the H2 2006 results
FUTURE PROSPECTS
Current performance and future prospects are in line with the 2006 and 2007 business plan which took account of this disposal.
05/09/2006
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30TH JUNE 2006
CONFIRMATION OF THE EXCELLENT FUTURE PROSPECTS FOR 2006 AND 2007
H1-2006
• Consolidated Revenue: € 69.20M
• Organic Growth: 17.40%
• Consolidated Growth: 49.89%
• EBIT: 16.75%
• Order Book: Record signings in H1-2006
€K 30/06/2006 30/06/2005
Revenue 69 197 46 164
Operating Profit Before Tax 10 944 7 164
OperatingProfit 11 591 7 203
Consolidated Net Profit 7 701 4 771
Group Share of Net Profit 7 663 4 739
Analysis
·The actual organic growth of 17.4% is greater than the budgeted organic growth of 15%
·SWORD has achieved an actual operating profit of 16.75%, thus outperforming the budgeted operating profit of 15%
·The group has every confidence that the 2006 budgeted results will be successfully achieved and looks forward to the prospect of building further upon this profitable growth in 2007
Recap of key events in the first half of the financial year
·1st July 2006, SWORD acquired STELLON, a Swiss company with turnover of € 2.8 million.
This Lausanne based company consists of 20 staff who specialise in designing and implementing Key Performance Indicators and other metrics based systems which are designed to assist their clients to better understand and to measure the key drivers within their business
STELLON will contribute € 1,380K of consolidated revenue in the current financial year
·1st July 2006, SWORD acquired ASTRON, a Nantes based company consisting of 8 consultants who were already closely collaborating with the SWORD Group.
Prior to the acquisition the 8 ASTRON consultants were sub-contracting for SWORD on Facility Management projects.
This investment although immaterial in nature will immediately permit ASTRON to improve their profitability as well as increasing their potential to sign larger contracts in the field of document management
· The order book has increased by € 40 million following a record number of new contracts being signed in the first half year
Future prospects
·Current performance and future prospects are in line with the 2006-2007 business plan
·SWORD is currently in negotiation for another acquisition which will fit in with the acquisitive strategy to further increase growth in the second half of the financial year, as evidenced by the earlier acquisition of STELLON
13/07/2006
SECOND QUARTER 2006 REVENUE
Q2 2006 (1)
• Consolidated Revenue: € 35.48M(1)
• Organic Growth: 17.43%(1)
• Consolidated Growth: 42.24%(1)
• EBIT: 16.93%(1)
H1-2006 (1)
• Consolidated Revenue: € 69.20M (1)
• Organic Growth: 17.40%(1)
• Consolidated Growth: 49.89%(1)
• EBIT: 16.75%(1)
• Backlog: record contract signatures
(1) not audited
Analysis
• The Group has exceeded the objectives of its Business Plan, which was re-evaluated at the end of 2005
• Organic growth has exceeded the budget by 2.43 points, the profitability (EBIT) by 1.93 point
• The new signed contracts in H1 2006 are much bigger than the H1 revenue
Outlook
• The Group confirms its 2006 and 2007 objectives
• The SWORD Group acquired STELLON, a Swiss company based in Lausanne on the 1st July 2006. This will increase SWORD's consolidated revenue in 2006 by € 1.5M. SWORD will be continuing it's acquisition plan during the remaining six months of the financial year
• Organic growth will be sustained in H2 2006 (> 15%)
Summary of the income statements (non audited figures)
€K H1 2006 Q2 2006
Revenue 69 197 35 477
Current operating profit 10 944
(15.82%) 5 669
(15.98%)
Operating profit 11 591
(16.75%) 6 005
(16.93%)
Net Profit 7 701
(11.13%) 4 118
(11.61%)
Net attributable profit 7 663
(11.07%) 4 112
(11.59%)
New contracts
•In Benelux, 14 new contracts have been signed with European Institutions (PARLIAMENT, OLAF, TAXUD), Banks (KBC, DEXIA) and other governmental organisations (NATO). The global amount exceeds € 48M
•In the UK, 35 new contracts have been signed with companies operating in highly regulated markets such as Banking (DEUTSCHE BANK), Insurance (LANCASHIRE), Oil and Gas (MAERSK) and TELCO (ORANGE). The global amount exceeds £ 26M (€ 38M)
•In France, 60 new contracts have been signed thanks to both our technical skills: GIS (ONIC), Document Management (JOURNAL OFFICIEL), Business Intelligence (RTE) ; and our market oriented skills: Pharma (PFIZER), Nuclear (EDF), Health (Hôpitaux de Lyon), Insurance (APICIL), Bank (Banque Postale).The global amount exceeds € 18M
•In Switzerland, 23 new contracts have been signed with Banks (CREDIT SUISSE, BCV, UBP, PICTET, SGS), with International Organisations (CICR) and TELCO operators (ORANGE). The global amount exceeds CHF 9M (€ 6M)
•The other countries have renewed completely their backlog
•The export department has been particularly successful in China in Document Management (NINGXIA COAL GROUP) and in Anti Money Laundering (BANK OF CHINA, DAH-SING BANK) ; in the Trademark and Patent market (After the BERMUDAS, orders from CYPRUS and POLAND)
Strong partnerships
•MICROSOFT has announced its decision to integrate the FIRCOSOFT products in its press release of May 9th, 2006
•GOOGLE has confirmed the availability of the first connector (GSATop from SWORD) of its products with DOCUMENTUM
30/06/2006
SWORD GROUP HAS INCREASED ITS FOCUS ON ITS ECM ACTIVITIES
STELLON -
2006 pro forma revenue growth: ? 3M -
2006 consolidated revenue growth: ? 1.5M -
EBIT over 10 % -
Confirmation of our 2006 and 2007 group budgets -
NEXTECH -
SWORD increases shareholding in NEXTECH -
New reference site in Brazil
NEW ACQUISITON IN SWITZERLAND
•STELLON, this company with 20 employees, is a market leader in the Swiss French Market.
