ABO-Group Environment Half-Year Results 2021
Ghent, 17 September 2021 – 18.00 CET – Press
release / Regulated information
Highlights of the first half of
2021
- Powerful ABO-GROUP revenue growth exceeding
30%
- Operating profit before depreciation of 3.6 million
euro
- France takes the lead as a result of acquisitions and
listing in Paris
- Workforce +25%, staff exceeds 500
Outlook
- Full confidence in the strategic plan: 100 million euro
revenue in 2025
- Well-filled acquisition pipeline
- Further autonomous growth supported by PFAS issue &
climate change
Frank De Palmenaer, CEO of ABO-GROUP
Environment, explains: “ABO-GROUP was able to maintain its
revenue in the first COVID-19 year of 2020, and the group is now
even growing organically by 22%, and by 8% through acquisitions.
ABO-GROUP's typical integration methodology allows for the
realisation of substantial growth following a labour-intensive
start-up, as was the case with ABO-INNOGEO two years ago. The
organic growth by 5.3 million euro has never been seen before
within the ABO-GROUP. This growth was mainly driven by the
spectacular rebound in the construction sector in Belgium, the
increasing contracts for fieldwork in the Netherlands, and by our
geophysical and soil department in France. Following the prior
notification of the PFAS issue last year, ABO-GROUP is aiming for
further market leadership in Belgium. The second half of the year
is also shaping up positively, with a continuation of additional
acquisitions, a wider range of expertise and opportunities relating
to PFAS and climate change. Finally, there’s an important milestone
for ABO in this 25th anniversary year: the dual listing on Euronext
Paris on 4/06/2021. This provides us with more visibility,
recognition and financial flexibility.”
|
H1 2021In € 000 |
H1 2020In € 000 |
ChangeIn € 000 |
Changein % |
Per shareIn € |
Revenue |
31,131 |
23,899 |
7,232 |
30.3% |
|
Total operating income |
31,567 |
24,143 |
7,424 |
30.7% |
|
Operating profit before depreciation |
3,608 |
3,774 |
-166 |
-4.4% |
0.34 |
Depreciation |
2,394 |
2,183 |
211 |
9.7% |
|
Operating profit |
1,214 |
1,591 |
-377 |
-23.7% |
0.11 |
Financial result |
-291 |
-246 |
-45 |
18.3% |
|
Profit before tax |
922 |
1,345 |
-423 |
-31.4% |
|
Net profit |
359 |
965 |
-606 |
-62.8% |
0.03 |
Total results |
335 |
968 |
-633 |
-65.4% |
|
|
|
|
|
|
|
Total equity (30 June) |
18,665 |
17,723 |
943 |
5.3% |
1.77 |
Net cash flow from operations |
1,383 |
4,578 |
-3,195 |
-69.8% |
|
Balance sheet total (30 June) |
62,718 |
54,497 |
8,221 |
15.1% |
|
Highlights of the first half of
2021Powerful ABO-GROUP revenue growth exceeding
30%
In the first 6 months of 2021, ABO-GROUP
experienced a strong growth of more than 30% compared to the first
6 months in 2020. On the one hand, the organic growth of 22.3% in
revenue is all the more striking given that ABO-GROUP only suffered
a limited amount of damage from the corona measures last year.
On the other hand, 8.0% revenue growth was
generated by the French acquisitions of Geoplus, which has
expertise in the mining and quarrying sector, Geosonic France, a
sonic drilling company, and Subgeo, a specialist in geophysical
measurements. This significant increase in revenue confirms the
revenue ambition of 100 million euro in 2025.
Geotechnics, which is the growth engine of the
group, experienced a growth of 34.2%, which can be explained by the
use of innovative geotechnical techniques, in addition to increased
infrastructure works and private development projects.Environment,
previously classified as soil & environment/asbestos &
energy, experienced a strong growth of 25.9%, of which 20.1% was
organic.
|
H1 2021In € 000 |
H1 2020In € 000 |
ChangeIn € 000 |
Changein % |
% of Revenue |
Geotechnics |
17,123 |
12,760 |
4,363 |
34.2% |
55.0% |
Environment |
13,975 |
11,102 |
2,873 |
25.9% |
44.9% |
Other |
33 |
37 |
-4 |
-10.8% |
0.1% |
Revenue |
31,131 |
23,899 |
7,232 |
30.3% |
100% |
With 46%, France presented the strongest growth
of the group, which is explained by both organic growth of 28.6%
and growth through acquisitions of 17.4%. Geotechnics and
environment both show strong growth, with the environmental
department even increasing by 77.9%. These growth figures are
explained, among other things, by the growth strategy, in which
larger customers are approached. The listing on Euronext Paris
played a major role in the context of this growth strategy.
