2016 First-Half Results

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First-half double-digit revenue growth: +14%

Increase in Operating Profit: +40%

A solid balance sheet

Artificial Intelligence applied to Average Days to Pay

2016 first-half consolidated results

SIDETRADE GROUP
(MILLION EUROS)
1ST SEMESTER
2016
1ST SEMESTER
2015
VARIATION (%)
REVENUE 8.9 7.9 + 14%
OPERATING PROFIT 1.1 0.8 + 40%
NET RESULT 0.9 0.7 + 25%
OPERATING PROFITABILITY RATE 12% 10%

Consolidated and unaudited for 2016 first-half results.

Following a solid start to the year, Sidetrade Group posted a strong Q2 2016, achieving a sixth consecutive quarter of double-digit growth.

Sidetrade Group posted consolidated revenue of €8.9m in H1 2016, representing year-on-year growth of 14%.

The major commercial successes and new customers in production over the period include: Axway (United States, France), Carrefour Property, Docapost (La Poste Group digital subsidiary), GeodisBM Romania, Intersport, PageGroup (Germany, Austria, Switzerland), Saint Gobain Abrasives (South Africa, Germany, Austria, Belgium, Denmark, Spain, United Arab Emirates, France, Hungary, Italy, Luxembourg, Morocco, Norway, the Netherlands, Poland, Portugal, Czech Republic, Romania, Sweden, United Kingdom, Turkey), Talend (United States, France, United Kingdom), Univar (Greece, Italy, Turkey), XPO Logistics (Belgium, Spain, France, Luxembourg).

Increase in Operating Profit: + 40%

The Group posted Operating Profit of €1.1m in this half-year, representing a 40% increase on the €0.8m Operating Profit recorded for the same period of the previous year. This Operating Profit includes a Research Tax Credit of €0.47m (versus €0.40m from H1 2015) and activation of €0.10m in capitalised R&D costs (identical to those of H1 2015).

Corporate tax is estimated at €0.16m as of 30 June 2016, versus €0.05m as of 30 June 2015. Finally, the Group’s Net Result stands at €0.9m versus €0.7m as of 30 June 2015.

The Operating Profitability Rate is 12% higher than that of H1 2015 (10%). The group is ahead of schedule compared to the timeline of its strategic plan, providing the Group with additional margin for accelerating its investments.

A solid balance sheet

As of 30 June 2016, the Group’s balance sheet remained strong with a net cash position of €8.1m versus €6.2m on 30 June 2015. For reference, the company also owns €3.2m of its own shares.

Furthermore, the Group remains debt free.

Artificial Intelligence applied to Average Days to Pay

Sidetrade has been making significant investment in R&D for over two years in order to identify tried and tested predictive models. By studying over 230 million client payment experiences hosted in its Cloud, its teams of Data Scientists have developed Machine Learning algorithms that learn every day on the basis of payment behaviour. Sidetrade is now able to deliver a predictive payment score for over 2.2 million businesses, representing a unique advance in the field of BtoB trade credit.

Having been a pioneer of the Cloud in the early 2000s, Sidetrade is now a pioneer bringing Artificial intelligence into trade credit payments.

On 8 November 2016, Sidetrade will launch the first predictive payment score of customer payment behaviour, called SPi (Sidetrade Payment Intelligence). SPi uses Artificial Intelligence technologies and is based on Predictive Analytics of agreed payment terms and late payments. For the first time, companies will have direct access to a source of comparison between customers’ actual average days to pay and their predicted payment behaviour towards other suppliers. They will be able to take an objective view of their performance in terms of both commercial negotiations on payment terms and their ability to deal with payment delays incurred. This major innovation will help to strengthen collaboration between Finance and Sales teams through an approach based on data analysis rather than intuition.

Olivier Novasque, CEO and Founder of Sidetrade, explains:

“We know that Artificial Intelligence is no longer confined to driverless vehicles, facial recognition or product recommendations on retail websites. Thanks to the work of our research teams, we are proud to introduce Artificial Intelligence into businesses’ everyday lives. The SPi – Sidetrade Payment Intelligence – solution is integrated natively into our software, and will be offered as standard to all our clients. This major innovation will enable us to continue improving our products, making it significantly easier for Finance Departments wishing to evaluate their performance in respect of average days to pay, and to identify unexpected sources of cash. Artificial Intelligence is now available to every company to accelerate cash generation.”

Management is confident of the Group’s ability to post overall growth in full-year 2016.