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  EXAIL TECHNOLOGIES (ex GROUPE GORGE) company press release from 25/09/2024 - Half-year results 2024: current EBITDA margin of 19% and strong improvement in operating cash flows

  25/09/2024 - 18:00

Half-year results 2024: current EBITDA margin of 19% and strong improvement in operating cash flows


Press release

Paris, 25 September 2024 at 18h

 

 

Key elements of the first half of 2024:

  • Strong commercial momentum: +16% in order intake and a €60 million contract signed in July
  • Revenue growth of +5% and a current EBITDA margin of 19%
  • Significant improvement in operational cash flow
  • Objective of strong revenue growth in the third quarter of 2024
  • Prospects for a high level of activity in the second half of 2024 on all indicators.

 

Exail Technologies achieved a good performance in the first half of 2024 given the announced stability of the Maritime robotics activity. Order intake continues to increase, with 16% growth. This strong commercial momentum continues in the second half with, in July, the largest order in the group's history in terms of the number of robots for €60 million. This marks the change in scale of the business to industrial production. The group's activity remains largely driven by exports, which represent nearly 90% of the company's orders.

The first half is also marked by an improvement in cash flow generated by the activity, which improves by €27 million compared to the first half of 2023.

 

 

P&L statement of the first half 2024

 

(in millions fn euros) H1 2024 H1 2023
restated[1]
Var
M€
Variation
 %
Backlog at the end of the period 630 614 +16 +3%
Revenues 163 154 +8 +5%
Current EBITDA[2] 30 33 -3 -9%
Current EBITDA margin (%) 19% 22% -3 pts -
Income from ordinary activities3 17 21 -4 -18%
Other elements of operating income -13 -20 6 -
Operating income 4 1 3 -
Net cost of financial debt -13 -12 -1 +7%
Taxes 4 1 2 n.a
Net income from discontinued activities 0 31 -31 n.a
Consolidated net income -5 22 -27 n.a

 

The consolidated accounts presented below were approved by the Board of Directors, which met on September 25, 2024. The accounts have been subject to a limited review by the statutory auditors, and their reports are in the process of being issued. The financial statements are available in the appendix to this press release.

 

Revenue of €163 million in the first half

Exail Technologies recorded revenue of €163 million in the first half, mainly generated by the Navigation & Maritime Robotics segment. The performance is generally in line with the group's expectations, which anticipated more sustained activity in the second half than in the first.

A dedicated press release on revenue and orders for the first half was published on July 25, 2024 (link to the press release).

 

 

Current EBITDA of €30 million

 

Despite the disruptions announced and observed over the past 9 months, mainly related to a very high level of responses to calls for tenders, the group's current EBITDA margin stands at 19% in the first half of 2024, in line with the group's forecasts. These disruptions are now over and will not impact the second half.

 

Income form ordinary activities by segment [3]

 

(in €million)   H1 2024 H1 2023 Var
M€
Variation
 %
Navigation
& Maritime robotics
Revenues 124,2 117,1 7,1 +6%
Current EBITDA 24,0 27,2 -3,2 -12%
Current EBITDA margin (%) 19,3% 23,2% - -3,9 pts
Income form ordinary activities 17,3 20,0 -2,7 -14%
           
Advanced technologies Revenues 43,9 41,3 3 +6%
Current EBITDA 7,2 7,7 -1 -7%
Current EBITDA margin (%) 16,4% 18,7% - -2,3 pts
Income form ordinary activities 4,4 5,5 -1 -20%

 

 

Operating income

 

Depreciation and provisions amount to €13 million in the first half, a stable level compared to last year. The income from ordinary activities therefore stands at €17 million.

 

Other elements of the operating result represent a charge of €13 million, with almost no impact on cash flow. They include €9 million in amortization of assets recognized at fair value under IFRS 3R (see the dedicated paragraph in the half-year report) and €3 million related to employee incentive and retention plans.

 

As a result, the group's operating result is €4 million, improving compared to last year.

 

Net financial debt cost: €13 million, half of which has no cash impact

 

The net financial debt cost recorded is €13 million, of which only €5.8 million in bank interest payments generated a cash outflow. This part is down 3% compared to last year thanks to debt reduction and interest rate variations. The balance of the financial charge is related to bonds held by ICG, whose interest is capitalized and therefore has no cash impact.

 

Operating cash flow: a net improvement of €27 million

Exail Technologies generated operational cash flow of €22 million in the first half, an improvement of +€27 million compared to last year, thanks to a good level of collections. Working capital requirements (WCR) were particularly well controlled in this first half, contrary to the group's traditional seasonality.

