Econocom - 2020 annual report
05 management report management report of the board of directors on the financial statements Management Report of the Board of Directors on the financial statements For the year ended 31 December 2020 presented to the General Meeting of 18 May 2021 In accordance with prevailing legislation and the Company’s Bylaws, we submit to you for approval our report on the Company’s operations and the financial statements for the year ended 31 December 2020,as well as the compensation report. The definitions of the performance indicators are provided as an appendix to this report when they differ from the commonly accepteddefinitions. The non-financial information required under articles 3 section 6 and 3 section 34 of the Belgian Companies and Charities Code is applicable ( Code des sociétés et des associations - CSA) is reiteratedin chapter 3, “Corporate SocialResponsibility”. Group’s financial position 1. and highlights
In 2020, Econocom group posted revenue fromcontinuingoperationsof €2,559 million, down yet limited compared to 2018 due to the economic situation related to the health and economic crisis. In terms of organic growth, there was a decline of 11.3% compared to the previous year. However, this downward trend slowed down at the end of the year with organic growth limited to 8.4% in the fourth quarterof 2020. Digital Services and Solutions (DSS) stood at €1,646 million, with a more limited organic decrease of 5.9%. This decrease is due to lockdown periods in the various countries in which the Group operates and delays in the implementation of certain projects. Thanks to the uptrend in Products & Solutions (growth of 8.3%) and almost stable activity in Services, DSS recorded organic growth of 4.7% in thefourth quarter of2020. Revenue from the TMF business was €913 million, down 19.6%, mainly due to the health crisis and the wait-and-see state of mind that it generated in the decision-makingprocessof companies.
In this particular context, Econocom also decided to reduce its volume of own booked operations. In 2020, revenue from discontinued operations amounted to €97 million, a significant decrease compared with the previous year as a result of the disposals carried out during the period. Despite the decrease in revenue, current OperatingProfit (1) fromcontinuingoperations amounted was €122.5 million. On a like-for-likebasis, it was slightlyup. To achieve this, in 2020 the Groupfinanlisedits structural cost-cuttingplan of €97 million launched in early 2019 benefited from, the continuous productivity improvement in Services and focused onprojectswith higheradded value. At the end of 2020; the group also achieved the debt reductionthat it had set a little over two years ago. Accordingly, at 31 December 2020, the Group had a cash surplus of €20.2 million, compared to net financial debt of €252.2 million at teh end of 2019. Both these figures include TMF self-supportedcontracts that were financed with recourse for €185.9 and €238.5respectively.
Before amortisation of intangible assets from acquisitions. (1)
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2020 annual report
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