ABO-Group Annual
Results for 2017
Ghent, 30 March 2018 - 17.00 CET -
Press release / regulated information
The ABO-Group, an engineering
office focussing on construction, environment and energy, has today
announced its consolidated financial figures for 2017.
2017
highlights
-
20% sales growth to 44 million
euro
-
Operating profit increases by
80% to 3 million euro
-
Expansion of machine capacity
and drilling techniques
Outlook for
2018
-
Increase in turnover and
profitability
-
Development of geotechnology as
growth engine for the group
-
The "Soil Decree" approved in
Wallonia
-
Development of the "Vision
2022" strategic plan
|
2016
in € 000 |
2017
in € 000 |
Change
in € 000 |
Change
in % |
Per share
In € |
Sales |
36,779 |
44,127 |
7,348 |
+20.0% |
|
Total operating income |
37,820 |
45,393 |
7,573 |
+20.0% |
|
Operating profit before
depreciation |
3,587 |
5,454 |
1,867 |
+52.0% |
0.52 |
Depreciation |
1,929 |
2,471 |
542 |
+28.1% |
|
Operating profit |
1,658 |
2,983 |
1,325 |
+80.0% |
|
Financial result[1] |
-208 |
-487 |
-279 |
+134.1% |
|
Profit before tax |
1,449 |
2,496 |
1,047 |
+72.3% |
|
Net profit |
792 |
1,093 |
301 |
+38.0% |
0.10 |
20% sales
growth
ABO-GROUP achieved a sales growth
of 20% in 2017. 6.5% of this came from acquisitions (twelve months
integration of Geomet/Geosonda in the Netherlands in 2017 versus 6
months in 2016, full consolidation of Enviromania/Translab in
Belgium as from 1/01/2017). The organic growth was a very strong
13.5%.
This growth was broadly based, as
sales increased by double digits in France, the Netherlands and
Belgium. The construction and infrastructure market is picking up
everywhere, and many new projects are being launched. The strongest
growth was recorded in the geotechnical activities, both in the
home markets (Geosonda in Belgium and the Netherlands, ERG
Géotechnique in France) and at an international level (via Ecorem,
Uganda project).
In the Belgian consultancy
activities (ABO), the growth was mainly in the asbestos and
archaeology sectors. The energy department, Energy to zero (E20)
could also record very strong growth figures, thanks to the smooth
implementation of several large framework contracts.
The sales distribution is broken
down as follows:
|
2016
in € 000 |
2017
in € 000 |
Change
in € 000 |
Change
in % |
% of
Sales |
France |
16,545 |
19,205 |
2,660 |
+16.1% |
43.5% |
Belgium |
14,354 |
16,542 |
2,188 |
+15.2% |
37.5% |
The Netherlands |
5,880 |
8,380 |
2,500 |
+42.5% |
19.0% |
Sales |
36,779 |
44,127 |
7,348 |
+20.0% |
100% |
80% increase in
operating profit
The higher activity level
translates into increasing operating costs (38% increase in
project-related purchases, 19% increase in services and various
goods). Personnel costs, the largest cost item in a consultancy
firm, increased by 11%.
Operating profit before
depreciation amounts to 5.45 million euro (0.52 euro/share), an
increase of 52%. The strong improvement is due to improved
operational performance in Belgium and France. In France, the
geotechnical department in particular generated profit growth. In
Belgium, Enviromania/Translab and E20 could translate their sales
growth into a significantly increased profitability. The losses in
the international department were further reduced. The Netherlands
firmly opted for recruitment and expansion, resulting in an
increase in operating profit. This compensated for the
disappearance of non-recurring elements, which meant that the
year-on-year contribution remained the same.
As a result of the group's
continuous investment programme for the replacement and expansion
of the machine park in recent years, depreciations have increased
significantly (+542k euro to 2.47 million euro, +28.1%). In 2017,
new equipment worth more than 2 million euro was purchased for the
fieldwork companies. The group is investing in capacity expansion,
but also in new techniques. The park of multifunctional machines,
in combination with a variety of drilling techniques, ensures the
provision of a unique product range for the customer.
The operating profit increased by
1.3 million euro, from 1.7 million euro to 3 million euro
(+80%).
The financial result decreased,
mainly due to the inclusion of the financing expenses for
Enviromania/Translab, as well as exchange rate losses on the
dollar. The acquisition of Esher (47.6% stake, with the option of
purchasing the remaining shares), which was announced at the end of
last year, made a small positive contribution of 28k euro. The
shareholding in Binergy Meer was sold at the end of 2017, which
resulted in a one-off profit of 98k euro.
The corporate tax reform in
Belgium (the so-called "summer agreement") had a very significant,
one-off negative impact on the deferred tax assets that were built
up in the past. The lower rates are, of course, favourable with
regard to the future, but are currently causing an impairment of
already anticipated and booked recoverable losses. In addition, the
Board has opted for a conservative approach in its assessment. The
reform has a positive impact on deferred tax liabilities. This is
not absorbed in the profit and loss account, however, but in the
consolidated full period result.
Net profit increased by 38% from
792k euro to 1.1 million euro (0.10 euro per share).
