Groupe SII Financial Results, third Quarter

Groupe SII Financial Results, third Quarter

The SII Group's reported revenue of €215.6m on December 31, 2013, for the first nine months of its 2013-2014 fiscal year, from organic growth of 2.6 percent. Improved international sales during the period more than offset a continued lackluster performance in France.

Sales declined in France by 5.7 percent to €51.1m during the third quarter, while revenues generated by international operations were up 24 percent to €24.3m. Overall organic growth for the period was 2.2 percent.

The French technology consulting sector remained depressed during the third quarter of fiscal 2013-2014, as it was adversely affected by the loss of a working day and wait-and-see attitudes by customers, which caused capital spending by business to fall, especially in the manufacturing sector. Under the circumstances, SII relied on markets where it holds strong positions, such as telecommunications, aerospace, defense and banking, in order to lessen the impact of a declining market.

The third quarter of fiscal 2013-2014 marked the eleventh consecutive quarter in which SII reported organic growth of more than 20 percent from its international operations.
The Group's business continued to improve significantly in Poland, its largest market outside France, where sales jumped 24 percent, reflecting an increase in the volume of orders placed by the subsidiary's long-term customers.

In Spain, SII's business started to expand again during the quarter, when it benefited from a gradual improvement in the local economy and the full performance of a major contract that had taken longer than expected to get off the ground.

At the start of the last quarter of fiscal 2013-2014, SII remains confident of reaching the targets it has set for itself, namely further increases in sales and income, together with at least 30 percent of revenue generated outside France.