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Q2 increase in order intake
Climbing walls by ENTRE-PRISES to equip Chinese universities
ABEO, a world leader in sports and leisure equipment, today announces its revenue and order intake for the first half of its 2019/20 financial year (from 1 April to 30 September 2019).
|Sportainment & Climbing||15.8||10.8||+46.0%||+2.1%|
|Sportainment & Climbing||31.9||21.3||+49.9%||-0.4%|
|YTD order intake (30/09)2||125.8||112.7||+11.6%||+0.6%|
ABEO posted Q2 2019/20 revenue of €61.9m, up 7.8%, driven by 8.2% external growth generated by Fun Spot in the United States. Organic change came to -0.6% and currency gains increased the quarter revenues by +0.2%. Second quarter revenue growth was impacted by a challenging performance last year (Q2 2018/19 revenue up 29.6% including 10.3% organic growth) and a complicated economic climate in the UK due to the uncertainties surrounding Brexit.
In the Sports division, business continued to be impacted by the repositioning carried out in China and to a lesser extent by Brexit, where Gymnova UK sales were hit by deferred private sector purchases of gymnastics apparatus.
The Sportainment & Climbing division posted 46% sales growth in the second quarter, driven by the acquisition of Fun Spot. Organic growth came to 2.1%, impacted by a challenging performance in Q2 2018/19 (up 22.2%) driven by major projects.
The Changing Rooms division posted robust Q2 revenue growth of 8.5% driven by strong performance from France Equipement and Meta in Germany, despite a decline in Prospec sales impacted by Brexit.
As a result, ABEO posted first half 2019/20 revenue of €121.9m, up 10.8% including 0.9% organic growth and a 0.3% currency gain, impacted by the realignment of Cannice with Group standards and the “wait and see” attitude caused by Brexit.
2019/20 outlook: six-month order intake up 11.6%
Business during the second half of 2019/20 will be boosted by a healthy order intake of €125.8m at 30 September 2019, up 11.6% (0.6% organic growth and 0.3% positive currency impact) despite challenging conditions in the UK. Order intake accelerated in the second quarter, up 24% including 12.7% organic growth.
The Group is counting on increased organic growth in the second half driven mainly by the expected ramp-up in the promising Fun Spot business.
As previously announced, the €300m3 revenue target for FY 2019/20 will depend on targeted acquisition opportunities arising between now and year-end on 31 March 2020. Excluding further acquisitions, the Group would expect to post full-year revenue between €250m and €260m.
ABEO plans to pursue its development strategy combining organic growth with acquisitions.
ENTRE-PRISES taking on Chinese universities
Beijing Sports University, the most renowned tertiary education establishment for sports in China, has selected ENTRE-PRISES to install a climbing wall that will be dedicated to national athletes. This agreement with Beijing Sports University is the most significant of its kind in Asia and was finalised in May 2019.
Bolstered by this first conclusive agreement, ENTRE-PRISES also equipped Xi'an Physical Education University.
Two other projects have since been initiated with Jiangxi College of Applied Technology and Xi'an International University.
11 December 2019 after close of trading H1 2019/20 results
Find out more at www.abeo-bourse.com
|ABEO is a major player in the sports and leisure market. The Group posted turnover of €230.4million for the year ended 31 March 2019, 77% of which was generated outside France, and has more than 1,700 employees.
ABEO is a designer, manufacturer and distributor of sports and leisure equipment. It also provides assistance in implementing projects to professional customers in the following sectors: specialised sports halls and clubs, leisure centres, education, local authorities, construction professionals, etc.
ABEO has a unique global offering, and operates in a wide variety of market segments, including gymnastics apparatus and landing mats, team sports equipment, physical education, climbing walls, leisure equipment and changing room fittings. The Group has a portfolio of strong brands which partner sports federations and are featured at major sporting events, including the Olympic Games.
ABEO (ISIN code: FR0013185857, ABEO) is listed on Euronext Paris – Compartment C.
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3 This target, which was set at the time of the 2016 IPO, aims at annual organic growth of 7% and external growth of 12% between 1 April 2016 and 31 March 2020, without accounting for potential future currency effects.