Positive trend for orders of new homes and strong growth in the renovation activity
The Board of Directors' meeting of MAISONS FRANCE CONFORT, held on September 18th, 2018, has approved the accounts for the first half of 2018. These consolidated accounts have been reviewed by its Statutory Auditors.
|Consolidated (€M)||30.06.2018||30.06.2017*||Var. in %|
*accounts restated under the IFRS15 accounting standard
First half 2018 sales up by 11.5% and net income up by 10.2%
Maisons France Confort Group's turnover for the 1st half of 2018 reached €410.7M, up by 11.5% compared to last year. This good level of production reflects the unprecedented sales performances recorded during 2017. At constant scope, half year growth reached 9.7%. The BtoC and BtoB renovation activities represent a total turnover of €50M.
The operating income has increased by 4.9% to €19.1M and includes:
- an operating income of the home building activity increased by 17% standing at €20.5M mainly due to an increase in the contribution margin. The operating margin for this activity thus stands at 5.7% against 5.3% for the first half of 2017;
- an operating income of the renovation activity of -€1.4M mainly due to the development of the BtoB renovation activity. The latter is indeed turning towards larger contracts that are more exposed to production time lags and with lower contribution margins in relative value. This context, combined with a classic seasonal effect for this type of activity (H2 production generally higher) and a necessary increase in fixed costs to ensure future development (booked orders up by 83% at end of August), explain this level of income.
For the year as a whole, results for the renovation activity will prove very profitable with a second half in line with the Group's objectives.
The net income is up by 10.2% at €13.0M in comparison with the €11.8M of the first half of 2017. Net profitability is at a good level and represents 3.2% of sales.
The Group's financial structure is stong. Group equity stood at €168.5M at June 30th, 2018, the cash position at €106.5M and debt at €75.7M. The cash position net of debt thus stands at €30.8M.
The Group continues to gain market shares and renovation is recording strong growth
The home building sales remain dynamic after a record 2017 financial year and despite the disappearance of a number of government subsidies (interest-free loans less favorable for zones B and C and withdrawal of the “APL accession” housing benefit disqualifying the most modest households from bank loans), leading to a 14.9% market downturn in the 1st half of 2018 (Source Markemetron). Orders are gradually recovering, recording 4,589 sales at the end of August. This represents a turnover of €543.7M (taxes excluded), down by 8.7% in number of sales and 4.8% in value in comparison with 2017 and thus demonstrates the ability of the Group to outperform the market.
At the end of August 2018, the orders recorded for the renovation activity amount to €96.9M. The BtoC activity has reached €36.0M up by 10% versus August 31st, 2017 and the BtoB activity has progressed by 83% to €60.9M.
Growth and continued good profitability expected in 2018
For 2018, given the visibility generated by the order backlog and the level of production in progress, the MAISONS FRANCE CONFORT Group is expecting a new organic growth in sales with a healthy operating profitability.
The group strategy, that has consisted over the last few years in becoming a housing generalist by developing related activities (Services, Renovation, Property development) and its real ability to gain market shares allow the MAISONS FRANCE CONFORT Group to be fully confident in its short- and medium-term route plan.
Next press release: 2018 3rd quarter Sales, on November 6th, 2018, after stock exchange closing.
ABOUT MAISONS FRANCE CONFORT:
Founded in 1919, MAISONS FRANCE CONFORT is the oldest home building company in France and the main actor on the French market (individual plots). Already leader in home building, MAISONS FRANCE CONFORT became the French No. 1 in house renovation in 2015. The Group operates in all 12 regions in France, with over 375 sales offices.
Staff at June 30th, 2018: 1,990 people.
MAISONS FRANCE CONFORT equities are eligible for PEA-PME equity savings plan.
MAISONS FRANCE CONFORT is listed on the Euronext Paris - Compartment B.
ISIN Number: FR 0004159473 - Index: CAC Small, CAC Mid & Small, CAC All-Tradable, CAC All-Share
MAISONS FRANCE CONFORT
Chairman and Managing Director
Tel +33 (0)2 33 80 66 61
Tel +33 (0)4 72 18 04 90
|Jean-Christophe Godet |
Chief Financial Officer
Tel +33 (0)2 33 80 66 61
|Marie Claude Triquet |
Tel +33 (0)4 72 18 04 93
Gross order intake: a contract is recorded in gross order intakes on signature by the client and acceptance by our sales administration departments (control of documents and validity of the project's financing plan, return of the field survey, verification and acceptance of the selling price). The amount recorded corresponds to the pre-tax turnover generated on this contract
Order backlog: all recorded orders which have not been cancelled or transferred to “production in progress”.
Production in progress: all orders for which the conditions precedent to begin work have been met (building permit and client financing obtained, client ownership of the land) and which have not been accepted by the client (delivered).
Evolution of sales at constant scope: evolution of sales of periods to be compared, recalculated as follows:
- In the event of an acquisition, the turnover of the acquired company that has no correspondence in the comparison period is deducted from the current period,
- In the event of transfer, the turnover of the transferred company that has no correspondence in the current period is deducted from the comparison period
B2B (business to business): refers to transactions conducted between two companies.
B2C (business to consumer): refers to transactions conducted between the company and consumers.
Net contribution margin: corresponds to the difference between the sales generated by contracts and the costs directly related to these contracts (construction costs, sales or broker commissions, taxes, insurance, etc.).
Cash position: includes cash on hand and demand deposits.
Debt: includes all current and non-current financial debts.
Cash net of debt: available cash less debt.