STELLON specialises in strategic consulting, particulary involving the design and implementation of Key Performance measures within Businesses reporting framework (KPI).
The main industries targeted by STELLON are the banking, insurance, pharmaceuticals and telecoms sectors.
STRATEGY
•STELLON is already a profitable company and within two months of integration it will be performing in accordance with the SWORD standards (the accounts will be consolidated as of the 1st of July 2006).
•The budgeted internal growth is 15 %.
SYNERGY
•STELLON's knowledge and experience in the domain of managing Key Performance Indicators within a business will improve the SWORD global offering and create the potential for further international expansion.
PARTNERSHIP VIA INCREASED SHAREHOLDING IN NEXTECH
•SWORD shows its commitment to the NEXTECH stock and acquires an additional 9%.
This additional investment brings the SWORD holding to 19%.
SYNERGY
NEXTECH and SWORD are working together to achieve:
-Increased growth in the regulated markets within Latin America,
-Increased revenue from products and components.
NEW CLIENT
Banco Central: Purchased our document management range of products (FUSION).
> SWORD GROUP
Founded in December 2000
Chairman and Founder: Jacques MOTTARD
1 283 employees at 30/06/2006
Eurolist Compartment B
Isin code: FR0004180578
Next Economy Segment
FTSE Sector: 972 IT services
IT CAC, CAC Small 90, CAC Mid and Small 190 and SBF 250
> Upcoming press release
2006 Second-Quarter: July 18, 2006
16/05/2006
SWORD Announces First Google Search Appliance Connector
BRENTFORD, UK. May 16, 2006 - SWORD, a leading IT integration organization with offices in Europe and the U.S, today announced the availability of the first connector for the Google Search Appliance that enables secure, direct indexing of content within EMC Documentum's market leading ECM platform
With the new SWORD Google Search Appliance Connector, EMC Documentum customers now have the ability to deploy the power of Google search alongside the power of EMC Documentum -- leveraging the key strengths of both systems, providing a better search experience for users.
“This is an exciting opportunity for SWORD,” said Heath Davies, COO of SWORD Group. “Google Search Appliance complements our Enterprise Security and Content Management expertise seamlessly. As a Google Enterprise Professional Partner we look forward to working with a great brand and a solid product, offering ECM users Google at Full-Power.”
“With partners like SWORD, Google continues to find new ways to unlock the value of information inside the enterprise through search,” said Dave Girouard, vice president and general manager, Google Enterprise. “Connecting to EMC Documentum through the SWORD Connector will prove hugely valuable to the thousands of companies using EMC Documentum.”
The Google Search Appliance can provide search across information on web servers, file servers, relational databases and many popular business applications and make it instantly available from a single familiar search box. This enables better decision making, information sharing and efficiency by placing Google as the natural central point for information access.
The more valuable, sensitive, or important the content and surrounding business processes, the more likely that it is to be managed using Enterprise Content Management (ECM) systems. These systems add value by tightly controlling content, processes and security and until now it has been difficult for Google Search Appliance to access this content effortlessly. To provide fast, relevant, and secure search across all enterprise information assets, Google Search Appliance requires seamless integration with enterprise systems.
How it works
SWORD’s Google Search Appliance Connector for EMC Documentum provides search access to content stored within EMC Documentum. The systems administrator has full control over which content is exposed for indexing. This ensures that Google can search on relevant content and metadata information as well as content from other sources.
Benefits
Enterprise Search: SWORD’s Google Search Appliance Connector facilitates true enterprise search through Google by providing access to the required content and metadata.
Security:
Google’s secure search technology means that SWORD’s Google Search Appliance Connector always respects EMC Documentum’s advanced security model.
Indexing:
SWORD’s Google Search Appliance Connector also provides full control over the indexing processes in synchronization with EMC Documentum’s content.
Performance:
Google and the SWORD Google Search Appliance Connector will introduce significant search performance benefits and help reduce the load on existing EMC Documentum environments.
Google at Full-Power: Provides Google’s ‘snippets’ (textual extracts from the document), synonym dictionaries to enhance search relevance, suggested queries to help users refine search, spellchecking on queries to improve search accuracy and Google’s OneBox for Enterprise to reach out to other enterprise application.
Scalability:
Systems can be deployed from single repository single GSA configurations, and scale from there to full enterprise systems capable of supporting thousands of users and tens of millions of documents.
Enterprise Search: SWORD’s Google Search Appliance Connector facilitates true enterprise search through Google by providing access to the required content and metadata.
About SWORD:
As trusted IT supplier of compliance solutions to the enterprise, SWORD has successfully built an unsurpassed track record of technical expertise in specialised information management solutions.
