DJ 2CRSi SA: Publication of definitive 2019-20 earnings. Pro forma revenue growth of +18% in Q1 2020-21 confirmed. Targets for FY 2020-21 reiterated.
2CRSi SA
2CRSi SA: Publication of definitive 2019-20 earnings. Pro forma revenue
growth of +18% in Q1 2020-21 confirmed. Targets for FY 2020-21 reiterated.
30-Jul-2020 / 19:29 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Press release
2019-20 annual earnings
Publication of definitive 2019-20 earnings
· Pro forma figures over 12 months: revenue of EUR 141,1m, EBITDA of
EUR 3.8m and net income Group share of EUR (0.8)m
Pro forma revenue growth of +18% in Q1 2020-21 confirmed
Targets for FY 2020-21 reiterated
· Robust revenue growth, expected at EUR 170-200m
· Improved level of profitability
Strasbourg (France), 30 July 2020 - 2CRSi today presents its consolidated
and audited earnings for the 2019-20 period and confirms the forecasts
issued on July 8, 2020[1]. As a reminder, the Group had been unable to issue
its definitive accounts on that date, due to the unprecedented impact of the
COVID-19 crisis, which severely impeded the first-time consolidation of
Boston Limited's accounts, the company having been integrated for the first
time.
The Board of Directors met on July 29, 2020 to approve the Group's financial
statements for the fiscal year ended February 29, 2020. The consolidated
financial statements have been audited and the auditors' report certifying
the financial statements is currently being prepared.
Note that, in this particular instance, the period lasted 14 months (January
1, 2019 to February 29, 2020), the end of its fiscal year having been set to
end-February to align with that of Boston Limited and present its activities
in a manner that is more consistent with the seasonal nature of its
business, which is traditionally strong over the final months of the year.
HIGHLIGHTS OF THE 2019-20 PERIOD
Acquisition of Boston Limited, a change of dimension to accelerate the
Group's commercial and international expansion
As discussed in the press release of 8 July, a key highlight of 2019 was the
acquisition of Boston Limited in November 2019, allowing 2CRSi to address
the three priorities set out in 2018: accelerate its commercial
transformation, diversify its client portfolio, and extend its reach beyond
France. The long-term strategic advantages of this transaction were set out
in the press release.
The 12-month integration of Boston Limited (March 1, 2019 - February 29,
2020) resulted in Group
pro forma revenue of EUR 141.1m over 12 months (compared with EUR 145.3m
initially estimated). As a reminder, 2CRSi generated revenue of EUR 65.2m
for the 2018 period (January 1, 2018 - December 31, 2018).
As expected[2], Group revenue was hit by the first effects of the
coronavirus outbreak from January and February 2020. Indeed, from early
January numerous parts manufacturers shut down while transport supply was
drastically reduced. These supply problems directly reduced revenue,
increased stocks (as certain missing components impeded the production of
servers that had already been ordered) and caused a relative decrease in
supplier payables.
Consolidated Group revenue for the 2019-20 accounting period (January 1,
2019 - February 29, 2020) came to EUR 77.0m over 14 months (compared with
EUR 81.7m initially forecast), integrating a EUR 32.5m contribution from
Boston Limited for the period from November 18, 2019 to February 29, 2020.
As already announced, 2CRSi has substantially strengthened its positions
abroad, with over 87% of its business conducted outside France. Excluding
the contribution from Boston Limited, revenue generated in markets outside
France would have come to less than 57% of total revenue over the same
period.
DEFINITIVE EARNINGS FOR THE 2019-20 PERIOD
Having changed its closing date and thus presenting its accounts as at
February 29, 2020 over 14 months, a comparative of certain aggregates over
12 months (March 1, 2019 to February 29, 2020) is presented with the
integration of Boston Limited over a full year[3].
