AGRIPOWER: 2022-2023 annual results – 10/19/2023 at 6:15 p.m.

• Turnover of €6.0 million
  

• Net result of -€2.25 million
  

• Available cash of €8.1 million as of June 30, 2023
  

• Order book of €31.8 million as of June 30, 2023
  

The company Agripower France (“Agripower” or the “Company”), a player in the energy transition and integrator of methanization solutions, today announces its results for the 2022-2023 financial year ended June 30, 2023.

The financial statements were approved by the Board of Directors of Agripower on October 18, 2023 and the audit procedures on the accounts were carried out by the auditor. The annual report, including the accounts as of June 30, 2023, will be available on October 20, 2023 in the “Financial documents” section on the Company’s website www.agripower-france.com.

SUMMARY OF ANNUAL RESULTS 2022-2023

ANNUAL TURNOVER 2022-2023: €6.0 million

Over the 2022-2023 financial year, Agripower achieved a turnover of €6.0 million, down -€4.4 million compared to the 2021-2022 financial year.

This development is explained by the postponement or postponement of many projects due to the impact of inflation in material costs and rising rates on the forecast profitability of projects.

Individual methanization activity
[2]
contributed €2.9 million

(vs. €5.2 million in the previous year) with 4 units installed during the year and 17 currently being installed.

The collective methanization activity generates a turnover of €1.9 million

(vs. €4.4 million in the previous financial year) from the commissioning of an agricultural-type methanization unit in the first half.

The turnover of associated services

(consumables, maintenance, after-sales service), however, continues its strong growth and

comes to €1.2 million

(vs. €0.8 million in the previous year) with the development of the installed base (88 units as of June 30, 2023).

OPERATIONAL PROFITABILITY IMPACTED BY LACK OF ACTIVITY

The sudden slowdown in activity has a mechanical impact on the profitability of the Group, which had structured itself to continue its development.

with a workforce which increased from 18 employees at the start of the financial year to 28 as of June 30, 2023. Personnel costs thus increased by €0.6 million over the financial year.

In addition, the inflation observed in the costs of materials and the changes in certain suppliers have reduced the intrinsic profitability of projects being installed or delivered in individual methanization. The Group has also provisioned a loss on completion of €0.2 million in its accounts.

The Group initiated cost reduction measures in the second half of the year, particularly in terms of external charges.

Taking into account these elements, EBITDA comes to -€2.0 million, in line with the landing announced at the end of September 2023, and operating profit at -€2.3 million. After taking into account the financial result (+€3K) and the Innovation Tax Credit for €85K, the net result comes to -€2.25M.

SOLID FINANCIAL STRUCTURE WITH €8.1M OF AVAILABLE CASH CASH

As of June 30, 2023, shareholders’ equity amounted to €11.8 million and available cash stood at €8.1 million.

Cash consumption linked to activity and investments amounted to €4.0 million over the financial year, including a gross cash flow margin of -€1.9 million, an increase in working capital requirements for €1.3 million and investments for €0.8 million (including €0.2 million in R&D, €0.3 million in work materials and €0.3 million in cash advances in projects in the framework of the Agripower Partner offer – 3 projects launched to date out of 17 signed).

The gross financial debt is €3.3 million, made up of €3.0 million of financing (green loan) obtained from BPI France for the development of the Agripower Partner offer and a balance of bond debt for €0. €1 million. Furthermore, the Group obtained various development aid funding for €0.2 million during the financial year.

Net cash thus stood at €4.8 million as of June 30, 2023, allowing Agripower to gradually relaunch its activity.

ORDER BOOK AT €31.8 M (+5%)

Over the 2022-2023 financial year, Agripower recorded order intake of €9.2 million (compared to €21.3 million in 2021-2022 and €7.7 million in 2020-2021), made up of 28 new projects ( including 27 individual methanization units and 1 collective unit).

As of June 30, 2023 and after the annual review of signed contracts

[3]

of the 111 projects still active, 18 methanization units are being installed (including 17 individual units and 1 collective unit) and 93 units are in the study/engineering phase.

As of June 30, the Company thus had an order book worth €31.8 million.
[4]

.

This amount takes into account the revaluation for €2.0 million of contracts to reflect inflation on sales prices. As of June 30, 2023, these renegotiations concern more than 40% of the order book.

As a reminder, the order book does not include recurring revenue from associated services which represented €1.2 million in 2022-2023.

OUTLOOK

The Group has implemented new Governance (see press release of October 5, 2023) separating the functions of Chairman and Managing Director. This decision aims to initiate a new managerial dynamic after a difficult exercise in a demanding context.

Since the start of the 2023-2024 financial year, the Group has focused in particular on continuing to adapt its costs in order to preserve its cash flow. The workforce has been reduced to 21 employees to date (vs. 28 at June 30, 2023).

This evolution of the workforce mainly concerns the commercial force, in line with the sluggishness still present on individual methanization projects and while awaiting support measures on the purchase prices currently under study. Negotiations on the revaluation of all contracts in the order book to take inflation into account are continuing.

On collective methanization by injection of biomethane, the government support measures published by ministerial decree of June 10, 2023 (revaluation of biomethane feed-in tariffs of up to +12%), allow the gradual relaunch of projects.

Agripower thus confirms the expected start of work on a collective unit worth nearly €2.8 million in early 2024.

Agripower will also continue to rely on the development of associated maintenance and after-sales services, vectors of recurrence and additional margins.

Next press release:

Half-year turnover 2023-2024 – March 28, 2024

Find all the information on the website www.agripower-france.com

ABOUT AGRIPOWER

Created in 2012, Agripower is an integrator of methanization solutions, particularly in agricultural environments, which supports its clients in the design and construction of methanization units.

A player in the inclusive energy transition, Agripower is developing methanization units, a process for transforming organic input materials (waste) into biogas. Agripower is positioned in two segments of methanization: on the one hand collective methanization solutions, intended for communities, groups of farmers or the (agri-food) industry, and on the other hand individual methanization products for intermediate-sized farms. With 88 individual or collective units, installed and functional, Agripower is one of the French leaders in its markets.

In 2022-2023, Agripower achieved a turnover of 6.0 million euros.

[1]

EBITDA: Operating profit + net allocations to depreciation and provisions

[2]

Individual methanization refers to liquid (35kWe and 50kWe) and dry (40kWe and 80kWe) solutions.

[3]

This review consists of determining, among the signed contracts, those which are considered active and those considered inactive or lapsed.

[4]

Based on signed projects active as of June 30, 2023.

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