SWORD delivers best of breed products through a network of partners and resellers, providing business benefits to its international customer base. SWORD is a Google Enterprise Professional Partner and EMC Documentum SST (Select Service Team) Partner.
Our experience as a specialist IT supplier, combined with domain knowledge and expertise has enabled the company to deliver a totally client centric solution.
For more information about SWORD Group please visit www.sword-group.com
11/04/2006
FIRST QUARTER 2006 REVENUE
- Consolidated Revenue: € 33.72 M (1)
- Organic Growth: 17.37 % (1)
- Consolidated Growth: 58.88 % (1)
- Current Operating profit: 15.64 % (1)
- Operating Profit: 16.57 % (1)
- Net Attributable Profit: 10.53 % (1)
€M (1)
2006 2005 %
Revenue 33.72 21.22 58.88
(1) non audited figures
Analysis
Revenue
- The first quarter figures achieved by SWORD GROUP have again demonstrated the groups strength and its ability to maintain sustained internal growth
- The percentage of internal growth has increased for the fifth consecutive quarter
- The revenue generated by the acquisitions carried out in the UK during 2005 (PRAGMA, HARVARD and INTECH) are all up by at least 14% during the first quarter of 2006
- LINKVEST the Swiss acquisition is now generating an operating profit of 12% with stable revenues as per the business plan
Profitability
- The actual current operating profit of 15.64% is superior to the budgeted operating profit
- The operating profit of 16.57% in Q1 2006 will be superior to the current operating profit in 2006
2006 Outlook
Backlog
- Recurring contracts in the UK and Benelux are in the final stages of signature (over €15M per contract)
Revenue
- Confirmation of the following objectives:
Internal growth of 15%
Consolidated revenue excluding acquisitions of €137M
Pro forma revenue of €145M
Profitability
- Confirmation of the following objective:
Operating profit greater than 15%
Summary of the income statements (non audited figures)
€K Q1-2006
Revenue 32 720
Current operating profit 5 275
Operating profit 5 586
Profit before tax 3 583
Net attributable profit 3 551
24/03/2006
SHAREHOLDER MEETING NOTICE GOOD FOR AND IN PLACE OF CONVOCATION NOTICE
It is our honour to inform you that our Company's Annual General Meeting will be held on:
Friday 28th April 2006, at 10.00 am
At our Head Office,
IN SAINT DIDIER AU MONT D'OR (69370)
9, Avenue Charles de Gaulle
In order to approve the 2005 fiscal year accounts.
METHODS
• All shareholders may attend the General Meeting in person by proxy, whatever the number of shares they own.
• In order to be admitted into the Meeting, submit a postal vote or to be represented at the meeting, shareholders must provide proof of their shareholder status:
In case of holders of registered shares, by registering said shares in a direct or managed registered account at least five days prior to the date of the Meeting.
In case of holders of bearer shares: by submitting a certificate draw up by an authorised broker confirming that the shares will be unavailable until the Shareholders’ Meeting, at least five days prior to the date set for the Shareholder’s Meeting to: SOCIETE GENERALE, division Titres Emetteurs, 32, rue du Champ de Tir 44312 NANTES Cedex 03.
Shareholders will be able to obtain a single postal proxy vote form from Head office.
• Requests for a single postal vote form must be sent by recorded delivery with acknowledgement of receipt and reach the company no less than six days prior to the date set for the Meeting.
• Instructions to vote will only be accepted if the duly completed forms reach the company no less than tree days prior to the Shareholders Meeting.
> SWORD GROUP
Founded in December 2000
Chairman and Founder: Jacques MOTTARD
2005 Revenue: € 101.49 m
2006 budgeted Revenue: € 140 m
1 260 employees at 31/12/2005
Eurolist Compartment B
Isin code: FR0004180578
Next Economy Segment
FTSE Sector: 972 IT services
IT CAC, CAC Small 90, CAC Mid and Small 190 and SBF 250
> Upcoming press release
2006 First-Quarter: 12 April, 2006
13/03/2006
2005 ANNUAL ACCOUNTS
- Consolidated Revenue: € 101.5 M
- Pro forma Revenue: € 121.7 M
- Organic Growth: + 14.08%
- Consolidated Growth: + 29.03%
- Pro forma Growth: + 44.44%
- Net Attributable Profit: + 35.27%
- Dividend: + 25%
Analysis
•The operating profit under IFRS is 16.46%
•The organic rate of growth in 2005 shows constant quarterly progression (11.10%; 14.20%; 15.01%; 16.05%)
•Consolidated revenue for 2005 is in line with the Business Plan (€101.49 M/€101.30 M)
•Pro forma revenue for 2005 has outperformed the Business Plan (€121.67 M/€111.50 M)
•Acquisitions in 2005 were in highly profitable sectors: Oil & Gas, Products
Outlook for 2006
•Group’s standards are maintained:
oOrganic growth of 15%
oOperational profit of 15%
•Order book:
o The 2006 backlog represents 79% of the internal 2006 budgeted revenue (excluding future acquired revenue this equates to a backlog of 9.5 months)
o The 2006-2008 backlog represents € 177 M (excluding future acquired revenue this equates to a backlog of 15.5 months)
•Acquisition policy:
oThe group will target to acquire €8 M of revenue (€3 M will be consolidated in the budget)
oThe acquisition criteria remain the same as in 2005
•Activity sale:
oThe budgets take into account the disposal of SWORD NORD
oThe 2006 forecasted revenue for SWORD NORD was € 3 M
•2006 budget:
oRevaluation of the initial 2005-2007 Business Plan
o2006 forecast consolidated revenue of €140 M
27/01/2006
SWORD NORD MANAGEMENT BUYOUT
CONFIRMATION OF 2006 BUDGET
SWORD GROUP sells its subsidiary SWORD NORD to its management as of January 27th,2006
This sale was already forecasted in our 2006 budget.
