Earnings Release • Sep 30, 2015
Earnings Release
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Ghent, 30 September 2015 - 6.00 pm. - Press Release / Regulated information
ABO-Group, a group of integrated engineering and testing companies operating in the areas of soil, environment, geotechnics, energy and waste, today announced its 2015 consolidated financial halfyear figures.
| H1 2014 | H1 2015 | Change | Change | Per share | |
|---|---|---|---|---|---|
| in € 000 |
in € 000 |
in € 000 |
% | in € | |
| Revenue | 14,563 | 15,457 | 894 | +6.1% | |
| Total operating income | 14,913 | 15,938 | 1,025 | +6.9% | |
| EBITDA | 908 | 949 | 41 | +4.5% | 0.09 |
| Amortisation/depreciation | 711 | 789 | 78 | +11.0% | |
| Operating profit | 197 | 160 | -37 | -18.8% | 0.02 |
| Financial result | -59 | -7 | 52 | +88.1% | |
| Profit before taxes | 138 | 160 | 22 | +15.9% | |
| Net profit of continuing operations |
5 | 59 | 54 | +1,080.0% | |
| Net profit | 5 | 52 | 47 | +940.0% | 0.005 |
Despite a difficult macroeconomic context, in which the budgets of clients such as the construction sector and the government remain under pressure, ABO-Group was able to realise strong revenue figures in the first half-year of 2015. The growth is continuing in virtually all the markets in which the group operates.
| H1 2014 in € 000 |
H1 2015 in € 000 |
Growth % |
|
|---|---|---|---|
| France | 7,869 | 8,295 | 5.4% |
| Belgium | 6,139 | 6,584 | 7.2% |
| Netherlands | 555 | 578 | 4.1% |
| Total revenue | 14,563 | 15,457 | 6.1% |
Where the growth was mainly led by France in 2014, we note that in 2015 also the Belgian and even the Dutch markets were able to present better revenue figures. The growth is fairly general, but more pronounced in the Belgian fieldwork companies (Geosonda), the energy consultancy (E20) and the Dutch geotechnics.
ABO places heavy emphasis on diversification, such as archaeology and BREEAM (Building Research Establishment Environmental Assessment Methodology). In addition to the historical main activity of environmental remediation, increasingly more consulting and engineering services are thus being provided according to a one-stop-shop principle. With the "ABO Environment" concept, ABO focuses on clients who need a complete package: soil, permits, asbestos, soundings, sustainability, BREEAM, archaeology, water, etc.
On both the Flemish and Walloon sides there have been heavy cutbacks in project support by means of export subsidies. The group was unable to compensate this sudden falling away in the short term. The lead times on such projects, after all, can easily increase from six months to more than a year.
The financial liabilities were further reduced over the first six months. The net liability decreased from € 3.7 million in 2014 to € 3.3 million by the middle of 2015. All this means that the group is ready to continue its growth path.
In 2015, numerous new initiatives were taken within ABO-Group to enable growth in the coming years. ABO-Group thus continues to invest in its expansion. As a result the operating profit lags behind the revenue growth.
The choice, despite the crisis, for continuing to invest in new equipment and safety, and indirectly in people and training, translates into significantly increased depreciation/amortisation (+€ 78k). The decrease in the operating profit must thus be nuanced. The operating profit before depreciation/amortisation (EBITDA), as a measure of cash flow, actually increased by 5.3%.
According to section 53 of VLAREL, the Flemish regulation concerning the admission in the field of environment, soil experts must be independent of their clients. As a result of the assumed shareholding of a former Thenergo shareholder connected with the Flemish government, there exists a suspicion that ABO would not be independent of the Flemish government. The Council of State says in various judgments that exception from this can be requested from the minister, who will then determine that ABO carries out these engagements properly independently. ABO is closely following this procedure and has in virtually all the cases submitted obtained the ministerial exception.
The non-audited interim consolidated financial statements for the period of 6 months ending June 30th 2015 are included as an appendix to this message.
ABO-Group wants to continue expanding its environmental and energy consultancy, engineering and testing activities by entering new growth markets (Central and South-East Asia, Africa and the former East bloc countries). The group positions itself as a European player with international ambitions. ABO-Group will achieve this by, on the one hand, making efforts in internal organic growth, with recruitment of experts for international projects and, on the other, by setting up and expanding new activities. The group also wants to continue developing its acquisition strategy in the home countries Belgium, the Netherlands and France.
ABO-ERG, the French subsidiary of ABO-Group, opened a new office in Montpellier in the South of France at the beginning of August 2015. An experienced project manager together with his team has started to offer the services package in the area of geotechnics and environment in the region. The choice of Montpellier is strategic in order, after the South East, also to have more presence in the South West of France.
During recent years, ABO-ERG has become one of the reference companies for complex geotechnical engagements in its home country of France. The company was also employed this summer for the installation of a high technology and innovative monitoring of a railway tunnel in the French Alps (Encombrouze).
31 March 2016: 2015 annual figures 25 May 2016: General Meeting of Shareholders
Frank De Palmenaer, managing director, and Johan Reybroeck, CFO, declare that, to their knowledge, the interim condensed consolidated financial information for the period of six months ended 30 June 2015, which was prepared in accordance with IAS 34 "Interim Financial Reporting" as applied by the European Union, gives a true and fair view of the assets, of the financial position and of the results of the company and the companies included in the consolidation, and the interim report gives a fair overview of the most significant events and key transactions with related parties that have taken place during the first six months of the financial year and their effect on the interim condensed financial information, as well as a description of the most significant risks and uncertainties for the remaining months of the financial year.
ABO-Group is a group of integrated engineering and testing companies, operating in the areas of soil, environment, geotechnics, energy, ground water management, and waste. ABO-Group has the aim of increasing its market position by means of internal growth and acquisitions, and to expand its range of operations within and outside Europe. For a more detailed description of the risks and the activities of the group, please see the listing document of ABO-Group, released on 31 July 2014 and available on the website of ABO-Group (www.abo-group.eu),
Johan Reybroeck CFO ABO-Group Environment NV [email protected] T +32 496 59 88 99 Maaltecenter Blok G, Derbystraat 255, B-9051 Ghent (SDW), Belgium
This press release is available on our website www.abo-group.eu
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