Cegedim: FY 2020 Results

Thursday, 18. March 2021 17:46


Quarterly financial information as of December 31, 2020
IFRS - Regulated information - Audited

FY 2020 results: Cegedim’s business model admirably resilient

  • 2020 revenue virtually stable like for like
  • Recurring operating income1 up 12% to €41 million

Boulogne-Billancourt, France, March 18, 2021, after the market close

Cegedim generated consolidated FY 2020 revenues of €496.9 million, a decrease of 1.4% as reported and 0.2% like for like compared with the previous year. Recurring operating income rose 11.8% as reported to €41.5 million.

“Amid tough conditions, the Group showed its resilience, with 2020 revenues virtually stable like for like and recurring operating income up 12%. After the first lockdown, revenues returned to like-for-like growth of 1.9% in the third quarter, and the recovery picked up speed in the fourth quarter with growth of 2.3%2. The reason for the resilience is our unique position within the healthcare ecosystem, our recurring businesses and sustained investment in innovation. We are confident we can top our 2020 performance,” said Laurent Labrune, Cegedim Group Deputy Managing Director.

Consolidated income statement

 €m%€m% %
Depreciation & amortization(62.5)12.6%(64.2)12.7%(2.6)%
Recurring operating income(1)41.58.3%37.17.4%+11.8%
Other non-recurring operating income and expenses (1)(19.9)4.0%(21.0)4.2%(5.2)%
Operating income21.54.3%16.13.2%+33.9%
Cost of net financial debt(8.6)1.7%(8.6)1.7%+0.8%
Net profit attributable to the owners of the parent10.82.2%2.70.5%+301.7%
Recurring earnings per share(1) in euros1.4-0.4-+245.1%
Earnings per share in euros0.8-0.2-+302.6%

The Audit Committee met on March 17, 2021, and the Board of Directors—chaired by Jean-Claude Labrune—met on March 18, 2021, to approve the 2020 financial statements. All of the consolidated financial statement audit procedures have been performed. The certification report will be issued once the procedures required for filing the Universal Registration Document have been completed. The Universal Registration Document will be available soon in French and in English on our website and on the Cegedim IR mobile app.

Consolidated revenues fell €6.8 million, or 1.4%, to €496.9 million in 2020, compared with €503.7 million in 2019. Excluding an unfavorable currency translation impact of 0.2pp and an unfavorable scope effect of 1.0pp, revenues were virtually stable, down 0.2%.

The €5.2 million hit from scope effects, or 1.0pp, was chiefly due to the sale of nearly all of the business activities of Pulse Systems Inc. in the US in August 2019, which was partly offset by the acquisitions of Cosytec in France in July 2019 and NetEDI in the UK in August 2019.

Bridge from reported to LFL revenues

in millions of euros  
Consolidated Group revenue at December 31, 2019 503.7
Impact of acquisitions and disposals (5.2)
Currency impacts (0.8)
Revenue excl. impacts at December 31, 2019 497.7
Software & Services contribution (2.1)
Flow contribution (2.9)
Data & Marketing contribution +2.1
BPO contribution +1.9
Corporate and others contribution +0.2
Consolidated Group revenue at December 31, 2020 496.9

Recurring operating income(1) rose €4.4 million, or 11.8%, to €41.5 million in 2020, compared with €37.1 million in 2019. It amounted to 8.3% of revenue in 2020 compared with 7.4% in 2019. This performance was attributable to improved performances at the Software and Services and BPO divisions, and to reduced spending on travel, receptions, and marketing.

Depreciation and amortization expenses fell €1.7 million, or 2.6%, to €62.5 million in 2020, compared with €64.2 million in 2019. The main reason for the decline was the decrease in R&D amortization over the period owing to earlier impairments taken on certain software.

EBITDA(1) rose €2.7 million, or 2.6%, to €103.9 million in 2020, compared with €101.2 million in 2019. It amounted to 20.9% of revenue in 2020 compared with 20.1% in 2019.

Other non-recurring operating income and expenses(1) amounted to a €19.9 million charge, compared with a €21.0 million charge in 2019. The 2020 level was chiefly the result of impairments of intangible assets related to certain software business, notably on products for doctors in the UK and Belgium.

Cost of net financial debt was virtually stable at €8.6 million. The virtual stability is due to the fact that the Group’s borrowings are almost entire at fixed interest rates.

Tax amounted to a charge of €2.0 million in 2020 compared with a charge of €4.8 million in 2019, a decrease of €2.9 million, or 59.2%. This trend is the result of a decrease in income tax combined with a strong increase in deferred tax assets.

