VALUE OF PRODUCTION, + 59.3% AT € 41.8M
EBITDA AT € 4.2M
NET PROFIT AT € 1M
- Production Value at € 41.8 million, +59.3 YoY;
- EBITDA at € 4.2 million (EBITDA Margin at 10.1%);
- EBIT at € 2.3 million (EBIT Margin at 5.6%);
- Net profit at € 1 million;
- Negative Net Financial Position (NFP) (debt) of € 2.6 Million
Genoa, 27 March 2020 - The Board of Directors of EdiliziAcrobatica S.p.A. ("Company" or "EDAC"), a company specialized in outdoor maintenance and renovation of residential buildings and architectural structures through the double rope safety tool, listed on AIM Italia segment of the Italian Stock Exchange (EDAC ticker) and on Euronext Growth (ALEAC ticker), today under the chairmanship of Simonetta Simoni examined and approved the draft financial statements as at and for the year ended 31, December 2019, prepared in accordance with the AIM Italia Issuers Regulation and in compliance with Italian accounting standards.
Riccardo Iovino, CEO,Founder and Shareholder of EDAC, announced: "2019 was a year of great growth for EdiliziAcrobatica: a year that brought the Company to the Dual Listing on Euronext Growth (Pairs) in February. France, in general, is the country where we addressed our efforts of internationalization with the launch of the first branch and headquartes of EdiliziAcrobatica France in Perpignan, following the acquisition of ETAIR - Entreprise de Travaux Aériens et d'Interventions Rapides Méditerranée, a company specializing in renovation outdoor maintenance and renovation with double safety rope. Shortly after this first opening, we started the selection of commercial technicians in other cities of the Midi (Nice, Marseille and Toulouse), which were quickly put into full operational conditions. Our internationalization project keeps going, and this year we are working to expand our technique in other cities in France and Spain.
Due to of the current serious difficulties of the country for the Coronavirus pandemic, as EdiliziAcrobatica we took action with our strength and determination all necessary actions to guarantee the continuity of the business.
We have therefore immediately started the procedures for the launch of a new service dedicated to environmental sanitation, thus responding to the pressing requests of our customers, investing in the acquisition of machinery, detergents and safety devices for personnel.
I have always considered the difficulties I have encountered, as an entrepreneur, as a stimulus to grow and renew the Company: as an essential run-up to make a wider leap into the future. Today, EdiliziAcrobatica is, once again, intercepting the needs of the market to meet them efficiently and quickly. The responsibility that I feel as an entrepreneur, towards my employees and collaborators and their families, towards investors, as well as towards my country, is an ethical principle that has guided me since I founded EdiliziAcrobatica and from which I do not intend to escape even now.
EdiliziAcrobatica will continue to grow in this complex 2020, seizing every challenge with the determination to win it".
Anna Marras, Shareholder of EdiliziAcrobatica and Director of all EDAC resources: "In 2019 EdiliziAcrobatica employed 800 human resources, including employees and collaborators. 800 people that we are committed to constantly training to support them in a path of growth, not only professional, but human. Our philosophy, the entrepreneurial ethics that distinguishes us, is based on the inclusion and support of each of the people who make up our Group. The figures, income statement, turnover and growth that distinguished 2019 are the result of a humanistic, financial strategy. Our strength, the most precious resource of EdiliziAcrobatica, are the men and women who make it up and who work every day sharing a Group's objective: always focused on the growth, overcoming the results achieved. Each one of us feels personally involved, as a unique and irreplaceable human being, in the shared project of making our Acrobatic technology the most widespread building technology in the world".
RECLASSIFIED INCOME STATEMENT
Below is the reclassified income statement compared with 2018:
In 2019 the value of production amounted to € 41.8 million, an increase of 59.3% compared to the 2018 annual figure. The increase in revenues continues to be driven by the branches revenues, equal to approximately € 36.4 million, which grew by approximately 59% (compared to € 22.9 million in 2018), and accounted for approximately 87.2% of the value of production, followed by the growth in franchising revenues, equal to approximately € 2.8 million, which grew by 33.3% (compared to approximately € 2.1 million in 2018).
The strong growth in sales is therefore due to the rapid opening of new branches in the fourth quarter of 2018 in Italy and in 2019 in Italy and France.
Like for like (LFL) revenues, represented by revenues from senior branches, grew by 19.1% (from Euro 22.9M in 2018 to Euro 27.3M in 2019). France contributed a turnover of € 3.4M in 2019.
