- Another half-year of strong growth: +20%
- Increase in corrected EBITDA margin at constant scope and exchange rates to 19.9%
- Increase in current operating income at constant scope and exchange rates: +30%
- Positive cash flows generated by activity of €33.1 million, the Group's all-time record for a first half
- Marked improvement in free cash flow over the period to -€3.3 million, the best performance since the IPO, in line with the 2019 targets
The FIGEAC AÉRO Group (ticker: FGA), a leading partner of major aerospace industry companies, announces its 2018/19 interim results, which are currently being audited, for the period ended 30/09/2018. The Audit Committee met on 13/12/2018, and the accounts will be approved by the Board of Directors on 24/12/2018. The 2017/18 financial statements restated for the application of IFRS 15 are provided at the end of this press release.
In €K - IFRS at 30/09 | H1 2017/2018 IFRS 15 | H1 2018/2019 IFRS 15 | H1 2018/2019 IFRS 15 and LFL1 | Change LFL |
Revenue2 | 169,987 | 202,018 | 204,075 | +20.0% |
Corrected EBITDA3 | 32,632 | 36,695 | 40,164 | +23.1% |
Corrected EBITDA/Revenue | 19.2% | 18.2% | 19.9% | +0.7pts |
EBITDA | 31,612 | 34,035 | ||
EBITDA/Revenue | 18.6% | 16.8% | ||
Depreciation and amortisation | (15,467) | (17,025) | ||
Net allocations to provisions | (384) | (20) | ||
Current operating income | 15,761 | 16,990 | 20,482 | +30.0% |
COI/Revenue | 9.3% | 8.4% | 10.1% | +0.8pts |
Other operating income | 511 | 130 | ||
Other operating expenses | (322) | (936) | ||
Operating income | 14,955 | 17,179 | ||
Cost of net financial debt | (2,347) | (4,636) | ||
Foreign exchange gains and losses | (6,916) | (289) | ||
Unrealised gains and losses on financial instruments | 7,981 | (387) | ||
Other financial income and expenses | (29) | (198) | ||
Income tax expense | (1,023) | (2,673) | ||
Net income adjusted for unrealised currency impact | 7,301 | 10,187 | 12,515 | +71.4% |
Net income including unrealised currency impact | 12,621 | 8,996 | ||
Net income, Group share, including unrealised currency impact | 12,620 | 9,168 |
Solid growth in 2018/19 interim results
In the first half of its 2018/19 financial year, FIGEAC AÉRO posted revenue of €202 million, an increase of 18.8%. At constant scope and exchange rates, revenue grew by 20.0% in the six months to 30 September 2018.
This strong buoyant was accompanied by an increase in corrected EBITDA to €36.7 million, which includes a dilutive effect resulting from the consolidation of the Tofer Group (-€0.8m) and an impact from the unfavourable change in the €/$ exchange rate (-€2.7m). At constant scope and exchange rates, corrected EBITDA amounted to €40.2 million up 23.1%, representing a margin of 19.9%, an improvement of 0.7 points.
At constant scope and exchange rates, current operating income was €20.5 million in the six months to 30 September 2018, a sharp increase of 30.0%, representing a current operating margin of 10.1%, an improvement of 0.4 points.
Operating income for H1 2018/19 improved by 15% to €17.2 million.
After taking into account net financial income and income tax, net profit for the six months to 30 September 2018, adjusted for unrealised currency impact and at constant scope and exchange rates, was €12.5 million, an increase of 71.4%.
Financial structure: very strong increase in cash flows generated by activity
FIGEAC AÉRO has obtained a €96 million loan granted by a pool of banks (CM-CIC, BNP, HSBC, ARKEA) and 50% guaranteed by Bpifrance, the French financing and development organisation for mid-size companies. This six-year loan, on favourable terms for the Group, will for the most part fund new investments allocated following the gain of the largest contract in FIGEAC AÉRO's history, announced in January 2017. Concluded with Spirit AeroSystems, this contract covers the production of aluminium and titanium mechanical parts, as well as sub-assemblies for the Airbus A350 XWB and Boeing B737, B747-8, B767 and B777 programs.
