(€m) (unaudited consolidated data)
|2017/18||2016/17||% change 1|
1 the scope of consolidation remained unchanged between the two periods.
Return to growth in Q2
Wavestone's consolidated revenue increased 10% year-on-year to €81.2m in Q2 2017/18 (from July 1 to September 30). On a constant forex basis, sales growth also came out at +10% over the trimester.
Over H1 2017/18, consolidated revenue stood at €166.5m, up 3% year- on-year (same variation on a constant forex basis). The unfavorable working day impact is of -3% over the semester.
Improvement in utilization rate
The utilization rate over the semester was 77%, up from 76% in Q1. This expected progress over the second quarter is gradually spreading across the firm.
The average daily rate dipped momentarily to €845 in H1 2017/18 from the Q1 level of €848. The full-year trend should remain positive in line with the year-earlier level of €845.
The order book stood at 3.3 months at end-September 2017 compared with 3.2 at end-June 2017.
New HR model beginning to bear fruit
At end-September 2017, Wavestone's headcount had increased to 2,647 employees from 2,628 at end-March 2017.
Despite a highly competitive job market, the recruitment drive remained strong and in line with the firm's full-year hiring strategy.
The staff turnover rate over the first semester came out at 17% at an annual rate, in line with Q1. The new HR models and processes have enabled a gradual improvement in teams where staff turnover rates where abnormally high. Keep in mind that Wavestone's mid-term target is a staff turnover rate of less than 15%, although caution is advised on the evolution of this indicator at the end of the fiscal year.
Other events in H1 2017/18
Although the first half of the fiscal year is generally a period of strong cash consumption for Wavestone, an exceptional contraction in client receivables this year impacted cash level at end-September. The firm has implemented a plan of action to address this temporary decline and make a rapid return to a more normative cash level.
In addition, Wavestone wishes to announce that the partnership with ShiftIn Partners in the Middle East has been terminated due to a change in the latter's strategy.
Lastly, in terms of CSR, Wavestone was awarded 1st place of the Gaïa Rating in the category of companies with revenues between €150m and €500m.
2017/18 fiscal-year objectives confirmed
After a subdued Q1 2017/18, Wavestone MADE a return to growth in Q2 and the sticking points of the past months are gradually being resolved.
The firm confirms its full-year objectives: over €350m in revenue and a double-digit EBIT margin (excluding any new acquisitions).
Upcoming events: publication of H1 2017/18 results: Tuesday, December 5, 2017, after Euronext market close.
In a world where permanent evolution is the key to success, Wavestone's mission is to enlighten and partner business leaders in their most critical decisions.
Wavestone draws on some 2,600 employees across four continents. It is a leading player in European independent consulting, and number one in France.
Wavestone is listed on Euronext Paris and eligible for the PEA-pme (a French investment instrument that encourages individuals to invest in smaller and intermediate firms). Wavestone was labeled a Great Place To Work® in 2017.
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