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JENSEN-GROUP N.V.
Earnings Release • Mar 12, 2020
3967_er_2020-03-12_468a9056-fa1e-49eb-801c-b4ef10e102a4.pdf
Earnings Release
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Under Embargo until 12/03/2019 - 17.40 CET Regulated information
Press Release Stable revenue with lower profit
Highlights 2019
- Revenue for the year amounts to 332.2 million euro compared to 343.8 million euro last year. Many smaller orders with fast deliveries could not fully compensate the decrease of large projects.
- Operating profit (EBIT) amounts to 23.0 million euro, which is 14.6% lower than last year. EBIT is affected by lower revenues, fluctuating but lower capacity utilization in some factories and costs associated with restructuring measures. EBIT is positively affected by a partial insurance payment for the impact of hurricane Michael (+3.8 million euro income, - 1.1 million euro costs related to hurricane Michael). As this part of the insurance claim is certain, the Group recognized this income. Management believes that the insurance coverage is adequate.
Recurring EBIT is estimated at 21.9 MEUR or 24.5% below the previous year.
- Cash flow (EBITDA) amounts to 31.2 million euro, a 6.8% decrease compared to last year.
- A provision of 1.6 MEUR was taken as restructuring costs to adapt the structure and the production capacity.
- Total net finance cost amounts to 2.5 million euro. This primarily relates to net interest charges (1.2 million euro), net currency loss (0.5 million euro) and net other bank charges (0.8 million euro). The interest charges include 0.4 million euro related to IFRS 16 (leases), the interest
component.
- The net tax charges amount to 5.1 million euro and are lower than last year because of lower profit before tax as well as lower disallowed expenses.
- Net income attributable to the shareholders amounts to 15.7 million euro compared to 19.1 million euro last year (earnings per share of 2.01 euro).
- Net debt increased by 9.7 million euro, from 5.4 million euro net cash to 4.4 million euro net debt. The new IFRS 16 accounting rule on operating leases increases the net debt position with 13.7 million euro.
- The Board proposes to the Annual Shareholders' meeting to approve a dividend of 1.00 euro per share.
Subject to approval by the Annual Shareholders' meeting of May 19, 2020, the share will trade ex-coupon as of May 27, 2020 and the dividend will be payable as from May 29, 2020 at the counters of KBC bank upon presentation of coupon n°15.
• 0n March 27, 2019, the JENSEN-GROUP increased its shareholding in TOLON GLOBAL MAKINA Sanyi Ve Tikaret Sirketi A.S., Turkey, by 6.34% to reach the level defined in the original contract of 49%.
Outlook
In 2019, the JENSEN-GROUP received 326.3 million euro orders, 1.4% above 2018. We are prudent in our outlook because we are unable to assess today the impact of the Corona virus on the various markets. The volume of projects in the markets is still good and a close monitoring process for orders and capacity needs is in place.
The main business risks have not changed materially from last year. Major risk factors are the volatility in the financial markets affecting our customers' investment decisions and their capacity to find financing, competitive pressure, political instability and uncertainty in certain parts of the world. The Group does not expect a significant impact from the Brexit. The potential impact of the Corona virus and the possible protectionist movements in various parts of the world cannot be assessed today. Other risks that mainly affect our margin are exchange rate volatility and fluctuating raw material prices, energy and transportation costs.
Key figures
Income Statement Consolidated, audited key figures
| Dec 31, 2019 | Dec 31, 2018 | Change | |
|---|---|---|---|
| (million euro) | 12M | 12M | |
| Revenue | 332.2 | 343.8 | -3.4% |
| Operating result (EBIT) | 23.0 | 26.9 | -14.6% |
| Cash flow from operations (EBITDA) 1 | 31.2 | 33.5 | -6.8% |
| Financial result | -2.5 | -1.3 | 86.7% |
| Profit before taxes | 20.5 | 25.6 | -19.8% |
| Income tax expense | -5.1 | -7.6 | -32.1% |
| Profit for the period from the continuing operations | 15.4 | 18.0 | -14.7% |
| Result from assets held for sale | -0.1 | -0.1 | -7.8% |
| Share in result of associates and joint ventures | -0.2 | 0.9 | -126.5% |
| accounted for using the equity method | |||
| Result attributable to Non Controlling Interest | -0.7 | -0.3 | 103.7% |
| Consolidated result attributable to equity holders | 15.7 | 19.1 | -17.8% |
| (Group share in the profit) | |||
| Net cash flow 2 | 23.9 | 25.7 | -6.9% |
Balance sheet Consolidated, audited key figures
| Dec 31, 2019 Dec 31, 2018 | Change | |||
|---|---|---|---|---|
| (million euro) | 12M | 12M | ||
| Equity | 132.4 | 126.0 | 5.1% | |
| Net financial debt (+)/Net cash (-)3 | 4.4 | -5.4 | -181.5% | |
| Assets held for sale | 0.4 | 0.4 | 1.8% | |
| Total assets | 276.7 | 255.7 | 8.2% |
Consolidated, audited key figures per share
| Dec 31, 2019 Dec 31, 2018 | Change | ||
|---|---|---|---|
| (euro) | 12M | 12M | |
| Cash flow from operations (EBITDA) 1 | 3.99 | 4.29 | -7.0% |
| Profit before taxes | 2.62 | 3.27 | -19.9% |
| Consolidated result attributable to equity holders (EPS) | 2.01 | 2.44 | -17.6% |
| Net cash flow 2 | 3.06 | 3.29 | -7.0% |
| Equity | 16.93 | 16.11 | 5.1% |
| Number of shares (end of period) | 7,818,999 | 7,818,999 | |
| Number of shares (average) | 7,818,999 | 7,818,999 |
1EBITDA (Earnings before Interest, Taxes, Depreciation and amortization) = Operating profit (EBIT) + Depreciation, amortization, write downs on trade receivables, write downs on inventory, changes in provisions
The JENSEN-GROUP adjusted the definition of EBITDA in order to further improve transparency: in last years, the movement in the related balance sheet accounts was used for the changes in provision. As from 2019 onwards the JENSEN-GROUP uses the amount in P&L. The 2018 ratio is restated accordingly. In 2018, the EBITDA disclosed amounted to 33,525 thousand euro, restated the EBITDA for the same period amounts to 31,823 thousand of euro.