With shareholders' equity of €199.6 million as of 30 September 2018 and net financial debt of €278.2 million, the gearing ratio is under control at 1.39, compared with 1.32 as of 31 March 2018.
Cash flows generated by activity for the period increased sharply to €33.1 million, almost equivalent to those posted over 12 months in the previous financial year (€35.3 million in the year ended 31 March 2018 and €4.5 million in the first half of 2017/18).
This reflects a significant 49.4% improvement in cash flow (before cost of debt and taxes) to €36.2 million (€24.2 million in the previous year) and a sharp decline of more than €16.7 million in the WCR against a backdrop of business growth.
Net investments for the period were €36.4 million, 33.4% of which was devoted to R&D, 15.4% to ERP project, 34.8% to production equipment, 9.6% to real estate investments and the balance for various other investments.
The actions implemented within the Group have started to show results. For the first half of 2018/19 (ended 30 September 2018), free cash flow improved by a significant 86.5% to -€3.3 million (compared with -€24.3 million in the six months to 30 September 2017).
Short- and medium-term targets confirmed
In line with the trend observed in this first half, the Group confirms its target of achieving positive and recurring free cash flow over the current financial year (closing March 2019).
The growth seen in the first half enables Figeac Aéro to anticipate revenue of €425 million in the year to 31 March 2019, representing double-digit growth.
Confident in its growth, FIGEAC AÉRO confirms its goal of posting €520 million4 in revenue in 2020 and €650 million4 in 2023.
Next release:
- 30 January 2019 (after stock market closing), Q3 2018/19 revenue
1 At constant scope and exchange rates
2 2018/19 revenue is calculated using the average monthly EUR/USD exchange rate of 1.1785 for the period, and 2017/18 revenue is calculated using the average monthly EUR/USD exchange rate of 1.1392 for the period.
3 Corrected EBITDA = current operating income + depreciation and amortisation + net provisions, before the breakdown of R&D expenses capitalised by the Group by type
4 Based on a €/$ exchange rate of 1.18 and current capacity of manufacturers
ABOUT FIGEAC AÉRO |
The FIGÉAC AÉRO Group, a leading partner of major aerospace manufacturers, specialises in the production of light alloy and hard metal structural parts, engine parts, landing gear parts and sub-assemblies. An international group with a workforce of over 3,300 employees, FIGEAC AERO operates in France, the United States, Morocco, Mexico, Romania and Tunisia. In the year ended 31 March 2018, the Group reported annual revenue of €372 million. |
FIGEAC AÉRO Jean-Claude Maillard Chief Executive Officer Tel: +33 (0)5 65 34 52 52 | ACTUS finance & communication Corinne Puissant - Analyst/Investor Relations Tel: 01 53 67 36 77 / cpuissant@actus.fr Jean-Michel Marmillon - Press Relations Tel.: 01 53 67 36 73 / jmmarmillon@actus.fr |
IFRS 15 – “Revenue from contracts with customers”
Figeac Aero Group has applied IFRS 15 “Revenue from Contracts with Customers” since the financial year beginning on 1 April 2018, using the full retrospective method.
This standard replaces IAS 11 and IAS 18.
The main impacts are as follows:
1. Recognition of revenue
The Group's revenue is mainly generated by three activities:
a) Pre-production activity – "Non recurring costs" as part of series production:
The analysis carried out to date by the Group has led it to believe that the pre-production activities implemented prior to series production do not represent a performance obligation, as control over these activities is not transferred to the final customers. Consequently, revenue from these activities will be deferred according to the schedule for recognition of the main performance obligation.
This treatment requires the recognition of NRCs invoiced at the beginning of the contract to be spread over the life of the contract. The resulting impact was €443 thousand in the six months to 30 September 2017 and €1,309 thousand in the year ended 31 March 2018.
b) Activity of development outside of series production
Revenue from development activities will be recognised at the date of transfer of control. This treatment does not have a significant impact on existing revenue recognition methods.
c) Series production of parts and sub-assemblies
This activity constitutes a distinct performance obligation. Revenue is recognised at the date of transfer of control corresponding to the delivery of the parts and sub-assemblies to the final customers.
This treatment does not have a significant impact on existing revenue recognition methods.