SWORD GROUP will remain a minority SWORD NORD shareholder (15%) and will work under a partnership contract with SWORD NORD.
TARGET
SWORD GROUP wants to continue to increase its profitability by focusing on highly regulated markets.
MAIN FIGURES
- 2005 revenue: € 2.4m
- 2006 expected revenue: € 2.9m
SYNERGIES
The partnership contract provides:
- Common development of new local projects (northern France)
- Consulting support for our Belgium projects
SWORD NORD revenue will not be consolidated anymore in our accounts.
27/01/2006
STRATEGIC PARTNERSHIP IN LATIN AMERICA
NEW 10% MINORITY SHAREHOLDER STAKE IN NEXTECH ---
NEW SALES OF OUR CIMAGE PRODUCTS IN LATIN AMERICA
SWORD GROUP improves its global reach through a strategic partnership with NEXTECH in Latin America.
SWORD GROUP acquires 10% of NEXTECH shares on January 27, 2006.
NEXTECH becomes affiliated with SWORD GROUP but the accounts will not be consolidated.
NEXTECH is a specialized IT services company that shares SWORD GROUP’s business model, organisation and values.
NEXTECH addresses every aspect of the lifecycle of Enterprise Content Management (ECM) projects: business consultancy, implementation, technical support, workflow and system integration.
Centrally based in Brazil, NEXTECH has activities in Colombia, Venezuela, Mexico and Argentina.
NEXTECH focuses on quality best-of-breed business solutions in the markets of Mining & Steel, Oil & Gas, Telco, Government, Manufacturing and Utilities.
NEXTECH is a longstanding distributor of CIMAGE (1) products in Latin America and has developed powerful products and components such as JWrapper (an SAPtm certified J2EE connector), Fusion Viewer (CAD & Office View and Markup tool) and Report Tool (a kit for graphical reports).
SYNERGIES
NEXTECH and SWORD GROUP complement each other:
- Growth potential in Latin America in common specialized markets
- Increased revenue from products and components
TARGET
Within 5 years develop an American division generating product revenue for 1/3 in Latin America and 2/3 in North America.
SOME DISTINGUISHED CLIENTS
Acesita, Braskem, Brazilian Diamonds, Cenibra, Cosipa, CSN, CST, CTEEP, CVRD, Edelca, Fasal, FSFX, IESA, Itaipu, Magneti Marelli Cofap, Ocensa, Petrobras, Rio Negro, Salobo Metais, Telemar, Transpetro, Usiminas, Unigal, Vega do Sul.
Visit: www.nextech.com.br
NEXTECH is headquartered in Belo Horizonte and has offices in Sao Paulo.
(1) CIMAGE is a SWORD GROUP company specialized in ECM products for the Energy, Oil & Gas, and life science markets.
16/01/2006
FOURTH QUARTER 2005 REVENUE (1)
Q4 2005
- Consolidated Revenue: € 29.16M
- Pro Forma Revenue: € 30.14 M
Year 2005
- Consolidated Revenue: € 101.49 M
- Pro Forma Revenue: € 121.81 M
(1) Non audited Figures
Q4 2005
• Consolidated Revenue: €29.16 M (1)
• Pro forma Revenue: €30.14 M (1)
• Organic Growth: 16.05% (1)
• Consolidated Growth: 37.48% (1)
Year 2005
• Consolidated Revenue: €101.49 M (1)
• Pro forma Revenue: €121.81 M (1)
• Organic Growth: 14.08% (1)
• Consolidated Growth: 29.19% (1)
€M / Consolidated 2005 2004 %
2005 - Q4 Revenue 29.16 21.21 37.48
Annual Revenue 101.49 78.56 29.19
Analysis
• The operating profit (IFRS) is superior to 16% (non audited)
• The organic rate growth has been in constant quarterly growth in 2005
(11.10%; 14.20%; 15.01%; 16.05%)
• The Group’s order book exceeds 14 months of revenue on the basis of
the 2006 budget
• Consolidated revenue for 2005 is in line with the Business Plan
(€101.49 M/€101.30 M)
• Pro forma revenue for 2005 is above the Business Plan
(€121.81M/€111.50 M)
• Acquisitions in 2005 were in highly profitable sectors: Oil & Gas,
Products
Outlook for 2006
• Group’s standards are kept:
o Organic growth of 15%
o Operational profit of 15%
• Acquisition policy:
o Given the advance in 2005 acquisition objectives, 2006 acquisitions
may be limited to €6.5M of revenue to achieve the 2 year objective
(2005/2006). However, the group will target to acquire €8 M of
revenue in 2006
• Organisation in 3 departments:
o Confirmation of the value of the structure started in January 2005
(Consulting/Solutions/Products)
o The « Product» department, the most profitable Group’s sector, will
represent more than 20% of total revenue
• 2006 Budget (1) :
Increases with respect to initial Business Plan:
o Revenue excluding new acquisitions (2) : €137.8 M
o Consolidated revenue (3) : €140.8 M
o Pro forma revenue (4) : €145.8 M
(1) Non audited
(2) Given internal growth of 15% and the projected sale of certain non
strategic assets
(3) Initial BP at €131.1 M
(4) Integrating 12 months of new 2006 acquisitions
30/11/2005
UK ACQUISITION - INTECH joins SWORD GROUP in November 2005
- Increase of the pro forma 2005 revenue: + £ 9 M
- INTECH current order book is £ 10 M
- Accrutive acquisition
- Profitability to the standards of the Group
- EBIT over 16%
- Confirmation of the 2005 and 2006 budgets
• INTECH designs, develops, delivers and supports software products for the London Insurance Market.
