(BFM Bourse) – The specialist in industrial machinery safety detection is posting double-digit growth, driven by the ramp-up of its Blaxtair solution. For 2024, Arcure cautiously confirms its target of 20 million euros in turnover, which would represent a doubling in size compared to 2021.
Arcure’s growth trajectory faces no obstacles. For the third year in a row, the specialist in industrial machinery safety detection is posting double-digit growth.
Arcure unveiled on Monday 2023 turnover at a new “historic” level of 18.3 million euros, an increase of 40% over one year. This level of invoicing is higher than the expectations of TP ICAP Midcap, which for its part expected revenues of 16 million euros in 2023.
Numerous commercial successes in 2023
Over the past financial year, the group rapidly intensified the deployment of Blaxtair Origin, its most advanced pedestrian detection solution to prevent accidents with machinery. The system developed by Arcure is based on a stereoscopic camera (or intelligent eye) producing 3D images and artificial intelligence capable of analyzing them instantly. The goal: to stop the machine in the event of danger for a pedestrian.
Arcure’s activity “has been driven (…) by the numerous commercial successes achieved in recent quarters and by the eminently buoyant nature of its market”, specifies TP ICAP Midcap in its note dedicated to Arcure.
The design office cites the global partnership concluded with ArcelorMittal and which was formalized at the end of 2023. The specialist in detecting the safety of industrial machinery was in fact selected by the steel group to equip its industrial machines of the Blaxtair pedestrian detection solution in several countries.
This extension of the partnership follows a successful first phase of deployment, with around a hundred equipped machines delivered to ArcelorMittal’s North American and European sites. The 2023 financial year thus confirms the internationalization of Arcure, with 84% of turnover now generated outside France.
A “significant” improvement in profitability
This level of activity published for 2023 authorizes Arcure to confirm its objective of “significantly” improving its profitability over the past financial year.
“The rise of Blaxtair Origin, the higher weighting of direct sales in the mix, particularly in the United States, will have favored a significant increase in the gross margin, undoubtedly beyond the 56% that we had modeled (compared to 51% in 2022), while at the same time the group was engaged in a strategy of strict control of its fixed costs, in particular its payroll”, argues TP ICAP Midcap.
The financial intermediary thus anticipates a jump in gross operating surplus to around 3.8 million euros (compared to 925,000 in 2022) and is counting on a current operating profit of 1.5 million euros, after having reaches balance in 2022.
For the current year, Arcure confirms the marketing in 2024 of its new version of Blaxtair. It offers superior performance to the original model (distance, postures, scalability, etc.), native connectivity and a very small footprint, expanding the size of its market. With Blaxtair Origin, Arcure intends to increase, in the medium term, the number of Blaxtairs installed per machine as well as recurring revenues from associated services and significantly increase the company’s gross margin.
“Arcure is now developing this new generation Blaxtair with its own artificial intelligence technology”, welcomes the company which was identified by the design office as one of the companies most likely to benefit from the growth of Artificial intelligence.
“The latest version of the Blaxtair Origin constitutes the most efficient AI camera on the market in terms of pedestrian detection and will be a major growth driver for the company, and new paid software options and associated additional services will be offered in the new generation of Blaxtair currently in preparation”, indicated TP ICAP Midcap in a previous note.
A doubling in size compared to 2021
Arcure is therefore counting on a turnover of 20 million euros by 2024, i.e. a doubling of revenues compared to the 10.3 million euros achieved in 2021. The company says it is “ideally positioned in a market with strong potential where the need for digitalization of forklifts and construction equipment to strengthen safety and productivity is increasingly significant.”
On the Paris Stock Exchange, Arcure increased by another 16% around 2:30 p.m., to return to its May 2022 highs. The stock had already increased by 10.3% the day before, investors had already welcomed the 2023 activity point of ‘Arcure just like its prospects for 2024.
Sabrina Sadgui – ©2024 BFM Bourse
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