(BFM Bourse) – The Strasbourg computer server manufacturer has published downgraded accounts for its staggered 2022-2023 financial year. 2CRSi does not advance any quantified outlook for the future and is awaiting the sale of its subsidiary Boston Limited to present its financial objectives to the market.
The end of June is definitely not favorable for 2CRSi. At the end of June 2022, the Strasbourg group had announced a postponement of its 2021-2022 annual accounts to an indefinite date, before finally delivering its copy … the following July 11.
This year, 2CRSi would have hoped for a better end to the week and this first stock market semester. The Strasbourg computer server manufacturer plunged 9.7% to 1.575 euros on Friday around 3:30 p.m. The market is heavily penalizing the content of the results for its financial year from March 1, 2022 to February 28, 2023. The disappointment was such that the stock even recorded a historic low of 1.39 euros from the first exchanges.
The designer and manufacturer of high-performance energy-efficient IT solutions has indeed reported a gross operating surplus (Ebitda) which has contracted sharply to 1.7 million euros, after 8.4 million euros in 2021-2022, for a turnover already known, stable at 184.4 million euros. The corresponding margin follows the same direction and stands at 0.9% at the end of February, compared to 4.6% in 2021-2022.
Inflation and Component Shortages
The group attributes this deterioration in profitability to “a particularly demanding context, marked by inflationary pressures and persistent shortages of components, slowing down our commercial dynamics despite growing interest in our technological solutions on an international scale”.
The rest of the income statement reflects the difficulties at 2CRSI to raise the bar. Already in losses in 2021-2022 to the tune of 1.1 million euros, the group widened its deficit significantly to 11.6 million euros at the end of February 2023.
If the income statement does not give complete satisfaction, investors can take some comfort in the state of the balance sheet. The latter improved slightly with a financial debt – excluding rental debt – which was reduced from 55.3 million euros at the end of February 2022 to 53.5 million euros at the end of February 2023. cash, this increased by 36% to 6.4 million euros in 2022-2023.
2CRSi expects its financial situation to improve “significantly” over the coming months with the sale of its distribution business, Boston Limited, to a subsidiary of the American Source Code. The Strasbourg group had acquired it in November 2019 and its integration into the scope of 2CRSi had enabled the latter to triple in size to 184 million euros at the end of February 2023.
Deleveraging in sight
“However, even though a majority of the 2CRSi Group’s turnover is generated by Boston Ltd, its integration into the group has been marked by unexpected operational and logistical challenges induced by component shortages, Brexit and the crises of the Covid”, then explained 2CRSi.
The group indicates that the proceeds from the sale of Boston Limited will be allocated as a priority to reducing debt and strengthening equity, which stood at 27.8 million euros at the end of February 2023. Shareholders will not be forgotten, however, and will also reap “the fruits of the sale” of this distribution activity. 2CRSi will propose to the Board of Directors to submit to the vote of its next general meeting, the payment of an exceptional dividend of 0.20 euro.
On the outlook front, 2CRSi has not made any specific indications. The group is awaiting the sale of Boston Limited, scheduled for July 2023, to provide the market with a new roadmap. On this occasion, he will announce updated financial objectives to take into account the exit of Boston Limited from the scope of 2CRSI.
Sabrina Sadgui – ©2023 BFM Bourse
Are you following this action?
Receive all the information about 2CRSI in real time: