Limited decline in business activity The financial statements were approved by the Board of Directors at its meeting on 16 October and were subject to a limited review by the Statutory Auditors.
Revenue at constant exchange rates [1] was down 5. This trend results from both the persistent wait-and-see environment in the industry and a demanding basis of comparison, with revenue previously up The business mix also continued to trend positively over the period.
Subsequent to a further decline in the contribution from equipment to The favourable change in the business mix limited the decline This level reflects a further improvement in the gross margin rate, to The savings plan launched at the beginning of the year, the full effects of which will be felt in H2 , resulted in a reduction in the overall workforce internal and external employees at mid-year.
The workforce stood at at 30 June , compared with a year earlier. As announced in February, this effort was focused on external employees consultants and service providers , the headcount of which fell by nearly a third External services expenditure was thus reduced by 7. Net recovery in free cash flow, financial structure under control. This improvement was largely driven by net cash flow from operations. Broadpeak continues to operate in a difficult sector environment, marked by a wait-and-see attitude on the part of major customers, particularly telecoms operators.
Nevertheless, the Group remains confident that it will achieve its target of a return to revenue growth over the full year. Broadpeak is also confirming its guidance on positive free cash flow in This objective is secured by the sharp recovery already achieved in the first half of the year, while cost reductions will be stepped up in the second half of the year.