2. Treatment of the learning curve:
IFRS 15 results in the immediate recognition in the income statement of the performance costs recorded during the start-up phase of contracts between observed returns and standard production profitability, costs that were previously recycled in income according to the actual decreases observed.
Impact of this application on the opening balance sheet
The application of IFRS 15 had a negative impact of €50.3 million on Group shareholders' equity (mainly due to the curve impact), net of consideration of associated deferred taxes.
Free Cash Flow
The application of the standard will not have an impact on the Group's cash flows.
CONSOLIDATED ASSETS in € thousands | 30/09/2017 Reported | Impact IFRS 15 | 30/09/2017 Restated |
---|---|---|---|
Development costs | 64,045 | 64,045 | |
Other intangible assets | 3,385 | 3,385 | |
Total intangible assets | 67,430 | 67,430 | |
Land | 5,423 | 5,423 | |
Buildings | 50,588 | 50,588 | |
Plant machinery | 130,158 | 130,158 | |
Other property, plant and equipment | 6,808 | 6,808 | |
Total property, plant and equipment | 192,976 | 192,977 | |
Deferred tax | 1,374 | 2,576 | 3,950 |
Other financial assets | 2,904 | 0 | 2,904 |
Other non-current assets | 627 | 627 | |
Contract assets | 20,473 | 20,473 | |
Total non-current assets | 265,311 | 23,050 | 288,362 |
Inventories and work in progress | 264,112 | -88,609 | 175,503 |
Customers and other receivables | 73,116 | 73,116 | |
Tax receivables | 12,501 | 12,501 | |
Other current assets | 24,224 | 24,224 | |
Cash and cash equivalents | 12,320 | 12,320 | |
Total current assets | 386,272 | -88,609 | 297,664 |
TOTAL ASSETS | 651,583 | -65,560 | 586,024 |
CONSOLIDATED LIABILITIES in € thousands | 30/09/2017 Reported | Impact IFRS 15 | 30/09/2017 restated |
---|---|---|---|
Share capital | 3,815 | 3,815 | |
Premiums | 118,455 | 118,455 | |
Reserves | 105,031 | -50,342 | 54,689 |
Foreign currency translation reserve | -1,116 | -1,116 | |
Net income for the year | 15,727 | -3,106 | 12,621 |
Share capital issued and reserves attributable | |||
to owners of the parent company | 241,912 | -53,448 | 188,463 |
Non-controlling interests | 162 | 162 | |
Non-controlling interests | 162 | 162 | |
Total consolidated shareholders' equity | 242,074 | -53,448 | 188,626 |
Loans from credit institutions | 83,234 | 83,234 | |
Repayable advances | 21,902 | 21,902 | |
Finance lease liabilities | 43,233 | 43,233 | |
Other financial liabilities | 1,699 | 1,699 | |
Total non-current financial liabilities | 150,067 | 150,068 | |
Other provision | 5,809 | 5,809 | |
Deferred tax liabilities | 25,416 | -21,757 | 3,659 |
Provision for pensions and other long-term employee benefits | 3,316 | 3,316 | |
Derivative financial instruments | 0 | 0 | |
Other non-current liabilities | 1,184 | 1,184 | |
Contract liabilities | 9,645 | 9,645 | |
Non-current portion of deferred income | 7,923 | 7,923 | |
Total non-current liabilities | 193,715 | -12,112 | 181,604 |
Short-term borrowings | 56,738 | 56,738 | |
Current portion of financial liabilities | 48,652 | 48,652 | |
Repayable advances | 5,348 | 5,348 | |
Total current financial liabilities | 110,738 | 110,738 | |
Trade payables | 70,887 | 70,887 | |
Fiscal liabilities | 8,156 | 8,156 | |
Other current liabilities | 20,320 | 20,320 | |
Deferred income | 5,692 | 5,692 | |
Total current liabilities | 215,794 | -12,112 | 215,794 |
TOTAL EQUITY AND LIABILITIES | 651,583 | -65,560 | 586,024 |
