- Annual sales of €95.5 million, +8.2% in actual terms and +10.0%
at constants exchange rates
- EBITDA of €20.6 million, representing 21.6% of sales
- Cash position and cash equivalents of €30.7 million at end-June
2021
- Divestment of the Group’s Romanian and Japanese
subsidiaries
- Proposal to pay €5.5 million in arrears following a fourth
URSSAF audit pertaining to tax on the promotion of medical
devices
Regulatory News:
Amplitude Surgical (Paris:AMPLI) (ISIN: FR0012789667, Ticker:
AMPLI, eligible for PEA-PME equity savings plans), a leading French
player on the surgical technology market for lower-limb
orthopedics, announces its 2020-21 annual results.
Olivier Jallabert, Amplitude Surgical’s CEO, commented:
“Amplitude Surgical’s activity was impacted, during a large part of
last financial year and on most of its markets, by the public
health situation associated with COVID-19, and notably the adoption
of restrictions on access to operating rooms. Nevertheless, the
Group’s activity increased by 10.0% at constant exchange rates
compared with the previous year, which saw an almost total shutdown
in activity from mid-March 2020. Despite a difficult context, good
cost control enabled us to maintain EBITDA at 21.6% of sales, an
improvement on the previous year. The Group also has a solid cash
position for the coming year. However, uncertainty associated with
the COVID-19 pandemic does not enable us to issue any guidance for
our 2021-22 financial year at this stage”.
2020-21 key events:
- On November 3, 2020, the Valance Judicial Court rejected
Amplitude SAS’ request to invalidate the €5.8 million adjustment in
its dispute with URSSAF (employee and employer social security
contribution collection agency) pertaining to tax on the promotion
of medical devices for the period from July 1, 2014 to June 30,
2017. Amplitude decided to appeal this decision;
- On November 10, 2020, Amplitude Surgical announced the
acquisition of a majority stake in the Group’s share capital by PAI
Partners.
Apax Partners, Olivier Jallabert and certain other of the
Company’s managers and senior executives divested 20,889,437
Amplitude Surgical shares and undertook the contribution in kind of
4,121,120 Amplitude Surgical shares to Auroralux SAS, a company
controlled by PAI Partners, i.e. a total of 25,010,557 Amplitude
Surgical shares representing approximately 52.3% of the Company’s
share capital, at a price of €2.15 per share.
On December 7, 2020, Auroralux sent the AMF stock market
authority the draft information document and draft simplified
public tender offer for 22,649,678 Amplitude Surgical shares at a
price of €2.15 per share.
Amplitude Surgical sent the AMF, also on December 7, 2020, its
draft response to the Auroralux simplified public tender offer for
the Company’s shares at €2.15 per share.
On January 5, 2021, the AMF issued a compliance notice regarding
the simplified public tender offer tabled by Auroralux for
Amplitude Surgical’s shares at €2.15 per share. The offer period
ran from January 7 to January 27, 2021, inclusive.
At the closing of the offer, Auroralux SAS held 34,906,476
Amplitude Surgical shares representing a similar number of voting
rights, i.e. 73.02% of the share capital and voting rights.
Auroralux SAS currently holds 35,699,024 Amplitude Surgical shares
representing a similar number of voting rights, i.e. 74.68% of the
share capital and voting rights.
- Within the framework of the change in control of Amplitude
Surgical with the investment of PAI Partners, on November 10, 2020
the Company issued a bond of €110 million subscribed by Tikehau and
proceeded with the early repayment of the 2014 and 2016 bonds whose
outstanding amount was €96.6 million (excluding accrued interest)
at June 30, 2020.
Financial summary – actual exchange rates:
€ million - IFRS
2020-21
2019-20
Δ
Sales
95.5
88.3
8.2%
Gross margin
71.2
64.1
11.1%
as a % of sales
74.6%
72.6%
+200 bps
Sales & Marketing costs
34.8
32.3
7.7%
General & Administrative costs
12.5
10.1
23.3%
Research & Development costs
3.3
4.1
-18.8%
EBITDA
20,6
17.6
17,1%
as a % of sales
21.6%
19.9%
+170 bps
Recurring operating profit/loss
0.2
-6.1
Non-recurring operating income and
expenses
-2.5
3.2
Operating profit/loss
-2.3
-2.8
Financial profit/loss
-10.5
-8.5
Net profit/loss - Group share
-14.1
-14.2
Net financial debt
116.1
107.8
Net cash position - end of
period
30.7
36.6
EBITDA of €20.6 million, representing 21.6% of sales
Over its 2020-21 financial year to June 30, 2021, Amplitude
Surgical recorded sales of €95.5 million, up 8.2% in actual terms
and 10.0% at constant currency. Activity was significantly impacted
on most of the Group’s markets from October 2020 by the situation
associated with COVID-19, with restrictions on access to operating
rooms resulting in the postponement of scheduled surgical
procedures. However, the impact was smaller for the Group than it
was following the almost total shutdown of all activity in the
final quarter of the previous year.
Knee and Hip activity generated sales of €82.7 million, +5.3% on
the previous year at constant currency.
Novastep, innovative solutions for foot and ankle surgery,
recorded growth of 53.5% at constant currency, with sales totaling
€12.8 million. Novastep’s activity accounted for 13.4% of total
Group sales.