 

In the first half of 2023, the group had exceptionally benefited from the sale of non-strategic activities.

 

Outlook

The group's commercial momentum remains strong and reflects the good health of our activities and markets. Order intake increased by +16% in the first half to reach €162 million. A new significant drone order was also signed in July for €60 million for the Belgian and Dutch navies. In terms of the number of robots, this order is the largest in the group's history (link to the dedicated press release).

 

Given the already announced elements and the observed trend, Exail Technologies aims for very significant growth in its revenue and order intake in the third quarter. The company confirms its 2024 guidance with objectives of double-digit revenue growth and absolute value growth in current EBITDA.

 

Prochaines communications financières

  • 23 October 2024 : activity of the third quarter.

 

 

About Exail Technologies

 

Exail Technologies is the new name of Groupe Gorgé, adopted after the transformation of the group at the end of 2022, now focused on the activities of its subsidiary Exail. Exail Technologies is an industrial company specializing in high technology in the field of autonomous robotics with a vertical integration of its businesses. The group offers complex drone and navigation systems, as well as products for the aerospace and photonics industries. Exail Technologies provides performance, reliability and safety to its civil and military customers operating in harsh environments and generates revenues in nearly 80 countries.

 

Exail technologies is listed on Euronext Paris Compartment B (EXA).

www.exail-technologies.com

 

 

Contacts    
Investors relations
Hugo Soussan
Tel. +33 (0)1 44 77 94 86
h.soussan@exail-technologies.com

Anne-Pauline Petureaux
Tel. +33 (0)1 53 67 36 72
apetureaux@actus.fr
Media relations
Manon Clairet
Tél. +33 (0)1 53 67 36 73
mclairet@actus.fr
 

 

 

APPENDIX

 

 

Definitions of alternative performance indicators

 

  • Current EBITDA : Operating income before “depreciation, amortization and provisions”, “other items of operating income” and “Group share of the earnings of affiliated companies”.

 

  • Income from ordinary activities : Operating income before “other items of operating income” and “Group share of the earnings of affiliated companies”.

 

  • Self-financing capacity: Cash flow generated by the activity before changes in working capital and after neutralizing the cost of net financial debt and taxes.

 

  • Adjusted Net Debt: Net debt excluding lease liabilities resulting from the application of IFRS 16 and including the value of treasury stock.

 

 

IFRS 3R restatements

 

IFRS 3R - Business Combinations stipulates that the fair value measurement of acquired assets and liabilities must be retrospectively modified as if the changes had been made at the date of acquisition. In connection with the acquisition of IXBLUE SAS, which entered the scope of consolidation on October 1, 2022, the valuations carried out in 2022 were provisional, and were finalized in 2023, after the closing of the 2023 interim financial statements. The financial statements for the first half of 2023 have therefore been adjusted to reflect the finalization of this work. The key element resulting from the valuation work is the identification of intangible assets linked to technology and customer relationships. Details of the valuations and changes made to the interim financial statements for 2023 are given in the notes to the interim report for 2024.

 

Income statement H1 2024

 

(in thousands of euros) H1 2024 H1 2023
REVENUES 162 625 154 259
Capitalized production 12 450 10 666
Inventories and work in progress 13 227 5 697
Other income from operations 11 599 9 884
Purchases and external charges (93 646) (78 043)
Personnel expenses (74 452) (66 860)
Tax and duties (1 908) (1 764)
Depreciation, amortization, and provision (net of reversals) (13 377) (12 659)
Other operating income and expenses 473 (389)
INCOME FROM ORDINARY ACTIVITIES 16 992 20 790
Group share of the earnings of affiliated companies - -
Other items in operating income (13 188) (19 524)
operating income 3 804 1 266
Interest on gross debt (13 091) (11 717)
Interest on cash and cash equivalents 141 88
NET BORROWING COST (a) (12 949) (11 629)
Other financial income (b) 393 187
Other financial expense (c) (58) (371)
FINANCIAL INCOME AND EXPENSES (D=A+B+C) (12 615) (11 813)
Income tax 3 661 1 168
NET INCOME FROM CONTINUING OPERATIONS (5 149) (9 378)
Net income from discontinued operations - 31 365
CONSOLIDATED NET INCOME (5 149) 21 987
INCOME ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS (3 705) 22 945
INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1 445) (958)
     
Average number of shares 17 008 518 17 066 447

 

Consolidated balance sheet - Assets

 

