CYBERGUN: CYBERGUN publishes 2023 annual results better than expected – 06/20/2024 at 6:00 p.m.

June 20, 2024

CYBERGUN, global player in recreational shooting, publishes its audited 2023 annual results
[1]
, approved on June 17 by management and reviewed by the supervisory board. The annual financial report is made available to the public on the company’s website.

On the occasion of the publication of its unaudited annual turnover

[2]

, CYBERGUN had warned that it anticipated a certain number of non-recurring charges which were expected to impact the results of the financial year to the tune of -17 MEUR. The final annual results ultimately appear better, thanks to the solid resistance of the value of the assets present on the balance sheet confirmed by the three letters of intent received for the acquisition of the civil division of the Group

[3]

.

For their part, the Statutory Auditors certified the annual accounts and issued their report including the following observation: “

Without calling into question the opinion expressed above, we draw your attention to the significant uncertainty linked to events or circumstances likely to call into question the continuity of operation described in the note “Risk of continuity of operation » of the annex to the consolidated accounts.

»

STABILITY OF CONSOLIDATED TURNOVER

The consolidated turnover amounts to 42.7 MEUR

[4]

compared to 43.3 MEUR in 2022, i.e. a limited withdrawal of 1.5% which results from two opposing trajectories between:

• The Civil division (21.3 MEUR) which shows a decline of -26% over 1 year, the promising developments of B2C in France, in particular the website
  
  www.evike-europe.com
  
  and the management of distribution contracts in Asia, not compensating for the decline in historic B2B markets weighed down by the financial difficulties of distribution networks;

• The Military division (21.4 MEUR) which shows growth of +47%, driven by the +10% increase in ARKANIA activities (design office and production) and the first year of consolidation of VERNEY-CARRON, whose contribution amounts to 5.4 MEUR.

OPERATING RESULTS IMPACTED BY THE FOLDING OF THE CIVIL DIVISION AND THE CONSOLIDATION OF VERNEY-CARRON DESPITE THE RECOVERY COMMITTED TO THIS NEW SUBSIDIARY

The consolidated gross margin increased in value (17.2 MEUR compared to 16.7 MEUR) and as a percentage of turnover (40.7% compared to 39.5%), proof of the solid level of added value created by the Group.

The annual operating result stands at -€9.2 million, compared to -€1.5 million in 2022, and is broken down between:

• -€5.6 million for the Civil division, whose decline in B2B activity and the start of B2C do not make it possible to cover all of the operating costs of the scope;

• -€0.2 million for the military activity of the ARKANIA perimeter;

• -€3.4 million for the military activity of the VERNEY-CARRON perimeter, an activity in full restructuring after the takeover by the CYBERGUN Group at the end of the 2022 financial year, which shows the first signs of a favorable change in trend to be compared to the operating result of 2022 (-4.1 MEUR during a 10-month financial year).

NET RESULT INCLUDING IMPORTANT ITEMS WITHOUT CASH IMPACT, THE AMOUNT OF WHICH IS ULTIMATELY SIGNIFICANTLY LOWER THAN INITIAL ESTIMATES

The net result, Group share, amounts to -14.6 MEUR. It includes 0.6 MEUR of financial expenses and 5.0 MEUR of exceptional income linked, as anticipated, to the depreciation (without cash impact) of the book value of the assets linked to the design office (research and development costs, mainly ) due to difficulties encountered in the development of replicas to be integrated into shooting training systems.

At the same time, the audit work made it possible to confirm the book value of the Civil assets in France, avoiding an additional loss of around 3 MEUR, thanks to the comfort offered by the three letters of intent received for the acquisition of the Civil division of the Group.

IMPLEMENTATION OF NEW EXTENDED FINANCING AFTER THE CLOSING OF THE FINANCIAL YEAR

Thanks to a reduction of 5.5 MEUR in its working capital requirement and a bond issue of 1 MEUR, CYBERGUN limited its cash consumption to 3.1 MEUR during the financial year.