Details of production value are given below:
The 2019 financial year closed with 83 Point of sales, registering a growth of 18.6% compared to 70 in 2018 and 6,500 sites, with a growth of 35.4% compared to 4,800 in 2018. The 3.3% decrease in consolidated EBITDA in 2019 (from € 4.3M to € 4.2M) is mainly due to the Company's rapid growth and the consequent need to implement a more structured and solid organization, with higher marketing and personnel costs, also at Headquarters level, which is still being expanded to support the further growth expected.
The LFL EBITDA, represented by the EBITDA of senior branches, grew both in absolute terms (from € 3.8M in 2018 to € 5.2M in 2019, +36.9%) and in percentage terms (from 16.8% in 2018 to 19.3% in 2019).
The operating result (EBIT) is positive at € 2.3 million, with an EBIT margin of 5.6%, a decrease of 36.5%. The reduction in EBIT 2019 is due to higher amortisation and depreciation, which rose from around € 420k to around € 1.7M, due in particular to the increase in intangible assets.
The LFL EBIT 2019 increased by 39.3% compared to 2018.
The net result for 2019 amounted to approximately € 1 million, a decrease of 50.9%.
RECLASSIFIED BALANCE SHEET
The reclassified balance sheet compared with 2018 is shown below:
The net financial position at 31 December 2019 was negative by approximately € 2.6 million, due to the the financial debts necessary to finance the investments for the development of the Company.
Shareholders' equity at 31 December 2019 was approximately € 11.5 million, up from € 10 million at 31 December 2018.
SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE
On January 13, 2020, EDAC's Board of Directors co-opted Paolo Ravà as independent director to replace Andrea Bottino, who resigned for personal reasons by a letter dated December 16, 2019. Paolo Ravà has experienced M&A consulting activities in favour of national and international companies and he held the position of Chairman of the Order of Chartered Accountants and Accounting Experts of Genoa starting from 2017. The Board of Directors, with the approval of the Board of Statutory Auditors, assessed the existence of all the necessary requirements for the performance of this role, as well as the existence of the requirements of independence. Pursuant to Article 2386 of the Italian Civil Code and the Articles of Association in force, the new Director will remain in office until the next Shareholders Meeting. Based on the communications provided to the Company, as of January 13, 2020, Mr. Ravà did not hold, directly and/or indirectly, any common shares of the Company.
The national and international scenario in recent months has been characterized by the spread of Covid-19 (the so-called Coronavirus) and the resulting restrictive measures implemented by the public authorities, which required the closure of many commercial and production activities, the closure of schools and the stay of citizens in their homes. The restrictive measures contained in the 'Chiudi Italia' Decree require EDAC to temporarily suspend the construction sites.
EDAC acted promptly according to the Dpcm of 22 March 2020 by implementing all necessary actions to ensure: the safety and health of all staff and the continuity of the activity in this difficult period.
The Company guarantees the safety and health of all personnel through the smart working mode activated for its employees and through the adoption of appropriate measures, according to the protocols provided by the Public Authorities.
EDAC guarantees business continuity through the launch of a new service for buildings, represented by the sanitization service that will soon be offered at all points of sale and through the recruitment campaign through video calls (spot on LA 7).
PROPOSAL FOR A USEFUL DESTINATION
The Board of Directors will propose to the Shareholders Meeting to allocate the result for the year to the legal reserve until the limits set by law are reached and the remaining part to retained earnings.
CALL OF THE ORDINARY SHAREHOLDERS MEETING
The Board of Directors resolved to call the Ordinary Shareholders Meeting, in first call, on 28 April at 11 a.m. and, in second call, on 29 April at 11 a.m., at the Company's registered office in Genoa, in Viale Brigate Partigiane 18/2, to discuss and resolve on the following agenda:
- Approval of the Financial Statements as at and for the year ended 31.12.2019. Related and consequent resolutions.
FILING THE DOCUMENTATION
The meeting notice and the relevant documentation required by the applicable legislation, including the draft financial statements as at and for the year ended 31 December 2019, the report on operations, the reports of the directors on the items on the agenda of the shareholders' meeting, the report of the Board of Statutory Auditors, the independent auditors' report and additional documentation concerning the items on the agenda will be made available to the public, within the legal deadlines at the company headquarters (Viale Brigate Partigiane 18/2, 16121 Genoa) as well as on the corporate website www.ediliziacrobatica.it, in the section Investor Relation section and the authorised storage mechanism 1INFO (www.1info.it). Please note that the draft financial statements have not yet been audited and the independent auditors' report will be made available within the legal deadline. The attached income statement and balance sheet are reclassified and, as such, are not subject to audit.This press release is available in the Investor Relations section of the website www.ediliziacrobatica.com.