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GEA Grenobloise of Electronics and Automation: Half-yearly results 03/31/2020

In millions of euros

03/31/2020

03/31/2019

Production

COMPUTER AND ELECTRONIC SYSTEMS

TOLL

17.85

16.85

Gross margin

11.52

12.53

In millions of eurosOperating profit

03/31/20161.68

03/31/20152.77

ProductionNet profit

25.811.57

28.182.35

2019/2020almost all motorway companies, in particular under contractsmulti-year. A signi fi cant contract with the Vinci Group has also been signed fortoll equipment for the future Strasbourg bypass. The first half of the year was also marked by several commercial successes for the car park activity, notably with new orders from the agglomerations of Nantes and Toulouse and a first contract with the city of Thonon-Les-Bains.

Half-yearly results

Gross margin

15.49

17.30

The Supervisory Board, meeting on June 26, 2020, examined the half-yearly accounts as of March 31, 2020, established in accordance with French accounting rules and principles and approved by the Management Board.

Operating profit

4.23

6.21

4.05

During the first half of the year, production rose slightly to € 17.85 million compared to € 16.85 million at March 31, 2019, with a stable level of activity in France and an export activity up 8% representing 58% of billings.

Maintenance activity, for its part, made up nearly 14% of theturnover and increased by 10% compared to last year.

At 64.5%, the gross margin rate was down compared to the first half of 2018/2019 which included, as a reminder, non-recurring items related to the simultaneous settlement of several international contracts.

Despite good control over personnel costs (- 0.4%), the greater use of subcontracting (+ 42%) and temporary workers (+ 17.7%) as well asmaintenance of significant fi xed costs did not maintain the level ofoperating profit in value.

The operating profit rate therefore fell to 9.43% against 16.45% a year earlier.

In a difficult environment of low interest rates, the financial result,mainly made up of the remuneration of the company’s treasury, came down to € 0.12 million compared to € 0.32 million a year earlier due to the replacement of our expired investments by new term accounts progressive.

Net profit amounted to € 1.57 million compared to € 2.35 million at 03/31/2019. He comesstrengthen a healthy financial structure characterized by € 78 million in equity(compared to € 79.66 million at 03/31/2019), net cash of € 70.61 million (€ 72.52 million at 03/31/2019 and € 67.3 million at 09/30/19) and a total absence of debt.

Highlights :

Activity in France continued with the supply of toll equipment for

2015/2016 half-year results

In the area of ​​airport car parks, a new project has been signed forAéroports de Lyon and a first order has been signed with Aéroports de Paris.

Finally, the creation of two new secure car parks for heavy goods vehicles was entrusted to GEA (Sarreguemines and Euro Tunnel).

Internationally GEA has successfully pursued its current achievements and severalcontracts were notably won for a total amount of more than € 18 million inCroatia, Greece, Portugal, Tunisia, Jamaica, Mexico and Turkmenistan (Ashgabat-Turkmenabad highway, first project in this country for GEA).

The firm order book, exported at 74%, amounted to March 31, 2020 at € 51.3 million compared to € 38 million on March 31, 2019.

The end of the first half was also marked by the COVID crisis 19.

Production was therefore completely stopped from March 17 and was only very partially able to resume in May.

During this period 50% of the workforce was able to pursue an activityin telework, the rest of the employees who had to be put on partial unemployment (the company has chosen to supplement the salary of the staff affected by this measure to 100%). The nominal resumption of production could only take place from the beginning of June, when almost all of the staff were able to resume their activity on the company’s premises.

The traffic di ffi culties which result from the closure of the borders have affectedand will continue to weigh on the deployment of our systems around the world as well as on our commercial activities.

GEA’s financial independence will allow the company to continue its e ff ortscommercial, technical or strategic and to be able to face the economic consequences of the current health crisis. If the company’s activity and cash flow haverelatively little affected in the first semester, they will probably beon the second part of the exercise, and probably beyond, due to possible

activity lags and in the event of a persistent crisis.

NEWS: Corinne PUISSANT / Tel. : 01 53 67 36 36 / E-mail:cpuissant@actus.fr

R0000053035www.gea.frISIN code: FR0000053035www.gea.fr

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