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The ABEO Board of Directors met today and approved the full-year 2016/2017 financial statements.
Following its announcement of 13% revenue growth in early May, ABEO, a designer of sports and leisure equipment, today announces sharp growth in its 2016/2017 full-year results, with current EBITDA up 21% to €15.1m and record net income of €9.6m, compared with a €0.5m loss the previous year.
Olivier Estèves, Group CEO, said: “Our 2016/2017 roadmap was “sporty”: IPO, step-up in the international development of our brands, Rio Olympic Games, acquisitions - to name just a few of the year's challenges. By the end of the financial year, all of these projects had been completed successfully, and I sincerely thank every Group employee for the vital role they played in this success. We intend to maintain this trend of profitable growth into 2017/2018 and to continue rolling out our strategic plan; this will involve international expansion with a particular focus on Asia, brand management aimed at generating synergies, partnerships with sports federations and a strengthened presence in the leisure and services sectors. Backed by the high-growth potential of our sports equipment markets and our capacity to grow our market share, we can confirm our ambition to post revenue of €300 million by 2020.”
|Current operating income||11.6||9.4||+24.3%|
|Operating income||12.5||2.7||x 4.6|
Strong revenue growth driven by international development
Group revenue growth was particularly strong in the 2016/2017 financial year: 2016/2017 revenue amounted to €167.1m, up 12.6% (13.1% organic growth, 2.2% growth from acquisitions, 2.7% currency losses). The Group continued to step up its international growth, with revenue generated outside France accounting for 70% of total revenue, up from 66% in the previous year.
In line with its strategic plan, international growth was also marked by two acquisitions in the second half of the financial year, which will produce their full effects in 2017/2018: Erhard Sport, a major German sports equipment brand consolidated on 11 November 2016, and Sportsafe UK, a sports equipment maintenance specialist based in the UK, consolidated on 1 January 2017. The Group also acquired the remaining 20% minority interests in Prospec and increased its stake in Clip'n Climb International in New Zealand to 70%.
Sharp growth in results
Driven by strong business momentum, current EBITDA soared 20.5% to €15.1m. The EBITDA margin2 rose 0.6 bp over the previous year to 9.0% of revenue. This improvement is primarily the result of: i) strong business growth in the Sports division, which posted EBITDA of €10.4m and sustained a high EBITDA margin of 11.7%, ii) the Climbing division's turnaround, thanks to strong sales momentum in fun climbing, which resulted in EBITDA of €0.9m compared with a €0.7m loss in the previous year. The Locker Room division posted EBITDA of €3.8m, down slightly by €0.6m. This segment experienced strong growth, particularly abroad, despite the decline in the Sanitec business (as a reminder, Sanitec's assets were purchased in April 2015 while under court-ordered liquidation) which shaved €0.9m off the division's EBITDA. A recovery plan was implemented, as a result of which business picked up again in the fourth quarter of 2016/2017.
Net income amounted to a record €9.6m, up €10.2m over the previous year. This sharp growth is primarily due to a €2.6m increase in current EBITDA and a €7.5m decrease in non-current expenses. As a reminder, the Group recorded non-current expenses of €6.6m in 2015/2016, mainly relating to the Janssen-Fritsen integration. In 2016/2017, ABEO posted total net non-recurring income of €0.9m, comprising income of €2.6m from the revaluation of the Clip'nClimb International share following sharp revenue growth since ABEO first acquired a stake in the company, IPO-related expenses of 0.9m and Sanitec restructuring costs of €0.4m.
A robust balance sheet bolstered by the initial public offering and record results
Group shareholders' equity amounted to €64.2m as at 31 March 2017, up from €37.4m one year ago, boosted by net income growth and the funds raised via the initial public offering.
ABEO posted cash and cash equivalents of €20.6m as at 31 March 2017, which will enable it to quickly seize targeted acquisition opportunities over the coming months. Group net debt stood at €10.6m as at 31 March 2017, resulting in a gearing ratio of 0.2. It should be noted that a €5.9m cash outflow relating to the Sportsafe UK and Clip'n Climb acquisitions will occur during the first half of the 2017/2018 financial year.
Partnerships with sports federations and presence at major events
ABEO has always been backed by a portfolio of strong sports brands in its bid to step up its expansion. The solid reputation of the Group's long-standing brands is bolstered by its presence at local, national and international sports competitions. In addition to events already announced, a few days ago Spieth Gymnastics was appointed Official Supplier for the Commonwealth Games, to be held in Australia in April 2018. The International Federation of Sport Climbing (IFSC) also announced today that Entre-Prises will supply the Sport Climbing World Cup in Switzerland in July 2017, and that it will be renewing its exclusive partnership as Official Supplier of competition climbing walls until the 2020 Tokyo Olympic Games, where sport climbing will feature as an Olympic sport for the very first time.
Strategy and outlook
ABEO is confirming its target to reach €300m in revenue by 2020, driven by organic growth as well as targeted acquisitions.
Given its healthy order backlog, ABEO will be able to sustain buoyant growth during 2017/2018. ABEO will benefit from integrating recently acquired companies in the UK, Germany and New Zealand.
The Group plans to continue rolling out its 2020 Strategic Plan while making further targeted acquisitions in Europe and Asia over the coming months.
24 July 2017 after market close Q1 2017/2018 revenue
9 November 2017 after market close H1 2017/2018 revenue
7 December 2017 after market close H1 2017/2018 results
Translation for information purposes only. In case of discrepancy between the French and English versions, the French version shall prevail.
Find out more at www.abeo-bourse.com
|ABEO is a major player in the sports and leisure (“sportainment”) market. The Group posted turnover of €167 million for the year ended 31 March 2017, 70% of which was generated outside France. At year-end it had 1,200 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 locker 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.
For any questions relating to this press release or the ABEO Group, please contact ACTUS finance & communication