(Boursier.com) — Actia fell 2.2% to 4.30 euros on Tuesday, while, since the beginning of 2021, the group has set up a dedicated organization to minimize the impact of the component crisis on its operations. Thus, the Group’s consolidated accounts show, for the 1st half of 2022, revenue of €248.5 million, up 14.9%. In the current context, the Group is constantly seeking to maximize its ability to serve its customers while continuing to prepare to honor its order book (IFRS 15) which increased to 429.8 ME at June 30, 2022 against 405.2 ME as of June 30, 2021. It does not reflect the reality of multi-year contracts since 88.9% relate to deliveries within one year, an increase compared to 12/31/2021 (386 ME with 82.4% less one year).
For this 1st half of 2022, the group generated EBITDA growth of 12.4%, to 20 ME, compared to 17.8 ME in the 1st half of 2021 restated. Operating profit amounted to €3.5 million (+12.2%), compared to €3.1 million in the 1st half of 2021 restated, i.e. a marked improvement made possible by the completion of the two disposal operations.
The profitability of operations nevertheless remains penalized by economic factors. The component crisis is affecting the efficiency of production tools and reducing inventory turnover, while restrictive measures linked to the COVID-19 pandemic or its consequences are disrupting the job market or certain sectors. This situation conceals the benefits drawn from the investment programs carried out in previous years, the focus on contracts with higher added value, the management of selling prices and the optimization of operations in general. These efforts are reflected, for example, in the continued increase in ‘R&D’ financed by customers at the start of the contract, which stood at 40.3% of expenses incurred, compared to 35.4% at June 30, 2021 and June 30, 2021. 9% in the 1st half of 2020.
The short-term strategy which aims to preserve future growth results in an increase of 15.7 ME in net debt, to 237.5 ME, ie a gearing of 218.4%. Adjusted for the impact of the financing of trade receivables, CIR and CICE, gearing stands at 194.2%. These amounts benefit from the contribution of 12 ME related to the sale of assets in the field of Technical Control, but do not take into account the sale of the Power division. On the contrary, the debt brings the 10.9 ME devoted to this division in the 1st half of 2022. Coupled with the increase in the change in the Working Capital Requirement, to (4.9 ME) in the 1st half of 2022 against 7, 8 ME in the 1st half of 2021 (restated), cash generated by activities amounted to 4.2 ME, compared to 17.3 ME in the 1st half of 2021. It should be noted that ACTIA Group issued a bond financing of 18 ME end of April 2022, as part of the Obligations Relances (France Relance program of the Ministry of the Economy).
The implementation of this financing made it possible to limit the use of short-term credit lines to 40.4% at the end of the half-year. With cash of €47.3 million as of June 30, 2022, ACTIA Group is meeting its deadlines and has available short-term lines. The Group’s financing needs will remain sensitive, in the coming months, to the good reception of the components. The sale of the Power division on August 1, for an enterprise value of 52.5 ME, provides the means necessary to finance projects and the working capital requirement linked to the growth of the activity. To support the development of future programs, ACTIA could, with rates still low, continue to call on medium-term financing.
ACTIA recorded tax income of 0.6 ME against an expense of (2.5 ME) in the 1st half of 2021. The valuation of hedging instruments (+5.4 ME at 06/30/2021) and a bonus not reducing external expenses last year (+2 ME in H1 2021) masks the ongoing reconstruction of the group’s profitability on continuing activities, the net income of which has gone from 4.2 ME to 3.6 ME. Without these particular entries, the net result improves by 6.8 ME.
2022 OUTLOOK
With an order book calibrated for growth that remains sustained after the disposals carried out, ACTIA hopes to be able to exceed 10% growth over the whole of the financial year, while working to increase this figure. The lack of reliable information on supply prospects from many component manufacturers limits visibility over the second half, while the various international and health tensions could still impact supply chains. ACTIA has assessed these constraints when establishing its outlook and intends, through the mobilization of its teams, to ensure the continuity of its deliveries and manage the adaptation of production rates to support its growth.
After two years of crisis, ACTIA is maintaining its vigilance over its cost structure. Part of the increases for 2021 and those announced for 2022 could be transferred to customers through price increases at the start of the year. This approach will continue in view of the continued rise in the price of components, the sharp increase in the cost of energy, the pressure on wages and the fall of the euro.
Beyond the uncertainties weighing on the economic situation, the Group, which is widely diversified and internationalized, is mobilizing, as it has always done, to ensure its long-term development, supported by cutting-edge expertise in major markets. Its customer portfolio and its order book over the next few years attest to solid growth prospects with the objective of exceeding, within 4 years, turnover of €800 million…
“This publication highlights the benefits of the sale of Power and Actia’s ability to maintain its profitability in a difficult environment” comments Portzamparc who slightly lowers its profitability scenario and its TP from 4.8 to 4.6 euros with an opinion to ‘Strengthen’ reiterated…