Their products incorporate substantial business know-how mapped to complex Business Intelligence automation.
Consequently, INTECH are regarded as one of the leading providers of Insurance Underwriting Systems in the market.
STRATEGY
• This company complies perfectly to the acquisition strategy as set out in our business plan:
-UK based
-ECM (Business Intelligence)
-Software development
SYNERGY
• INTECH will take advantage of the SWORD GROUP presence in Bermuda to target the local underwriters.
INTECH customers will also be able to benefit from SWORD GROUP’s broad content management experience and systemintegration skills.
MANAGEMENT
• Heath DAVIES, the SWORD GROUP COO based in London, will manage the integration of INTECH with the support from the existing management team.
SWORD GROUP TO IMPROVE FOCUS
• SWORD GROUP expects to sell one of its smaller (£ 1.5 M revenue) Business Units in the UK to the existing management in a move that would provide greater focus to the Group’s Corporate Compliance Management strategy.
The overall impact would reduce Group’s revenue by £ 1.5 M in 2006 but improve profitability.
> SWORD GROUP
Founded in December 2000
Chairman and Founder: Jacques MOTTARD
1 267 employees at 01/12/2005
Eurolist Compartment C
Isin code: FR0004180578
Next Economy Segment
FTSE Sector: 972 IT services
IT CAC, CAC Small 90, CAC Mid and Small 190 and SBF 250
> Upcoming press release
2005 Forth-Quarter Sales: January 17th, 2006
13/10/2005
Important Strategic and Operational evolution for SWORD GROUP in September
Sale of the Logistic Activity
Acquisition of a French speaking offshore development platform
Expansion of our partnership with EXSTREAM in document composition
Demonstration of new « FUSION » product
• SWORD GROUP sells its consulting activity in logistics which was mainly targeted towards manufacturing. T
he activity represents a sales turnover of about € 900K per annum with a EBIT of 10%. The exit of this activity is without significant incidence on the Group’s profit forecasts in 2005 and 2006.
By this sale, the group pursues its strategy of high added value projects on highly regulated markets and solution integration.
• SWORD GROUP from now on will assemble its solutions around "Corporate Compliance Management" (CCM). In highly regulated markets SWORD GROUP brings corporate application’s content and business processes in line with stringent rules, regulations and laws.
• SWORD GROUPhas acquired a French-speaking offshore development centre in LEBANON. This new acquisition does not generate additional sales but will take part in the improvement of the profit margin. This development platform employees 15 software engineers in Beirut.
• SWORD GROUP expands its partnership with EXSTREAM, software house specialised in Output Management/Document Composition in the US. SWORD GROUP and EXSTREAM work jointly to serve the needs of clients such as ING, Vanguard, Verizon, Fiduciary Trust, and BC/BS.
• CIMAGE NOVASOFT, a Group subsidiary, held its annual User Conference in San Antonio, Texas on Sept 13-14. Clients and partner companies were awed by the demonstration of Fusion 3, their CCM product to be released in Q1 of 2006 targeting highly regulated markets such as Life Sciences, Oil & Gas, and Nuclear. This fully confirms group expectations with regard to the products sales over the 3 next years.
11/10/2005
New step in the international development of SWORD GROUP
- Placing of 21 Développement Shareholding
- International Placing
- Major Increase in the Free Float
New step in the international development of SWORD GROUP
SWORD GROUP, company specialised in « Corporate Compliance Management » solutions, strengthens its status of international blue-chip value by enlarging its shareholder base with prestigious institutional investors both French and British.
The investment bank Bryan, Garnier & Co Ltd. placed, through a private transaction, the shareholding stake held by 21 Développement since the creation of the company and which represented 27.5% of the capital or 2 017 250 shares.
21 Dévelopement, VC Investment Fund managed by 21 Centrale Partners, has the objective of investing in non-listed companies and to accompany them in their development for periods of three to five years. The Fund, that had accompanied the executive team in their previous entrepreneurial success (DECAN), had become shareholder when the company was founded in December 2000. This transfer is in line with 21 Développement investment strategy who had not sold any shares at the time of the 2002 IPO.
It has been decided to allocate half of the available shares to US and UK investors given the importance of SWORD GROUP in Great Britain and the United States.
The success of this operation provides comfort to its management team in the pertinence of its development strategy around « Corporate Compliance Management ».
As a consequence of this operation, the free float is now around 70 % of the capital, which should significantly increase its liquidity and better market recognition of its fundamental parameters and the future development of SWORD GROUP.
