Scienza e Tecnologia
Lumibird / 2020 Earnings: Current Operating Margin of Over 11% in a Health Crisis Context
2020 earnings: CURRENT OPERATING MARGIN OF OVER 11% in a health crisis context
The LUMIBIRD Group, the European leader for laser technologies, is reporting an improvement in current operating income for 2020, despite a business environment held back by the global health crisis. This performance was supported by a higher margin rate and lower external costs on the historical scope. Alongside these factors, acquisitions made a positive contribution, confirming the relevance of the external growth strategy. From operating income to net income, the contraction primarily reflects the €4.0m expense linked to the payment fraud affecting the subsidiary Halo-Photonics. Following record-high revenues in the fourth quarter of 2020, in 2021 LUMIBIRD is looking to continue building on the robust development of its historical scope, while capitalizing on synergies with the companies acquired last year.
Extract from the condensed consolidated full-year financial statements approved by the Board of Directors on March 16, 2021
Business resilient in 2020
The LUMIBIRD Group's full-year revenues came to €126.7m in 2020, up 14.5% (reported) and down 9.4% like-for-like. Including Ellex's laser and ultrasound activities at January 1 (€20m of revenues for the first half of 2020), the Group's pro forma 2020 revenues represent €146.7m.
In the fourth quarter, the Group returned to positive organic growth (+3.0%) which, combined with the contribution from new activities (€12.9m), made it possible to achieve record revenues of €48.2m.
Despite the restrictions introduced with the health crisis, the integration of Ellex and the development of commercial and industrial synergies have moved forward as planned, with sales for the new combined structure in line with the budget set, including operations in the United States.
Current operating profitability maintained
Summary of results for each division
Profitability maintained for the new scope
LUMIBIRD generated €14.1m of current operating income in 2020, representing 11.2% of revenues, compared with 11.1% one year earlier.
This good performance reflects a year marked by the effects of the health crisis in 2020 and the integration of Ellex's activities at June 30, 2020.
The €1.9m increase in current operating income can be broken down as follows:
After taking into account the impact of non-recurring items (primarily including the cost of the payment fraud for €4.0m and acquisition costs relating to the business combinations for €1.4m), operating income came to €8.9m for 2020, compared with €11.3m in 2019.
Pre-tax income totaled €7.2m (vs. €10.6m in 2019), after factoring in finance costs of €1.5m, higher than the previous year due to the effect of the increase in debt and the one-off, non-cash impact of restructuring the acquisition debt.
Following a corporate income tax contribution of €(1.6)m, net income came to €5.6m, compared with €8.8m in 2019. Excluding the impact of the payment fraud (€3.2m net of tax), net income represents €8.8m for 2020, the same level as in 2019.
Solid balance sheet position
The change in the balance sheet total for 2020, up from €193.8m to €305.6m, includes the change in scope with the acquisition of Ellex.
This robust financial position is enabling the Group to maintain its financial flexibility and its capacity to continue financing its ambitions for external growth.
Cash flow analysis
Over the year, in a health crisis context, and despite the impact of the fraud affecting Halo-Photonics, Lumibird maintained its cash generation at around €31m:
In addition, the Group carried out an operation on December 1, 2020 to overhaul its acquisition debt under the following conditions:
All of this debt is subject to two ratios which are tested annually at December 31 and which, if they are not complied with, result in the debt becoming payable:
Outlook
LUMIBIRD is approaching 2021 with confidence, backed by an extensive order book, confirming the upturn on the Group's various markets.
Looking ahead to 2023, the Group plans to continue moving forward with its combined organic and external growth strategy with a view to doubling its current revenues (reported basis). Building on its buoyant markets, its capacity for innovation and the impact of its commercial synergies, it is targeting 8% to 10% average organic growth over the next three years.
In terms of profitability, looking beyond the expected synergies, the Group's performance on purchases, supply chain rationalization and growing vertical integration are expected to contribute towards the target for EBITDA margin growth of 20% to 25% from 2021.
Next date: Q1 2021 revenues on April 26, 2021 after close of trading
LUMIBIRD is one of the world's leading specialists in lasers. With 50 years of experience and a mastering of solid state laser, laser diodes and fiber laser technologies, the Group designs, manufactures and markets high performance lasers for scientific (laboratories and universities), industrial (manufacturing, defense, Lidar sensors) and medical (ophthalmology) markets.
Born from the combination of Keopsys Group with Quantel in October 2017, LUMIBIRD has more than 800 employees and over €126 million of consolidated revenues in 2020 and is present in Europe, America and Asia.
LUMIBIRD shares are listed on the Euronext Paris B Compartment. FR0000038242 – LBIRD
www.lumibird.com
Contacts
Current operating income / revenues
The data for the new scope correspond to the contributions by Ellex from July 1, 2020 to December 31, 2020, by Halo-Photonics from January 1, 2020 to December 31, 2020, by Optotek from January 1 to August 31, 2020, and by the EssMed companies from August 1, 2020 to December 31, 2020.
Financial liabilities (current and non-current) include lease liabilities under IFRS 16.
Gross financial debt corresponds to the sum of non-current financial liabilities and current financial liabilities, including lease liabilities under IFRS 16.
The cash position corresponds to “cash and cash equivalents” on the asset side of the balance sheet, net of current bank borrowings (cash liabilities) included in current financial liabilities on the liability side of the balance sheet
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