Egide: 2021 FIRST HALF RESULTS
Bollène, September 29,2021 – 06 :00pm
(CET)Press Release
2021 FIRST HALF
RESULTS
- H1 2021
turnover:
€16.60
million (+
30.7%
vs. S2
2020) thanks to Cambridge
unit plating line progressive
recovery during the semester and
thanks to strong YoY growth
at Egide SA.
-
Consolidated operating
income at €0.52 million
- Net
Income: €0.24 million
(vs. €0,004M in
H1 2020) despite
exceptional temporary plating subcontracting charges in USA over
that period.
- Outlook:
- The Group expects to maintain
comparable level of activity in H2 2021
- The Group should quickly benefit
from its new services and industrial capacities: new plating line
in the USA and industrial modernization at the Bollène site.
The Audit Committee and the Board of Directors
met to approve the interim financial statements for the six months
ended June 30, 2021. The Statutory Auditors conducted a limited
review of these financial statements and issued their report in
accordance with legal requirements.
Egide Group’s consolidated EBITDA (corrected
from IFRS16) for the six-month period ended June 30, 2021, came at
€1.19 million.
First-half Results consolidated P&L(In €m) |
H1 2020 |
As a percentage of revenues |
H1 2021 |
As a percentage of revenues |
Sales |
17.27 |
|
16.60 |
|
Current EBITDA * |
0.93 |
7% |
1.19 |
7% |
Operating Income (Ebit) |
0.52 |
3% |
0.52 |
3% |
Net Income |
0,004 |
0% |
0.24 |
1% |
*Ebitda corrected from IFRS16
CONSOLIDATED FINANCIALS AS OF JUNE 30,
2021
The Egide group's consolidated revenues for the
first half of the year amounted to €16.60 million, representing a
decrease of 3.9% compared to H1 2020 but a +30.7% rebound in growth
compared to H2 2020. Egide SA's significant 16.6% increase in sales
did not fully compensate for the decline in sales of its American
subsidiaries, which was accentuated by the exchange rate effect. At
constant exchange rates, the group's growth would have been
positive by 1.1%.
Sales prospection activity remained slowed down
by health constraints, macroeconomic uncertainties, and especially
manufacturing delays caused by the time required to rebuild Egide
USA's plating line in Cambridge (following the July 2020 fire).
Therefore, the activity profile in the first
half of 2021 varies across the different business units:
- Egide SA reinforced its position in
the thermal imaging market in Europe, Asia and in the Middle East.
Egide SA also recorded significant growth thanks to the new
strategy focused on the development of high-performance packages
for power, optronic, RF/microwave and high frequency communication
applications, and sensors.
- Egide USA largely met demand and
preserved its customers by involving plating subcontracting, which
was required by delays in new plating line installation. Plating
subcontracting protected customer base but adversely impacted the
income.
- Santier's activity recorded a +14%
sequential growth but a 13% decrease (both variations are expressed
in $), compared to H1 2020, mainly explained by the impact of the
aerospace industry. Indeed, some satellite programs led by main
players in the defense sector have been delayed, due to the
reduction in staffing levels caused by the pandemic. However, the
dynamics of this last half-year of recovery shows good momentum
with 2 of the 3 best billing months since 2018. Santier's client
mix remains diversified although not favorable for the margin and
financial results over the period.
Dollar-denominated sales accounted for 56% of total group
revenues in H1 2021.
RESULTS AS OF JUNE 30, 2021
Egide SA, continues to improve its profitability
thanks to the positive combination of the impact of continued
operations on the one hand, the increase in revenues on the other,
and finally, an improvement in the gross margin with the more
rigorous selection of markets served and strict control of
expenses.
For Egide USA, the Cambridge facility managed to
resume activity to satisfy its customers. However, it used more
plating subcontracting than anticipated due to the delay in
rebuilding the plating workshop. The additional cost represents
€2,657k of plating subcontracting charges, of which €498k was
compensated by the insurance. In addition, the new fixed assets
financed by the insurance amounted to 2,268k and represents an
operating profit.
Santier results were affected by an insufficient
level of activity and by several manufacturing difficulties,
resulting for some part from the COVID crisis, which have generated
additional material and labor costs.
The group's consolidated operating profit, at
€0.52 million, was directly impacted by the additional costs
related to Egide USA's plating subcontracting during the first
half. The IFRS16 standard has reclassified 347k€ of rent into 255k€
of depreciation and 92k€ of interest, for H1 2021.
