ABEO: Q3 revenues up 9.7% (reported data)   (25/01/2018 07:30)

Buoyant year-to-date (9 months) order entry - up 13.1%
ABEO launches rights issue to pursue its development as part of its 2020 strategic plan

 

ABEO, a world leader in sports and leisure equipment, reports Q3 2017/18 revenues and announces a forthcoming rights issue with preferential subscription rights.

• 9-month revenues (31/12/2017)

€m Unaudited	2016/2017	2017/2018	Change	Change like-for-like1
9-month revenues (31/12/2017)	124.4	134.9	+8.5%	+0.8%
Sports	65.8	69.5	+5.5%	-2.6%
Climbing	21.1	27.1	+28.2%	+20.0%
Changing rooms	37.5	38.4	+2.5%	-4.0%
Q3 revenues	42.1	46.2	+9.7%	-1.7%
Sports	24.1	24.2	+0.3%	-5.6%
Climbing	7.6	8.9	+16.5%	+10.1%
Changing rooms	10.4	13.2	+26.5%	-1.5%

¹: Like-for-like figures express change in revenues for equivalent periods at constant exchange rates and constant consolidation

ABEO posted Q3 2017/18 revenues of €46.2m, up 9.7%, which breaks down as follows: 1.7% reduction in organic growth, 1.1% currency loss and a 12.5% contribution from the change in the consolidation scope (external growth including Sportsafe UK January 2017 and Meta GmbH November 2017).

The Climbing Division continued to boom, growth coming in at 16.5% (up 10.1% in organic growth). The Changing Rooms division, up 26.5% (down 1.5% like-for-like), was boosted by the 2-month consolidation of Meta, a leading German-based changing room and sanitary fittings equipment supplier.

The Sport division was partly offset by postponed supplier deliveries that have now been resolved and by from a significant base effect (Q3 2016/17 like-for-like revenues up 16.6%).

This one-off postponement in sales until the fourth quarter has no impact on the Group's outlook for development.

Consequently, ABEO reports revenues for the first nine months of 2017/18 of €134.9m, up 8.5% compared with the same period last year. Year-to-date 31 December 2017 organic growth was 0.8%, thus consolidating the strong organic growth achieved last year (up 12.2%). ABEO's acquisition-driven growth continued and recent acquisitions accounted for 8.9% revenue growth. In view of the depreciation of the British pound, a 1.3% currency loss on revenues was recorded.

Buoyant 2017/18 outlook: YTD 9 months1 order entry up 13.1%.

Year-to-date new sales were particularly buoyant and order entry for the nine months ended 31 December 2017 came in at €143.5m, up 13.1% (organic growth was up 5.1%, external growth up 9.4% and 1.4% for currency losses) year-on-year.

Furthermore, ABEO growth will be boosted by the consolidation of the following recent acquisitions:

• Meta GmbH, a leading Germany-based changing rooms and sanitary fittings equipment supplier, that significantly shores up ABEO's Changing Rooms activities.
• China-based Shandong Kangnas Sports, which manufactures and distributes sports competition, training and leisure equipment, that represents a great springboard for the Company on a very high-potential market.

As such, ABEO anticipates higher Q4 2017/18 revenue growth.

• Rights issue with preferential subscription rights to pursue development as part of ABEO's 2020 strategic plan

ABEO today launched a €23.3m rights issue with preferential subscription rights that may be increased to €26.8m following the exercise in full of the extension clause (press release dated 25/01/2018²).

The rights issue is designed to strengthen ABEO's equity and provide additional resources needed to pursue its booming development while seizing acquisition opportunities based on the following strategies:

• International expansion: penetrate high-potential zones and widen the brands' market share;
• Capitalising on its brands: manage the brands to make them must-haves and better-performing;
• Strengthening our position in sportainment (sports and leisure) and services: expand the offering into combined sport and leisure activities and develop services.

Since ABEO's IPO, the Company has rolled out the previously announced 2020 strategy, which combines organic growth with targeted material value-enhancing acquisitions.
Pursuant to the presented roadmap, 4 acquisitions have been carried out - Erhard Sport in Germany (60%), Sportsafe UK (80%), Meta GmbH in Germany (100%) and Kangnas Sport in China (80%). Meanwhile, ABEO has increased its stake in New Zealand-based Clip'n Climb to 100%. Negotiations are currently underway relating to the 100% acquisition of two European companies for the Sport division, which together post annual revenues of over €10m. Funds for both acquisitions are ready and the transactions may be completed by year-end 2017/18.

ABEO's historic shareholders are fully committed with management's strategy and operational plans thereby contributing to the guarantee of at least € 17.5 million, representing 75% of the planned issue.

Confident in its outlook, ABEO reaffirms its target to reach €300m³ revenue by March 2020, driven by organic growth as well as targeted acquisitions.

 

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• Next release

22 May 2018 before start of trading

2017/18 full-year revenues

 

Find out more at www.abeo-bourse.com

 

ABOUT ABEO

ABEO is a major player in the sports and leisure (“sportainment”) market. The Group posted revenue 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 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	[email protected]	Tel: +33 (0)1 53 67 36 77
Press relations - Serena Boni	[email protected]	Tel: +33 (0)4 72 18 04 92

 

¹ Non-financial data - to measure sales trends of its operations, the Group uses the value of order entry during a given period among other things. This sales indicator represents the value of all orders recorded from 1 April to 31 December 2017, and the comparative figure is order entry recorded during the same period of the previous year.
² On 24 January 2018, the Prospectus linked to the capital increase was approved by the French markets authority (AMF), under No. 18-025; the Prospectus includes the registration document filed on 24 January 2018 under No. R.18-003, and the securities note (“note d'opération”) (including a summary of the Prospectus).
³ This target set during the 2016 IPO includes 7% organic growth per year and 12% external growth per year from 1 April 2016 to 31 March 2020, subject to any future currency gains/losses.