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Groupe Crit posts resilient performance in a difficult environment - International business doubled

Groupe Crit posts resilient performance in a difficult environment - International business doubled In H1 2012, Group CRIT grew sales 2.3% to &euro736.1 million like-for-like, sales totalled &euro683 million compared with &euro719.5 million in H1 2011.

In Temp. and Recruitment business (82.9% of total sales), H1 sales increased slightly (0.8%) to &euro610.6 million. This growth reflects the positive impact of the sound performance of its US acquisition PeopleLink, which posted sales of &euro51.6 million in the first half, up 15.5% (6.5% at constant exchange rates). The Group doubled its international business to &euro93.3 million in the first half of 2012. The international sector now accounts for 15% of Temp. & Recruitment sales, vs. 7% in H1 2011.

H1 2012 sales in France amounted to &euro517.3 million, compared with &euro563.8 million for the same period in 2011. In addition to the slowdown in demand observed during the past few months, the contraction in activity (-8.2%) should be seen in the context of the very high basis for comparison (growth of 22.5% in the first half of 2011), and the Group's strategy of protecting its margins.

In Multiservices business (17.1% of total sales), sales grew by more than 10% to &euro134.5 million. Engineering and Maintenance activities confirmed a strong momentum with dynamic growth, with sales rising by 19.3% to &euro28.3 million. Sales for the Airport Assistance sector improved 7.7% to &euro97.5 million, despite the difficulties of an environment marked in particular by intensifying pressure on prices.

General economic slowdown factored in Operating income amounted to &euro17.2 million.

For the Temp. and Recruitment business, operating income was &euro15.2 million, compared with &euro18.3 million in H1 2011. International sales contributed &euro1.9 million, up from &euro0.3 million in the same period the previous year. In France, operating income was 2.6% of sales (vs. 3.2% in H1 2011).

Operating income for the Multiservices business amounted to &euro2 million.

Earnings before tax and net income Group share were &euro17.8 million and &euro5.2 million, respectively.

Sound financial structure Groupe Crit's financials were strong at 30 June 2012, with shareholders' equity totalling &euro205 million, net debt of less than &euro20 million and cash flow of &euro22.1 million, providing the basis for the Group to prepare for the upturn and maintain its international expansion strategy.

Outlook:

Confidence reaffirmed - continued expansion of international reach Despite the prudence imposed by the general economic environment, the Group remains confident and intends to pursue its strategy of accelerating international expansion and diversifying its core businesses.

Temporary staffing: acquisition of Elite Personnel in the United States In the Temp. business, continued growth in the North American market remains a priority in the coming months. The Group announces the conclusion of a new deal, acquiring the goodwill of the New Jersey based Elite Personnel, which posted sales of in excess of US$ 10 million in FY 2011. The highly specialised company operates in the pharmaceutical and cosmetic sectors. This new transaction, one year after the acquisition of PeopleLink, will deepen the Group's footprint in New Jersey. Elite Personnel will be included in the financial statements from September 2012.

Airport services: new location in Ivory Coast

The Group has won a new 10-year concession in airport services in Ivory Coast, which is expected to increase international revenues to some &euro50 million in 2013.

Groupe Crit continues to focus on developing new growth levers in the international market, raising its target for this business to 25% of sales outside France by 2015.

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