Editoria e Media
HighCo: 2021 annual earnings
Aix-en-Provence, 22 March 2022 (6.00 p.m.)
HIGHCO POSTS EXCELLENT RESULTS FOR 2021: RETURN TO BUSINESS GROWTH, SHARP RISE IN PROFITABILITY (>20%) AND STRONG INCREASE IN PROPOSED DIVIDEND
Return to business growth
Strong growth in results and profitability
Strong cash generation
High shareholder returns
2022 Guidance
1 Like for like: Based on a comparable scope and at constant exchange rates (i.e. applying the average exchange rate over the period to data from the compared period).
2 Adjusted headline profit before interest and tax: Recurring operating income before restructuring costs and excluding the impact of performance share plans. Adjusted operating margin: Adjusted headline PBIT/Gross profit.
3 Adjusted attributable net income: Attributable net income excluding the net after-tax impact of performance share plans (2021: no impact; 2020: income of €0.56 M), excluding other operating income and expenses (2021: income of €2.46 M; 2020: no impact) and excluding net income or loss from assets held for sale and discontinued operations (2021: income of €0.02 M; 2020: loss of €2.06 M); adjusted earnings per share based on an average number of shares of 20,677,545 at 31 December 2021 and of 20,738,470 at 31 December 2020.
4 Net cash (or net cash surplus): Cash and cash equivalents less gross current and non-current financial debt.
Didier Chabassieu, Chairman of the Management Board, stated , “After two years of operating in a complex environment, I'm proud of the work accomplished by our teams, which has enabled us to post a very good financial performance in 2021. The Group registered a return to growth (up 3.2%) driven by the growth in its digital businesses (two-thirds of gross profit), especially Mobile activities (up 6.8%). This growth comes with a significant rise in headline PBIT and profitability. These very good results have led HighCo to propose high sharehold er returns and continue investing in innovation. HighCo confirms its goal: being the key partner for brands and retailers and leading by example in accelerating the transformation of retail.”
2021 FINANCIAL PERFORMANCE
Return to business growth
The Group's gross profit grew 3.2% to €76.52 M for FY 2021.
This business growth was mainly driven by:
Broken down by region, France posted gross profit of €66.45 M, up 3.3% in 2021 , representing 86.8% of the Group's gross profit for the full year 2021. Driven by Mobile (up 7.2%) , digital businesses grew 2.4%, and their share represented 67.4% of gross profit. Thanks to an extremely favourable comparison base, mainly in Q2 (up 25.3%) offline businesses grew 5.1% for the financial year.
International business also grew, 2.3% to €10.07 M , accounting for 13.2% of the Group's gross profit. This business growth came both from Belgium (up 2.1%) and from other countries (up 4.3%). Digital grew 3.3% for FY 2021 and accounted for 63.1% of gross profit.
Strong growth in results and profitability
Business growth, combined with sound cost control, led to a sharp 27.6% rise in adjusted headline PBIT compared with 2020, at €15.54 M in 2021 , with:
Adjusted operating margin (adjusted headline PBIT/gross profit) rose substantially by 390 basis points to 20.3% compared with 16.4% for 2020.
Growth in adjusted headline PBIT and stable restructuring costs (2021: €0.71 M; 2020: €0.78 M) led to a sharp increase of 21.7% in recurring operating income to €14.82 M (2020: €12.18 M).
Given other operating income of €2.46 M due to the fair value remeasurement of the earn-out recognised as part of the Useradgents acquisition in 2018, 2021 operating income came to €17.28 M , rising sharply by 41.9%.
The tax expense remained stable at €4.29 M in 2021 (2020: expense of €4.24 M). The effective tax rate fell considerably by 660 basis points to stand at 29.6% for the period.
Adjusted attributable net income rose very sharply by 50.9% to €8.71 M (2020: €5.77 M). This led to reported attributable net income of €11.19 M, also showing a very strong increase of 161.9% (2020 reported: €4.27 M).
The Group recorded adjusted EPS of €0.42, for very sharp growth of 51.4% compared with 2020.
Strong cash generation
Cash flow amounted to €18.48 M, up 13.6% compared with the figure as at 31 December 2020.
Excluding the impact of IFRS 16 – Leases, cash flow amounted to €15.33 M, up 17.9%
compared with the figure as at 31 December 2020.
Net cash at 31 December 2021 amounted to €73.71 M, down €3.25 M compared with 31 December 2020.
Excluding operating working capital (€55.79 M at 31 December 2021), net cash came to €17.92 M, up by €4.5 M with respect to 31 December 2020.
HIGH SHAREHOLDER RETURNS
Strong rise in dividends
With this healthy financial performance, at the next General Meeting scheduled for 16 May 2022, a dividend payment of €0.32 per share will be proposed, representing a sharp 18.5% increase (€0.27 per share paid in 2021 for 2020).
