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2007 proves a year of growth for Business & Decision

Increase in turnover of 43%, (excluding exchange rates impact) Operating Profit rises by 25%

Paris, 31 March 2008 : Business & Decision, the international consulting and systems integration company, specializing in Business Intelligence, Customer Relationship Management and E-Business,  announced, for the financial year 1 January to 31 December 2007, a growth in operating profits of 25% which equates to €16.5 million (8.2% of turnover) compared to 2006.

€m

2006

2007

%

Turnover

142.8

202

43%*

Operating Profit

13.2

16.5

25%

Operating Margin

9.2%

8.2%

 

Net Profit

9.2

6.9

-25%

            * excluding exchange rates impact

From the 1st of January to the 31st of December 2007, Business & Decision recorded a consolidated turnover of €202 million; a growth of 43% excluding exchange impact compared to the previous year, 24% of this was organic.  Operating profit increased by 25% to €16.5 million compared to 2006. The one point decrease of the current operating margin of the Group is due to the short term dilutive impact of the acquisition of Inforte and other major investments in 2007.

The integration of the international activities of Inforte Group has been slower than expected and the restructuring effort impacted sales. At the same time that sales efficiency has been improved, a strong process of cost reduction has been undertaken during the fourth quarter of 2007. Business & Decision has also made investments in global R & D, an enhanced datacenter and increased operating expenses associated with opening new geographical sites.

Patrick Bensabat, CEO of Business & Decision commented "2007 has been an outstanding year for Business & Decision, underlined by sustained growth and augmented leadership in our core areas of expertise. A highlight of this year has been the strong international expansion, with activities outside of France accounting for half of the group's turnover. The disappointing increase in the operational results is primarily due to the slower than expected integration of Inforte as well as investments, which will allow us to respond to our increasing group issues. However, to address this an Executive Officer has relocated to the US to assist the future direction. We are therefore confident the future of Business & Decision will be built on a solid foundation with powerful expertise. Our vision and the skill of our teams will enable us to improve the Group's performance and increase our levels of added value."

2007 Highlights

  • Significant growth in the performance of the Group (total turnover increased by 43%);
  • Sustained organic growth for the Group (+24%) out performing the market;
  • Notable strengthening of the International activities of the Group with 48% of the global turnover;
  • Fortification of the Group's presence within the UK, Germany, India and the USA as a result of the acquisition of Inforte in July 2007;
  • Introduction of Business & Decision in Eastern Europe, in July, with the acquisition of DSS, a Russian Business Intelligence and CRM leader.
  • Consolidation of the Group's position in Switzerland: Business & Decision increased its share in Integrated Solutions, the Genèva-based company specializing in Business Performance Management and Integration Systems, to 90%.

Dynamism of the Group's expertise

Business & Decision maintained its leadership in its key activity segments (BI, CRM and e-Business).

Business Intelligence, the Group's major business segment generated 62% of turnover in 2007, an increase of 52% compared to 2006.

CRM recorded a 31% growth in turnover and accounted for 23% of 2007's turnover.

The Group's e-Business activity segment represented 15% of turnover achieving growth of 31% compared to 2006; growth was purely organic.

Goal: a workforce of 3000 employees

During 2007 the Group's headcount continued to grow rapidly.  With a presence in Europe, North Africa, Asia and North America the number of employees as at 31 December 2007 amounted to 2,500; an overall increase of 46% in the year, and 31% excluding acquisitions. This evolution demonstrates the strong ability of Business & Decision to recruit.

Business & Decision continues it aggressive recruitment plans into 2008 aiming to recruit more than 800 new employees worldwide to support the Group's expansion.

Outlook for 2008

The combination of organic growth in 4 new countries and acquisitions in 3 other countries, in 2007, will provide a foundation for the group to generate further growth in 2008.

In addition, the completion of the integration of Inforte and improvements to the sales models in Germany and the United States will provide momentum to the Business & Decision group.

Finally, the Group's ability to create value is demonstrated by the outstanding performance compared to the market, which has been sustained for more than 15 years.

Therefore, Business & Decision maintains its target for 2008 of a turnover exceeding €250m.

Forthcoming financial events:

April 30th 2008

Publication of 2008 first quarter turnover at 5:35 PM

June 24th 2008

Shareholders Annual General Meeting 2007

("Le Club", 153 rue de Courcelles, Paris 17e, at 5:00 PM)

July 30th 2008

Publication of 2008 first half turnover at 5:35 PM

September, 2nd 2008

Publication of 2008 first half results at 5:35 PM

 September, 2nd 2008

Analysts and investors meeting - following the publication of 2008 first half results at 5:35 PM

(Hotel Hilton Arc De Triomphe Paris - 51-57, rue de Courcelles - Paris 8e)

October 29th 2008

Publication of 2008 third quarter turnover at 5:35 PM

January 28th  2009

Publication of 2008 full year turnover at 5:35 PM

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