|(in € millions)||Q1 2020||Q1 2019||Change |
|Smart Safety Systems||22.6||21.2||+6.4%|
|Protection of High-Risk Installations||20.7||20.6||+0.7% |
|Structure and disposals||(0.2)||(0.1)||n.s.|
|Consolidated revenue||58.5||59.0||-0.9% |
|Backlog at end of period||601.7||224.0||+168.7%|
Groupe Gorgé posted revenue of €58.5 million in first quarter 2020, down slightly by 0.9% on a reported basis and by 0.4% on a like-for-like basis compared to first quarter 2019. The Group's business has proven to be resilient despite the unprecedented crisis which has weighed to varying degrees on the Group's different divisions.
Revenue for the Smart Safety Systems division (39% of revenue) was €22.6 million in first quarter 2020, up by 6.4%. This excellent performance was driven by the Robotics business (up by 12.8%) which benefited from a strong backlog, and notably the execution of the sea mine hunting contract with the Belgian and Dutch navies that continued this quarter. The COVID-19 pandemic has had a significant impact on the Aerospace business starting in the second half of March and has resulted in a fall in revenue of 5.3%.
The division's backlog was significant, at €515.2 million as at 31 March 2020. The level of orders intake for the first quarter fell significantly, extending the trend seen at the end of the 2019 financial year. It was impacted by delayed orders but does not reflect the solid commercial outlook expected by the Group.
Revenue for the Protection of High-Risk Installations division (35% of revenue) came to €20.7 million, up by 0.7% on a reported basis and by 2.0% like-for-like. The growth in revenue reflects the good performance and resilience of the Fire Protection business, which accounts for most of the division's revenue, and the stability of the Nuclear business. These activities offset the decrease in revenue from Oil & Gas activity, which accounted for only 2.6% of the Group's business in the first quarter of 2020.
The division had a backlog of €81.1 million as at 31 March 2020. Order intake was up by 27.4% in first quarter 2020, driven by the sales momentum of the Fire Protection and Oil & Gas divisions during the first months of the year.
Revenue for the 3D Printing division (26% of revenue) was €15.5 million, down by 11%. This division's activities operate on short business cycles. The COVID-19 pandemic has had a direct and immediate impact on the medical businesses (audiology, podiatry and dental), resulting in the complete shut-down of our client-practitioners' activities in mid-March. The Systems business fared better (down by 6.3%) thanks to the strong performance of Materials, up by 25%, which benefited from the virtuous dynamic of recurrence as the installed base of printers dedicated to production applications is growing.
A Group focused on quick adaptation to a new environment
Groupe Gorgé implemented a global adjustment plan to protect the health of its employees and safeguard cash in the early days of the crisis.
Activities were swiftly reconfigured at its sites to protect employee health, notably by resorting to remote work as quickly as possible; a business continuity plan was also implemented.
The Group implemented a cost adjustment plan and nearly 50% of the workforce was in total or partial reduction in activity. This trend should continue during the second quarter of 2020, to varying degrees depending on the business.
In Europe and North America, Prodways Group teams quickly took up the challenge of contributing to the effort to fight COVID-19 using 3D printing. Prodways provided its professional 3D printers, in collaboration with its customer network, to manufacture face shields to meet the medical staff's most urgent needs. Several thousand face shields for medical staff have been manufactured with a dozen customers.
The Group's financial position is strong, with available cash and cash equivalents of over €100 million as at 31 March 2020. It has drawn on its confirmed credit lines in the amount of €57 million. The Group will use State-Guaranteed Loans to fully secure its liquidity while preserving confirmed credit lines.
Cancellation of the dividend increase planned in 2019
Given the crisis situation, and despite the Group's exceptional results in 2019 and a strong cash position, the Board of Directors decided not to propose a 10% per share increase in the dividend and, consequently, changed its proposed resolution, which will be submitted to the Shareholders' Meeting of 8 June 2020, to decrease the dividend amount from €0.35 to €0.32 per share, identical to that paid in 2019.
The crisis will impact the Group's performance in 2020, particularly in the second quarter.
The Group remains extremely confident over its prospects and potential in the medium term. End-customers are diversified and, with the exception of the Aerospace division, should not be lastingly impacted by the current crisis. This market accounts for 10% of the Group's revenue. It has been impacted by the collapse of global air traffic and the decision by major manufacturers to suspend or significantly decrease the production of commercial aircraft.
Despite this unprecedented environment, Groupe Gorgé has major assets: diversified activities which are not highly impacted by cycles, a firm backlog equivalent to over two years of revenue, and a solid financial structure allowing to pursue its external growth strategy and, depending on market conditions, to strengthen its position in its existing divisions.
|8 June 2020||Combined General Shareholders' Meeting (behind closed doors)|
|28 July 2020 (after market close)||Second-quarter 2020 revenue|
|16 September 2020 (after market close)||2020 half-year results|
|28 October 2020 (after market close)||Third-quarter 2020 revenue|
About Groupe Gorgé
Founded in 1990, Groupe Gorgé is an independent group that specializes in high-tech industries. Today, the Group is active in the fields of security and protection in extreme environments, as well as in the 3D printing sector.
Smart Safety Systems:
Developing complete, innovative technological solutions for complex missions in hostile and confined environments.
Protection of High-Risk Installations:
Protecting people and ensuring the active and passive protection of installations for energy markets and industrial and tertiary sectors in France. Ensuring the maintenance of these protection systems.
Enabling major industry players to find new routes to successful innovation and production processes by providing 3D printers, premium material, software and 3D printed parts.
The Group reported revenue of €274,6 M in 2019. It is backed by close to 1,800 employees and operations in 7 countries.
Groupe Gorgé is listed on Euronext Paris compartment B
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Forward Looking Statement
Groupe Gorgé press releases may contain forward-looking statements regarding Groupe Gorgé's targets. These forward-looking statements reflect Groupe Gorgé's current expectations. Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated herein. The risks and uncertainties that could affect the Group's future ability to achieve its targets include, in addition to those indicated in the press release: the strength of competition; the development of markets in which the Group operates and notably the 3D printing division; currency fluctuations; obtaining the export authorizations that may be required for certain activities; control of costs and expenses; changes in tax legislation, laws, regulations or their enforcement; our ability to successfully keep pace with technological advances; our ability to attract and retain qualified personnel and key staff; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; manufacturing and supply chain bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.). Some of these risk factors are set forth and detailed in our Universal registration document (including the annual financial report filed with the French Autorité des Marchés Financiers), available on our website www.groupe-gorge.com. This list of risks, uncertainties and other factors is not limitative. Other unanticipated, unknown or unforeseeable factors, such as changes in the economic situation or financial markets, could also have a material adverse effect on our targets.
This press release and the information it contains do not constitute an offer to sell or to subscribe, or a solicitation to purchase or subscribe shares or securities in Groupe Gorgé or in its listed subsidiaries in any country whatsoever.
 Unaudited figures
 Hoekstra-Suwald Techniek BV was sold in April 2019