The balance sheet total increased
from 37.3 to 40.8 million euro. On the asset side, the main changes
are the increase in goodwill and intangible fixed assets (as a
direct result of the full consolidation of Enviromania/Translab and
the associated allocation of the purchase price), trade receivables
(as a result of the increased activity) and the realisation of the
assets held for sale (through the sale of Binergy Meer). On the
liabilities side, the financial debts increase, mainly as a result
of the leasing of new equipment, the inclusion of financing for the
working capital and the debt related to Enviromania/Translab
following the full consolidation. The total shareholders' equity
increased to 13.7 million euro, resulting in an equity ratio of
33.6%.
The full set of
figures (consolidated profit and loss account, balance sheet, cash
flow statement and changes in equity statement) is included as an
annex to this publication.
Outlook for
2018
Increase in
turnover and profitability
ABO-Group aims to further expand
its environmental and energy consultation, and its engineering and
testing activities both in the three home countries (Belgium, the
Netherlands, France), and in a number of specific international
growth markets (with a strong emphasis on Southeast Asia and
Africa). The group is continuing its strategy and positioning as a
European player with international ambitions. The ABO-Group focuses
on internal organic growth by recruiting experts for setting up and
developing new operations. Various new activities, as well as new
offices, were launched in 2017. We anticipate that these
initiatives will support the turnover and profitability in
2018.
In addition, the group also seeks
to further strengthen its position in the home countries through
acquisitions. In 2017, the participation in Enviromania/Translab
was raised to 74.4%. A 47.6% stake in the Ghent engineering office
Esher was procured at the end of 2017. The positive effect of the
transactions that were realised in recent years is clearly
noticeable. The group aims to continue this process, and will also
actively monitor the acquisition market and seek to capitalise on
several opportunities in 2018. In addition to the dossiers in
progress in the home countries, the geographical expansion within
Europe is also envisaged.
The group adheres to its objective
of double-digit growth through a mix of organic and acquisitive
growth. For 2018, this means in concrete terms an objective of 50
million euro turnover, with an anticipated operating margin for
depreciation above 10%.
Development of
geotechnology as growth engine for the group
Geotechnology represents the
largest activity of the group. Active investments are being made in
order to be able to optimally benefit from the cross-fertilisation
between the different geotechnical departments (fieldwork and
consultancy). The exchange of knowledge and equipment between the
home countries is encouraged. Contacts are established with
international customers, in order to be able to provide them with
similar high-quality services in different markets. The group is
actively looking forward to the launch of geotechnical laboratory
activities in Belgium, inspired by the knowledge and experience
built up in France. In Belgium, Geosonda won several larger
framework contracts that support the further expansion of the
geotechnical activities.
The "Soil Decree"
approved in Wallonia
The Walloon Parliament approved a
new legislative framework for soil management ("Décret sols") on 28
February 2018. As a result, an adapted legislative framework for
the development, use and remediation of the soil is being
implemented in Wallonia. ABO expects that this will generate an
upward momentum for the sector. The decree will take effect at the
latest on 1 January 2019.
Development of
the "Vision 2022" strategic plan
The Board of Directors of the
group is reviewing the development of a strategic 5-year plan, in
consultation with the management. It is expected that this will
take concrete shape before the summer of 2018. ABO-GROUP continues
to resolutely opt for further growth, through the expansion of the
product range and the opening of additional offices, as well as the
active monitoring of acquisition files.
The mandates of all the directors
and the statutory auditor will expire at the General Meeting this
year. Based on the advice of the Audit Committee, the Board
proposes to reappoint EY as the statutory auditor for the group for
a period of 3 years. The full agenda and convocation to the meeting
will be sent out at the end of April.
Financial
calendar
27/04/2018: Publication of the
2017 annual report and convocation to the General Meeting
30/05/2018: General
Meeting
14/09/2018: Figures for the first
half of 2018
Statement of the
statutory auditor
The auditor of ABO-Group
Environment NV, EY Bedrijfsrevisoren BCVBA, represented by Marnix
Van Dooren, has confirmed that his audit review, which was
thoroughly completed, has not revealed any significant corrections
that would require an adjustment to the 2017 consolidated figures
for the Group, which are included in this press release.
About the
ABO-Group
The ABO-Group is a listed company
specialising in consultancy, testing & engineering, and
focussing specifically on construction, environment and energy. The
ABO-Group operates in its three home markets (Belgium, the
Netherlands and France), as well as in the international market,
and guarantees a sustainable solution to its customers. For a more
detailed description of the activities of the group, please consult
the ABO-Group website (www.abo-group.eu).
For more information:
Frank De
Palmenaer
Johan
Reybroeck
CEO ABO-Group Environment
NV
CFO ABO-Group Environment NV
frank.depalmenaer@abo-group.eu
johan.reybroeck@abo-group.eu
T +32 (0)9 242 88 22
Derbystraat 255, Maaltecenter Blok G, B-9051 Ghent
(SDW), Belgium
This press release is available on our website
www.abo-group.eu
[1] Including
the share in the profit of associated companies
ABO-Group 2017 EN
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ABO-Group via Globenewswire
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