A NOVO

A NOVO (FR0004152593 – NOV), the leading pan-European provider of after sales and customization services for digital technologies, announced its consolidated results for the fiscal year ended September 30, 2007.

Income statement

Consolidated figures - IFRS

As announced on last November 13, 2006-7 revenues came to € 322.9 million, up 10.0% from the previous fiscal year. FY 2006-7 like-for-like revenues rose 10% overall and 12% for the core business from FY 2005-6. Thus, FY 2006-7 saw more momentum in the core business, where revenues rose 8.0% in FY 2005-6. All of the group's businesses contributed positively to higher revenues in FY 2006-7.

The number of customers continues to increase consisting of large clients who rank among the leaders in their industry. Indeed, ANOVO’s 15 largest customers accounted for over 65% of revenues in FY 2006-7 which is significantly higher than the previous years.

Current operating margin up 140%

Current operating margin surged 140% to € 9.5 million (3% of revenues), boosted by growth for all businesses combined. This marks the end of the restructuring in Malaga, Spain and the completion of recovery plan at the Västeras plant in Sweden. The Mobility business made the biggest contribution to increased current operating margin while margins in the Access business stabilized in the second half. The Displays business cut its losses in half and will return to profitability over the coming fiscal year.

In addition, stricter controls cut G & A’s costs by 8% from the previous year.

EBIT up 30%

As forecast, the EBIT for FY 2006-7 was impacted by € 1.4 million in non-recurring charges whereas net non-recurring items contributed € 2.2 million to earnings the year before.

Consequently, the EBIT rose 30% to € 8.1 million for an EBIT of 2.5% of revenues as opposed to 2.1% the previous year.

Consolidated net income of € 1.8 million

The group reported consolidated net income of € 1.8 million despite high financial costs due to the sharp rise in interest rates (EUROBOR), which increased net financial costs.

Continued debt repayment

Despite continued capital expenditure of € 12.1 million in 2005-6 and € 10.9 million in 2006-7 to implement the group's strategy in Europe, ANOVO pursued its objective of paying down debt, thereby lowering the debt to equity ratio to 1.1 as compared with 1.2 at September 30, 2006 and 1.4x at September 30, 2005.

Shareholders’ equity stood at € 61 million with net debt of € 68.7 million versus € 73.2 million at September 30, 2006 and € 72 million at September 30, 2005.

Operating cash flow generation

ANOVO significantly improved operating cash flow over the year despite a still high level of capital spending due to growth in new business. Operating cash flow remained positive over the period at € 5 million. In particular, the WCR has decreased by 4.7 M€, in a growth context, to a total of 20 M€.

Outlook

As a conclusion, Richard Seurat, Chairman and CEO, comments “ the transformation of our product range offerings towards higher added-value services for major operators, retailers and manufacturers, who are increasingly outsourcing their after-sale services, should sustain our profitable growth momentum and allow to double our current operating margin on a 3-year horizon ”.

Information
Some of the data in this release comes from projections concerning future events or results, in particular those concerning the results of the year 2006/2007 after restatement in accordance with International Financial Reporting Standards (IFRS). This data is subject to a certain number of risks or factors which could affect actual results in an important way in comparison to those projected. These variation factors include market development, competition, customer demand for our services, technological development (which can make our services obsolete or unsuitable), the availability of financing, our capacity to increase our industrial platforms, to manage our growth and the changes, the general market and economic conditions. The projections are necessarily based on assumptions, estimates and data which are uncertain. No guarantee can be given that actual results will reflect estimates and future performance can vary greatly in comparison with predicted results.

About ANOVO, the leading European provider of maintenance and customization services for digital technologies (www.a-novo.com)
With sales revenues of €323 million and 5,200 employees, ANOVO is the leading European provider of maintenance and customization services for the digital technologies used by major telecommunications and multimedia companies to deliver triple play (voice/data/image) solutions. ANOVO runs over 16 American and European Centers of Excellence, and handles high volumes of products with an acknowledged level of quality .

ANOVO
Corporate Finance
François Lefebvre
Chief Financial Officer
Tel.: + 33 (0)1 58 17 00 81
flefebvre@a-novo.com

Annex:

For information purposes, the results are stated below based on the former presentation:

Consolidated net income

Consolidated balance sheet

Consolidated cash flow statement