In terms of the distribution of activity by geographical
region:
- In France, annual sales totaled €62.4 million, up 13.0%
- The Group’s international activity generated sales of €33.1
million, a slight increase of 0.2% in actual terms and 5.2% at
constant currency. The Group’s subsidiaries recorded growth of
10.5% at constant currency to €25.2 million.
Activity with the Group’s distributors fell by 9.6% to €7.9
million.
The gross margin was 74.6%, an improvement of 200 bps compared
with the previous year’s level thanks to a more positive country
mix and further work on the optimization of the Group’s production
tools.
The Group’s operating expenses totaled €50.6 million, up 8.8% on
the previous year as a result of the increase in marketing
expenditure associated with the higher level of activity and
further quality control and regulatory spending.
At June 30, 2021, Amplitude Surgical had a workforce of 443
staff, compared with 436 at end-June 2020; personnel costs were up
8.2% compared with the 2019-20 financial year, which was impacted
by subsidies associated with partial activity due to the public
health crisis in some of the Group’s countries.
Group EBITDA was thus €20.6 million, or 21.6% of sales, an
improvement on the previous year.
There was a Recurring Operating Profit of €0.2 million in
2020/2021, versus a loss of €6.1 million in 2019/2020, thanks to a
higher level of activity and further controls over operating
expenses. The Operating Result was a loss of €2.3 million, compared
with a loss of €2.8 million in 2019-20, a year impacted by the
reversal of a provision with respect to “Taxation on Medical
Devices” of €8.6 million and the depreciation of R&D projects
for €2.7 million.
The Financial Result was -€10.5 million, which primarily
consisted of an interest expense of €9.9 million.
The Net Result (Group share) was a loss of €14.1 million, versus
a net loss of €14.2 million a year earlier.
Financial structure: cash position of €30.7 million at
end-June 2021
Net cash flow generated by operating activity totaled €2.3
million, versus €12.4 million in 2019-20. The change in Working
Capital Requirements led to cash burn of €3.4 million, with the
higher level of activity compared to the previous year resulting in
higher client receivables and inventory levels, while in 2019/20
the change in Working Capital Requirements had resulted in positive
cash flow of €6.9 million.
Investments totaled €9.2 million, down on the previous year’s
figure of €9.6 million.
At end-June 2021, the Group thus had a cash position and cash
equivalents of €30.7 million. The Group’s Net Financial Debt was
€116.1 million, giving gearing (Net Financial Debt over
Shareholders’ Equity) of 2.04, compared with 1.52 at end-June
2020.
Events since June 30, 2021
- On July 23, 2021, the Group divested 100% of its Amplitude
Ortho SRL subsidiary (Romania) to GBG MLD SRL, the distributor of
the Group’s products in Moldova. The divested company will continue
to market the Group’s products on the Romanian market as a
distributor.
- With its growth failing to meet expectations, on August 13,
2021 the Group divested 80% of its Matsumoto Amplitude Inc.
subsidiary (Japan) to Mr. Takeshi Matsumoto, who already held 20%
of this subsidiary through his company Matsumoto Medical. Following
this divestment, the subsidiary’s new shareholders initiated its
winding-up.
- On September 21, 2021, the Group received a letter of
adjustment from URSSAF following a fourth audit pertaining to tax
on the promotion of medical devices for the period from July 1,
2017 to June 30, 2020. This letter of adjustment requests repayment
of social contribution arrears of €5.5 million, a sum already
provisioned in the Groups accounts in previous financial years. As
with its previous disputes, the Group will formulate its
observations and ask the Valance Judicial Court to invalidate the
adjustment.
2021-22 outlook
The 2019-20 and 2020-21 financial years were significantly
impacted by the COVID-19 pandemic. For the 2021-22 financial year,
there is therefore uncertainty regarding the pace at which activity
will return to a stable situation, notably given the diversity of
the geographical markets covered by the Group and their various
public health situations. These elements could have an impact on
the 2021-22 financial year. Because of this uncertainty, Amplitude
Surgical is currently unable to publish its annual targets.
Next press release
Q1 2021-22 sales, on Thursday November 18, 2021, after
market.
About Amplitude Surgical
Founded in 1997 in Valence, France, Amplitude Surgical is a
leading French player on the global surgical technology market for
lower-limb orthopedics. Amplitude Surgical develops and markets
high-end products for orthopedic surgery covering the main
disorders affecting the hip, knee and extremities, and notably foot
and ankle surgery. Amplitude Surgical develops, in close
collaboration with surgeons, numerous high value-added innovations
in order to best meet the needs of patients, surgeons and
healthcare facilities. A leading player in France, Amplitude
Surgical is developing abroad through its subsidiaries and a
network of exclusive distributors and agents distributing its
products in more than 30 countries. Amplitude Surgical operates on
the lower-limb market through the intermediary of its Novastep
subsidiaries in France and the United States. At June 30, 2021,
Amplitude Surgical had a workforce of 443 employees and recorded
sales of nearly 95.5 million euros.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211020005727/en/
Amplitude Surgical Dimitri Borchtch CFO
finances@amplitude-surgical.com +33 (0)4 75 41 87 41
NewCap Investor Relations Mathilde Bohin/Thomas Grojean
amplitude@newcap.eu +33 (0)1 44 71 94 94
NewCap Media Relations Nicolas Merigeau
amplitude@newcap.eu +33 (0)1 44 71 94 98
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