PEA / PME ABEO listed Euronext

ABEO publishes H1 2019/20 earnings   (11/12/2019 17:45)
  • Revenue up 10.8%
  • Recurring EBITDA1 of €11.7m

Forecast 2019/20 revenue of between €250m and €260m, together with an improvement in operational performance during the second half of 2019/20

ABEO, a world leader in sports and leisure equipment, today announces its consolidated earnings for the first half of 2019/20.

  • Consolidated H1 2019/20 earnings (1 April to 30 September 2019) reviewed - ABEO's Board of Directors met on 11 December 2019 to approve the first half 2019/20 financial statements. H1 2019/20 earnings take into account first-time application of IFRS 16 as of 1 April 20192. The half-year financial report is made available to the public and filed with the French Financial Markets Authority (AMF) on this day. It may be consulted on the company's website.
€m 30.09.18
6 months
reported
30.09.19
6 months
 (excl. IFRS 16)
30.09.19
6 months
reported
Change
reported
Revenue 110.0 121.9 121.9 +10.8%
Recurring EBITDA 9.9 8.7 11.7 +17.6%
% revenue 9.0% 7.1% 9.6% +0.6pp
Recurring operating income 7.5 4.7 4.8 -35.8%
Operating income 7.3 3.8 4.0 -46.0%
Group net income 4.3 0.5 0.4 -90.8%

First half revenue up 10.8%

ABEO posted H1 2019/20 revenue of €121.9m, up 10.8% versus the same period last year, driven by the Sportainment & Climbing (up 49.9%) and Changing Room (up 3.7%) divisions. Revenue was boosted by a 9.6% consolidation gain arising from the consolidation of Fun Spot in November 2018. Over this period, organic growth3 was 0.9%, impacted by the realignment of Cannice (China) with Group production standards and wait and see attitude in the UK due to Brexit.

EBITDA margin up compared to H2 2018/19

First half recurring EBITDA rose from €9.9m last year to €11.7m, including a €3.0m gain from the application of IFRS 16. Excluding IFRS 16, recurring EBITDA was down at €8.7m. However, as expected, the EBITDA margin4 excluding the impact of IFRS 16 rose 0.6 percentage points to 7.1% from 6.5% in H2 2018/19.

The Sports division posted recurring EBITDA of €5.3m and an EBITDA margin of 9.4%. Excluding IFRS 16, there was a slight decrease in recurring EBITDA (€3.5m) and the EBITDA margin (6.1%, down 0.2pp) compared to the previous year, impacted by the China repositioning and Brexit.

The Sportainment & Climbing division posted recurring EBITDA of €1.6m and an EBITDA margin of 5%. Excluding IFRS 16, there was a decline in both recurring EBITDA (€0.8m) and the EBITDA margin (2.6%, down 8.9pp), primarily due to adverse developments in the product mix and competitive environment combined with slower-than-expected growth in the Fun Spot business.

The Changing Rooms division posted recurring EBITDA of €4.8m and an EBITDA margin of 14.3%. Excluding IFRS 16, there was an increase in recurring EBITDA (€4.3m) and the EBITDA margin (13%, up 0.8pp) despite the impact of Brexit.

After depreciation of fixed assets (€6.8m) including an additional €1.3m expense related to the acquisition of Fun Spot (including a €0.9m non-recurring expense), recurring operating income amounted to €4.8m (€4.7m excluding the impact of IFRS 16) compared to €7.5m last year.

Other non-recurring operating income and expenses amounted to a €0.9m expense (compared to a €0.2m expense in H1 2018/19) including costs arising from the closure of an unprofitable climbing centre in Spain. Accordingly, H1 2019/20 operating income came to €4.0m (€3.8m excluding the impact of IFRS 16).

Finally, after cost of debt amounting to €1.4m (€1.1m excluding the impact of IFRS 16), a €0.1m foreign exchange gain and a €2.2m tax charge, net income Group share for the period amounted to €0.4m (€0.5m excluding the impact of IFRS 16). H1 2019/20 net income Group share includes a €0.6m non-recurring deferred tax expense accentuated by the non-recognition of certain tax loss carryforwards. Excluding non-recurring items (Fun Spot depreciation expense, closure of a centre in Spain and tax impacts), net income Group share (excluding IFRS 16) would amount to €2m.

Robust balance sheet

Group cash flow from operations before change in working capital and tax amounted to €11.2m, compared to €10.2m last year, including a €3.0m impact related to IFRS 16.
Excluding IFRS 16, cash flow from operations amounted to a €3.3m outflow representing a €2.7m improvement.
Capital expenditure during the period amounted to €2.2m compared to €3.0m the previous year.

Cash and cash equivalents amounted to €16.0m at 30 September 2019. Net debt stood at €117.0m (including a €26.5m increase related to the application of IFRS 16) compared to €80.2m at 31 March 2019.

Outlook

In light of a healthy €125.8m order intake[5] at 30 September 2019, up 11.6%, and the expected growth of Fun Spot, barring further acquisitions ABEO forecasts revenues of between €250m and €260m for FY 2019/20 representing average annual growth of 14.6% in 4 years.

Furthermore, ABEO continues to implement performance improvement drivers aimed at boosting the recurring operating margin during the second half of 2019/20.

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  • Next release

10 February 2020 Q3 2019/20 revenue (before start of trading)
18 May 2020 2019/20 annual revenue (before start of trading)

 

Find out more at www.abeo-bourse.com

ABOUT ABEO
ABEO is a major player in the sports and leisure market. The Group posted turnover of € 230.4 million 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.

Contacts

For any questions relating to this press release or the ABEO Group, please contact ACTUS finance & communication

Investor relations - Corinne Puissant investor@beo.fr Tel: +33 (0)1 53 67 36 77
Press relations - Serena Boni presse@beo.fr Tel: +33 (0)4 72 18 04 92

 

1 Recurring operating income + depreciation of fixed assets
2 As the Group chose to apply the simplified retrospective transition approach, the financial statements for the periods ended 30 September 2018 and 31 March 2019 have not be restated to reflect the impact of the application of IFRS 16
3 Change in revenue over a comparable period at constant consolidation scope, excluding the impact of currency movements
4 Recurring EBITDA/revenue
5 non-financial data - to measure the sales momentum of its business activities, the Group uses the quantified amount of its order intake over a given period, inter alia. The sales momentum indicator represents the aggregate value of all orders booked over the relevant period, as compared to the same period for the previous financial year.


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ABEO - Gecko
  • 18 May 2020 2019/20 annual revenue (before start of trading)