Earnings Release • Mar 4, 2021
Earnings Release
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Under Embargo until March 4, 2021 - 17.40 CET Regulated information
Covid-19 impacts activities – focus on weathering the storm until markets recover
Subject to approval at the Annual Shareholders' meeting of May 18, 2021, the share will trade ex-coupon as of May 26, 2021 and the dividend will be payable as from May 28, 2021 at the counters of KBC bank upon presentation of coupon n°15.
JENSEN-GROUP's revenues for the year amount to 245.2 million euro compared to 332.2 million euro in the previous year. As a consequence of the Covid-19 crisis, the Group experienced a significant slow-down in order intake as well as several project cancellations and postponements of confirmed orders. The cancellation of contracts has a negative impact on EBIT of 2.5 million euro. Several customers serving the hospitality industry temporarily closed their operations due to a stand-still in travel and tourism as well as authorities' decisions. We therefore expect that a number of hospitality projects in the quotation phase will be postponed for several months. The servicing, installation, and maintenance of our machines remain challenging for our technicians in the face of the Covid-related travel restrictions that many countries impose.
Occasionally, the JENSEN-GROUP grants buy-back guarantees to selected customers. Due to the closing of many laundries in Europe, a few extensions of buy-back guarantees of up to 12 months were granted.
Despite management's swift reaction to the drastic changes in market conditions, lower revenues resulted in an EBIT decrease of 44.4% compared to last year. Management took measures to adjust the capacity in several plants and to temporarily close others in response to individual workloads or government directives. The EBIT includes 2.7 million euro in one-off costs, particularly restructuring costs related to the reduction of workforce.
The Group took the following measures to decrease the structural cost base:
The Group benefited from support from authorities mostly related to payroll compensation in several countries (1.7 million euro).
JENSEN USA received a Promissory Note from the state of Florida amounting to 1.9 million USD in May 2020. The Company applied for forgiveness while provisionally
recording this Promissory Note as liability. Any forgiven amount will eventually be recorded as other income once a final decision has been made.
In July, JENSEN GmbH was granted an amortizing KfW (Kreditanstalt für Wiederaufbau) loan amounting to 10 million euro for a period of six years. At year-end 5 million euro were drawn.
The JENSEN-GROUP received 223.4 million euro of orders in 2020, compared to 326.3 million euro orders last year - a drop of 31.5%. Considering the current investment climate caused by the continuation of lockdowns in major markets, we expect the ripples of market inactivity to continue well into 2021 with a potential for lower financial results in 2021 compared to 2020. With all the restructuring measures we have put in place this year we are confident that we will continue to weather the storm also considering the financial headroom that we have created. We are prudent in our outlook but remain optimistic in anticipation of a return to previous levels of order intake in 2022 as the hospitality industry and the market begin to recover.
The most patent risk factors include the duration and effect of the pandemic, rapid declines in demand, the availability of financing to our customers, fluctuating raw material, energy, and transportation prices, high exchange rate volatility, an uncertain political climate, and competitive pressures. The Group does not expect a significant impact from Brexit. The impact of potential protectionist movements in various parts of the world remain unpredictable.
