ECA Group: first-half 2019 revenue

Read the PDF in English

Read the PDF in French

¹ Unaudited figures

• Backlog of more than a half billion euros
• Revenue up by 33.4% in second quarter 2019
• 2019 target confirmed

For first-half 2019, the consolidated ECA Group revenue was €58.1 million, an increase of 15.2%. On a like-for-like basis, excluding contributions from SSI and EN Moteurs subsidiaries disposed of in 2018, the increase was 18.5%. Revenue grew by above 30% in second quarter 2019. This acceleration relies on the performance of the Robotics and Aerospace divisions, which benefited from the sound business dynamic at the start of the year.

In first-half 2019, revenue of the Robotics division was €36.8 million, up by 33.1% compared with first-half 2018 and 38.8% like-for-like. The division posted strong growth of 66.7% in the second quarter, thanks to a very healthy backlog level and the start up of the mine hunter contract for the Belgian and Dutch navies. During the quarter, the group recorded a portion of the revenue that could be recognized this year from the contract, teams are mobilized and the project's study phase has begun.

The division's backlog was €516.6 million as at June 30, 2019, multiplied by 5 compared with March 30, 2019. It includes the major order from the Belgian and Dutch navies for twelve mine hunting vessels and provides exceptional visibility for the coming years.

The revenue of the Aerospace division was €18.7 million in the first half, up by 11.2% compared with 2018. This positive inflexion is driven by the good level of orders recorded since the start of the fiscal year, the ramp up of Ground Support Equipment and a favorable base effect. The backlog was €26.2 million, up by 12.8% compared with June 30, 2018 and the business dynamic is still strong, particularly in the Automated Guided Vehicles sector.

Lastly, revenue of the Simulation division was €2.6 million in the first half year, compared to €5.9 million in first-half 2018, impacted by the termination of the contract for military driving simulators. The backlog was €1.7 million as at June 30, 2019, compared with €2.0 million at March 31, 2019.

2019 perspectives

As at June 30, 2019, the group's backlog reached the historic level of €544.5 million, multiplied by close to 6 compared with June 30, 2018 and by 4 compared with March 31, 2019.

For 2019, the group confirms that its target revenue growth of over 5% should be clearly exceeded.

The group's profitability should continue to improve, benefiting from efforts to reduce costs and improve operating efficiency. In the medium term, this trend should be accentuated by the volume and series effects of the mine hunting contracts.

Several major navies, including France, India, Australia, Italy and the UK, will be renewing or equipping their mine hunting fleets in the coming years. Additionally, ECA Group believes that many countries will be equipped with transportable drone systems that can be used from the coast. The company feels that it is well-placed to capture a substantial share of these markets. 

Next key date

Half-year results for 2019 released on Wednesday, September 18, 2019 before market opening.

On this occasion, Guénaël Guillerme, CEO, and Loïc Le Berre, Deputy CEO in charge of Finance at Groupe Gorgé, will comment ECA Group results to the financial community and answer questions from analysts during a conference call in French, to take place on the same day at 10 am.

Details about the conference call will be available one week in advance in the Investor Relations section of ECA Group website

A presentation and a recording of this conference will be available on the ECA Group website