2009 half-year results

Operating profit percentage maintained at 10% of revenue

€ millions – IFRS – Consolidated data

HY1 2008

HY1 2009

% change

Revenue

84.3

74.6

(11.6%)

EBITDA

%

12.8
15.1%

9.7
13.0%

(24.2%)

Operating profit

%

8.6
10.2%

7.5
10.0%

(12.8%)

Net profit

%

5.3
6.3%

4.4
5.9%

(17.0%)

Rounded figures

EBITDA is the Group’s key indicator. It is defined as operating profit before net amortisation, depreciation and provision charges.

Revenue stable excluding non-recurring items

Linedata Services reports revenue of € 74.6 million for the first half of 2009. The 11.6% decline (minus 12.7% on a constant exchange rate basis) was primarily due to exceptional billings in 2008 related to the implementation of the new employee savings platform. Revenue was stable once these items are backed out.

Controlled operating expenses

EBITDA was € 9.7 million, or 13.0% of revenue, and may be broken down as follows by region


EBITDA as % of
sales

HY1
2008

HY1
2009

Southern Europe

16.7%

8.3%

Northern Europe

6.3%

11.7%

North America

19.6%

26.7%

Asia

26.5%

(9.1%)

Total

15.1%

13.

Despite difficult market conditions, with strong downward price pressure on new sales and a decline in demand for consulting services, the Group continued to adapt its cost base and to implement a more productive organisation. This was reflected in particular by a significant improvement in its EBITDA as a percentage of revenue in Northern Europe and North America.

Conversely, profitability decreased in Southern Europe, primarily due to the development and customisation costs of the future version of the Master-i life assurance product.

EBITDA for the Asia region was slightly negative by € 0.2 million, due to the expenses incurred to implement a sales network able to support the expected growth in this market.

Maintained operating profit percentage

Operating profit was € 7.5 million, which reflects an unchanged operating profit margin of 10%.

Net profit was € 4.4 million, after a net interest expense of € 0.7 million and an income tax charge of

€ 2.4 million over the first half-year are incorporated

Financial position strengthened

The Group posted a cash flow from operations of € 5.1 million over the first half of 2009, a 59% increase compared to the first half of 2008. This performance was due in particular to controlled capital expenditure and WCR.

Net debt decreased by € 3.7 million compared to 31 December 2008, totalling € 16.3 million at the end of the first half of 2009, compared to € 20.0 million at the end of 2008. Consequently, the gearing ratio dropped to 17% at 30 June 2009, compared to 22% at 31 December 2008.

The cash position at the end of the first half-year was € 18.0 million.

Trends

In spite of an economic climate that remains unstable, Linedata Services maintains its target of improving its full-year operating profit percentage over that of 2008.

Shareholder communications: 3rd quarter 2009 sales: 5 November 2009 after close of trading.