11/10/2005
THIRD QUARTER 2005 REVENUE (1)
Q3 2005
- Consolidated Revenue: ?26.16M
- Organic Growth: +15.01%
- Consolidated Growth: +23.30%
- Current Operating Profit: 16.02%
(1) Non audited Figures
Analysis
•Organic growth this quarter is 15.01% despite having 4.5% of the staff affected to the development of a new line of products,
•The EBIT is at 16.02% and therefore above the budget, while still bringing certain acquisitions within Group standards,
•The return to profitability of acquisitions is managed according to budgets and their P&L will be at Group’s standards in 2006.
Outlook
•Confirmation of year 2005 budget,
•Continuation of acquisition strategy,
•Guiding Group offer: « Corporate Compliance Management ».
News
•See our official press release dated October 3, 2005.
Summary of the Income Statements - not audited
06/09/2005
FIRST HALF-YEAR ACCOUNTS 2005
H1 2005
- Consolidated revenue: +27.4%
- Net attributable profit: + 38.4%
- Current operating profit: 15.5%
Commentary to The Accounts:
• The revenue reported in the accounts for the 6 months ended 30th June 2005 is in line with the budget whilst the reported operating profits have exceeded budget.
• Given the strength of the Group’s order book we are confident about the outlook for financial years 2005 and 2006.
Prospects:
• The Group will continue its strategy of growth whilst at the same time placing a particular emphasis on the control of profitability given the difficult economic climate in certain countries.
• The main factors which will facilitate an improvement in profitability are:
-Specialisation on highly regulated markets,
-Our range of CCM (Corporate Compliance Management) offerings, -Use of our French and English-speaking offshore operations,
-Development of products providing additional functionality to the major ECM (Electronic Content Management) packages.
Acquisitions:
•On the 28th July 2005 SWORD GROUP acquired LINKVEST, a company based in Switzerland.
To read more, www.sword-group.com
28/07/2005
SWORD GROUP reinforces its activity in Switzerland with the acquisition on July 28, 2005 of LINKVEST
- Pro-forma revenue raised by + € 6.5 m in 2005
- Accruative acquisition
LINKVEST, based in Lausanne (Switzerland), offers added value services in ECM (Enterprise Content Management) and in EAI (Enterprise Application Integration).
LINKVEST main target sectors are banking, telco, life sciences and local/federal government.
This Company will be profitable for the remainder of 2005 at an EBIT level of 7% and will reach the standard Group profitability during 2006.
LINKVEST is completely in phase with our market sector targets and clearly reinforces our penetration in Switzerland, country with a high profitability potential.
The complementarity with operations managed from Lyon is significant, LINKVEST bringing a base of prestigious customers and SWORD GROUP new offerings to LINKVEST.
More detailed information about this acquisition will be provided during SFAF meeting in Paris on September 8, 2005.
11/07/2005
SECOND QUARTER 2005 SALES
Q2 2005 (1)
CONSOLIDATED SALES: € 24.94M - ORGANIC GROWTH: + 14.2 % - CONSOLIDATED GROWTH: +34.4% - EBIT: 15.8%
S1 2005 (1)
CONSOLIDATED SALES: € 46.16M
Second quarter 2005 sales
Q1 2005 (1)
• Consolidated Revenue: € 24.94M
• Organic growth: + 14.2 %
• Consolidated growth: + 34.4 %
• EBIT: 15.8%
S1 2005 (1)
• Consolidated Revenue: € 46.16M
(1) non audited figures
Outlook:
• The Group is on track with the business plan presented in the 2004 reference document.
• The long term contract backlog is growing which confirms our 2006 budget.
• The strategy forecasts a next acquisition in the second half of 2005 which confirms 2005 consolidated sales better than the budget of € 101.3M.
• The development of the new FUSION products is on track with the budget and the economic outlook reinforces our strategy for highly regulated market (oil, nuclear, pharmacy and bank).
Profitability:
• We confirm Q2 non audited EBIT of 15.8% compared to Q1 EBIT of 15.2% with regards to 15% annual budget.
Backlog:
• Growth of long term order book
Over 12 months the order book comes to 8.7 months worth of the 2005 forecast revenue.
Over the next three years the order book comes to 14.4 months worth of the 2005 budget.
• World leader in filtering and anti-money laundering confirmed. Last signatures: Abn Amro (Netherlands), Ak Bars Bank (Russia), Banca Popolare Di Sondrio (Switzerland), Banque Fédérale/Banque Populaire (France), Banque Mends Gans (Netherlands), Barclays (Spain/UK), Calyon (UK), CICB (Canada), Crédit du Maroc (Morocco), CIBC (Canada), Compagnie 1818 (France), Dallah Al Baraka Group (Saoudi Arabia), HSBC (NYC/ USA, Switzerland), Hua Nan Commercial Bank (NYC, USA), Ific Bank (Bangladesh), ING (Belgium), La Poste (France), Landesbank baden-Wurttemberg (UK), Mizuho (Germany), Ost West Handelsbank (Germany), RZB (Worldwide), Sterci (Switzerland), Xign (Canada/USA), World Bank (Washington/USA).
• World leader in trademarks and patents confirmed. The Government of Bermuda becomes the 30th National Office of Trademarks and patents customer of the group (attached press release).
