Orege Half year 2021 results
Press
release
Voisins Le Bretonneux, 11th October 2021
(7h00)
OREGE GROUP ACTIVITY AND
HALF YEAR 2021
RESULTS___________________________________________________________________
Summary financial
information for the six months
ended 30 June
2021(consolidated accounts
approved by the Board of directors on 8 October 2021).The auditors
are completing their limited review procedures.
In K€ - IFRS |
H1 2021(30 June 2021) |
H1 2020(30 June 2020) |
Year 2020 (31 December 2020) |
|
|
|
|
Turnover |
790 |
491 |
2 006 |
|
|
|
|
Operating expenses
(net) |
|
|
|
Payroll expenses |
-1 841 |
-1 904 |
-3 334 |
Other operating expenses |
-1 527 |
-1 689 |
-3 277 |
Depreciation and amortisation |
-140 |
-307 |
-1 255 |
Total operating expenses (net) |
-3 508 |
-3 900 |
-7 866 |
|
|
|
|
Operating result |
-2 718 |
-3 409 |
-5 860 |
Financial result |
-49 |
-648 |
-1 563 |
Corporation tax |
0 |
0 |
0 |
Net loss |
-2
767 |
-4 059 |
-7 423 |
Turnover Turnover for the first
half year 2021 was 790 K€ compared to 491 K€ for the first half
year 2020.
Operating
expensesThe
reduction in operating expenses results from the ongoing efforts to
rationalise the organisation and to control costs launched in
spring 2020 with the start of the health crisis.
Financial resultThe financial
result is made up of the interest cost on debt of 593 K€ (372 K€
for H1 2020) and foreign exchange gains on GBP and USD operational
debtor balances of 544 K€ (foreign exchange losses on GBP and USD
operational debtor balances of 276 K€ for S1 2020).
Financing
and cashAt 30 June 2021, Orege
had 116 K€ of cash and cash equivalents (403 K€ at 31 December
2020) and the balance of undrawn shareholder current account
advances granted by Eren Industries was 2 000 K€.
At 30 June 2021, financial debt totalled 24 511
K€, including 22 740 K€ in respect of drawn shareholder current
account advances (31 December 2020: 23 423 K€, including 20 909 K€
in respect of drawn shareholder current account advances). Net
equity at 30 June 2021 was -21 788 K€ (31 December
2020: -18 647 K€).
In July 2021, Orege cashed in 396 K€ for the
mobilisation of its 2020 research tax credit (CIR) and in October
Eren Industries granted the company an additional 2 500 K€ of
shareholder current account advance which should enable the Group
to meet all its financing requirements until 30 June 2022.
Activity and
outlook
-
Following successful trials in
March 2021 and 4 months of hire at the Harpenden wastewater
treatment plant, Thames Water has purchased a
first Orege solution for sludge treatment (see press release from
06/10/2021).The adoption of Orege technology by Thames Water,
renowned worldwide, and the purchase of a first solution constitute
a key turning point in the development of Orege. An important
benefit of the Orege solution is to enable Thames Water to reduce
its CO2 emissions and improve its environmental footprint. The
return on investment of this 1st Orege project will be around 2
years for Thames Water.Orege is looking to explore all the
strategic avenues for implementing its solutions in the Thames
Water group.
- From summer, several Water Utilities in the United Kingdom,
just like Thames Water did initially, have sought to rent Orege
solutions short term for a few months.
This will allow them to immediately benefit from improvements in
the carbon and environmental footprint, as well as the
corresponding financial savings, pending the mobilization of the
necessary financial resources, often not yet budgeted for capital
purchase of Orege solutions.
To date, 6 Orege solutions are being rented by 3
Water Utilities with an overall monthly remuneration of around €
35,000.These 6 rented solutions are expected to result in future
capital purchases (fixed or mobile units), but this pragmatic
approach has the effect of delaying the expected related sales by
some months (we estimate 3 to 12 months). The corresponding capital
sales could represent 1,700 K € to 2,700 K € of future turnover in
total.
The recent sale of a first unit to Thames Water,
after such a rental period, demonstrates the relevance of this
business model.
• In its 22nd
April 2021 press release relating to the 2020 annual results and
outlook for 2021, Orege reaffirmed its confidence in being able to
achieve the objectives announced at the information meeting of
December 7, 2020, but subject to:
- the reopening of borders, in particular with
the United States and with Japan,
- a resumption of near to normal operations with
our customers and prospects.
It is clear that this is not fully the case at
present.
In particular, 4 projects (US, Germany, Spain
and Japan) for which the corresponding contracts have been signed
and the Orege solutions already installed on the sites concerned,
were to be implemented and completed in 2021.As of today, certain
constraints for access to the sites concerned and / or the
reopening of borders (Japan) remain, the completion of these 4
projects cannot be finalized until 2022. These 4 projects represent
around € 1 million in turnover.
• In view of
the above, Orege's consolidated turnover for 2021 should be around
2,500 K€ (compared to 2 000 K€ for 2020).
• Many
projects are currently under discussion with Water Utilities in the
UK or municipalities in the US with a primary objective from to
improve carbon and environmental footprints in a global context
where increasingly powerful spheres of influence (politicians,
NGOs, populations, private actors, etc.) are campaigning in this
direction, helped by financial incentives and regulatory
changes.
• Commercial
activity should also be able to resume in 2022 in Italy, Germany,
Spain and Japan after a complete freeze of activities since March
2020.
• The
partnership with Alfa Laval is now being discussed again with the
management of this Group in light of the collaboration since the
summer of 2020 which has been handicapped by the constraints linked
to the pandemic. The first commercial benefits materialized during
the summer of 2021.The partnership should therefore be
strengthened, in particular to take advantage of the recent more
sustained resumption of activity in the wastewater and sludge
treatment sector.
• The notable
acceleration of requests for project qualification and bid
negotiations in the US and the UK is a positive sign of the
dynamism expected in 2022.Orege has decided to accelerate this
resumption of activity by strengthening its sales teams in the
United Kingdom and the US.
Other
information:The half year report will be published
in French on the Company’s website (www.orege.com) 13th October
2021.
Orege has been listed on the regulated market
Euronext – Paris since 5th July 2013 - ISIN FR0010609206 -
OREGE.
Contact Orege:
Financial information – George
GonsalvesGeorge.gonsalves@orege.com - mob: +33 6 08 03 50
72
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