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ECA Group: 2017 first half year results

ECA Group: 2017 first half year results

ECA Group (Euronext Paris: ECASA) published its 2017 first half year results today.

Monday, September 11 2017

Read the PDF in French

Read the PDF in English

 

  • Solid backlog at €103 millions
  • Slight half-year revenue growth (+2.6%)
  • 2017 objective confirmed

ECA Group (Euronext Paris: ECASA) published its 2017 first half year results today.

ECA_Group_Results_S1_2017_table

 

 

 

 

 

 

 

 

 

[1] The consolidated financial statements were subject to a limited review by the statutory auditors. Their reports are in the process of being issued.

2 EBITDA: Current operating income before depreciation, amortization and provisions

ECA_Group_H1_2016_2017_table

 

 

 

 

 

 

 

 

 

At the first half of 2017, ECA Group consolidated revenue stood at €54.4 million, an increase of 2.6% compared with the first half of 2016. First half of 2016 revenue level was strong, so business in the first half of 2017 performed well, resulting from sound order intake level in 2016.

Revenue from the Robotics and Integrated Systems division stood at €32.9 million at the first half of 2017, an increase of 5.0% compared with the first half of 2016. Revenue from the Aerospace division stood at €17.7 million at the first half of 2017, an increase of 29.6% compared with the first half of 2016. This increase benefited from the acquisition of ELTA at the end of November 2016 (see press release). Lastly, revenue from the Simulation division stood at €3.8 million at the first half of 2017, a reduction of 52.3% compared with the first half of 2016. The half year was affected by an unfavorable basis of comparison related to the end of the military vehicle driving simulators (MVS) contract at the end of the first half of 2016. The execution of a second contract awarded end of 2016 will contribute to second half revenue (see press release).

At June 30 2017, the Group's order book stood at €103 million compared with €85 million at June 30, 2016. Bids remain at a very high level, particularly in Asia, Eastern Europe and the Gulf states.

Several significant commercial successes were recorded during the half year, notably a new contract for more than €4 million with the French navy to support underwater demining robots over 5 years (see press release), and a contract of more than €2 million with Ifremer to develop and deliver a new autonomous underwater vehicle capable of descending completely independently to a depth of 6,000 meters (see press release).

With regards to ELTA, which was acquired at the end of 2016, sales of emergency locator transmitters were buoyant and the Group announced the launch of its new «ELiTE» emergency locator transmitter for commercial aviation (see press release).

ECA_Group_Results_S1_2017_EBITDA

 

 

 

 

 

 

 

 

3 The consolidated financial statements were subject to a limited review by the statutory auditors. Their reports are in the process of being issued.

 

EBITDA for the first half of 2017 stood at €3.6 million, compared with €5.3 million in the first half of 2016, a reduction linked, firstly, to a less favorable business activity mix and, secondly, to particularly high commercial costs during the half year.

EBITDA for the Aerospace division increased close to three-fold to €0.7 million compared to €0.2 million in the first half of 2016. The Robotics and Integrated Systems division was down by 20.9%, affected particularly by commercial and demonstration costs during the half year. Lastly, the Simulation division was down over the half year. In 2016, this division had a positive foundation with the production of military vehicle driving simulators (MVS).

Taking account of non-recurring elements, operating income stood at €0.7 million at June 30 2017, compared with €3.0 million at June 30 2016.

Net income - Group share stood at €0.3 million compared with €2.2 million in 2016.

 

Financial situation at June 30, 2017

Net debt stood at €15.0 million, including treasury shares of €2.0 million, compared with €3.4 million at December 31, 2016.

This increase in net debt over the period is explained by the continuing high rate of investments, which stood at €4.0 million in the first half year, together with increased working capital requirements (€7.8 million), related to the seasonality of deliveries, which is expected to fall in the second half of 2017. A total dividend of €2.6 million was paid in June 2017 for the 2016 financial year.

 

Outlook

The Group should continue its growth through its focus on accelerating the marketing of products developed during recent years and improving its profitability.

The Group is participating in several significant tenders, particularly for airborne drones, drone systems and aeronautics assembly systems, where client decisions have been pending for several months and which should conclude in the second half of 2017.

In this context, the Group confirms its revenue target of €120 million for 2017.

 

A commented presentation of ECA Group’s half-year results is available on our Youtube channel: http://bit.ly/2xbvxHp

 

Next key financial date:

Publication of revenue for the third quarter of 2017 on October 25, 2017.