Despite the slight decline in revenue in the
first half of 2020, the Belgian revenue increased by 21.3%. As in
previous years, geotechnics, known in the market by the brand name
Geosonda, again reported very solid growth (>50%). The
environmental department also increased by 16.4%. This increase is
partly explained by new revenue as a result of the PFAS
research.
The Dutch activities show double-digit organic
growth, on top of the fact that the Dutch companies hardly suffered
from corona in the first half of 2020. The soil consultancy
department continues to grow, even though the PFAS regulation had a
positive impact on the 2020 figures. In addition, geotechnical
consultancy and fieldwork also increased.
|
H1 2021In € 000 |
H1 2020In € 000 |
ChangeIn € 000 |
Changein % |
% of Revenue |
France |
15,961 |
10,931 |
5,030 |
46.0% |
51.3% |
Belgium |
9,443 |
7,783 |
1,660 |
21.3% |
30.3% |
The Netherlands |
5,727 |
5,185 |
542 |
10.4% |
18.4% |
Revenue |
31,131 |
23,899 |
7,232 |
30.3% |
100% |
Operating profit before depreciation
amounts to 3.6 million euro, and staff now exceeds 500
The operating profit before depreciation
amounted to 3.6 million euro, a decrease of 4.4%. The main cause of
this decrease is the integration costs of the French acquisitions.
This integration is in full swing, and is expected to take 6 to 12
months. After this integration, we expect a positive return from
the acquisitions as a result of, among other things, increased
efficiency, new skills and the complementary range of services. The
integration of the previous acquisitions, for example ABO-INNOGEO
(acquisition in 2019), followed a similar pattern, but they are
meanwhile providing a significant contribution to the operating
profit before depreciation.
To further support growth, an active search for
competent profiles was conducted, which resulted in a 25% increase
of the number of FTEs compared to H1 2020. This increase in FTEs is
also reflected in the total salary cost. In the environmental
department, intensive efforts were also made during the first half
of the year to provide retraining and education for employees in
the context of the PFAS issue.
The net profit amounts to 0.36 million euro (3
euro cents per share).
1.4 million euro of operating cash flow
generation
Net cash flow from operating activities amounts
to 1.4 million euro, compared to 4.6 million euro in June 2020.
This decrease compared to June 2020 is mainly explained by the
increase in the operating capital requirement due to the strong
growth in revenue. Trade receivables and other short-term assets
increased by 4.2 million euro, while trade payables and short-term
liabilities increased by 2.0 million euro.
The group invested 2.5 million euro in
additional tangible fixed assets, including new CPT machines.
In 2020, the group in France made use of the
opportunity to obtain state-guaranteed loans on highly attractive
terms. A total of 4.43 million euro was taken up, of which 4.32
million euro was still outstanding as of 30 June 2021. The
repayments of these loans run until 2026.
The balance sheet total increased from 54.5 (in
June 2020) to 62.7 million euro. On the assets side, the main
change is the increase in trade receivables from 15.1 (in June
2020) to 19.9 million euro due to the increased revenue.
Furthermore, goodwill also increased by 0.6 million euro as a
result of the various acquisitions (on the basis of the provisional
estimate of the purchase price allocation). On the liabilities
side, equity increased to 18.7 million euro, compared to 17.7
million euro on 30 June 2020; the equity ratio stands at 29.7%. The
increase in the balance sheet total is mainly explained by the
increase in financial debt and trade payables. The solvency,
calculated as the ratio of net financial debt to annualised
operating profit before depreciation, amounts to a very comfortable
1.5 (compared to 1.2 in June 2020). This gives the group the
necessary peace of mind to finance its various expansion and
investment plans.
The full (non-audited) consolidated interim
income statement and balance sheet, the statement of changes in
equity and the consolidated cash flow statement are shown below in
this press release.
OutlookFull confidence
in the strategic plan: 100 million euro revenue in
2025
ABO retains every confidence in its expertise,
its markets and in the structural growth of its business sector.
ABO’s “one-stop-shop” approach in the areas of geotechnics,
environment and the management of contaminated land and soil helps
organisations and local authorities to respond to current
challenges, such as risks associated with climate change or new
types of soil contamination, in particular asbestos and poly- and
perfluoroalkyl substances (PFAS). Despite the fact that ABO-GROUP
was only marginally affected by the corona crisis, a growth in
revenue exceeding 30% can be presented in the first half of the
year. The long-term objective of the strategic plan, i.e., growth
through a mix of organic and acquisitive growth with a revenue of
100 million euro by 2025, is therefore maintained without any
problem.