Simplified audited 2019-2020 2018 2019-2020
income statement
14 months 12 months 12 months pro forma
In millions of EUR -
IFRS
Revenue 77.0 65.2 141.1
Other ordinary operating 1.7 0.1 0.9
income
Revenue from ordinary 78.6 65.2 141.8
activities
Consumed purchases (57.1) (49.7) (109.0)
External charges (8.2) (4.1) (11.7)
Personnel expenses (12.4) (4.8) (16.8)
Tax (0.6) (0.4) (0.6)
EBITDA 0.4 6.2 3.8
EBITDA margin 0.5% 9.5% 2.7%
Other current operating (0.6) (0.1) (0.6)
income and expenses
Depreciation, (5.1) (1.7) (4.8)
amortisation and
impairment
Current operating income (5.3) 4.3 (1.6)
Operating profit (5.5) 3.7 (1.7)
Financial income 0.6 (0.5) 0.9
(expense)
Consolidated net income (4.5) 3.7 (0.6)
(expense)
Net income (Group share) (4.3) 3.7 (0.8)
The application of IFRS 16 (recognition of leases in the consolidated
financial statements) had no impact on the financial statements of the
period, as the standard was already applied by the Group for fiscal year
2018.
The company will publish its annual financial report online by August 31,
2020 at the latest.
Boston Limited was integrated into the Group's consolidate accounts as of
November 18, 2019 (i.e. less than three and a half months into the 14-month
period).
2CRSi recorded a gross margin of 22.7% for the 2019-20 period (12 months pro
forma), compared with 23.7% in 2018. External charges came to EUR (11.7)m.
Staff costs totalled EUR (16.8)m and accounted for 12% of Group pro forma
revenue over 12 months, compared with 7% in 2018. This increase reflects the
addition of more experienced people in 2CRSi's teams, particularly in
marketing, sales and R&D. Pro forma EBITDA for the period thus worked out to
EUR 3.8m (compared with EUR 3.2m initially estimated). Net depreciations,
amortisation and provisions totalled EUR (4.8)m, increasing sharply as a
result of the impairment of rights-of-use on real estate leases, notably in
Nanterre and Strasbourg.
Pro forma operating income came to EUR (1.7)m. After taking account of
financial income and income tax, pro forma consolidated net income (Group
share) works out to EUR (0.8)m for the period. The figure comes to
EUR (4.3)m for the period 2019-20 (14 months), compared with EUR (4.0)m
initially estimated.
Financial position
Non-current assets increased by EUR 44.0m to EUR 61.4m. This increase was
chiefly driven by:
· Rights-of-use assets (real estate leases under IFRS 16) of EUR 15.3m
(compared to EUR 4.2m at end 2018), primarily concerning leases in
Strasbourg and Nanterre;
· The variation in non-current financial receivable on client Blade
(+EUR 3.7m);
· The acquisition and first-time consolidation of Boston Limited.
Three significant trends impacted the level of trade receivables:
· Improved management of client receivables: net decrease of EUR 17.6m;
· Transformation of the accounts receivable in respect of Blade into a
financial receivable: EUR 15.4m decline;
· The consolidation of Boston Limited's accounts: EUR 17.3m of trade
receivables.
At February 29, 2020, receivables thus totalled EUR 21.8m (down from
EUR 37.5m at end-2018), which equates to less than two months of Group
revenue.
Inventories increased (EUR 34.5m compared to EUR 20.5m at end-2018),
chiefly as a result of the consolidation of Boston Limited's stocks
(EUR 13.5m). This level of inventory is equivalent to less than three
months of Group revenue.
2CRSi's shareholders' equity came to EUR 47.2m at February 29, 2020,
compared with EUR 51.0m at December 31, 2018. Net financial liabilities
excluding leases (IFRS 16) totalled EUR 41.7m, of which EUR 36.3m in debt
with lending institutions (including bank overdrafts, accrued interests and
leasing liabilities).
The Group's gross cash position at end-June stood at EUR 8.6m, to which can
be added a further EUR 9.3m of available financing (bank overdraft,
short-term undrawn credit lines).
