GOE Credit Suisse

Groupe Gorgé:

In € millions

 

2015(1)

 

2014

 

Var. (%)

Smart Safety Systems   43.1   39.4   +9.6% Q1   17.7   17.3   +2.3% Q2   25.4   22.1   +15.3% Industrial Projects and Services   46.8   37.5   +24.9% Q1 24.1 17.6 +37.3% Q2   22.7   19.9   +13.9% Protection in Nuclear Environments   16.5   23.5   -29.6% Q1 8.6 11.4 -24.4% Q2   7.9   12.1   -34.5% 3D Printing   8.0   1.1   x7 Q1 2.9 0.2 x19 Q2   5.1   1.0   x5 Revenue between the divisions

and structure

  (0.4)   (0.1)   na Q1 (0.2) (0.2) na Q2   (0.2)   0.1   na Consolidated revenue   114.0   101.4   +12.5% Q1 53.1 46.2 +14.8% Q2   60.9   55.2   +10.5%

The Group's quarterly revenue has increased for the ninth consecutive time year over year. After strong growth in Q1 2015 (+14.8%), Q2 continues to show sustained growth (+10.5%). The Group's consolidated revenue on June 30, 2015 amounted to €114.0 million, compared with €101.4 million on June 30, 2014 (+12.5%), driven in particular by the performance of the Industrial Projects and Services, 3D printing and Smart Safety Systems divisions.

After a strong Q1 (+2.3% vs. Q1 2014), the revenue of the Smart Safety Systems division showed very strong growth in Q2, with an increase of +15.3%. During the half-year, revenue increased to €43.1 million: +9.6% compared with the first half of 2014.

The positive trend displayed by the Robotics & Integrated Systems (+25.4% in the half-year) and Simulation (+26.2% in the half-year) divisions was reaffirmed and amplified in Q2. The downturn in the Aeronautics division slowed down in Q2 and the division has a solid order backlog (+52.7% compared with June 2014).

The overall activity of the SSS division is strong after the signature of several significant contracts within the Robotics and Integrated Systems division (see press releases of April 10 and 17, 2015) and an exceptional contract of more than €10 million in the Aeronautics division (see press release of April 22, 2015).

The Industrial Projects and Services division continues to grow (fifth consecutive quarter of growth), thereby reaffirming the positive momentum of its activity with nearly 14% growth in Q2 2015 compared with Q2 2014. Revenue for the IPS division in the first half-year amounted to €46.8 million, representing an increase of +24.9% compared to the same period last year.

The division's fire protection activity grew by 28% compared with the previous half-year; the division's other business (electricity, automation and industrial robotics) also posted a significant increase of 17% compared with the first half-year of 2014.

This very positive trend should continue in the second half of the year: the IPS division had a strong order backlog of €58 million at June 30, 2015.

The expected decline in revenue of the Protection in Nuclear Environments division was more significant than expected: the revenue of the first half-year (-29.6%) amounted to €16.5 million. The major order placed under the NOVARKA project, signed in Q1 (see press release of January 29, 2015), only partially offset the lag in the realization of major projects.

The order backlog is substantial (more than 12 months of activity), but somewhat lower at June 30, 2015 (-4%) than at June 30, 2014.

Lastly, the 3D printing division posted exceptional revenue growth in the first half of 2015: €8.0 million, representing a 7-fold increase compared with the first half of 2014. 15 machines were sold in the first half-year, compared to eight throughout 2014. In addition, the acquisition of INITIAL in early April, which only contributed to two months of revenue in this first half-year, as well as the sharp rise in the order backlog at June 30, 2015 (+72%) should allow the 3D printing division to continue its strong growth and post very impressive results over the course of 2015.

Outlook

The Group's consolidated order backlog amounted to €208 million at June 30, 2015, up 7.4% compared with June 30, 2014.

As is generally the case, the second half-year should be more favorable to the activity of the Smart Safety Systems division, which is subject to a significant seasonality effect. Moreover, the order backlog of the SSS division at June 30, 2015 saw a strong increase and amounted to €101 million: an increase of 12% compared with June 30, 2014. The numerous calls for tender of its Robotics & Integrated Systems division, for which the group is well positioned, together with the positive momentum of its Simulation division, should also allow this trend to continue for the rest of the financial year.

The Protection in Nuclear Environments division enjoys strong business prospects through major projects (China, Eastern Europe), both in terms of new programs and new customers. This outlook points to recovery in business activity in 2016/2017.

The very strong performance posted by the Industrial Projects and Services and 3D printing divisions in the first half-year should also continue over the entire financial year and support the organic growth of the Group's revenue.

For the IPS division, steps have been taken to strengthen and implement synergies (support, business and product functions) for all activities, and in particular for fire protection.

The 3D printing division should continue to achieve strategic milestones in its development. During the first half-year, the strategic acquisition of Initial and Norge Systems (see press release of March 26, 2015) allowed the Group to demonstrate its ambition to become the third largest player in the world to offer a range of multi-technological and all 3D printing services to its customers. At the same time, the 3D printing division continues its geographic expansion with the signature of new distribution agreements since the beginning of the year, and has opened its first subsidiary in the United States (see press release of February 5, 2015). These new agreements should provide the Group with worldwide coverage for the first time by the end of the financial year and will open up new business opportunities (see press release of July 20, 2015).

Moreover, the €25 million raised in funds and FIMALAC Group's new stake in Prodways Group (see press release of June 1, 2015) will help support the division's industrial projects in the long term, and will speed up the development of this division, which now posts the strongest growth rate in the Group.

Next report

Half-year results released on September 10, 2015

About Groupe Gorgé:

Established in 1990, Group Gorgé is an industrial group operating in different areas of expertise: Smart Safety Systems, Protection in Nuclear Environments, Industrial Projects & Services and 3D Printing

In 2014, the Group reported revenue of €223.3 million. It is backed by 1,370 employees and operations in over ten countries. Groupe Gorgé is listed on NYSE Euronext Paris (ISIN: FR0000062671; Ticker code: GOE) and on the US OTC market (ISIN: US3994511034; OTC Pink: GGRGY / GGRGF) in the form of ADR.

More information available on www.groupe-gorge.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20150727005099/en/

Groupe GorgéNathalie Lagos, Tel : +33 1 44 77 94 77Communications Managercontact@groupe-gorge.com