- 2021 consolidated turnover: €16.3 million (+22.3%)
- Ramp-up of the Delta Drone International subsidiary
- Success of the strategy to create an ecosystem around the UDT subsidiary
- Strengthening of the pivotal role entrusted to Delta Drone Human Tech (ex-ATM Group)
- Continuation of discussions with the Weesure group
- Decisive legal success for the commercial development of ISS Spotter security solutions.
1 – Consolidated revenue increased by +22.3% in 2021
Despite the persistence of the global health crisis which is hampering the development of the activity (travel difficulties, supply shortages, availability of employees, postponements of deliveries and therefore of invoicing, cancellation of events, etc.), Delta Drone has enjoyed growing activity.
Revenue generated outside France, through the Australian-South African subsidiary Delta Drone International, amounted to €3.5 million, up +81.7% and represents 21.2% of consolidated total. Activity in the southern hemisphere essentially concerns the mining sector.
In France, activity grew more modestly by +17.6% and represents 78.8% of the consolidated total. It is now focusing on the two solutions ISS Spotter (security) and Countbot (warehouse inventory), including taking into account the activity of the traditional security division which already plays an essential role in the success of these two solutions.
2 – Delta Drone International becomes the market leader for mining activity in the Southern Hemisphere
One year after its creation, resulting from the merger of Delta Drone South Africa and ParaZero Ltd, the subsidiary Delta Drone International, listed on the ASX Sydney stock exchange, continues its expansion, in accordance with the assigned objectives:
Business growth in Southern Africa and Ghana, historical markets, is accelerating and many contracts have been renewed, others won,
The acquisition, in August 2021, of the Australian company Arvista Pty Ltd provides Delta Drone International with a local Australian team made up of experienced and qualified personnel, with in-depth knowledge of the Australian mining market and a customer base existing,
The recent sale (see press release of January 28, 2022) of the ParaZero Israel subsidiary for an amount of $6 million in cash will enable Delta Drone International to self-finance its future development. The operation also makes it possible to greatly clarify the economic model of Delta Drone International, both geographically (concentration of business in the southern hemisphere) and at the sectoral level (mining sector).
3 – The UDT portfolio represents an asset value of €8 million for Delta Drone
Since 2017, Delta Drone has embarked on a bold policy of acquiring minority stakes in often emerging companies, but with strong growth potential. These operations were carried out via a specific subsidiary company created for this purpose, DDrone Invest originally, UDT today.
In a few years, the portfolio was made up of 6 participations (Elistair, Donecle, Aero41, Diodon Drone Technology, Sightec, Skylinx SLX).
At the end of 2021, the cumulative value of the companies in the portfolio is estimated, according to official analysis by an independent expert, at approximately €40 million, which gives Delta Drone, taking into account the various percentages of capital held, an asset value equal at €8 million.
Given the development prospects of the companies in the portfolio, it is reasonable to think that the value of the portfolio could more than double in the next two years.
4 – The “traditional security” division is a key element of the group’s strategy
At the end of July 2021, Delta Drone strengthened its position in the capital of ATM Group to hold 100% of the capital. Following this operation, ATM Group was renamed Delta Drone Human Tech, thus marking the full integration of the “traditional private security” division within the group.
Indeed, Delta Drone Human Tech is intended to play an essential pivotal role in the deployment of the group’s strategy:
With an installed base of several dozen customers under multi-year contracts, its subsidiary ATM Group Sécurité plays a role of “Trojan horse” to dronify the private security sector, by gradually offering its customers mixed teams. surveillance, composed of human agents and cyber agents represented by the ISS Spotter solution,
As part of security services for cultural and sporting events, ATM Group Sécurité now systematically offers the integration of technological solutions, ISS Spotter and SpotterBot, into its system.
Finally, Delta Drone Human Tech, thanks to the large pool of human resources present in its subsidiaries, delegates personnel capable of acquiring the skills of Countbot solution operators.
5 – The Weesure group remains associated with the strategic development of the group
In April 2021 (see press release of April 21), Delta Drone announced a draft agreement with the Weesure group. Independently of the economic and strategic interest of the project, the evolution of the market valuation of Delta Drone did not allow the conclusion of this project under satisfactory conditions for the parties.
Taking note of this situation, a new partnership plan is being finalized. It could be formalized in two parts:
A strategic partnership agreement in France between Delta Drone and the Weesure group, with no capital ties,
An acquisition of a minority stake by Delta Drone in Weesure Afrique, the holding company controlling four companies operating in the security sector in Senegal, Côte d’Ivoire, Benin and Togo.
It should be noted that the Delta Drone and Weesure Africa teams have been working closely for several months, leading to the establishment of numerous commercial proposals, mainly relating to the ISS Spotter solution.
6 – The Paris Court of Justice confirms the ownership of the patent relating to automatic drone systems
On April 2, 2019, the company Azur Drones issued a summons to claim the French patent filed by DPS (Delta Drone group) under No. FR1755160 as well as extension application No. XO 2018/224578.
Almost 3 years later, on January 21, 2022, the Paris Judicial Court rendered its decision, under the terms of which:
DPS (Delta Drone group) is the sole holder of the entire patent and international extension requests,
Azur Drones’ request to order DPS to return to it the fruits it could have derived from the exploitation of the patent, as well as all its other claims for compensation are rejected,
The decision is binding (despite any appeal).
This judgment at first instance constitutes a very important step in all the legal proceedings initiated between the Delta Drone group and the company Azur Drones. It does not predict the outcome of the other cases in progress, but it should nevertheless allow a beginning of clarification in relation to the market’s assessment of the real position of the various players in the segment of security drone systems.
https://www.deltadrone.com/wp-content/uploads/2022/01/20220131_CA-2021-1.pdfPress release of January 31, 2022