AGRIPOWER: Half-year results 2023-2024 – 03/28/2024 at 6:00 p.m.

• Continuation of the operational and financial upgrade initiated by the new General Management
  

• Turnover and results impacted by non-recurring items relating to previous years
  

• Available cash of €6.5 million as of December 31, 2023 (€3.3 million net of financial debts)
  

• Order book revised to €16.7 million at the end of March 2024
  

OPERATIONAL PROFITABILITY IMPACTED BY LACK OF ACTIVITY

The low turnover recorded over the half mechanically weighs on the results

especially since the cost reduction measures implemented during the half-year still had only a very limited impact over the period.

External costs and personnel costs have thus begun to decline compared to the previous half-year. The workforce notably increased from 28 people on June 30, 2023 to 19 people on December 31, 2023. These measures will have their full effects in the second half of the year.

The Group has recorded a loss provision of €0.2 million in its accounts.

Taking these elements into account, EBITDA comes to -€2.34 million and operating profit to -€2.58 million for this first half.

After taking into account the financial result (+0.08 M€) and an exceptional result of -0.24 M€ (error correction linked to the international project in Togo), the net result comes to -2.74 M€.

A HEALTHY BALANCE SITUATION WITH €6.5M OF AVAILABLE CASH CASH

As of December 31, 2023, shareholders’ equity amounts to €9.1 million.

Cash consumption linked to activity and investments amounted to €1.5 million in the first half of the year

including a gross cash flow margin of -€2.7 million, an improvement in working capital requirements of €2.0 million and investments of €0.9 million (including a €0.8 million increase in equity receivables within the framework of Agripower Partner projects).

Available cash flow is therefore largely positive at €6.5 million.

. The gross financial debt is €3.1 million, made up of €3.0 million of financing (green loan) obtained from BPI France and various financing for €0.1 million. During the half-year, the Group repaid the remaining bond debt for €0.1 million.

Net cash thus stood at €3.3 million as of December 31, 2023. It was still at this level as of March 27, 2024, reflecting an absence of cash consumption since January.

ORDER BOOK AT €16.7M AT THE END OF MARCH 2024

Upon its arrival, the new General Management initiated a drastic review of the order book, including discussions with each client of on-farm methanization projects on their ability to maintain them given the economic context.

These exchanges, now completed, led to the cancellation of 11 contracts as of December 31, 2023, then 41 additional contracts between January and March,

which will generate a cancellation of turnover of -€0.92 million in the second half of 2023-2024

.

Agripower thus has an order book worth €16.7 million made up of 57 projects,

distributed between 19 methanization units currently being installed (18 on the farm and 1 large methanization) and 38 units in the study/engineering phase

.

As a reminder, the order book does not include recurring revenues from associated services which should contribute approximately €1.5 million to 2023-2024 revenue.

OUTLOOK

The new General Management intends to finalize its reorganization and process improvement operations before the end of the financial year in order to start 2024-2025 on a sound basis.

In particular, the company finalized the implementation of its ERP software in March, which now allows better project monitoring and better cost control.

In parallel with its internal efficiency, Agripower confirms that it is actively working on the development of a premium and comprehensive offer in terms of maintenance and after-sales service in order to strengthen the recurrence of the activity. The teams are being strengthened and will be sized as contracts are signed. This offer is offered primarily to all operators of large-scale methanization installations using Weltec technology in France, i.e. around twenty of which 8 were built by Agripower.

In terms of unit development, work on the large-scale anaerobic digestion unit using biomethane injection will finally begin a little late in June and will contribute to turnover during the 2024-2025 financial year. The company also recalls having signed an engineering contract in January 2024, the first stage of a new large-scale anaerobic digestion project using biomethane injection in the South-West, which would contribute more than €3 million to turnover over the 2 next exercises.

Agripower thus intends to gradually reap the fruits of its new dynamic and an economic model oriented towards more recurrence in order to anchor itself in a sustainable and profitable development trajectory.

Next press release: 2023-2024 annual results – October 11, 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]

Before cancellation or correction of turnover to the progress taken in previous years

[2]

EBITDA: Operating profit + net allocations to depreciation and provisions

© Copyright Actusnews Wire

Receive future company press releases free of charge by email by subscribing to www.actusnews.com