The SII engineering consultancy group reported revenue of €438.85m for the year ended March 31, 2017, an increase of 21.9 percent over fiscal 2015-2016, including organic growth of 14.6 percent.
We exceed the objectives
The SII engineering consultancy group reported revenue of €438.85m for the year ended March 31, 2017, an increase of 21.9 percent over fiscal 2015-2016, including organic growth of 14.6 percent. This strong performance was attributable to the outstanding work performed by the Group’s employees and to the fact that SII’s services closely match the needs of its customers, as well as to a number of working days that was higher than the previous year. Growth exceeded the revised objectives issued when the Group announced its half-year revenue (€430m).
Increased business in France
In France, robust activity by the Group resulted in revenue of €69.37m for the last quarter, an improvement of 20.3 percent (including 12.4 percent organic growth) over the fourth quarter of fiscal 2015-2016. The increase also reflects the revenue of Feel Europe (€4.6m), which became part of the consolidated SII Group on March 1, 2017. The acquisition bolsters SII’s position in the banking and insurance sector. Business was sustained in the Group’s traditional sectors (aviation, aerospace, defense and telecommunications) and was helped by continued growth in all other areas (banking, insurance, energy, transportation and retail). For the whole of fiscal 2016-2017, business in France increased by 15.2 percent over the previous year, with 12.9 percent representing organic growth.
Strong growth of international operations
The Group’s international business increased by 15 percent (including organic growth of 14.2 percent) over the last quarter of 2015-2016, which also included the revenue of Cadcon, in Germany. Results for the quarter reflected strong sales in Poland (up 34.3 percent), Romania (up 23.6 percent), the Czech Republic (up 22.1 percent) and Chile (up 17.8 percent). There was a slight slowdown in both Germany and Spain (where revenue fell by 2.9 and 6.8 percent, respectively). Cadcon was adversely affected by deferred deliveries in its manufacturing operations. Nevertheless, organic growth was positive in both countries for the year (at 1.3 and 7.7 percent, respectively). Overall, revenue from international operations increased by 30.7 percent for the year, of which 16.9 percent was attributable to organic growth.
Outlook for fiscal 2017-2018
In light of the Group’s current results in its main sectors and regions, as well as the favorable forecast for 2017 recently published by industry representatives for the technology and digital engineering consulting segment, SII is confident that it will continue growing in a sustained manner during fiscal 2017-2018, despite the loss of several working days. The new period will be positively affected by the full consolidation of Feel Europe. The continued growth of SII’s business, combined with the Group’s expansion, will enable it to generate revenue well in excess of €500m starting in fiscal 2017-2018. A more detailed guidance will be provided when the financial results for fiscal 2016-2017 are announced, next June 6 after the close of trading.