Consolidated turnover rose 10.2% to €1,342.7 million in 2006 from €1,217.9 million the previous year. Based on a constant group structure and exchange rates, the increase came to 9.8%, Coface’s best result in 10 years and obtained on the peak of a cycle.
The countries recently added to Coface’s scope of operations (excluding France, Germany and Austria) continued their rapid expansion during the year, with turnover up 19.5%. These countries once again increased their contribution to consolidated turnover in 2006, accounting for 39.5% of the Group total, compared with 36.4% in 2005.
Insurance (including insurance-related services) reported turnover of €1,069.4 million, versus €973.3 million in 2005, representing an increase of 9.9% and accounting for 79.6% of the consolidated total. This growth was driven by robust performances turned in by export credit insurance (up 11.2%), domestic credit insurance (up 10.7%), and guarantees (up 6.6%).
Company information turnover advanced to €125 million from €115 million in 2005. This 8.7% increase includes the impact of the 2006 acquisition of the Israelbased company information specialist BDI, which has become Coface BDI.
Receivables management turnover climbed 16.2% to €36 million versus €31 million the previous year. Out of this total growth figure, 12.7 points came from the acquisition of Newton & Associates, a U.S. debt recovery company.
Factoring turnover, after growth of 20.9% in 2005, saw continued strong growth (up 40%) in 2006. This line is becoming an important growth generator, reaching €54 million, against €38 million in 2005. This solid performance is the result of a further strong showing in Germany, where turnover advanced 29%, and the positive impact of the roll-out of this offering in four new countries.
Coface’s remuneration for public procedures management on behalf of the French State edged back 2.9%, in line with forecasts.
Net profit amounted to €114.5 million in 2006 compared to €116.8 million one year earlier. This contraction was due to a negative exchange rate effect on the financial profit after a positive effect in 2005.
Annual net profit growth stands at 16% compared to turnover growth at 9% when analysed over two years. All of the group's business lines (excluding public procedures management) posted strong margin increases, particularly insurance and factoring.
Shareholders’ funds excluding minority interests (calculated in accordance with IFRS) increased by 13.3% from €893 million in 2005 to €1,012 million in 2006. This growth reflects both the solid net profit figure for the year and the €117 million increase in Coface’s capital following the payment of a scrip dividend for 2005.