Consolidated net profit attributable to the owners of the parent came to €10.8 million in 2020 compared with €2.7 million in 2019. Recurring net profit per share came to €1.4 in 2020 compared with €0.4 a year earlier. Earnings per share were €0.8 in 2020 compared with €0.4 in 2019.

Analysis of business trends by division

Always looking for ways to improve its financial communication, the Group will now be reporting its results by business activity (divisions: Software & Services, Flow, Data & Marketing, and BPO) rather than by client segment (sectors: Health insurance, HR and e-services, and Healthcare professionals).. To help you analyze these revenue and recurring operating income(1) figures, we have provided in the annex a breakdown of revenues and recurring operating income(1) by sector, as well as a grid comparing the sector and division figures.

·Software & Services

In millions of euros20202019Change
Revenue277.2286.9(3.4)% | Like for like: (0.7)%
Recurring operating income(1)23.519.4+21.1%

The Sofware & services business, which is highly recurring overall, received a boost from the launch of a teleconsultation solution, Maiia Téléconsultation, which experienced strong growth due to the Covid-19 pandemic. As a reminder, the teleconsultation offering was supplied to clients free of charge in the first half of 2020.

However, the strong showing in software and services for the medical profession and HR management was more than offset by weakness in project activities and change management, notably in the health insurance sector. The start of certain projects was postponed from 2020 to 2021.

Highly recurring business and the sale of Pulse Systems Inc assets enabled a significant increase in recurring operating income(1).


In millions of euros20202019Change
Revenue79.480.6(1.5)% | Like for like: (3.6)%
Recurring operating income(1)10.412.3(16.0)%

The Flow business was negatively affected by the Covid-19 pandemic, which caused many in France to make fewer doctor visits during lockdowns, thus diminishing health flows. Some of our clients decided to postpone projects from 2020 to 2021. However, the decline was partly offset by a very good performance in the invoice and process digitalization activity. The Flow division has substantial fixed costs, which explains the decline in recurring operating income(1).

·Data & Marketing

In millions of euros20202019Change
Revenue87.885.8+2.4% | Like for like: +2.4%
Recurring operating income(1)11.410.7+6.6%

The Data activities experienced strong growth as a result of the pandemic. On the other hand, during the first lockdown of 2020, the pandemic had a detrimental impact on advertising business revenues from pharmacies in France, which were closed for around a month. Even so, the Data & Marketing division’s recurring operating income(1) rose thanks to the Data business.


In millions of euros20202019Change
Revenue48.947.1+3.9% | Like for like: +3.9%
Recurring operating income(1)(0.2)(2.6)(91.7)%

The BPO division benefited from the start of a new contract in the fourth quarter of 2019, which more than offset the decrease in French residents’ use of healthcare during the Covid-19 lockdowns. At the same time, process improvements made it possible for recurring operating income(1) to reach breakeven.

·Corporate and others

2020 revenues rose 6.3% to €3.6 million and recurring operating income(1) was a €3.6 million loss, compared with a €2.7 million loss a year earlier.


Apart from the items cited below, to the best of the company’s knowledge, there were no events or changes during the period that would materially alter the Group’s financial situation.

On February 21, 2018, Cegedim SA received official notice that the French tax authorities planned to perform an audit of its financial statements for the period from January 1, 2015, to December 31, 2016. After consultation with its lawyers and based on ample precedent, the Group believes that the adjustment is unwarranted and continues to explore its options to appeal the decision. The maximum tax liability Cegedim faces as a result of the current audit is €13.7 million at December 31, 2020. Cegedim still believes that there is not enough risk with respect to this amount or to tax loss carryforwards recorded on its consolidated balance sheet (corresponding to €20 million) to jeopardize their valuation.

·Acquisition of a minority stake in Clamae
Cegedim has acquired a minority stake of 34% in the Clamae Group via a €6 million reserved capital increase. Clamae has a subsidiary that specializes in innovative payment systems made possible under the EU’s PSD2 framework. The technologies Clamae has developed will be put to good use in nearly all of Cegedim Group’s products and services (health insurance products, data management and digitization, and apps for healthcare professionals).

Significant transactions and events post December 31, 2020

To the best of the company’s knowledge, there were no post-closing events or changes that would materially alter the Group’s financial situation.


For 2021, the Group expects like-for-like revenue growth of c.2% and recurring operating income(1) growth of c.4%.

The Group does not expect to make any significant acquisitions in 2021. And lastly, the group does not provide earnings estimates or forecasts.