Proposal to cancel around 8% of treasury shares
HighCo announces that it plans to cancel 8% of its share capital by the end of June 2022 , through the cancellation of treasury shares (excluding liquidity contract).
As part of its policy on shareholder returns, and as it is approaching the legal 10% limit on treasury shares, the Management Board presented to the Supervisory Board its plan to reduce the share capital by at least 8%, through the cancellation of treasury shares acquired under share buyback programmes. As announced above, in 2021 the Group recorded strong growth in its profitability and posted a sound financial position with a high net cash surplus. These factors support the grounds for this decision.
The Supervisory Board, which met today, authorised the Management Board to proceed with the operation.
The Management Board intends to implement this authorisation by the end of June 2022, subject to the following conditions:
It should be noted that WPP will refrain from voting on the resolution to cancel treasury shares that will be submitted at the Annual General Meeting.
HIGHCO AND THE TRANSFORMATION OF RETAIL
With the growth in e-commerce, development of m-commerce and social media, and the emergence of Web3, the retail industry continues to transform. Consumers are massively shifting towards these new shopping formats. By moving forward with its innovation strategy, HighCo is developing new offers and solutions to be the key partner of choice for brands and retailers in the transformation of the retail industry .
HIGHCO AND CSR
Since its creation in 1990, HighCo has made social and employee-related issues a central focus in its development, especially its strong involvement in regions where it operates. Innovation is part of the Group's DNA. Society and regulations have accelerated awareness of the role companies can play on these issues.
The Group therefore aims to lead by example in terms of social and environmental performance.
This goal addresses three main challenges:
HighCo also plans to continue employee related and social actions already in place , namely:
5 Kantar Consumers Day – Le e-commerce devrait dépasser 10% en 2023 sur les PGC-FLS – Dec. 2021.
6 Fevad – Bilan du e-commerce en France en 2021 – Feb. 2022.
7 PayPlug Study – Mobile trends and uses in 2021 – Jan. 2018 to May 2021.
8 Accenture Research, Social Commerce – 2021.
9 Emarketing.fr – iResearch, Gartner or Deloitte benchmarks – 2021.
2022 GUIDANCE
This guidance was established on information available, in a complex and rapidly changing environment due to the war in Ukraine and ongoing Covid-19 pandemic.
As such, the Group points out that it is not directly or indirectly active in the regions in conflict and confirms that its business has not been impacted as at end-February 2022.
Under these conditions, HighCo forecasts for 2022:
The Group's financial resources will be allocated to:
ANNUAL GENERAL MEETING OF 16 MAY 2022
HighCo's joint Annual General Meeting will be held at the head office in Aix-en-Provence on 16 May 2022 at 10.30 a.m. (CET) .
In the health context due to the Covid-19 pandemic, the rules and conditions for attending this meeting may change depending how the situation develops and in line with regulations.
The Supervisory Board examined the financial statements for the year ended 31 December 2021. At the time of writing, the audit of the consolidated financial statements has been carried out. The certification reports will be issued once the required specific verifications have been finalised in order to file the universal registration document.
A conference call with analysts will take place on 23 March 2022 at 11:00 a.m. (CET).
The presentation will be available at the beginning of the meeting on the Company's website (www.highco.com) under Investors > Financial Information > Financial analysts meetings.
About HighCo
As an expert in data marketing and communication, HighCo continuously innovates to work with brands and retailers in meeting the retail challenges of tomorrow.
Listed in compartment C of Euronext Paris, and eligible for SME equity savings plans (“PEA-PME”), HighCo has more than 500 employees and has achieved Platinum status from
EcoVadis , meaning that the Group is ranked in the top 1% of companies in terms of CSR performance and responsible purchasing.
Your contacts
Cécile Collina- Hue Cynthia Lerat
Managing Director Press Relations
+33 1 77 75 65 06 +33 1 77 75 65 16
comfi@highco.com c.lerat@highco.com
Upcoming events
Publications take place after market close .
Conference call on 2021 annual earnings: Wednesday, 23 March 2022 – 11:00 am
Q1 2022 Gross Profit: Tuesday, 26 April 2022
Q2 and H1 2022 Gross Profit: Thursday, 21 July 2022
2022 Half-year Earnings: Wednesday, 24 August 2022
Conference call on 2022 half-year earnings: Thursday, 25 August 2022
Q3 and 9-month YTD 2022 Gross Profit: Wednesday, 19 October 2022
Q4 and FY 2022 Gross Profit: Wednesday, 25 January 2023
HighCo is a component stock of the indices CAC Small (CACS), CAC Mid&Small (CACMS), CAC All-Tradable (CACT), Euronext Tech Croissance (FRTPR) and Enternext PEA-PME 150 (ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For further financial information and press releases, go to www.highco.com
This English translation is for the convenience of English-speaking readers. Consequently, the translation may not be relied upon to sustain any legal claim, nor should it be used as the basis of any legal opinion. HighCo expressly disclaims all liability for any inaccuracy herein.
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