08/07/2005
The Government of Bermuda becomes the 30th National Office of Trademarks and Patents customer of SWORD GROUP
A targeted positioning
A strategic signature
30th National Office customer of the Group
• SWORD GROUPhas just signed a contract with the Government of Bermuda, for the implementation of a fully integrated system for the management and administration of all Intellectual Property registers.
PTOLEMY and ACSEPTO software components based on Microsoft.NET platform will be the core of the solution. This new signature reinforces the position of the Group on targeted markets, like Trademarks and Patents.
• Positioning of the Group:
SWORD GROUP is:
- Specialised (on targeted activities, technologies and markets),
- International (In addition to our clients in over 30 countries, the Group is directly represented by subsidiaries in 9 countries),
- Industrial (Developpement of components/products and offshore/nearshore approach).
10/05/2005
MAJOR ORDERS - Year-to-Date (April 2005)
€43 m worth of contrats signed in 4 months
- Healthy order book
Belux: € 11.8 m with European Commission, European Parliament, an one EU agency (€ 4 m over 4 years), FORTIS, the Office for Official publications of the European Union (€ 4,8 m over 4 years).
France: € 15.2 m with ARCELOR, BNP PARIBAS, CEGETEL (confirmation of a contract of € 9.0 m over 3 years after probationary period), EDF, RENAULT, Société Générale Investment Banking and a large city.
UK: € 8.6 m with BNP PARIBAS, BP, Centrica, Commonwealth Secretariat, Exxon Mobile/Nigeria, Kerr McGee, London Underground, Nexen (€ 4.4 m over 3 years), Talisman, Toyota, Transport for London.
US: € 2.4 m with Boeing, Chase, Exxon, GE Industrial Services, Genentech, Gillette, Major NY Financial Institution, Marathon Oil, QWest, PSE & G Nuclear, Rockwel.
Export: € 5.0 m with ABN AMRO / Köln Germany, ABN AMRO / New York, Banco do Brazil / Japan, Banco Espirito Santo / Lisboa, the International Bank of Burkina Faso / Ouagadougou, Bank Nationale of Switzerland / Zürich-Berne, Popular bank of the Alps, Byblos Bank / Brussels-Paris-London, Crédit Libanais / Liban, FM Global / Rhodes Island, HSBC / Geneva, International Bank of Miami / Florida, Kookmin Bank / Séoul, trademark and patent Offices / Benelux - Hungary - Ireland - Sweden, Service Office of FIN-X / Johannesbourg, Standard Chartered Bank / New York, Sumitomo Mitsui Bank / London, Wells Fargo / Minnesota, World Bank / Washington DC.
11/04/2005
FIRST QUARTER 2005 SALES
CONSOLIDATED REVENUE: € 21.22 m - CONSOLIDATED GROWTH: + 20.1 %
First quarter 2005 sales
SWORD GROUP
• Consolidated Revenue: € 21.22 m (1)
• Consolidated growth: + 20.1 %
• Organic growth: + 11.1 %
• EBIT: 15.2 %
• Operating statement in phase with the budget
€m Q1-2005 Q1-2004 Change
Revenue 21,22 17,67 20,10%
(1) non audited figures
Analysis:
Sales:
• 6% of staff assigned to development work on our new product range of Document Management.
• Despite this production shortfall, SWORD GROUP once again posted sustained organic growth, in excess of budgeted amounts: 11.1% growth for a budget of 10.5% in Q1 2005.
Operating margin:
• In the service sector, profit margins remain in excess of 16%.
• The product sector is currently in its cycle low (Q1 and Q2). Furthermore, this quarter was impacted by product specification investments.
Prospects:
Sales:
• 15% organic growth target confirmed.
• Consolidated sales, excluding forthcoming acquisitions: in excess of €99m.
• Proforma sales, excluding forthcoming acquisitions: in excess of €101m.
• Additional acquisitions budget: + €9m in sales over a full year (€6.8m consolidated).
• Consolidated sales following the forthcoming acquisitions will therefore exceed the initial target of €101m.
Operating margin:
• Confirmation of the profitability target of the current consolidation scope, including April's acquisitions: 15%.
• Consolidated margin, excluding forthcoming acquisitions: in excess of €14.8m.
• With the forthcoming acquisitions, the Group will exceed the budgeted consolidated profit target of €15.2m.
SWORD GROUP share:
Subject to approval by the General Meeting of April 29, 2005:
• Share divided by 5.
• Distribution of a dividend of €1.20 per share.
Summary of the income statements (non audited figures):
K€ Q1- 2005
Revenue 21 223
Operating profit 3 225
Profit before income tax 3 080
Net profit 2 017
Net attributable profit 2 040
06/04/2005
UK acquisitions: PRAGMA and HARVARD join SWORD GROUP on April 6th, 2005
Increase of the proforma 2005 revenue: + € 9 m - PRAGMA current order book is € 10 m beyond 2005 - Accrutive acquisitions - Profitability to the standards of the Group
UKacquisitions: PRAGMA and HARVARD join SWORD GROUP on April 6th, 2005
• Increase of the proforma 2005 revenue: + € 9 m
• PRAGMA current order book is € 10 m beyond 2005
• Accrutive acquisitions
• Profitability to the standards of the Group
• PRAGMA, based in Aberdeen, offers application and infrastructure management and integrated ECM solutions for oil & gas companies.
PRAGMA blends into the specialised strategy of SWORD technology and oil & gas market expertise.