The webcast is available at: www.cegedim.com/webcast
The 2020 results presentation is available at:

Financial calendar

2021April 27 after the close

June 17

July 27 after the close

September 16 after the close

September 17

October 28 after the close
Q1 2021 revenues

Shareholders’ meeting

Q2 2021 revenues

H1 2021 results

SFAF meeting

Q3 2021 revenues

This press release is available in French and in English. In the event of any difference between the two versions, the original French version takes precedence. This press release may contain inside information and was sent to Cegedim’s authorized distributor on March 18, 2021, no earlier than 5:45 pm Paris time.
The figures cited in this press release include guidance on Cegedim's future financial performance targets. This forward-looking information is based on the opinions and assumptions of the Group’s senior management at the time this press release is issued and naturally entails risks and uncertainty. For more information on the risks facing Cegedim, please refer to Chapter 7, “Risk management”, section 7.2, “Risk factors and insurance”, and Chapter 3, “Overview of the financial year”, section 3.6, “Outlook”, of the 2019 Universal Registration Document filled with the AMF on March 31, 2020 under number D.20-0218.

About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a business software publisher for healthcare and insurance professionals. Cegedim employs more than 5,300 people in more than 10 countries and generated revenue of nearly €500 million in 2020.
Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.fr
And follow Cegedim on Twitter @CegedimGroup, LinkedIn and Facebook.
Aude Balleydier
Media Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
Jan Eryk Umiatowski
Chief Investment and
Investor Relations Officer
Tel.: +33 (0)1 49 09 33 36
Céline Pardo
Media Relations
Tel.:  +33 (0)6 52 08 13 66
        +33 (0)6 80 80 83 97



Division profiles:

Software & Services division: comprises all of the Group’s software offerings in all formats (licenses, SaaS, online) as well as hosting (HDS certified for health data) and IT facilities management. Cegedim targets:

  • health and personal protection insurance (France and the UK), 
  • HR departments (France),
  • independent pharmacies, as well as chains and consortiums (France, Romania, and the UK),
  • doctors and health centers (France, the UK, Belgium, Spain, and Italy),
  • allied health professionals: physical therapists, nurses, speech therapists, orthoptists, podiatrists, midwives, etc. (France).

Flow division: comprises third-party health payment management (France), contract to pay and management process digitization (orders, invoices, etc.), probative value storage, and EDI (France, the UK, and Germany). This business has service centers in France, Romania, and Morocco.

Data & Marketing division: comprises

  • data for health authorities, healthcare professionals, researchers, the healthcare industry and its partners in France, Italy, Germany, Spain, Romania, and the UK;
  • print and digital advertising in pharmacies and health & wellness shops in France;
  • digital marketing to doctors;
  • healthcare product distribution.

BPO division: comprises business process outsourcing activities in France for supplemental health insurers (managing reimbursement, among other things); personal protection insurers, and HR departments. This division has service centers in France and Romania.

Revenue trends by sector

  12 months
in millions of euros 20202019LFL changeReported chg.
Health insurance, HR and e-services 341.8340.5-0.2%+0.4%
Healthcare professionals 151.5159.8-0.1%-5.2%
Corporate and others 3.63.4+6.3%+6.3%
Cegedim 496.9503.7-0.2%-1.4%

Revenue comparison, sector vs. division

in millions of euros Health insurance, HR and e-services

Healthcare professionalsTotal
Software & services 125.7151.5277.2
Flow 79.4079.4
Data & Marketing 87.8087.8
BPO 48.9048.9
Corporate and others 003.6
Cegedim 341.8151.5496.9

Recurring operating income(1) by sector

  12 months
in millions of euros 20202019
Health insurance, HR and e-services 32.534.5
Healthcare professionals 12.65.3
Corporate and others -3.6-2.7
Cegedim 41.537.1

Recurring operating income(1) comparison, sector vs. division

in millions of euros Health insurance, HR and e-services

Healthcare professionalsTotal
Software & services 10.912.623.5
Flow 10.4-10.4
Data & Marketing 11.4-11,4
BPO (0.2)-(0.2)
Corporate and others --(3.6)
Cegedim 32.512.641.5

Consolidated financial statements at December 31, 2020

·Assets at December 31, 2020

In € thousands12/31/202012/31/2019
Development costs3,87321,960
Other intangible fixed assets159,144135,579
Intangible fixed assets163,017157,540
Other tangible fixed assets31,83530,960
Right-of-use assets064,537
Fixed assets in progress & Advances and deposits on tangible fixed assets75,606163
Tangible fixed assets110,30599,164
Equity investments1,1821,214
Other long-term investments4,7304,546
Long-term investments – excluding equity shares in equity method companies20,53019,777
Equity shares in equity method companies 21,47915,080
Deferred tax asset33,20231,750
Accounts receivable: long-term portion  -
Long-term financial instruments44387
Prepaid expenses: long-term portion249390
Non-current assets534,862516,828
Services in progress -
Goods 3,8144,434
Advances and deposits received on orders501208
Accounts receivables: short-term portion 134,650143,986
Other receivables: short-term portion193,690101,684
Short-term financial instruments11
Cash equivalents00
Prepaid expenses: short-term portion13,10312,414
Current assets370,493291,785
Total Assets905,355808,613

