Actusnews Wire - Diffuseur professionnel d'information corporate et réglementée, autorisé par l'AMF et le CSSF.

  Communiqué de la société FIGEAC AERO du 19/12/2018

  19/12/2018 - 17:40

PROVISIONAL FIRST-HALF 2018/19 RESULTS


  • 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