CONSOLIDATED ASSETS in € thousands | 31/03/2018 Reported | Impact IFRS 15 | 31/03/2018 Restated |
---|---|---|---|
Development costs | 80,491 | 80,491 | |
Goodwill | 2,397 | 2,397 | |
Other intangible assets | 3,074 | 3,074 | |
Total intangible assets | 85,961 | 85,961 | |
Land | 4,409 | 4,409 | |
Buildings | 58,091 | 58,091 | |
Plant machinery | 134,379 | 134,379 | |
Other property, plant and equipment | 7,664 | 7,664 | |
Total property, plant and equipment | 204,543 | 204,543 | |
Deferred tax | 3,784 | 4,966 | 8,750 |
Other financial assets | 3,182 | 3,182 | |
Other non-current assets | 15,079 | 15,079 | |
Contract assets | 23,178 | 23,178 | |
Total non-current assets | 312,550 | 28,144 | 340,694 |
Inventories and work in progress | 272,587 | -97,984 | 174,603 |
Customers and other receivables | 95,565 | 95,565 | |
Tax receivables | 14,180 | 14,180 | |
Other current assets | 26,666 | 26,666 | |
Cash and cash equivalents | 107,906 | 107,906 | |
Total current assets | 516,904 | -97,984 | 418,920 |
TOTAL ASSETS | 829,455 | -69,840 | 759,615 |
CONSOLIDATED LIABILITIES in € thousands | March 2018 Reported | Impact IFRS 15 | March 2018 restated |
---|---|---|---|
Share capital | 3,821 | 3,821 | |
Premiums | 118,455 | 118,455 | |
Reserves | 107,693 | -50,342 | 57,351 |
Foreign currency translation reserve | -1,214 | -1,214 | |
Net income for the year | 30,275 | -8,485 | 21,790 |
Share capital issued and reserves attributable | |||
to owners of the parent company | 259,031 | 200,204 | |
Non-controlling interests | 43 | 43 | |
Non-controlling interests | 43 | 43 | |
Total consolidated shareholders' equity | 259,074 | -58,827 | 200,247 |
Loans from credit institutions | 180,781 | 180,781 | |
Repayable advances | 21,855 | 21,855 | |
Finance lease liabilities | 47,062 | 47,062 | |
Other financial liabilities | 1,756 | 1,756 | |
Total non-current financial liabilities | 251,454 | 251,454 | |
Other provision | 6,331 | 6,331 | |
Deferred tax liabilities | 36,173 | -21,524 | 14,649 |
Provision for pensions and other long-term employee benefits | 1,856 | 1,856 | |
Derivative financial instruments | 12,040 | 12,040 | |
Other non-current liabilities | 1,629 | 1,629 | |
Contract liabilities | 10,511 | 10,511 | |
Non-current portion of deferred income | 8,024 | 8,024 | |
Total non-current liabilities | 317,507 | -11,013 | 306,494 |
Short-term borrowings | 70,742 | 70,742 | |
Current portion of financial liabilities | 47,566 | 47,566 | |
Repayable advances | 5,211 | 5,211 | |
Total current financial liabilities | 123,519 | 123,519 | |
Trade payables | 81,165 | 81,165 | |
Fiscal liabilities | 14,161 | 14,161 | |
Other current liabilities | 26,390 | 26,390 | |
Deferred income | 7,640 | 7,640 | |
Total current liabilities | 252,875 | 0 | 252,875 |
TOTAL EQUITY AND LIABILITIES | 829,455 | -69,840 | 759,615 |
Consolidated Income Statement in € thousands | 30/09/2017 reported | IFRS 15 impact | 30/09/2017 restated |
Revenue | 170,430 | -443 | 169,987 |
Other income from operations | 2,560 | 2,560 | |
Change in inventories of finished products and work in progress | 17,186 | -3,188 | 13,998 |
Raw materials and consumables | -91,332 | 300 | -91,032 |
Personnel expenses | -46,597 | 101 | -46,496 |
External expenses | -15,281 | 65 | -15,216 |
Taxes | -2,196 | 8 | -2,188 |
Depreciation and amortisation | -15,519 | 52 | -15,467 |
Net provisions | -384 | -384 | |
Current operating income | 18,868 | -3,106 | 15,761 |
