ABO-Group Environment Half-Year Results 2022
Ghent, 16 September 2022 – 6.30 p.m. CET – Press
release / regulated information
Highlights of the first half of
2022
- ABO-GROUP realises a 16% growth in revenue to € 36.8
million
- EBITDA increased with 39% from € 3.9 to € 5.4 million,
resulting in a margin of 15% thanks to the further integration of
acquisitions from 2021
- Net debt increased to € 14.2 million, due to the
acquisitions and continued investments
- Smooth integration of the Dutch acquisitions from the
first half of the year
Outlook
- Further increase in PFAS research and guidance on
environmental regulation
- Increasing demand for study on climate change, circular
economy and geotechnics
- Continued focus on M&A to additionally support
organic growth
Frank De Palmenaer, CEO of ABO-GROUP
Environment: “In the first half of the year, ABO-GROUP
managed to bring the French companies acquired in 2021, all active
in the mining and quarrying market, to positive results. Moreover,
despite these difficult crisis times, ABO-GROUP managed to absorb
energy price increases and general indexation of costs through
partial pass-through and efficiency gains. Finally, the demand for
PFAS research in Belgium continues to grow, and with the
accumulated experience and experts, ABO-GROUP is now also taking
steps in this area in the French market.
Going forward, we expect to invest
further in geotechnical equipment to continue to support the strong
increase in geotechnical investigations in our three home countries
and to enable the implementation of new techniques. Despite the
challenges on several fronts, ABO-GROUP expects to successfully
realise its growth plans for the coming years. All this thanks to
the pooling of experience of all our motivated employees who
continue to develop themselves into true experts in our
activities.”
in € 000 |
|
1H 2022 |
|
1H 20212 |
|
% change |
Revenue |
|
36,354 |
|
31,131 |
|
16.8% |
Total operating income |
|
36,758 |
|
31,752 |
|
15.8% |
EBITDA1 |
|
5,418 |
|
3,905 |
|
38.8% |
Depreciation, impairments and
provisions |
|
-3,299 |
|
-2,541 |
|
29.8% |
Operating profit |
|
2,120 |
|
1,364 |
|
55.4% |
Financial result |
|
-346 |
|
-291 |
|
19.0% |
Profit before tax |
|
1,773 |
|
1,073 |
|
65.3% |
Net profit |
|
1,242 |
|
359 |
|
245.9% |
Total
result |
|
1,252 |
|
494 |
|
153.3% |
Earnings per share for the shareholders |
|
0.12 |
|
0.05 |
|
153.3% |
Net cash flow from operating activities |
|
-84 |
|
1,383 |
|
-106.1% |
|
|
|
|
|
|
|
in € 000 |
|
1H 2022 |
|
FY 2021 |
|
% change |
Total
equity |
|
20,294 |
|
20,495 |
|
-1.0% |
Net financial debt |
|
14,177 |
|
9,255 |
|
53.2% |
Balance sheet total |
|
69,776 |
|
66,225 |
|
5.4% |
1 EBITDA defined as
operating profit before depreciation, impairments and provisions2
The results for 1H2021 were adjusted to reflect the accounting of
the business combinations GEO+ Environment, Geosonic and Asper, as
included in the consolidated financial statements of FY2021
2022 highlights
Strong 16% growth in operating
incomeIn the first six months of 2022, the total operating
income of ABO-GROUP amounted to € 36.8 million, a growth of 16%
compared to the result in the first half of 2021. The contribution
of the 2022 acquisitions of the trade funds of Geo-Supporting and
Colsen, and the previously non-consolidated results from 2021
acquisitions Asper and Geosonic represent a 4% growth in revenue,
which brings the organic growth of the existing business activities
in 2022 to 12%.
In terms of activities, Geotechnology shows a
significant growth of 19%, to € 20.9 million (€ 17.6 million in 1H
2021), to which the above-mentioned acquisitions of Geo-Supporting
and the additional month of Geosonic have contributed. Without
these contributions, revenue would still have risen by 14%. The
revenue of the Environmental division increased by 12% to € 15.9
million (compared to € 14.2 million in 1H2021), 9% of which is
organic. As a result, the share of the geotechnical activities
further increased from 55% to 57%.
The contribution of the French operations
increases with 16% to € 19.1 million, 13% of which organic. In
particular the integration of Geosonic and GEO+ Environment turns
out to be a strong growth drivers, both individually and through
their impact on the activities of the other entities in France.
In Belgium, both the geotechnical activities –
driven by large infrastructure projects around Antwerp and Brussels
- and the environmental divisions – thanks to the implementation of
major framework contracts in the context of the PFAS issue -
register strong growth figures, accounting for an organic revenue
growth of 13%. Together with the 4% growth through the contribution
of asbestos specialist Asper, who joined the Group in July of last
year, this resulted in a total growth of 17% for the Belgian
activities, to a total revenue of € 11.2 million in the first six
months of 2022 (against € 9.6 million in the first half of last
year).
Environmental field work in the Netherlands has
been under pressure in the first half of the year. This is
compensated, however, by the strong performance in the consultancy
division and geotechnical studies. Supported by the acquisitions of
Colsen and Geo-Supporting, this raised the revenue to € 6.4
million, an increase of 12% compared to 2021, of which 7% is
organic.