As of December 31, 2023, CYBERGUN had 18.6 MEUR in equity and cash of 1.7 MEUR for a financial debt of 9.1 MEUR mainly composed of:

• 5.8 MEUR corresponding to the balance of bonds currently being equitized, including 0.6 MEUR equitized since January 2024 (the balance not equitized at the end of 2024 is intended to be repaid in cash);

• 3.1 MEUR of PGE subscribed by the Military division and for which the Group obtained an agreement to reschedule repayments from its banking partners.

This situation does not take into account the additional financial resources currently being put in place to support the Group’s development plan:

• The new bond issue issued at the end of February for a net amount of 1.54 MEUR;

• The issue of new simple bonds to be equitized for 0.6 MEUR;

• Financing the working capital requirement by commercial or financial partners, in particular by setting up pre-financing (down payments) and refinancing (factoring) systems;

• The valuation of the Blois industrial asset, estimated at 5 MEUR, which has already given rise to date to a promise to sell land (0.9 MEUR) and an agreement in principle on the refinancing of part of the assets (€3.3 million);

• The sale of all or part of the Group’s Civil division for an expected amount greater than 10 MEUR.

Hugo BRUGIÈRE, Manager of CYBERGUN, declares: “

The three acquisition offers received for our Civil division demonstrate the value of our assets and the ability to free up financial resources to carry out our development plans. Once we have made progress on these structuring projects, we will communicate our vision of the future CYBERGUN.

»

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www.cybergun.com

About CYBERGUN:

Founded in 1986, CYBERGUN is a global expert in the design, production and distribution of replicas of ball weapons under exclusive licenses, both in B2B thanks to its global network and in B2C with in particular the site

evike-europe.com

. Historically positioned in the Civil and recreational segment (Airsoft, Airgun, recreational shooting), the Group has developed, since 2014, a Military division dedicated to the training of armed forces and police. During the 2022 financial year, CYBERGUN achieved a turnover of 43 MEUR.

Qualified as an “Innovative Company” by Bpifrance, CYBERGUN is listed on Euronext Growth in Paris (FR0013204351 – ALCYB) and its securities are eligible for FCPI, PEA and PEA-PME.

Contacts

:

NEWS finance & communication

Investor Relations: Jérôme FABREGUETTES LEIB at +33 1 53 67 36 78

Press Relations: Anne-Charlotte DUDICOURT at +33 1 53 67 36 32

CAPITAL ASSET

Listing Sponsor: Rodolphe OSSOLA at +33 1 56 69 61 86

Warning :

The company CYBERGUN has set up (i) financing in the form of ORA-BSA, it being specified that part of the ORA issued was then transferred to a trust, which is now responsible for their equitization, and (ii) financing in the form of ORNAN with the company YA II PN which, after having received the shares resulting from the reimbursement of these instruments, is not intended to remain a shareholder of the company.

Shares resulting from the redemption or exercise of the above-mentioned securities are generally sold in the market at very short notice, which can create strong downward pressure on the share price. In the specific case of the trust, the shares are sold on the market according to the terms set out in the trust agreement.

Shareholders may suffer a loss of their invested capital due to a significant decrease in the value of the company’s stock, as well as significant dilution due to the large number of securities issued to the trust and/or from the company YA II PN.

Investors are advised to be very vigilant before making the decision to invest (or remain invested) in the securities of the company admitted to trading which carries out such dilutive financing transactions, particularly when they are carried out successively. The company recalls that this dilutive financing operation is not the first that it has implemented.

[1]

As part of its 2023 closing, the company CYBERGUN has decided to change the method of presentation of its financial statements by switching from international standards (IFRS) to French standards (French GAAP) in accordance with the rules applicable to companies listed on Euronext Growth. As part of this migration, the Company presents a transition table for its 2022 financial statements between the IFRS framework and the French GAAP framework in its 2023 annual report.

[2]

2023 revenue growth driven by the development of the Military division and anticipated exceptional charges

[3]

CYBERGUN receives a first letter of intent confirming the valuation of its civil division

//

CYBERGUN receives a second letter of intent for the acquisition of its civil division and confirms that it is aiming for the best possible valuation

// CYBERGUN receives a third letter of intent for the acquisition of its civil division and reveals its decision-making timetable

[4]

Compare to a first estimate of EUR 45.3 million announced on April 5, 2024, the procedures for closing the accounts having led to a portion of the revenue being reclassified as deferred income.

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