- Acceleration of operating profitability with a 2018 EBITDA of €6.1 million and an EBITDA margin rate up 2 points
- Very strong increase in 2018 consolidated net income multiplied by 5.8 to €3.69 million
- Confirmation of the 2020 objectives: revenue of €200 million and EBITDA margin of 10%
Regulatory News:
2CRSi (Paris:2CRSI), manufacturer of very high performance servers today announced its annual results for the year ended December 31, 2018 which were approved by the Board of Directors on April 25, 2019.
"Our 2018 results perfectly illustrate 2CRSi's profitable growth model with sustained sales momentum and doubled revenue while paying particular attention to our margins. In a rapidly expanding global market in which economic and environmental issues are key, 2CRSi is ideally positioned with its innovative and sustainable products. Our good commercial momentum confirms our ability to achieve our 2020 objectives: €200 million in revenue and an EBITDA margin of at least 10%." commented Alain Wilmouth, Chairman and Chief Executive Officer.
CONDENSED INCOME STATEMENT In million IFRS Audited consolidated full-year figures | 2018 | 2017 | Change | ||||||
Revenue | 65.18 | 30.56 | x2.1 | ||||||
Other ordinary operating income | 0.05 | 0.87 | |||||||
Income from ordinary activities | 65.23 | 31.43 | x2.1 | ||||||
Purchases used | (49.71) | (25.01) | x2.0 | ||||||
External charges | (4.19) | (1.71) | x2.4 | ||||||
Taxes other than on income | (0.36) | (0.12) | x3 | ||||||
Staff costs | (4.82) | (2.34) | x2.1 | ||||||
Other operating income and expense | (0.09) | (0.02) | x4.5 | ||||||
EBITDA | 6.06 | 2.24 | x2.7 | ||||||
EBITDA margin | 9.3% | 7.3% | |||||||
Depreciation, amortization and impairment | (1.71) | (0.55) | x3.1 | ||||||
Current operating income | 4.34 | 1.69 | x2.6 | ||||||
Operating income | 3.68 | 1.69 | x2.2 | ||||||
Net financial income/(expense) | (0.51) | (0.43) | +19% | ||||||
Consolidated net income | 3.69 | 0.64 | x5.8 | ||||||
Group share of net income | 3.71 | 0.64 | x5.8 |
The audit of the consolidated financial statements has been completed and the audit report is currently being prepared.
Annual financial results
At 31 December 2018, revenue amounted to €65.2 million, multiplied by 2.1 compared to the previous financial year. The volume of international deliveries has increased significantly and represents 56% of 2018 sales compared to 29% of 2017 sales.
New customers represented a turnover of €14.6 million in 2018. The Blade group, the world's leading player in the Cloud Gaming industry and 2CRSi's first customer, generated revenues of €33.1 million in 2018 compared to €16.6 million in 2017.
The strong growth in activity resulted in an increase in purchases consumed and external expenses, which were multiplied by 2.0 and 2.4 respectively. Staff costs also doubled to €2.34 million, reflecting the strengthening of teams to support the company's growth.
EBITDA for 2018 was €6.06 million, compared with €2.24 million in 2017. The EBITDA margin rate reached 9.3%, outperforming the 8% target announced at the time of the IPO. The acceleration in operating profitability is the result of the commercial success of 2CRSi solutions and good cost control.
Consolidated net income for 2018 rose sharply to €3.69 million, compared with €0.64 million at 31 December 2017.
CONDENSED BALANCE SHEET In million IFRS Audited consolidated data at Dec. 31 | 2018 | 2017 | ||||
ASSETS | ||||||
Total non-current assets | 17.38 | 11.95 | ||||
Inventories | 20.50 | 8.61 | ||||
Trade receivables | 37.48 | 4.61 | ||||
Other current assets | 3.77 | 3.03 | ||||
Financial receivables | 5.71 | 4.17 | ||||
Cash and cash equivalents | 14.51 | 3.68 | ||||
Total current assets | 81.97 | 24.1 | ||||
TOTAL ASSETS | 99.36 | 36.05 | ||||
LIABILITIES AND EQUITY | ||||||
Equity attributable to owners of the parent | 50.99 | 1.36 | ||||
Non-controlling interest | 0.08 | |||||
Consolidated equity | 51.07 | 1.36 | ||||
Borrowings and financial liabilities | 15.94 | 13.56 | ||||
Other non-current liabilities | 3.94 | 1.79 | ||||
Total non-current liabilities | 19.88 | 15.29 | ||||
Trade payables | 17.21 | 7.39 | ||||
Short-term financial liabilities | 8.24 | 6.19 | ||||
Other current liabilities | 2.95 | 5.82 | ||||
Total current liabilities | 28.41 | 19.40 | ||||
TOTAL LIABILITIES AND EQUITY | 99.36 | 36.05 | ||||
Financial position at December 31, 2018
As at 31 December 2018, the company's balance sheet total stood at €99.35 million compared with €36.05 million in the previous financial year. Cash flow from operations amounted to €5.3 million and cash flow from operating activities to €(32.4) million, mainly due to the €38.7 million change in working capital requirements. Trade receivables amounted to €37.5 million, inventories to €20.5 million and trade payables to €17.2 million.
The increase in trade receivables is mainly due to very strong activity in December 2018.
The high level of inventories is the result of the measures taken by the Company to support its continued commercial development, in a context of global shortage of electronic components.
At the end of the 2018 financial year, cash and cash equivalents amounted to €14.5 million, compared with €3.7 million at 31 December 2017.
The annual financial report will be available on April 30 on the Company's website in the Investors section: https://investors.2crsi.com/fr
Calendar: General shareholders' meeting on June 13, 2019.
About 2CRSi
Based in Strasbourg, and with subsidiaries in Manchester, Dubai and San Jose at the heart of America's Silicon Valley, 2CRSi specialises in the design and manufacturing of very high-performance computer servers. The Group offers to more than 200 customers in 25 countries innovative solutions in calculation, storage and data transfer. In 2018, the 2CRSi Group had consolidated revenue of €65.2m.
For more information: www.2crsi.fr
View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005892/en/
Contacts:
2CRSI
Chief Business Finance
Alexandra Schrapp
investors@2crsi.com
+33 3 67 10 22 46
NewCap
Investor Relations
Thomas Grojean Mathilde Bohin
2crsi@newcap.eu
+33 (0)1 44 71 98 55
NewCap
Media Relations
Nicolas Merigeau
2crsi@newcap.eu
+33 (0)1 44 71 94 98