(in thousands of euros) 30/062024 31/12/2023[4]
Actifs non courants 512 949 514 303
Goodwill  145 085  145 085
Other intangible assets  274 254  275 739
Property, plant and equipment  45 149  44 693
Rights of use  36 172  36 914
Other financial assets  10 059  9 739
Deferred tax assets  101 90
Other non-current assets  2 129  2 043
CURRENT ASSETS 340 834 296 295
Net inventories  86 333  72 913
Net trade receivables  50 393  63 295
Contract assets  66 347  75 134
Other current assets  28 697  27 204
Tax receivables  37 552  26 440
Other current financial assets  5 770  5 772
Cash and cash equivalents  65 741  25 538
Assets held for sale - -
TOTAL ASSETS 853 782 810 599

 

 

Consolidated balance sheet – Liabilities

 

(in thousands of euros) 30/062024 31/12/2023[5]
EQUITY ATTRIBUTABLE TO OWNER OF THE PARENT 127 624 130 441
Stakes attributable to non-controlling interests 84 121 85 564
NON-CURRENT LIABILITIES 378 625 369 837
Long-term provisions  6 297  6 433
Long-term liabilities – portion due in more than one year  277 738  263 573
Lease liabilities – portion due in more than one year  31 625  32 110
Deferred tax liabilities 42 748 46 512
Commitments to buy minority interests 16 494 17 978
Other financial liabilities 3 723 3 232
CURRENT LIABILITIES 263 411 224 755
Short-term provisions  7 376  7 277
Long-term liabilities – portion due in less than one year  74 382  36 015
Lease liabilities – portion due in less than one year  7 309  7 212
Other current liabilities  3 506  4 248
Operating trade payables  51 465  58 476
Contract liabilities  46 751  39 706
Other financial current liabilities  72 457  71 165
Tax liabilities payable  167  655
Liabilities held for sale - -
TOTAL LIABILITIES 853 782 810 599

 

 

Cash-flow statement

(in thousands of euros) S1 2024 S1 2023[6]
NET INCOME FROM CONTINUING OPERATIONS (5 149) (9 378)
Accruals 23 460 23 255
Capital gains and losses on disposals (689) 4 610
Group share of income of equity-accounted companies - -
CASH FLOW FROM OPERATIONS (before neutralization of the net borrowing cost and taxes) 17 621 18 487
Expense for net debt 12 949 11 629
Tax expense (3 661) (1 168)
CASH FLOW (after neutralization of the net borrowing cost and taxes) 26 909 28 948
Tax paid (420) (1 177)
Change in working capital requirements (4 070) (32 060)
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 22 420 (4 288)
Investing activities    
Payments/acquisition of intangible assets (11 140) (10 135)
Payments/acquisition of property, plant and equipment (5 007) (3 544)
Proceeds/disposal of property, plant and equipment and intangible assets 742 56
Payments/acquisition & Proceeds/disposal of non-current financial assets (234) 3 489
Net cash inflow/outflow on the acquisition/disposal of subsidiaries 250 27 310
NET CASH FLOW FROM INVESTING ACTIVITIES (B) (15 390) 17 177
Financing activities    
Capital increase or contributions - -
Dividends paid (251) (1)
Other equity transactions (2 452) (1 757)
Proceeds from borrowings 59 370 23 352
Repayment of borrowings (13 183) (13 348)
Repayments of rental debts (3 768) (3 410)
Cost of net debt (5 784) (5 957)
Other funding streams (804) (498)
NET CASH FLOW FROM FINANCING ACTIVITIES (C) 33 129 (1 620)
CASH FLOW GENERATED BY CONTINUING OPERATIONS (D = A+B+C) 40 158 11 268
Cash flow generated by discontinued operations - (7 520)
Effects of exchange rate changes of the year 45 (31)
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE PERIOD 25 538 58 756
CHANGE IN CASH AND CASH EQUIVALENT 40 158 11 268
Trésorerie des activités non poursuivies - -
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 65 741 69 993

 


[1] This income statement has been retrospectively restated in accordance with IFRS 3. Details of these restatements are given in the interim report.

 

[2] See the glossary in the appendix for definitions of alternative performance indicators.

[3] The sum of the aggregates of the two divisions must be supplemented by intra-group eliminations, the impact of IFRS 16 and the structure to obtain the consolidated result presented above. Details of these items are available in the Half-Year Report 2024..

 

[4] The consolidated statement of financial position at December 31, 2023 has been modified as explained in note 1.3.2. of the interim report.

[5] The consolidated statement of financial position at December 31, 2023 has been modified as explained in note 1.3.2. of the interim report.

[6] The June 30, 2023 column has been restated in accordance with IFRS 3R. See note 1.3.1. of the interim report..


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  Original Source: EXAIL TECHNOLOGIES (ex GROUPE GORGE)