EBITDA increases by 39% to € 5.4
million, representing a 15% margin
The EBITDA for the first six months of 2022
amounted to € 5.4 million, an increase of € 1.5 million
compared to the previous year. The integration of the acquisitions
from 2021 has been largely accounted for, and they are now
providing a positive contribution to the profitability of the
Group. In addition, the Group is successfully compensating for the
sharply increased costs of subcontracting, fuel and staff for the
time being, by increasing prices where contracts allow for this,
and by enhancing the efficiency within the organisation.
Depreciation and provisions increased from € 2.5
to € 3.3 million. ABO-GROUP is continuing to invest in the
renovation and expansion of their machinery in order to be able to
respond adequately to the needs of its customers. In addition, a
specific provision amounting to € 0.5 million was included in
connection with the ruling on a legal dispute relating to the
previously sold international activities of ABO Logistics.
The financial result has risen slightly, in line
with the increased debt level. Following the increased
profitability, net profit increased significantly from € 0.4
million to € 1.2 million (€ 0.12 per share).
Revenue growth leads to an increase in
working capital and net debt of 1.3x EBITDA
Net cash flow from operating activities amounts
to € -0.1 million (compared to € 1.4 million in the first half of
2021). This is due to the fact that the operating capital
requirement increased quite significantly in the first six months
as a result of a combination of the seasonal increase in trade
receivables and work in progress, with the start-up of several
major projects at various entities. This substantial growth of €
7.8 million (versus € 4.8 million in the first half of 2021) was
only partially compensated by the increase in trade receivables and
other short-term liabilities by € 2.8 million (€ 1.9 million in the
first six months of 2021), thereby increasing operating capital by
€ 5 million by the end of June.
In view of the recent acquisitions and the
repurchase of part of the outstanding minority interest in Geosonda
Netherlands, as well as the investments in operating capital and
fixed assets, the net financial debt increased from € 9.3 million
at the end of 2021 to € 14.2 million. The annualised debt ratio of
1.3x, compared to the EBITDA (1.1x at the end of 2021) remains very
healthy, and provides the Group with room for further investments
in assets and/or acquisitions.
The balance sheet total increased further, from
€ 66.2 to € 69.8 million. On the assets side, this mainly reflects
the recent acquisitions, as well as the above-mentioned increase in
operating capital, while short and long-term debts increased on the
liabilities side. Total equity amounts to € 20.3 million, status
quo against the situation at the end of 2021 as the realised result
for the first part of 2022 is offset by the purchase of the
minority interest in Geosonda as well as the accounting of the
contractual agreements (specifically put and call options) that
were entered into at that time with regard to the remaining stake.
The equity ratio settled at 29.1% (against 30.9% at the end of last
year).
The full consolidated income statement and
balance sheet, the statement of changes in equity and the
consolidated cash flow statement are shown immediately below.
Outlook
Maintaining group ambitions despite
challenging geopolitical and economic situation
The first half of the year was characterised by
a strong result and the order books for the coming period are
well-filled, with some entities needing to refuse orders. Although
the Group has up to now managed to pass on some of the cost
increases resulting from the geopolitical situation and volatile
markets, and is focussing on internal efficiency to counteract high
inflation, the overall economic situation in which the Group is
operating remains fragile. The various entities are working hard to
provide suitable solutions for these challenges, both internally
and for their customers.
Based on the current results and the
expectations for the coming periods, the board and the operational
management confirm their confidence in its plan to reach the
revenue cap of € 100 million by the end of 2025 at the latest.
ABO-GROUP expects that its proven concept of combining strong
organic growth with targeted acquisitions should enable achieving
the technical market leadership in its home markets. As always, the
Group is actively seeking the right acquisition targets to support
the implementation of its plan.
Financial calendar
30/03/2023: 2022 annual figures31/05/2023:
General Meeting
Statement regarding the fair
presentation of the interim condensed consolidated financial
information and the fair overview of the interim
report
Frank De Palmenaer, CEO, declares that, to his
knowledge, the interim condensed consolidated financial information
for the six-month period ending 30 June 2022, which was prepared in
accordance with IAS 34 “Interim Financial Reporting” as approved by
the European Union, gives a true and fair view of the assets, the
financial position and the results of the company and the companies
included in the consolidation. The interim report gives a fair
overview of the most significant events and key transactions with
associated parties that have taken place during the first six
months of the financial year and their effect on the interim
condensed financial information, as well as a description of the
most significant risks and uncertainties for the remaining months
of the financial year.
About the ABO-GROUP
ABO-GROUP is a specialised, listed engineering
office focussing on geotechnology, environment and soil
remediation. Through its Consultancy and Testing & Monitoring
divisions, ABO-GROUP is operating in Belgium, the Netherlands and
France, as well as internationally. ABO-GROUP guarantees its
clients a sustainable solution. Please consult the ABO-GROUP
website (www.abo-group.eu) for a more detailed description of the
activities of the Group.
For more information:
Frank De
Palmenaer
CEO ABO-Group Environment
NV
frank.depalmenaer@abo-group.eu
T: +32 496 59 88 88
Derbystraat 255, Maaltecenter Blok G, B-9051 Ghent (SDW),
Belgium
This press release is available on our website
www.abo-group.eu
- ABO-Group Environment Half-Year Results 2022
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