Other operating income | 130 | 130 | |
Other operating expenses | -936 | -936 | |
Operating income | 18,062 | 14,955 | |
Financial income | 22 | 22 | |
Financial expenses | -2,369 | -2,369 | |
Cost of debt | -2,347 | -2,347 | |
Foreign exchange gains and losses | -6,916 | -6,916 | |
Unrealised gains and losses on financial instruments | 7,981 | 7,981 | |
Other financial income and expenses | -29 | -29 | |
Share of profit of equity affiliates | 0 | 0 | |
Income tax | -1,023 | -1,023 | |
Net income (loss) for the period | 15,728 | -3,106 | 12,621 |
Net income attributable to owners of the parent company | 15,727 | ||
Net income attributable to non-controlling interests | 1 |
Calculation of EBITDA 30/09/2017
Consolidated Income Statement in € thousands | 30/09/2017 reported | IFRS 15 impact | 30/09/2017 restated |
---|---|---|---|
Current operating income | 18,868 | -3,106 | 15,761 |
Reinstatement of depreciation and amortisation and net provisions | 15,903 | -52 | 15,851 |
Accounting EBITDA | 34,771 | -3,159 | 31,612 |
Capitalized depreciation related to R&D operations | 1,020 | 0 | 1,020 |
CORRECTED EBITDA | 35,791 | -3,159 | 32,632 |
Consolidated Income Statement in € thousands | 31/03/2018 reported | IFRS 15 impact | 31/03/2018 restated |
---|---|---|---|
Revenue | 372,014 | -1,309 | 370,705 |
Other income from operations | 3,214 | 3,214 | |
Change in inventories of finished products and work in progress | 16,687 | -10,937 | 5,750 |
Raw materials and consumables | -188,697 | 1,169 | -187,528 |
Personnel expenses | -94,507 | 194 | -94,313 |
External expenses | -34,819 | 124 | -34,695 |
Taxes | -6,352 | 15 | -6,337 |
Depreciation and amortisation | -30,991 | 101 | -30,890 |
Net provisions | 227 | 227 | |
0 | |||
Current operating income | 36,776 | -10,642 | 26,134 |
0 | |||
Other operating income | 1,381 | 1,381 | |
Other operating expenses | -4,111 | -4,111 | |
0 | |||
Operating income | 34,046 | -10,642 | 23,404 |
0 | |||
Financial income | 99 | 99 | |
Financial expenses | -6,231 | -6,231 | |
0 | |||
Cost of debt | -6,132 | 0 | -6,132 |
0 | |||
Foreign exchange gains and losses | -6,085 | -6,085 | |
Unrealised gains and losses on financial instruments | 16,668 | 16,668 | |
Other financial income and expenses | -115 | -115 | |
Share of profit of equity affiliates | 0 | 0 | |
Income tax | -8,144 | 2,157 | -5,987 |
0 | |||
Net income (loss) for the period | 30,237 | -8,485 | 21,752 |
Net income (loss) attributable to owners of the | |||
parent company | 30,275 | ||
Net income attributable to non-controlling interests | -38 |
Calculation of EBITDA 31/03/2018
Consolidated Income Statement in € thousands | 31/03/2018 reported | IFRS 15 impact | 31/03/2018 restated |
---|---|---|---|
Current operating income | 36,776 | -10,642 | 26,134 |
Reinstatement of depreciation and amortisation and net provisions | 30,764 | -101 | 30,663 |
Accounting EBITDA | 67,540 | -10,743 | 56,797 |
Capitalized depreciation related to R&D operations | 4,231 | 4,231 | |
CORRECTED EBITDA | 71,771 | -10,743 | 61,028 |
CONSOLIDATED STATEMENT OF CASH FLOWS IN € THOUSANDS | 30/09/2017 reported | IFRS 15 impact | 30/09/2017 restated |
---|---|---|---|
Cash flows from operating activities | |||
Net income (loss) from consolidated companies | 15,728 | -3,106 | 12,622 |
Dep., amort., provisions and share of subsidies allocated to income | 16,189 | -52 | 16,137 |
Elimination of revaluation gains (losses) (fair value) | -7,959 | -7,959 | |
