Spineway - improved operating result despite cover
Press release
Ecully, 25 January 2021 – 6 p.m.
2020 annual results
- 18% increase in operating income
- Improved performances during the second half of
2020
- Continued strengthening of the financial
structure
In thousands of eurosConsolidated accounts |
HY1 2020 |
HY2 2020 |
% variation |
2020 |
2019 |
% variation |
Revenue |
1 426 |
1 953 |
+ 37% |
3 379 |
5 018 |
- 33% |
Cost of goods sold |
- 540 |
- 720 |
+ 33% |
- 1 260 |
- 1 174 |
+ 7% |
Gross margin |
886 |
1 233 |
+ 39% |
2 119 |
3 844 |
- 45% |
Operating costs1 Including operational costs |
- 2 250 - 1 266 |
- 1 779 - 1003 |
- 21% - 21% |
- 4 029 - 2 269 |
- 6 169 - 2 517 |
- 35% - 10% |
Including personnel expenses |
- 1 170 |
- 1 108 |
- 5% |
- 2 278 |
- 2 520 |
- 10% |
Operating income |
- 1 364 |
- 546 |
+ 60% |
- 1 910 |
- 2 325 |
+ 18% |
Financial incomeIncluding Negma financial one-offs2 |
- 10 575 - 10 561 |
- 1 704 - 1 417 |
|
- 12 279 - 11 978 |
- 140 0 |
|
Non-recurring items |
-72 |
156 |
|
84 |
- 411 |
|
Net incomeIncluding restated net income2 |
- 12 011- 1 450 |
- 2 094- 677 |
+ 53% |
- 14 105- 2 127 |
- 2 876- 2 876 |
+ 26% |
·
Spineway’s Board of Directors, at a meeting held
on 25 January 2021 chaired by Stéphane Le Roux, closed the 2020
annual accounts.
Thanks to a sharp increase in sales in December
2020 (+30% compared with December 2019), Spineway’s revenue for Q4
2020 was up 21% compared with Q3, at €1 068K. This positive
momentum, buoyed, in particular, by an increase in sales in Asia
during the fourth quarter (+71% compared with 2019), allowed the
Group’s annual revenue to reach €3 379K, closing the gap a bit with
2019 (-33%) in a year that was greatly disrupted by the COVID
pandemic.
Significant improvement in performances
for the second half of the yearThis increase in sales
during the second half of the year allowed Spineway to post
improved operational performances for the second half of the year
after a first half heavily impacted by the pandemic. The gross
margin for the second half of 2020 was of €1 233K compared with
€886K for the first half of 2020, representing a 39% increase, and
was of €2 119K for the year 2020.
During this period, Spineway continued to invest
in R&D, quality and regulatory affairs in order to remain
competitive, anticipate future developments and secure approvals
per the new European requirements. In addition, the cost-saving
measures implemented made it possible to mitigate the impact of the
pandemic on the Group’s results, in particular, the full effect of
the decrease in personnel expenses initiated in 2019, the lower
hospitality and marketing expenses (trade shows, conventions,
travel, etc.), as well as the controlling of overhead, in
particular, via a cost-cutting plan concerning the US subsidiary as
its results to date are not in line with expectations in view of
the pandemic.
Thanks to these cost-saving measures,
operating income for the second half of the year was up 60%
compared with the first half of the year at –€546K.
For the financial year as a whole, it was of –€1 910K,
up 18% compared with the previous year.
As announced with the publication of the results
for the first half of the year3, the recording of a one-time
financial expense representing compensation for the Negma financing
agreement affected the net income for 2020 by almost €12M. In order
to avoid this mechanism, Spineway carried out two capital decreases
during the financial year by decreasing the share’s par value (in
May and in September), which is why this burden mainly concerns the
first half of the year (€11M), the time for these decisions to have
effect. As a reminder, this financial burden did not result in any
outflow of cash for the Group and was fully financed in Spineway
shares.
Restated to include this non-recurring
expense, the Group’s net income increased significantly by 26%,
amounting to –€2 127K compared with –€2 876K in 2019.
Strengthened financial structure to
support developmentDuring this unprecedented time, the
Group paid special attention to client payment deadlines and
effectively managing inventory. This proactive management made it
possible to improve the WCR by €985K, bringing it to €1 828K
compared with €2 813K the previous year.
The Group’s cash position benefitted from this
improvement, as it did from the lower operating costs, and was also
strengthened by the financing agreement with Negma. During the
course of 2020, the conversion of bonds convertible or exchangeable
for ordinary new or existing shares with warrants (OCABSA)4
generated over €6M in net cash for the Group. In addition, Spineway
also obtained a government-backed loan (PGE) of €1.4M.
Thus, as at 31 December 2020, the cash
and liquid assets amounted to €4 857K, allowing the Group to post a
cash position net of financial debts of €1 969K.
Technological and scientific
partnerships with great potentialIn accordance with its
innovation strategy, Spineway is working on developing new products
that will improve surgical techniques, facilitate surgeons’
movements and decrease operating time. To this end, the Group
intends to enter into technological and scientific partnerships
with high added value. These would be based on cutting-edge
technologies such as 3D printing and collaborations with renowned
spinal surgeons that would assist the rise of the Group’s premium
implants.
Thanks to a solid foundation and
strengthened financial means, Spineway is prepared and ready to
continue its development in its existing territories during the
pandemic and is in a position to seize any and all opportunities
for external growth offering synergies that would create value for
the Group.
Upcoming: web conference
on 26 January 2021 at 11:30 a.m.Review of 2020
activities and discussion of the Group’s prospects
The annual accounts are available on the
company’s website in the Investors
SPINEWAY IS ELIGIBLE FOR THE PEA-PME
(EQUITY SAVINGS PLANS FOR SMES)Find out all about Spineway
at www.spineway.com
This press release has been prepared in both
English and French. In case of discrepancies, the French version
shall prevail.
Spineway
designs, manufactures and markets innovative implants and surgical
instruments for treating severe disorders of the spinal
column.Spineway has an international network of
over 50 independent distributors and 90% of its revenue comes from
exports.Spineway, which is eligible for investment
through FCPIs (French unit trusts specializing in innovation), has
received the OSEO Excellence award since 2011 and has won the
Deloitte Fast 50 award (2011). Rhône Alpes INPI Patent Innovation
award (2013) – INPI Talent award (2015). ISIN:
FR0011398874 - ALSPW
Contacts:
SPINEWAY Shareholder-services lineAvailable
Tuesday through Thursday(10 a.m. – 12 p.m.)+33 (0)811 045 555 |
Eligible PEA / PMEALSPWEuronext Growth |
AELIUM Finance & Communication Investor
relationsSolène Kennisspineway@aelium.fr |
1 Net of R&D expenses activated since the second half of
2019, i.e., €902K in 2020 v. €358K in 2019.
2 See explanation of this one-off expense on page 2 under net
income.
3 See press release for half-year results dated 27 October
2020
4 The breakdown of such financing is provided in the annual
financial report.
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