DLSI 
Par 02 May 2014
Target price change
DLSI
France | Support services
Buy (Buy)
Target price
EUR 15.40
Current price
EUR 10.00
Claire Deray
cderay@keplercheuvreux.com
+33 1 5365 3538
FY 2013 results significantly above estimates
Better-than-expected end to the year for 2013
Margin improvement expected to be confirmed in 2014
Significant increase in our results estimates
TP lifted from EUR11.2 to EUR15.4
FY 2013 results vs. estimates and changes to our forecasts
Front page
Reuters ALDLS.PA Bloomberg ALDLS FP Index DJ Stoxx 600
EBIT doubled in 2013 despite flat sales
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Source: Kepler Cheuvreux 9
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EBIT in 2013 came out at EUR6.6m, double that of 2012, significantly
above our estimate of EUR4.9m, as we had underestimated the impact of the sales rebound on margins in H2. In 2013, DLSI benefited from CICE
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May 13 Aug 13 Nov 13 Feb 14 May 14
effect (tax credit based on wages) and from cost savings. The company had
started its results recovery despite the business still being under pressure
(flat activity for 2013, o/w -6% in France and +12% abroad).
Operating margin back to pre-crisis level quicker than expected
In 2013, the operating margin was raised to 3.6% i.e. close to the level reached in 2008, i.e. pre-crisis levels. In a more favourable market (confirmed by management for Q1), thanks to development abroad (28% of sales in 2013) and the full impact of the CICE effect, we estimate that the recovery could continue in 2014. We expect +3.5% in sales to EUR190.4m (unchanged), and an EBIT margin now expected at 4.2% for
2014 (+60bps YOY) and 4.3% for 2015(i.e. back to 2007 record high).
Price
DJ Stoxx 600 (rebased)
FY to 31/12
2013
2014
2015
(EUR) E E E
Not too late to buy, still attractive upside
As management confirmed a better market trend (in France and abroad),
P/E (x) adj and ful. dil.
6.5 5.6 5.0
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page of this report for "Important disclosures" and analyst certification(s) keplercheuvreux.com
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