Other items not affecting cash | 629 | 629 | |
Cash flow after cost of debt, net of tax | 24,587 | -3,159 | 21,428 |
Tax expense | 1,023 | 0 | 1,023 |
Cost of net financial debt | 1,769 | 1,769 | |
Cash flow before cost of debt, net of tax | 27,379 | -3,159 | 24,220 |
Change in working capital requirements for operations | -22,932 | 3,158 | -19,774 |
Changes in inventories | -26,975 | 3,106 | -23,869 |
Change in trade and other receivables | 12,761 | 52 | 12,813 |
Change in trade and other payables | -8,719 | -8,719 | |
Tax paid | 0 | 0 | |
NET CASH FLOW FROM OPERATING ACTIVITES | 4,447 | 0 | 4,448 |
Cash flows from investing activities | |||
Acquisition of assets | -38,867 | -38,867 | |
Disposal of assets | 10,106 | 10,106 | |
Impact of changes in scope | 0 | 0 | |
NET CASH FLOW FROM INVESTING ACTIVITIES | -28,761 | 0 | -28,761 |
Cash flows from financing activities | |||
Capital increases | 0 | 0 | |
Increases in subsidies | 0 | 0 | |
Bond issues and advances | 28,836 | 28,836 | |
Repayment of bonds and advances | -23,961 | -23,961 | |
Deferred expenses | |||
Interest paid | -1,769 | -1,769 | |
NET CASH FLOW FROM FINANCING ACTIVITIES | 3,106 | 0 | 3,106 |
CHANGE IN CASH | -21,207 | 0 | -21,206 |
Cash - opening | -23,068 | -23,068 | |
Cash - change in foreign exchange rates | -143 | -143 | |
Cash - other changes | 0 | 0 | |
Cash - closing | -44,419 | -44,419 | |
CHANGE IN CASH FLOWS | -21,207 | 0 | -21,207 |
CONSOLIDATED STATEMENT OF CASH FLOWS IN € THOUSANDS | 31/03/2018 reported | IFRS 15 impact | 31/03/2018 restated | |||
---|---|---|---|---|---|---|
Cash flows from operating activities | ||||||
Net income (loss) from consolidated companies | 30,237 | -8,485 | 21,752 | |||
Dep., amort., provisions and share of subsidies allocated to income | 35,603 | -101 | 35,502 | |||
Elimination of revaluation gains (losses) (fair value) | -11,868 | -11,868 | ||||
Other items not affecting cash | 2,742 | 2,742 | ||||
Cash flow after cost of debt, net of tax | 56,714 | -8,586 | 48,128 | |||
Tax expense | 7,119 | -2,157 | 4,962 | |||
Cost of net financial debt | 4,257 | 4,257 | ||||
Cash flow before cost of debt, net of tax | 68,090 | -10,743 | 57,347 | |||
Change in working capital requirements for operations | -32,774 | 10,743 | -22,031 | |||
Changes in inventories | -33,728 | 10,642 | -23,086 | |||
Change in trade and other receivables | -7,494 | 101 | -7,393 | |||
Change in trade and other payables | 8,448 | 8,448 | ||||
Tax paid | 0 | 0 | ||||
NET CASH FLOW FROM OPERATING ACTIVITES | 35,316 | 0 | 35,316 | |||
Cash flows from investing activities | ||||||
Acquisition of assets | -75,137 | -75,137 | ||||
Disposal of assets | 5,895 | 5,895 | ||||
Impact of changes in scope | -15 | -15 | ||||
NET CASH FLOW FROM FINANCING ACTIVITIES | -69,257 | 0 | -69,257 | |||
Cash flows from financing activities | ||||||
Capital increases | 6 | 6 | ||||
Increases in subsidies | 0 | 0 | ||||
Bond issues and advances | 132,305 | 132,305 | ||||
Repayment of bonds and advances | -45,044 | -45,044 | ||||
Other financial liabilities | 11,435 | 11,435 | ||||
Interest paid | -4,257 | -4,257 | ||||
NET CASH FLOW FROM FINANCING ACTIVITIES | 94,445 | 0 | 94,445 | |||
CHANGE IN CASH | 60,504 | 0 | 60,504 | |||
Cash - opening | -23,068 | -23,068 | ||||
Cash - change in foreign exchange rates | -272 | -272 | ||||
Cash - other changes | 0 | |||||
Cash - closing | 37,165 | 37,165 | ||||
0 | ||||||
CHANGE IN CASH FLOWS | 60,504 | 60,504 |