Groupe Gorgé: Sustained organic growth in all three division in 2019 (+10.8%)

  • Date: 26 Feb 2020

 

(in millions of euros)   Q4 20191 Q4 20182 Change (organic) 2019[1] 2018[2] Change (organic)
Smart Safety Systems   32.9 32.8 +0.4%

(+2.6%)

112.5 102.1 +10.2%

(+13.1%)

Protection of High-Risk Installations   26.7 24.0 +11.3%

(+18.0%)

91.8 90.9 +1.0%

(+11.0%)

3D Printing   20.0 19.4 +3.1%

(+0.0%)

71.3 60.9 +17.1%

(+6.3%)

Structure and disposals   (0.2) (0.3) n.s. (0.9) (0.7) n.s.
Consolidated revenue   79.4 75.8 +4.6%

(+7.6%)

274.6 253.2 +8.5%

(+10.8%)

Backlog at end of period   606.2 214.0 +183.3%      

 

Groupe Gorgé’s revenue in 2019 rose by 8.5% on a reported basis and 10.8% like-for-like, in line with the targets and driven by all divisions. The Group’s revenue was up 4.6% in the fourth quarter of 2019 to €79.4 million (+7.6% like-for-like).

At 31 December 2019, Groupe Gorgé’s backlog was €606.2 million, a near-threefold increase compared with 31 December 2018.

 

In the Smart Safety Systems division, consolidated revenue was €112.5 million in 2019, up sharply by 10.2% on a reported basis and 13.1% like-for-like, when neutralising the contributions of SSI and EN Moteurs sold in 2018. Revenue was up 0.4% in the fourth quarter of 2019 to €32.9 million, and +2.6% like-for-like, affected by the decline in Simulation activity.

At 31 December 2019, the division’s backlog stood at €526.3 million, multiplied by 4.4 compared with 31 December 2018. It provides an exceptionally clear outlook for the next few years.

 

In the Protection of High-Risk Installations division, 2019 was marked by the continued review of the business portfolio with the disposal of Cimlec Group in July 2019 and the recovery of Nuclear and Fire Protection activities in order to resume an upward path of profitable growth. Revenue in 2019 was €91.8 million, up 1.0% on a reported basis and 11.0% like-for-like. As expected, this reflects the continued improvement of all the division’s activities. In the fourth quarter of 2019, the division reported growth of 11.3%, driven by the Fire Protection business.

The division’s backlog stood at €73.8 million at 31 December 2019, down 14.7% compared with 31 December 2018 and 14.2% like-for-like, affected by a base effect in 2018. This decline does not reflect the positive commercial momentum expected in 2020 for the division.

 

Revenue for the 3D Printing division totalled €71.3 million at 31 December 2019, up sharply by 17.1% compared with 2018 (+6.3% like-for-like). The division grew by 3.1% in the fourth quarter on a reported basis (stable like-for-like), despite a high comparison base in 2018. The quarterly performance reflects contrasted trends in the activities. Revenue for the Systems activity was up 0.5% and Products 13.7% this quarter.

 

2020 outlook

The Group is expecting record income for 2019, thanks to the improved profitability of all its divisions and the profit of more than €20 million from the disposal of Cimlec Group.

For 2020, the Group expects the following changes in its markets:

  • In the Smart Safety Systems division, Robotics should continue to perform very well, bolstered by the robotics order from the Belgian and Dutch navies, which is expected to represent an annual contribution of approximately €15 million. Some major new opportunities for mine hunting contracts have already been identified in several countries and could materialise within the next 36 months. Growth in the Aerospace activity is expected to be more moderate.

In the current macro environment, the division is targeting revenue growth of about 10% in 2020.

  • In the Protection of High-Risk Installations division, the commercial outlook is expected to be good across its markets with the resumption of Oil & Gas and Nuclear projects. The growth trend observed in the fourth quarter should increase in 2020.
  • The 3D Printing division has been working for several years on 3D Printing industrialisation projects in various business sectors. These projects involve a large number of machines dedicated to production applications consuming several tonnes of material. Although no industrial orders were signed in 2019, the Group hopes to receive its first such order in the next few months. The division is targeting revenue growth of around 5% in 2020.

Accordingly, in 2020, the Group is setting the following targets:

  • revenue growth of about 10%,
  • improved income for all divisions.

 

Next financial date:

2019 annual results on Monday, 23 March 2020 after market closure.

Raphaël Gorgé, Chairman and Chief Executive Officer, and Loïc Le Berre, Chief Financial Officer, will take this opportunity to share their comments on Groupe Gorgé’s results with the financial community and answer questions from analysts, during a conference held on:

Tuesday, 24 March 2020, at 10:00 am

at the Centre de Conférence Edouard VII – 23 Rue Édouard VII, 75009 Paris.

 

 

[1] Unaudited figures.

[2] In the Protection of High-Risk Installations division, Cimlec and its subsidiaries (Cimlec Group) were disposed of on 9 July 2019. In accordance with IFRS 5 – Non-current assets held for sale and discontinued operations, revenue for 2019 and historical data do not include the Cimlec Group’s contribution.