The group continues to seek to strengthen its
position through acquisitions. The group has identified a number of
attractive opportunities, but without any guarantee of an actual
transaction taking place.
Further investment in geotechnical
engineeringABO-GROUP will continue to support its strong
position in geotechnical engineering in France, the Netherlands and
Belgium through new investments and the use of innovative
geotechnical techniques. We will continue to invest in geotechnical
laboratory tests and in the development of a consultancy
division.
Integration of new acquisitions
constitutes the basis for further growthIn the second half
of 2021, the focus will be on the further integration of the
various acquisitions, including the administrative simplification
of the structure, which will lead to cost savings.
In addition to the French acquisitions of
Geoplus and Geosonic France, Asper, the expert in asbestos surveys
that was acquired on 14 July 2021, will also be further integrated
into ABO-GROUP. The acquisition of Asper will also provide
additional in-house expertise in order to respond to the
anticipated additional asbestos work. Through its asbestos experts
and in-house asbestos laboratory, ABO-GROUP is therefore preparing
for the introduction of the mandatory asbestos inventory required
for the sale of private homes in Flanders. This is expected by
mid-2022. Approximately 75,000 homes are sold in Flanders every
year.
Growth in Belgium following the PFAS
issueThe PFAS issue was widely covered by the Belgian
media in 2021. PFAS (poly- and perfluoroalkyl substances) is the
collective name for around 6,000 chemical substances with the
common denominator of being extremely harmful and not readily
degradable. Our CEO, Frank De Palmenaer, already sounded the alarm
in December last year in order to raise this issue. As a market
leader in the field of soil research, ABO-GROUP takes soil and
water samples from dozens of locations on a daily basis, which are
then analysed and interpreted according to the applicable
regulations. The revenue within ABO's soil department therefore
rose steadily as a result of this PFAS issue. Samples are now taken
from about 100 sites, and this trend is expected to continue in the
coming months.
Every effort is currently being made to map
locations where excessive PFAS is found. The mapping of these
contaminated areas will allow us to support the policy and set up a
comprehensive inventory for Flanders as soon as possible. It is
expected that the revenue of the Belgian environmental department
will be further driven in the second half of the year as a result
of this PFAS issue.
Finally, the demand for research will also
increase in the coming years, especially for chemicals (pesticides,
endocrine disruptors, chromium-6, etc.) about which little is
currently known and for which additional research on their adverse
effects is still required today. Thanks to its extensive team of
experts and its own R&D department, ABO expects to make an
important contribution to this research.
Various
Furthermore, it is announced that withing the
financial department:
- Mr
Michiel Deschuttere has been appointed as interim CFO since the 1st
of August 2021
- The
recruitment procedure for a new CFO is ongoing
- Mr
Alexander De Palmenaer, graduated as commercial engineer and son of
the CEO, will be integrated in the financial department as
financial analyst starting at the 21st of September.
Financial calendar
18/03/2022: 2021 annual figures25/05/2022:
General
Meeting
Statement regarding the fair
presentation of the interim condensed consolidated financial
information and the fair overview of the interim
report
Frank De Palmenaer, CEO, declares that, to his
knowledge, the interim condensed consolidated financial information
for the six-month period ending 30 June 2021, which was prepared in
accordance with IAS 34 “Interim Financial Reporting” as approved by
the European Union, gives a true and fair view of the assets, the
financial position and the results of the company and the companies
included in the consolidation. The interim report gives a fair
overview of the most significant events and key transactions with
related parties that have taken place during the first six months
of the financial year and their effect on the interim condensed
financial information, as well as a description of the most
significant risks and uncertainties for the remaining months of the
financial year.
About the ABO-GROUP
The ABO-Group is a specialised engineering
company focused on geotechnical engineering, the environment and
soil remediation. ABO-GROUP is active in Belgium, the Netherlands
and France, through its consultancy and testing & monitoring
departments. ABO-GROUP guarantees its clients a sustainable
solution. For a more detailed description of the activities of the
group, please consult www.abo-group.eu.
For more information:
Frank De
Palmenaer
CEO ABO-Group Environment
NV
frank.depalmenaer@abo-group.eu
Derbystraat 255, Maaltecenter Blok G, B-9051 Ghent (SDW),
Belgium
This press release is available on our website
www.abo-group.eu
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