Sopra aims at expansion in Europe

 France-based IT consultancy and services company Sopra Group has reported €589.6m of revenue, which represents a 11.3% y/y total revenue growth for the first half of 2012. France accounted for €473.2m, representing a total growth of 8.7%, and Europe saw a growth of 23% y/y to €116.4m.

The improvement in Europe was driven by a contribution of companies bought in the UK where the operating margin on business activity grew to 8.2% against 1.3% in H1 2011, as well as by a significant growth in Spain, the company says.

Performance in France varied between different vertical markets and clients. Sopra saw a slowdown in financial services and ‘wait-and-see’ attitude in the public sector, it says. However, the aerospace sector, utilities and transport along with manufacturing and services were doing fine.

Operating profit totalled €38.4m against €54m in the same time a year ago.

Pierre Pasquier, Chairman and CEO: “ In a difficult market environment since mid-March, the Group achieved a good performance for the first half of the year. Sopra Group was able to harness its capacity for innovation and for its competencies in managing major projects to support clients’ transformation projects in France and Europe. The companies that recently joined the Group have themselves developed this high added value service culture, which facilitates their integration and allows them immediately to make a major contribution to achieving ambitious objectives in line with the company’s strategy”.

According to its strategy, Sopra will focus on three pillars: extending its position in the French market, developing across Europe and expanding its solutions portfolio.

As it is aiming at broadening its presence in the main European countries, the UK subsidiaries of Business & Decision and Tieto joined the Group in line with this strategy, it says.

Sopra confirms its objectives of achieving a slight growth in revenue despite a tough economic context and a high comparison basis.
The Group also confirms a very slight improvement in margins, provided the market context does not deteriorate at the end of the year.