Its 2004 revenue was € 6.4m with an EBIT of over 15 %.
The business plan forecasts over 15 % organic growth while maintaining its profitability.
PRAGMA’s complementarity with:
- SWORD-CIMAGE (Document Management products dedicated to the oil & gas industry),
- SWORD-HOUSTON (business unit targeting the oil & gas market in the US),
will enable important synergies to further extend both operations.
• HARVARD, based in London, is a management consultancy specialising in business-process engineering, workflow automation, quality systems project management and information technology
This company targets banking and financial markets.
Its 2004 revenue was € 1.3m with an EBIT of over 15 %.
The business plan forecasts over 15 % organic growth while maintaining its profitability.
The management consultancy / IT solutions complement will be important in London.
Our existing operation and the large banking market already established will enable us to forecast major developments for both HARVARD and SWORD UK.
• Heath DAVIES, the SWORD COO based in London, will coordinate the Managing Directors of PRAGMA (Allan MERRITT) and HARVARD (Julian MOUNTAIN).
April 12th, 2005
2004 ANNUAL ACCOUNTS
Strong and Steady Growth
Year 2004
• Revenue:
+ 42% growth of consolidated revenue
+ 15% growth of revenue excluding acquisitions
• EBIT:
Consolidated EBIT is steady at 16% despite the integration of acquisition
with lower EBIT
• Net cash position: € (3 784K)
• Long term debt: € 11 392K
• Short term debt: none
• Cash and treasury investments: € 7 608K
• Shareholder’s equity: € 54 538K
• Dividend:
A payment of €1.20 per share will be proposed at the Shareholders
meeting on April 29, 2005
2005 Outlook
The 2005 strategy is part of a 3-year business plan (2005-2007)
For 2005:
• Revenue
• Internal growth: 15 %
• Stabilising revenue from 2004 acquisitions
• Acquisitions of €15m to € 25m of revenue
• EBIT
• 16 % with respect to 2004 perimeter
• 15 % consolidated
2005-2007 Strategy
The group continues to focalise in offerings with high profitability and
therefore will:
• Continue its technological specialisation: Document Management,
Geographical Information Systems, Business Intelligence, Web Content
Management, Artificial Intelligence
• Re-enforce its specialisation in "highly regulated" and strong added
value markets: oil & gas, pharmaceutical, nuclear, banking, trademarks
and patents
• Develop for these markets a strategy of complementary products to the
solutions of main software publishers in these domains
Geographically, the group will:
• Continue its international growth and notably its acquisitions in
countries with high profitability (Anglo-Saxon countries)
• Develop its already known capacity to export, notably in the banking
domain
• Intensify the use of its Indian (Chennai) offshore platform for large
projects sold in Anglo-Saxon countries
With regards to industrialisation, the group will:
• Continue its strategy of software components
• Develop two new sets of products allowing this division to generate
15 % of the total revenue as of 2005
12/01/2005
Fourth Quarter 2004 Revenue
Consolidated 2004 Revenue: 79,05 M€, Pro-forma 2004 Revenue: 84,63 M€
• Consolidated 2004 Revenue 79.05 M€ (2)
• Pro-forma 2004 Revenue 84.63 M€ (2)
• Organic growth in 2004 + 14.6% with respect to 2003 (2)
• Consolidated growth 2004 + 42.3% with respect to 2003 (2)
Pro-forma(1) (2) Consolidated(2)
€m 2004 2003 % 2004 2003 %
Q4 Revenue 21,65 16,37 32,3 21,65 13,98 54,9
YTD Revenue 84,63 66,02 28,2 79,05 55,55 42,3
(1) The pro-forma revenue integrates acquisitions for the year (12 months)
2004 : GLOBAL and CIMAGE
2003 : ZEN & ART and ASCII
(2) Non audited
Analysis
• Excellent 4th quarter activity
• Confirmation of order book above 8 months (2005 budget basis)
• Confirmation budgeted EBIT at 16%
• Successful integration of new acquisitions
• Excellent start for offshore
2005 Outlook
• Persistent group fundamentals:
• Organic growth of 15%
• Consolidated EBIT above 15%
• Acquisitions worth revenue between 15 and 25 €m
• Activity organised in 3 departments :
• Business consulting
• IT Solutions
• Software Products
• Increase of part revenue from products to 15% 2005 revenue
10/12/2004
Heath Davies, appointed COO, SWORD GROUP
The members of the Executive Management Committee are: Françoise FILLOT (CFO), Heath Davies (COO), Christian Tapia (COO) and Jacques Mottard (CEO)
SWORD Group
Heath Daviesappointed COO, SWORD GROUP
Mr Heath Davies(38) joined SWORD GROUP through an acquisition in April 2002. Since that time he has been responsible for developing the UK office, organically and acquisitively, from a 7M euro entity then to 20M euro budgeted in 2004 (organic growth + acquisitions).
The UK operation also provides the highest net returns within the Group.
His appointment supports the Groups ambitious plans for continued international growth. His sales orientated approach will reinforce and compliment the existing management team skills and style.
Mr Davies will continue to drive the growth within the UK operation and provide additional support to the Groups sales activities on a Global stage.
The members of the Executive Management committee are: Françoise Fillot (CFO), Heath Davies (COO), Christian Tapia (COO) and Jacques Mottard (CEO).