2007: targets achieved!
Ambitious objectives for 2008 and the years ahead
Since its founding, Cegid’s success has thrived on associating robust organic growth with a controlled level of growth through acquisition.
With the acquisition of Ccmx, we were faced with a significant challenge. Fiscal year 2007 was the first year of real, complete integration. We achieved our objectives. In so doing, we showed our ability to integrate companies of all sizes, while ensuring that the IT solutions of the acquired companies’ customers did not change. This was essential in maintaining their loyalty.
In 2007 Cegid’s earnings and profitability improved for the fourth consecutive year. Not only do these results stand as testimony to our determination to build long-term success, but these last few years have also seen increases in our market shares.
The ongoing dialog we maintain with our prospects, customers and partners gives us a clear view of the market. Companies today expect dedicated IT solutions tailored specifically to their needs. An IT system, lifeblood of the enterprise, must integrate the specific characteristics of each sector or function in which the company operates and use the technology to serve the needs of the business. Cegid’s motto: an IT system must adapt to the needs of the enterprise and not the other way round. The IT system must also facilitate access to information "every time” and "everywhere”, while taking into account the constraints of security, traceability and archiving of information.
Cegid has taken these challenges to heart; they constitute the bedrock upon which our strategy is built. Based on our strong expertise in four clearlyidentified areas (ERP, Payroll/HR, Finance/Tax, and Vertical solutions), the specific strategy Cegid adopted many years ago has enabled us to position ourselves among the market leaders in these areas of expertise. We know the technology, we have developed strong partnerships and our product range is comprehensive. These are real competitive advantages that we can use to address our two customer bases: small companies on the one hand and mid-sized/large companies on the other.
Cegid has the resources to step up its rate of expansion in the years to come. First and foremost, by leveraging our entire ecosystem - and in particular our VAR network and our network of advisors and consultants - which enables us to pool our resources and expertise with our partners.
Cegid’s recent successes with large companies have confirmed that our approach makes sense in the market for mid-sized/large companies and corporate groups. We can also continue to grow in our core markets, in particular in the Fashion, Retailing and Hospitality sectors, as well as in our functional areas of expertise: Finance/Tax and HR/ Payroll. Growth in the On Demand business, buoyed by market demand, will also be a major theme in 2008, as will our increased ability to support our customers internationally. Cegid is one of the few software companies that can accompany their Fashion and Retailing customers on three continents (North America, Europe, Asia), and we intend to benefit from this advantage so as to give additional impetus to our international expansion.
Finally, Cegid should be able to strengthen its position in two other ways: by implementing its operational partnership with Groupama/Gan, designed for CPAs and small companies, and by pursuing its acquisition strategy.
In the years to come, we aim to be aggressive in our approach to Cegid’s business development, while preserving our ability to improve our financial performance.
Patrick Bertrand
Chief Executive Officer
