Revenue for 2004: &euro,51.5 million ~ Reduced activity overall, despite good performances ~ from the Group's international companies ~ A recovery package designed to achieve the Group's objectives for 2005 (AcT)

An expected fall in revenue

In line with recent statements issued by the company, the Client Center Alliance Group (CCA) has announced a significant fall in its year-on-year revenue for the 2004 financial year. Revenue for the year was €51.5 M, compared with €58 M for the 2003 financial year, representing a fall of 11.3%.

Following on from the 3.3% fall reported for the first half of 2004 compared with the same period of the previous year, the downward path continued through the second half, with revenue falling by 10% in Quarter 3 and 26% in Quarter 4; a performance which falls below Group forecasts. Revenue for Quarter 4 was €11.3 M, compared with €15.25 M for the same period in 2003.

A fall due primarily to Group activity in France

As explained in previous statements, the depressed state of the French call centre market and the resulting strong downward pressure on prices are the main reasons behind these reductions in Group revenue. This effect has been further compounded by a lack of Group sales in France in recent years.

The Group's French activities ended the 2004 financial year with reported revenue of €40.3 M, compared with €46.5 M for 2003, representing a fall of 13.3%.

The year-end brought with it a plan to simplify the structure of the Group, with all French activities being brought together in a single wholly-owned subsidiary called Qualiphone. Alongside this move, the Qualiphone management structure has been largely decentralised and a real-time reporting system implemented. This system is identical to that used in the Group's international subsidiary companies. Sales activity in France has been re-launched with two key objectives: the first being to target major potential client companies and the second being to involve the entire management team in the sales strike force.

Good overall performance from international companies

Against this background, the Group's international companies have performed well overall, despite lower revenue in Spain during the second half of the year, although this reduction was due purely to economic circumstances.

Autumn 2003 saw an exceptional level of activity in Spain due to the major political marketing campaigns conducted as part of the country's regional elections. This pattern was not repeated in 2004, and business activity for the rest of the year was easily comparable to that of the previous year. Headed up since 1 September last year by a new Managing Director, the Spanish company Fonoservice is coming to the end of its restructuring exercise and is now returning to growth with the addition of new business.

The English company Direct Dialog grew strongly during 2004 under General Manager Carol Rogerson. This growth came chiefly from the introduction of telesales services and significant new customer gains in the banking, insurance, energy, automotive and consumer goods sectors.

The Group's international companies reported revenue of €11.2 M for 2004, compared with €11.5 in 2003: a reduction of 2.6%.

The effects of the medium-term recovery plan in 2005

Taking the recent turnaround seen in its international companies as its example, the CCA management team introduced a growth strategy in Quarter 3 of 2004, designed to help the company adapt its organisational and cost structures and return to targeted revenue growth in the medium-term. One of the key aspects of this plan is to improve the distribution of CCA activities between France and the Group's international companies and, as previously mentioned, introduce a dynamic new sales initiative in France .

In order to meet the Group's medium-term growth commitments, this development plan also involves identifying opportunities for external growth internationally, where these are compatible with the Group's values, profitability criteria and management standards.

Against this background, 2005 will be primarily a year of consolidation in which the first benefits of the medium-term recovery plan will begin to be felt.

About Client Center Alliance …

CCA was founded in 1994 by Bernard Caiazzo as a Group specialising in Call Centre management.
CCA offers a full range of services, from outsourcing to customer relations (telephone support), telesales and pre-sale services (telemarketing), all with high added value in terms of revenue generation.
CCA is a European market leader working on behalf of prestigious clients, such as 9 Telecom, Adidas, Orange, General Motors, Cegetel, Porsche, Peugeot, Renault, Télé 2, Laboratoires Roche, Sony, Grupo Planeta, Caiaxa Catalunya, British Gas and Olympique de Marseille.
CCA is listed on the Euronext Paris Nouveau Marc hé (ISIN Code: FR0000078339 – CCA - Reuters KLCA.LN) and is a member of the NextEconomy segment.

For more information, please contact the company head office at: 40 rue du Colonel Pierre Avia, 75015 PARIS , or visit our web site at: www.clientcenteralliance.com

Next Press Release scheduled for 31 March 2005 : 2004 annual results
Most recent Press Release issued on 1 February 2005 : Falling revenue in 2004

Source : Actusnews