Note that the net result is calculated after a
tax charge of 50 k€, which consumes the deferred tax asset that
appears in the assets.
CONSOLIDATED BALANCE SHEET AS
OF JUNE 30, 2021
ASSETS |
LIABILITIES |
|
H1 2020 |
H1 2021 |
|
H1 2020 |
H1 2021 |
Non-current assets |
10.81 |
12.23 |
Shareholders’ Equity |
10.40 |
11.12 |
Inventory, trade, and other receivables |
14.6 |
17.66 |
Financial debt and provisions |
12.62 |
12.25 |
Cash |
2.93 |
2.01 |
Trade and other payables. |
5.31 |
6.53 |
TOTAL |
28.34 |
29.90 |
TOTAL |
28.34 |
29.90 |
Acquisitions of property, plant and equipment
for the half-year were €2,556k, including €97k at Egide SA, €2,444k
at Egide USA and €18k at Santier. The working capital requirement
(inventories + customer receivables + other current assets -
supplier debts - other current liabilities) is 95 days of revenues,
compared to 105 days on June 30, 2020.
The financial debts are mainly composed of 2
State guaranteed loan (French PGE) for €900k from Egide SA, a real
estate loan of €1 191k from Egide USA and equipment loans of €736k
and €562k respectively for Egide USA and Santier. These American
loans do not comply with the Covenants and have all been
reclassified as short term.
Finally, the Vatel bond will be fully completed by December 31,
2021, and a Santier loan originally for $1 million, 50% of which
was counter-guaranteed by a deposit, was fully paid in January
2021.
OUTLOOKThe Group intends to
maintain its activity in the second half of 2021 at a comparable
level as the first half.
The economic rebound in the markets addressed by
the Group is favorable and certain issues experienced by some
competitors (semiconductor supply crisis) do not affect the markets
served by Egide.
In addition, new business development
initiatives have been launched to take advantage of the Group's new
services and industrial capacities as quickly as possible: a new
plating line in the USA and industrial modernization at the Bollène
site.
In terms of profitability, the second half of
2021 should be in line with the Management's initial expectations
as it should no longer include items related to the consequences of
the Cambridge fire and it should record the forgiveness of the PPP
(American Covid support plan) for €0.6m.
This means that for the entire 2021 year, the
net result gap with the ambitions communicated in the past should
be limited to the additional costs of plating subcontracting
incurred in the first half at Egide USA and estimated at €1
million.
Despite the exceptional events of the last 18
months, the Group believes that it remains on track to consolidate
its position on a profitable and sustainable growth trajectory.
Jim Collins, President and CEO of Egide,
comments: “It has been a difficult time for Egide between the Covid
pandemic and the industrial fire at Cambridge. But in both cases,
we have overcome these difficulties and are able to achieve our
internal growth target in the coming years. We are constantly
improving our business operations through new human resources and
business development, which should benefit the company in the near
future. Our new plating facility in Cambridge, and the
modernization of our facility in Bollène are continuing the
transformation of the company started in 2018. The future is
bright for EGIDE. »
FINANCIAL CALENDAR
Half Year 2021
Results presentation to analysts & Investors |
September 30, 2021 – 11 :30am |
Availability of the 2020 Half-Year Financial Report |
October 1,
2021 |
2021 full
year sales |
January 26,
2022 |
CONTACTS
EGIDE – Luc Ardon –
CFO - +33 4 90 30 35 94 –
luc.ardon@fr.egide-group.com
FIN’EXTENSO – Press
Relations - Isabelle Aprile - +33
1 39 97 61 22 – i.aprile@finextenso.fr
About
Egide -
www.egide-group.com
Egide is a group with
an international dimension, specialized in the manufacture of
hermetic packages and heat dissipation solutions for sensitive
electronic components. It operates in cutting edge markets with
strong technology barriers to entry in all critical industry
segments (Thermal Imaging. Optronics. High-Frequency. Power
Units…). Egide is the only pure player in this market niche with
manufacturing bases in France and the United States.
Egide is listed on
Euronext Paris™- Segment C - ISIN code: FR0000072373 – Reuters:
EGID.PA – Bloomberg: GID
Keep up to date with all the Group's news online:
www.egide-group.com and LinkedIn
- Egide-PR-2021-HY-results-EN-210929
Egide (LSE:0OJ4)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Egide (LSE:0OJ4)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024