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Business growth of +23%
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Corrected EBITDA1 of €33.6 million, i.e. 23% of revenue
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Group share of net profit at €13 million
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Strong growth expected in the second half year
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2020 objectives maintained
Figeac Aéro Group (ticker symbol: FGA), a reference partner of the aerospace industry, announced 2016/17 first half-year results today (for the period ended 30 September 2016).
In €K - IFRS at 30/09 | 2016/172 | 2015/16 |
Revenue3 | 146,234 | 118,930 |
Corrected EBITDA1 | 33,561 | 30,869 |
Corrected EBITDA1/Revenue | 23.0% | 26.0% |
EBITDA | 32,373 | 30,869 |
EBITDA/REVENUE | 22.1% | 26.0% |
Current operating income | 17,742 | 19,719 |
COI/REVENUE | 12.1% | 16.6% |
Operating income | 17,765 | 19,003 |
Cost of net financial debt | (2,062) | (1,667) |
Foreign exchange gains and losses | (10,809) | (8,462) |
Unrealised gains & losses on financial instruments | 15,922 | 22,267 |
Income tax | (5,804) | (10,069) |
Group's net income (loss)4 | 13,034 |
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EBITDA = Current operating income + depreciation and amortisation + net provisions -Before breakdown of R&D expenses capitalised by the Group by type.
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Financial statements that will be approved by the Board of Directors of 23 December 2016. The statements are subject to a limited review by the Statutory Auditors.
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2016/17 revenue is calculated using the average monthly EUR/USD rate of 1.1230 for the period and 2015/2016 revenue is calculated using the average monthly EUR/USD rate of 1.109 for the period.
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The after-tax impact of foreign exchange income is +€9.2 million for H1 2015 compared to +€3.4 million for H1 2016.
A new half year of profitable growth
FIGEAC AERO Group announces a new period of growth in the first half of the 2016/17 financial period. The Group's consolidated revenue reached €146.2 million, for 23% growth in business (+24% at constant exchange rates).
The dynamic of the first half year is mainly sustained by the Aerostructure business
(84.3% of total revenue) up by 27.4% to €123.3 million.
Solid business performance, combined with an improvement in industrial performance, allows to present a high level of operating profitability. In fact, corrected EBITDA1 shows growth of €33.6 million, i.e. 23% of revenue.
Current operating income totalled €17.7 million for this first part of the year 2016/17, integrating an unfavourable base effect over the US zone linked to non-recurring billing and Moroccan activity in start-up phase.
The Group's share of net consolidated income at 30 September 2016 totalled €13.1 million, i.e. 8.9% of revenue.
Ambitious investments to prepare for the Group's future growth
The Group actively pursued its investment policy early in the financial period at €49.1 million in order to strengthen its industrial tooling and deliver on its revenue goals from now to 2020.
Nearly €31 million of the investments were dedicated to production tools, with the acquisition of new machines and the on-going construction of the ultra-automated "Factory of the Future", dedicated to the LEAP engine at the Figeac site. In the America zone (Wichita and Mexico), investments totalled €3.5 million (real estate and production). Moreover, major R&D efforts were carried out on new processes for machining complex products for €10 million.
Financial structure
Successful fund raising last March, leading to a capital increase of €86.2 million, allowed the Group to strengthen its equity and its net cash position. At 30 September 2016, the Group's equity totalled €197.2 million compared to €86 million one year earlier, and net debt totalled €149.4 million.
At 30 September 2016, gearing reached 0.76 and the ratio of net debt to corrected EBITDA1 remained controlled at 2.2x.
Outlook and growth strategies
With a well-focused backlog of orders, the Group is accelerating its growth dynamics for the second half year of 2016/2017. The second part of the year is starting at a sustained pace, and its expected strong growth will be mainly sustained by the A350 Airbus programme and the step-up in deliveries of engine parts for the LEAP programme, for which the Group won two long-term agreements valued at US $500 million and $40 million.
For the current year ended 31 March 2017) the Group confirms its annual financial objectives in consolidated data with record growth of 35% in revenue expected around €340 million and a corrected EBITDA margin greater than €78 million, which would constitute a historical level.
Acquisition of Auvergne Aéronautique Group: a value-creating transaction
The acquisition of Auvergne Aéronautique Group that was finalised in November 2016 marks a major step in the growth of FIGEAC AERO. This is fully in-line with the Group's development plan that aims for European leadership in aerospace outsourcing in 2020.
This acquisition, a true relay of growth, allows the Group to:
- acquire proven know-how in forming activities and sheet metal activities;
- boost its production capacity in Morocco with an operational and profitable Best Cost site;
- acquire new customer opportunities in particular with Airbus Helicopters and AVIC (China);
- position itself on more ambitious work-packages combining machining and sheet metal.
The objectives to March 2020 are therefore maintained with revenue between
€650 and €750 million, i.e. a nearly three-fold increase of business in four years, accompanied by an EBITDA3 margin at current levels.
Next press release: 31 January 2017 (after Market), 2016/2017 3rd quarter revenue
ABOUT FIGEAC AERO |
The FIGEAC 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 nearly 3,000 employees, FIGEAC AÉRO operates in France, the United States, Morocco, Mexico and Tunisia. In the year ended 31 March 2016, the Group reported annual revenue of €252.3 million. Its year-end order backlog was €3.9 billion. |
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(1) EBITDA = current operating income+ depreciation and amortisation + net provisions -Before breakdown of R&D expenses capitalised by the Group by type
(2) Based on a €/$ parity of 1.18