Sharp increase in results in H1 2005 Operating margin: 13.7%

Linedata Services has had an excellent first six months of 2005, with revenues of EUR 56.8 million resulting in organic growth of +8.9% at constant exchange rates. Operating income increased sharply by +179.8%, leveraged by this growth and a new, streamlined cost structure. Accordingly, Linedata’s operating margin came out in line with Group expectations at 13.7%.

Net income also enjoyed a major increase of +361.5% on the back of the exceptional EUR 1.7 million payment linked to the FMC transaction and the improvement in financial income.

Positive contribution from each of the three business lines to the Group’s operating margin

Linedata’s Asset Management business proved to be the biggest performance driver, generating revenues of EUR 29.4 million over the first six months of 2005 for an organic growth rate of 17.5% at constant exchange rates. This provided the Group with an operating margin of 17.0% for the business line as a whole.

As expected, revenues for Linedata’s Savings & Insurance activity remained stable, with the business line recording a temporary drop in operating margin to 12.2% following the massive restructuring undertaken as part of its recovery strategy.

Lastly, the Group’s Leasing & Credit Finance business began benefiting from the operational restructuring carried out in 2004, combining a return to growth (+4.6% over the first six months) with an operating margin of 7.4%.

Strong improvement in financials

Linedata’s impressive net income combined with the EUR 4.3 million improvement in WCR has enabled the company to significantly reduce its net debt which stood at EUR 3.1 million on June 30, 2005 compared with EUR 10.5 million on December 31, 2004. As such, the Group was able to reduce its net gearing to 3.7% (after 13.4% on December 31, 2004), thus reinforcing its debt capacity within the framework of its acquisitions strategy.

2005 forecasts confirmed

Linedata Services has confirmed its IFRS organic growth target of at least 8% (5% according to French GAP) for 2005.
The Group has also confirmed its target IFRS operating margin of at least 17% for 2005 on the back of an expected increase in revenues in the second half of the year and a cost structure that is expected to remain globally stable.

Changeover to IFRS

A detailed presentation on the changeover to IFRS, revised by the Group’s statutory auditors will be available for consultation on our website as of September 20, 2005.

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