Consolidated, audited key figures
| Dec 31, 2020 | Dec 31, 2019 | Change | |
|---|---|---|---|
| (million euro) | 12M | 12M | |
| Revenue | 245.2 | 332.2 | -26.2% |
| Operating result (EBIT) | 12.8 | 23.0 | -44.4% |
| Cash flow from operations (EBITDA) 1 | 19.8 | 31.2 | -36.6% |
| Financial result | -2.9 | -2.5 | 14.9% |
| Profit before taxes | 11.2 | 20.3 | -44.9% |
| Income tax expense | -4.0 | -5.1 | -22.1% |
| Profit for the period from the continuing operations | 7.2 | 15.2 | -52.6% |
| Result from assets held for sale | -0.1 | -0.1 | -54.2% |
| Share in result of associates and joint ventures accounted for | 1.3 | -0.2 | -645.3% |
| using the equity method Result attributable to Non Controlling Interest |
-0.5 | -0.7 | -29.1% |
| Consolidated result attributable to equity holders (Group | 7.6 | 15.7 | -51.6% |
| share in the profit) Net cash flow 2 |
14.6 | 23.9 | -39.0% |
| Dec 31, 2020 | Dec 31, 2019 | Change | |
|---|---|---|---|
| (million euro) | 12M | 12M | |
| Equity | 136.0 | 132.4 | 2.8% |
| Net financial debt (+)/Net cash (-)3 | -28.3 | 4.4 | -749.7% |
| Assets held for sale | 0.4 | 0.4 | -8.5% |
| Total assets | 278.4 | 276.7 | 0.6% |
| Dec 31, 2020 | Dec 31, 2019 | Change | |
|---|---|---|---|
| (euro) | 12M | 12M | |
| Cash flow from operations (EBITDA) 1 | 2.5 | 4.0 | -36.6% |
| Profit before taxes | 1.4 | 2.6 | -45.0% |
| Consolidated result attributable to equity holders (EPS) | 1.0 | 2.0 | -51.7% |
| Net cash flow 2 | 1.9 | 3.1 | -38.9% |
| Equity | 17.4 | 16.9 | 2.8% |
| Number of shares (end of period) | 7,818,999.0 | 7,818,999.0 | |
| Number of shares (average) | 7,818,999.0 | 7,818,999.0 |
| December 31, | December 31, | |
|---|---|---|
| (in thousands of euro) | 2020 | 2019 |
| Revenue | 245,238 | 332,178 |
| Trade goods | -118,007 | -158,288 |
| Services and other goods | -26,674 | -41,606 |
| Remuneration, social sec. costs and pensions | -83,170 | -104,650 |
| Depreciation, amortisation, write downs of assets, impairments | -6,998 | -8,219 |
| Total expenses | -234,848 | -312,764 |
| Other Income / ( Expense) | 2,406 | 3,602 |
| Operating profit before tax and finance (cost)/ income | 12,795 | 23,016 |
| (EBIT) Interest income |
738 | 998 |
| Other financial income | 1,549 | 1,309 |
| Financial income | 2,287 | 2,307 |
| Interest charges | -1,939 | -2,240 |
| Other financial charges | -3,214 | -2,560 |
| Financial charges | -5,152 | -4,800 |
| Share in result of associates and companies accounted for using the equity method |
1,251 | -229 |
| Profit before tax | 11,181 | 20,294 |
| Income tax expense | -4,004 | -5,138 |
| Profit for the period from continuing operations | 7,178 | 15,155 |
| Result from assets held for sale | -54 | -118 |
| Consolidated profit for the year | 7,124 | 15,037 |
| Result attributable to Non-Controlling Interest | -479 | -675 |
| Consolidated result attributable to equity holders | 7,602 | 15,712 |
| December 31, 2020 |
December 31, 2019 |
|
|---|---|---|
| (in thousands of euro) Other comprehensive income (OCI): |
||
| Items that may be subsequently reclassified to Profit and Loss | ||
| Financial instruments | -125 | 209 |
| Currency translation differences | -2,297 | 621 |
| Currency translation differences related to associates and companies accounted for using the equity method |
-642 | 321 |
| Items that will not be reclassified to Profit and Loss | ||
| Actual gains/(losses) on Defined Benefit Plans | -561 | -2,017 |
| Tax on OCI | 172 | 452 |
| Other comprehensive income for the year | -3,454 | -414 |
| OCI attributable to Non-Controlling Interest | 0 | 0 |
| OCI attributable to the equity holders | -3,454 | -414 |
| Total comprehensive income for the year | 3,670 | 14,624 |
| Profit attributable to: | ||
| Non-Controlling Interest | -479 | -675 |
| Equity holders of the company | 7,602 | 15,712 |
| Total comprehensive income attributable to: | ||
| Non-Controlling Interest | -479 | -675 |
| Equity holders of the company | 4,148 | 15,298 |
| Basic and diluted earnings per share (in euro) | 0.97 | 2.01 |
| Weighted average number of shares | 7,818,999 | 7,818,999 |
March 26, 2021: Publication Annual Report 2020 on the corporate website. May 18, 2021:10.00 am: Annual Shareholders' meeting at JENSEN-GROUP Headquarters, Ghent.
August 10, 2021 (evening): Half year results 2021 (Analyst Meeting August 11, 2021).
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.
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 environmental 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. As per December 31, 2020, the JENSEN-GROUP employs worldwide 1,239 employees.
This press release is available on the corporate website www.jensen-group.com.
(End of press release)
Note to the editors: 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]
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