Scienza e Tecnologia
Egide: 2022 FY results
Bollène , April 2 8 , 2023 - 0 7 :00
a m (CET)
Press Release
2 022 FY results
For various reasons related to this publication, which has recently been approved, the audits have not yet been completed. The audit reports are expected by end of May. The figures presented below are therefore unaudited but were presented to the Board of Directors at its meeting on April 25, 2023.
CONSOLIDATED FINANCIALS 202 2
REVENUE
Egide Group's unaudited consolidated revenue for 2022 was €33.86 million, up 4 % compared to 2021. The euro/dollar exchange rate is favorable, since on a constant dollar basis, revenue in 2022 would be 2.2% lower.
Due to the potential sale of the American activities, it is necessary to analyze separately the revenue of Egide SA's activities from those of its American subsidiaries which are sold. The analysis of revenue is as follows:
RESULTS AS OF 12/31/202 2 – UNAUDITED
i n €M – Unaudited
Results from continuing operations, i.e. the French parent company, remain slightly positive since the 2019 restructuring and net profit amounts to 2% of revenue.
The results of the discontinued operations are heavily impacted by a deterioration of margins and the rising labor costs. The level of loss was deemed too high to allow for a remediation through traditional restructuring methods.
As a result , the Group has started preliminary discussions and due diligences with a U.S. partner for the sale of 100% of the capital of Egide USA LLC, which in turn owns 100% of Egide USA Inc. and Santier Inc. These discussions may or may not result in a future sale.
As mentioned at the time of the press release of the 2022 revenues ( on January 26, 2023), the activity of the group's American entities was seriously challenged throughout 2022 and the situation deteriorated in the second half. This led the Board of Directors to decide in December 2022 to seek solutions for the sale of the American subsidiaries, in particular because the cash situation was becoming strained despite the lease-purchase transaction for the Cambridge plant carried out in June 2022.
Egide USA Inc. (Cambridge site, MD – USA).
Formerly Electronic Packaging Products (EPP), Egide USA has been part of the Group since 2000. It ensures, mainly for the American market, the assembly, the control and the surface treatment of glass-metal or ceramic-metal packaging, all these products being subject to ITAR (International Trade in Arms Regulations) controls. Since mid-2015, the site is equipped with a clean room (class 10 000) of 300 m² and production equipment for the treatment of raw ceramic received from Egide SA.
The fire in July 2020 had repercussions until the 3rd quarter of 2021 because of the delay in the reconstruction of the plating line and its certification by the customers.
Santier Inc. (San Diego site, CA – USA).
Part of the Egide Group since February 2017, Santier mainly provides metal components and heat dissipation solutions for the US market. It also provides some assemblies incorporating HTCC ceramic components purchased externally or supplied by Egide USA.
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2022
* i n €M – Unaudited
In accordance with IFRS 5, the opening balance sheet has not been restated.
In the continuing operations, inventories and receivables increased by approximately €1.3m, while the rest of the assets remained relatively stable and financial debts increased by €0.8m, due to the new €1m bond loan subscribed during the year.
For the discontinued activities, in June 2022, the Cambridge factory was sold and lease back immediately, which creates from an accounting standpoint a “usage right of leased assets” and a “rent debt”. In parallel, the mortgage loan was reimbursed for 1,2M€. In addition, following the change in banking partner, all the loans were reimbursed in December 2022 and replaced with Amerisource by 2 lines of credit with the Accounts Receivable and the Inventory as guaranty, for 2,6M€.
Philippe BRINGUIER is appointed Chief Financial Officer
Philippe BRINGUIER, who has been appointed Chief Financial Officer of the Group, has entered this position on March 20, 2023.
His responsibilities include leading the current sale discussions, but also improving the Group's performance and seeking financing in the USA. With 34 years of experience in financial management in companies and in international audit firms, Philippe BRINGUIER will bring to the Group his extensive expertise in leadership and financial management, including of listed companies, but also in the sale and purchase of companies (M&A) and in the improvement of company performance.
He succeeds Luc ARDON, who is retiring after nearly 4 years within the Group.
2023 OUTLOOK
The prospect of selling all the U.S. subsidiaries is a major decision to simplify Egide's organization, improve the company's performance and return to profitability, and will have no commercial or operational impact since the entities were operating very independently.
On the strategic level, this reorganization of the group will enable it to strengthen its financial structure and refocus on its position as a key player in France and Europe in the defense and aerospace sectors. By becoming once again a French and European player with a strong presence in the Middle East and Asia, the group will be able to strengthen its positions and address more effectively some opportunities linked to the relocation of strategic manufacturing, in particular in electronics.
Egide SA, through its Bollène site, is continuing to modernize its production tools and to seek volume markets. As expected, more emphasis is put on R&D in order to work on technological innovations to find competitive advantages.
As regards governance, the sale of the American subsidiaries would have consequences concerning the management, which the Group anticipates positively, given the simplification at all levels that this would involve. An appropriate communication will be made to the market at the relevant time.
As in the past, the Egide Group's approach regarding its new structure will remain focused on the profitable and sustainable future of the company.
FINANCIAL CALENDAR
Annual Financial Report: should be released by end of May
General Meeting : June 30, 2023
2023 HY Revenue : July 19, 2023
CONTACTS
EGIDE – Finance Department – Philippe B ringuier -
+33 4 90 30 35 94 – pbringuier@fr.egide-group.com
FIN'EXTENSO – Press Relations - Isabelle Aprile - +33 6 17 38 61 78 – i.aprile@finextenso.fr
About EGIDE - Keep up to date with all the Group's news online: www.egide-group.com and LinkedIn
Egide is a group with an international dimension, specialized in the manufacture of hermetic packages and heat dissipation solutions for sensitive electronic components. It operates in cutting edge markets with strong technology barriers to entry in all critical industry segments (Thermal Imaging. Optronics. High-Frequency. Power Units…). Egide is the only pure player in this market niche with manufacturing bases in France and the United States.
EGIDE is listed Euronext Growth Paris™- ISIN : FR0000072373 - Mnémo : ALGID
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