2Net cash flow = Consolidated result attributable to the equity holders + Depreciation, amortization, write downs on trade receivables, write downs on inventory, changes in provisions
3Net financial debt (+)/Net cash (-)= Borrowings (Non-current and current) – Cash and cash equivalent
Consolidated statement of comprehensive income
| (in thousands of euro) | December 31, 2019 |
December 31, 2018 |
|---|---|---|
| Revenue | 332,178 | 343,782 |
| IIa. Trade goods IIb Services and other goods IIc. Remuneration, social sec. costs and pensions |
-158,288 -41,606 -104,650 |
-157,719 -45,949 -106,458 |
| Depreciation, amortisation, write downs of assets, impairments |
-8,219 | -4,887 |
| Total expenses | -312,764 | -315,013 |
| Other Income / ( Expense) | 3,602 | -1,833 |
| Operating profit before tax and finance (cost)/ income (EBIT) |
23,016 | 26,936 |
| Interest income Other financial income |
998 1,309 |
1,420 1,755 |
| Financial income | 2,307 | 3,175 |
| Interest charges | -2,240 | -1,867 |
| Other financial charges Net financial charges |
-2,493 -2,560 | -2,644 -1,335 |
| Financial charges | -4,800 | -4,510 |
| Profit before tax | 20,523 | 25,601 |
| Income tax expense | -5,138 | -7,562 |
| Profit for the period from continuing operations | 15,385 | 18,039 |
| Result from assets held for sale | -118 | -128 |
| Share in result of associates and companies accounted for using the equity method |
-229 | 866 |
| Consolidated profit for the year | 15,037 | 18,777 |
| Result attributable to Non-Controlling Interest | -675 | -331 |
| Consolidated result attributable to equity holders | 15,712 | 19,108 |
| Other comprehensive income (OCI): Items that may be subsequently reclassified to Profit and Loss |
||
| Financial instruments Currency translation differences |
209 942 |
233 178 |
| Items that will not be reclassified to Profit and Loss | ||
| Actual gains/(losses) on Defined Benefit Plans Tax on OCI |
-2,017 452 |
1,535 -443 |
| Other comprehensive income for the year | -414 | 1,504 |
| OCI attributable to Non-Controlling Interest | 0 | 0 |
| OCI attributable to the equity holders | -414 | 1,504 |
| Total comprehensive income for the year | 14,624 | 20,280 |
| Profit attributable to: | ||
| Non-Controlling Interest | -675 | -331 |
| Equity holders of the company | 15,712 | 19,108 |
| Total comprehensive income attributable to: Non-Controlling Interest Equity holders of the company |
-675 15,298 |
-331 20,612 |
| Basic and diluted earnings per share (in euro) Weighted average number of shares |
2.01 7,818,999 |
2.44 7,818,999 |
Financial calendar
- March 27, 2020: Publication Annual Report 2019 on the corporate website.
- May 19, 2020:10.00 am: Annual Shareholders' meeting at JENSEN-GROUP Headquarters, Ghent.
- August 11, 2020 (evening): Half year results 2020 (Analyst Meeting August 12, 2020).
Audit
The Statutory Auditor has confirmed that the audit of the consolidated accounts of JENSEN-GROUP, which is substantially complete, has as of today not revealed any material misstatement in the draft consolidated accounts, and that the accounting data which are reported in the press release are consistent, in all material respects, with the draft consolidated accounts from which these data have been taken.
Profile
The JENSEN-GROUP assists heavy-duty laundries worldwide to provide quality textile services economically. We have become a preferred supplier in the laundry industry by leveraging our broad laundry expertise to design and supply sustainable single machines, systems and integrated solutions. We are continuously growing by extending our offer and by developing environment friendly and innovative products and services that address specific customer needs. Our success results from combining our global skills with our local presence. The JENSEN-GROUP has operations in 23 countries and has distribution in more than 50 countries. Worldwide, JENSEN-GROUP employs about 1,660 employees.
This press release is also available on the corporate website www.jensengroup.com.
(End of press release)
For more information, please contact: JENSEN-GROUP Jesper Munch Jensen, Chief Executive Officer Markus Schalch, Chief Financial Officer Scarlet Janssens, Investor Relations Manager Tel. +32.9.333.83.30 E-mail: [email protected]