Brief: Wavestone Q2 Business Activity Stronger Than Anticipated

Wavestone SA

04/09/2020 17:26

Sept 4 (Reuters) - Wavestone SA  WAVE.PA :
    * Q2 BUSINESS ACTIVITY STRONGER THAN ANTICIPATED – COMPANY
PROGRESSIVELY RESUMING RECRUITMENT
    * COMPANY ALSO EXPECTS TO RECORD BETTER THAN ANTICIPATED
LEVELS OF
ORDER INTAKE FOR Q2
    * WAVESTONE IS SEEING AN INCREASE IN CONSULTANT UTILIZATION
RATE,
WHICH IS EXPECTED TO EXCEED 65% IN Q2 2020/21, COMPARED WITH 63%
IN Q1
    * IN PARTICULAR, ORDER INTAKE FOR SEPTEMBER IS LIKELY TO BE
BUOYANT
    * AT SEPTEMBER 30, 2020, FIRM'S ORDER BOOK IS EXPECTED TO
REMAIN
CLOSE TO ITS JUNE 30 LEVEL (3.7 MONTHS OF WORK)
    * Q2 WILL SEE A MARKED REDUCTION IN USE OF FURLOUGH
ARRANGEMENTS;
ABOUT 6% OF FEE-EARNING EMPLOYEES WILL BE FURLOUGHED, COMPARED
WITH 11% IN Q1
    * FROM OCTOBER 1, FIRM WILL NO LONGER USE THIS OPTION IN
FRANCE
    * MAY CHOOSE TO CONTINUE FURLOUGH MEASURES THOUGH, IN A MORE
LIMITED WAY, ON SOME INTERNATIONAL SITES
    * ON PROFITABILITY, EBIT MARGIN FOR H1 IS LIKELY TO BE OF
SAME
ORDER AS THAT ESTIMATED FOR Q1 (WHICH, AS A REMINDER, WAS 7%)
    * DECIDED TO PROGRESSIVELY RESTART RECRUITMENT WITHIN ITS
MOST
RESILIENT PRACTICES, ESPECIALLY THOSE WITH A TECHNOLOGY FOCUS
    * COMPANY WILL RECORD REDUCED REVENUE (AT CONSTANT SCOPE)
OVER H1
2020/21

Source text for Eikon:  ID:nNDL5xFl5D 
Further company coverage:  WAVE.PA 

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