An increase in revenue and current operating income; a positive outlook for sales in the second-half 2015

Thursday, September 10 2015

Revenue for the first half-year was up 9.6% compared with the first half of 2014, at €43.1 million. The seasonality of the activities, which is reflected in higher second-half results, is expected to be very marked this year.Current operating income at June 30, 2015 amounted to €0.7 million, showing growth of 2.7% compared with the first half of 2014.Operating income at June 30, 2015 amounted to a loss of €0.6 million compared with income of €0.2 million at June 30, 2014. This was due to a number of non-current items (relocation expenses for a number of subsidiaries and amortization of intangible assets recognized in connection with acquisitions).

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(1) The consolidated financial statements were subject to a limited review by the statutory auditors and were approved by the Board of Directors on September 8, 2015.
(2) EBITDA: Current operating income before depreciation, amortization and provisions.

Revenue for the first half-year was up 9.6% compared with the first half of 2014, at €43.1 million. The seasonality of the activities, which is reflected in higher second-half results, is expected to be very marked this year.
Current operating income at June 30, 2015 amounted to €0.7 million, showing growth of 2.7% compared with the first half of 2014.
Operating income at June 30, 2015 amounted to a loss of €0.6 million compared with income of €0.2 million at June 30, 2014. This was due to a number of non-current items (relocation expenses for a number of subsidiaries and amortization of intangible assets recognized in connection with acquisitions).

A sound financial position

Equity amounted to €65 million after the payment of €2.6 million in dividends at end-June. Net cash amounted to €2.9 million excluding treasury shares of €1 million, compared with €5.1 million at June 30, 2014. In 2014, the dividend of €2.6 million was paid in July.
Working capital requirements improved by €2.2 million in the half-year.

Strong sales momentum in the first half-year

Orders taken in the first half of the year are significantly higher than those in the first half of 2014, at €50 million compared with €40 million in 2014.
A number of major agreements were signed in the Robotics and Integrated Systems division (two orders amounting to a total of more than €10 million in unmanned surface vehicles and two orders for several million euros in autonomous underwater vehicles) and also in the Aeronautics division, with an exceptionally large order of €10 million for the supply of a new assembly line for the front sections of the A320 for the Airbus Saint-Nazaire plant.

A positive outlook for the second half-year

The Group enjoys good visibility for the rest of 2015. Its order backlog amounted to €101 million compared with €90 million at June 30, 2014 and €94 million at December 31, 2014. Bids remain at a very high level, in particular in Asia, Eastern Europe and the Gulf states.
The Aeronautics division, which posted a net downturn in revenue in the first half of 2015 (-20%) on account of a particularly strong first half-year in 2014 (an order for ATR recorded in late 2013 contributed significantly to revenue in 2014), is expected to generate a very high level of revenue in the second half of 2015. Its order backlog is at a very high level (up 50% compared with June 30, 2014).

The excellent performance achieved by the Simulation business in first-half 2015 (revenue growth of 26.2%) is expected to continue in the second half. This division has a very satisfactory order backlog (€17 million) and also recorded the best operating income of the Group's three divisions, at €0.7 million compared with a loss of €0.3 million in the first half of 2014.
The Robotics and Integrated Systems division, which accounted for 62% of revenue in the first half of 2015, is expected to continue its positive trend. Its order backlog is good and is stable at €60 million. In addition, this division has the strongest seasonality effect of the three divisions.
The positive effects of the major sales and marketing investments agreed in late 2013 and implemented during 2014 are now being reflected in tenders and order taking. In particular, in early September, this division had recently recorded two large orders in Asia for a total amount of nearly €25 million. These contracts are for the supply of systems to protect vessels from the threat of underwater mines. In the last two years, this division has developed the solutions provided over the years to the French navy by adding a number of innovations to adapt them to the export market. These two successes mark the Group's first export orders for these solutions designed to protect vessels from mines.

Sales and marketing investments agreed in 2013 are thus set to gradually increase this division's revenue and therefore margin over the coming years, due to the long cycle in which the division operates.
In light of this positive outlook, the Group confirms its target of €100 million in revenue for the financial year.

A commented presentation is available at the following link:
http://youtu.be/KZYQ-XKafn8

Publication of the half-year financial report at June 30, 2015

ECA Group announced today that its half-year report at June 30, 2015 has been published and filed with the French Financial Markets Authority (Autorité des Marchés Financiers).

Next report

Publication of revenue for the third quarter on October 27, 2015