·Liabilities and equity at December 31, 2020

In € thousands12/31/202012/31/2019
Share capital13,33713,337
Group reserves188,524186,526
Group exchange gains/losses(5,040)(1,480)
Group earnings10,8352,697
Shareholders’ equity, Group share207,655201,080
Non-controlling interests248167
Shareholders’ equity207,902201,247
Long-term financial liabilities186,278195,694
Non-current lease liabilities62,33152,413
Long-term financial instruments65627
Deferred tax liabilities7,5998,009
Retirement commitments35,28132,250
Non-current provisions2,5751,855
Other non-current liabilities -
Non-current liabilities294,130290,847
Short-term financial liabilities2,60613,961
Current lease liabilities15,24413,507
Short-term financial instruments12
Accounts payable and related accounts43,21450,644
Tax and social liabilities108,71891,593
Other current liabilities230,495141,299
Current liabilities403,323316,519
Total Liabilities905,355808,613

·Income statement at December 31, 2020

In millions of euros12/31/202012/31/2019
Purchases used(25,491)(28,406)
External expenses(100,491)(115,344)
Payroll costs(256,219)(249,736)
Impairment on account receivables and other receivables and on contract assets(1,871)(800)
Allocations to and reversals of provisions (3,442)(2,674)
Change in inventories of products in progress and finished products 0(79)
Other operating income and expenses (66)(576)
Income of equity-accounted affiliates2,4592,437
Depreciation expenses other than right-of-use assets(46,518)(48,399)
Depreciation expenses of right-of-use assets(15,939)(15,753)
Recurring operating income(1)41,45737,096
Depreciation of goodwill (2,800)
Non-recurring income and expenses(1)(19,915)(18,204)
Other non-recurring operating income and expenses(1) (19,915)(21,004)
Operating income21,54316,092
Income from cash and cash equivalents7593
Gross cost of financial debt (8,547)(8,805)
Other financial income and expenses(171)140
Cost of net financial debt(8,642)(8,572)
Income taxes(4,973)(5,824)
Deferred taxes3,0071,003
Total taxes(1,966)(4,821)
Share of profit (loss) for the period of equity method companies (18)(8)
Consolidated profit (loss) for the period10,9162,691
Consolidated net income (loss) attributable to owners of the parent10,8352,697
Income from equity-accounted affiliates(81)(6)
Average number of shares excluding treasury stock13,824,49313,856,173
Recurring earnings per share (in euros) 1.40.4
Earnings per share (in euros)0.80.2

(1) See Annex 3: Alternative performance indicators

·Cash flow statement at December 31, 2020

In € thousands12/31/202012/31/2019
Consolidated profit (loss) for the period10,9162,691
Share of earnings from equity method companies(2,441)(2,429)
Amortization and provision charges 77,48153,681
Capital gains or losses on disposals1,64128,570
Cash flow after cost of net financial debt and taxes87,59782,513
Cost of net financial debt8,6428,572
Tax expenses1,9664,821
Operating cash flow before cost of net financial debt and taxes98,20595,906
Tax paid(6,337)(2,190)
Change in working capital requirements for operations: requirement(1)   (64,455)
Change in working capital requirements for operations: surplus18,513-
Cash flow generated from operating activities after tax paid and change in working capital requirements (a)

Acquisitions of intangible assets(54,607)(50,665)
Acquisitions of tangible assets(19,920)(11,704)
Acquisitions of long-term investments (980)(
Disposals of tangible and intangible assets11,0248,321
Disposals of long-term investments 40261
Change in loans made and cash advances(753)894
Impact of changes in consolidation scope(1)(6,094)(25,378)
Dividends received 2,0321,883
Net cash flows generated by investment operations (b)(69,259)(76,389)
Dividends paid to shareholders of the parent company (1)(1)
Loans issued  20,000
Loans repaid(21,151)(913)
Repayment of lease liabilities(16,119)(16,307)
Interest paid on loans(5,280)(5,237)
Other financial income received1,030897
Other financial expenses paid(3,674)(3,593)
Net cash flows generated by financing operations (c) (45,195)(5,154)
Change in cash before impact of change in foreign currency exchange rates (a+b+c)(4,072)(52,282)
Impact of changes in foreign currency exchange rates(252)253
Change in cash(4,325)(52,029)
Opening cash29,05981,088
Closing cash24,73429,059

1 Alternative performance indicator. See pages 113-114 of the 2019 Universal Registration Document.

2 Like for like.


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