Sopra Steria’s first quarter of 2016 saw an acceleration in growth in France. Sopra Steria Group generated revenue of €913.2 million in the first quarter of 2016, representing growth of 4.7%. Growth at constant scope and exchange rates was 3.3%. Revenue for the first quarter in France was €387.7 million, representing strong organic growth of 7.7%, a faster rate of growth than was achieved in France in 2015.
Consulting & Systems Integration generated revenue of €337.4m, representing growth of 9.5%. This good performance compared to the French market (which improved somewhat), was driven in particular by vigorous growth in strategic key accounts (up around 10%) and Consulting (up almost 20%). The healthy performance was also due to a consultant downtime rate of about 3 points less than the average for the first quarter of 2015. Vertical market performance was especially good in Aeronautics & Defence, Transport and Banking. All verticals and regional locations posted growth.
First quarter revenue for I2S (Infrastructure & Security Services) was €50.3m, showing an easing of the negative growth witnessed in Infrastructure Management over the second half of 2015. Infrastructure Management, which generates 91% of I2S revenue, began to reap the benefits of its closer relationship with Consulting & Systems Integration divisions. Negative growth was contained to 4.5% for the quarter and sales prospects for the following quarters have improved. More generally, I2S is on track with its recovery plan. Cybersecurity posted growth of more than 10%.
Throughout France, recruiting and production industrialisation were high priorities, pursued in particular through a selective recruitment policy and the further development of nearshore and offshore service centres.
In the United Kingdom, revenue contracted by 2.3% at constant scope and exchange rates to €237.3m. In the public sector, shared service platforms continue to offer significant opportunities for new business. However, as anticipated when these deals were initially signed, 2016 will be a transitional year for SSCL when compared to the growth surge experienced since 2013 (attributable to the transformation phases of the first contracts won with several UK public sector organisations). In the private sector, the recovery that was already underway in the financial vertical is taking place progressively and is expected to yield gradual results.
In other parts of Europe, every country except Denmark and Switzerland recorded an increase in business volumes, posting aggregate revenue of €170.6m and organic growth of 3.7%. The Belux region and Italy posted healthy organic growth figures of more than 10%. Germany showed slight organic growth for the quarter and the implementation of its recovery plan continued on target.
Sopra Banking Software, whose comparison basis in the first quarter of 2015 was particularly high due to La Banque Postale licences, posted revenue of €68.7m in the first quarter of 2016 (stable year on year). The quarter was marked by a strong performance in both services and sales activities, with a healthy order pipeline for the Platform and Amplitude products, which should help drive growth for the rest of the year.
Other Solutions posted revenue of €48.9m for the quarter, representing organic growth of 1.4% reflecting the deferral of some Sopra HR Software signings to the second quarter. Growth is expected to be better in the second half of the year for HR solutions. The start of the year went well for property management solutions, which posted organic growth of 9.2%.