Finance

What were the major highlights of the first half?

In a difficult environment for industrial and commercial investment, the software industry is experiencing a drop in license sales. Despite this unfavorable environment Generix Group has continued, during the first half, to take shares of the market and has achieved a satisfactory commercial performance.

The rapid rise of our Collaborative Supply Chain "On Demand" model meets market expectations. Despite an unfavorable base effect, versus a good first half of last year, our Group recorded a stable turnover and demonstrated the recurrence of a revenue model that is well in place.

Our offer has attracted major global companies. Retailers, including amongst others, Carrefour, Casino, Intermarché, Leclerc and Eroski. Manufacturers such as Unilever, L'Oreal, Doux and also Exon Mobil have chosen our solutions.

How do you comment on the half year results?

During the first half, we have maintained an offensive investment policy to accelerate the change of our model to "On Demand", whilst being careful to control costs.

EBITDA has come out slightly negative, at € - 0.4m, and net income of the share group to -1.9 M €. Operational cash flow increased by € 3 million compared to the same period last year.

We naturally continued to reduce our debt during the period, by € 1.8 million. The Generix Group balance sheet remains strong, reducing the gearing to 33% during the period, with equity capital of € 37.8 million and a negative working capital of € 7.6 million.

What are the prospects for Generix Group?

Generix Group has multiplied 4 times in size in 4 years. Today we are the 7^th French publisher, and the first dedicated to the world of commerce in Europe. Our offer is clearly recognized as being among the best in the market, and we have kept our lead with the economic "On Demand" model. The growth of this predicts the alignment of the demand to the billing of software usage.

More recently, sales of licenses offered gives better visibility than previous half years, but the decision cycles remain long. The first half of the year reinforces our strategy and our choice of models. The launch of the warehouse management "On Demand" offer is very promising and is the first building block in a global offer in the management of the collaborative Supply Chain, which must establish itself as the new industry standard.

Beyond the economic fluctuations, which may weigh heavily on our license sales and profitability in the short term, our outlook for the medium and the long term remain good.