Simplified audited consolidated statement 02/29/2020 12/31/2018
of financial position
In millions of EUR - IFRS
Goodwill 7.1 2.0
Intangible assets 15.8 1.1
Property, plant & equipment[4] 23.6 6.4
Other non-current assets 15.0 7.9
Total non-current assets 61.4 17.4
Inventories 34.5 20.5
Trade receivables 21.8 37.5
Other current assets 17.8 3.8
Financial receivables 11.8 5.7
Cash and cash equivalents 10.2 14.5
Total current assets 96.1 82.0
TOTAL ASSETS 157.5 99.4
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July 30, 2020 13:29 ET (17:29 GMT)
Capital attributable to equity holders of 47.2 51.0
the parent
Non-controlling interests (0.1) 0.1
Consolidated capital 47.1 51.1
Borrowings and financial debt 37.4 15.9
Other non-current financial liabilities4 19.0 3.9
Total non-current liabilities 56.5 19.9
Trade payables 20.3 17.2
Financial liabilities (including lease 16.6 8.8
liabilities)
Other current liabilities4 17.0 2.4
Total current liabilities 53.9 28.4
TOTAL LIABILITIES 157.5 99.4
First-quarter growth despite the impact of Covid-19
As already announced, and despite the impact of the COVID-19 outbreak, the
Group managed to continue generating healthy revenues in the first quarter
of the 2020-21 period (March 1 - May 31, 2020), delivering revenue growth of
+18% on a pro forma basis[5] relative to the year-earlier period.
The same growth dynamic has been observed in the first part of the second
quarter.
New targets for FY 2020-21 reiterated
These figures and trends are all perfectly in line with the targets for
2020-21 announced in early July, spurring 2CRSi to reiterate its ability to
deliver sharp growth in revenue at between EUR 170m and EUR 200m. Such an
increase would automatically improve its level of profitability compared to
the previous period.
- END -
About 2CRSi
Founded in Strasbourg (France), 2CRSi group develops, produces and sells
high-performance customised and environmentally-friendly servers. In the
financial year 2019/2020, the Group achieved pro forma turnover of
EUR 141m. The Group today has 355 employees and markets its offer of
innovative solutions (processing, storage and network) in more than 50
countries. 2CRSi has been listed since June 2018 on the regulated market of
Euronext in Paris (ISIN Code: FR0013341781) and is included in the European
Rising Tech label. For further information please visit: www.2crsi.com [1]
Contacts
2CRSi Actifin Actifin
Marie de Lauzon Victoire Demeestère Jennifer Jullia
COO Financial Com. Financial PR
investors@2crsi.com vdemeestere@actifin.fr jjullia@actifin.fr
+33 3 68 41 10 70 + 33 1 56 88 11 24 + 33 1 56 88 11 19
=---------------------------------------------------------------------------
[1] Press release of 8 July 2020 "Estimated 2019-2020 earnings [2]"
[2] Press release of 26 February 2020 "Expected impact of the closure of
several Asian factories as a result of COVID-19 [3]"
[3] The pro forma income statement for the 12 month-period running from
March 1, 2019 to February 29, 2020 was based on:
· Group 2CRSi's historical consolidated accounts for the 14-month period
from which were deducted the consolidated accounts prepared for the period
running from January 1, 2019 to February 28, 2019 on the same scope of
consolidation basis.
· The addition of Boston Limited group's consolidated income statement for
the period from March 1, 2019 to February 29, 2020, assuming adjustments
to fair value as measured at November 18, 2019 would have been identical
at March 1, 2019.
[4] Includes items relating to rights of use (IFRS 16)
[5] Which means at constant scope
Regulatory filing PDF file
File: 2CRSi: 2019/20 Annual earnings [4]
Language: English
Company: 2CRSi SA
32, rue Jacobi-Netter
67200 Strasbourg
France
Phone: +33 3 68 41 10 70
E-mail: investors@2crsi.com
Internet: www.2crsi.com
ISIN: FR0013341781
Euronext Ticker: 2CRSI
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1106807
End of Announcement EQS News Service
1106807 30-Jul-2020 CET/CEST
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