ENENSYS TECHNOLOGIES: Half-year results 2022 – 2022-10-06 at 6:00 p.m.

• Breakeven EBITDA
  

• Net profit of €2.6 million thanks to profits related to financial restructuring operations
  

• Sharp reduction in net financial debt
  

The ENENSYS Technologies Group, a global specialist in digital video broadcasting and targeted advertising insertion, announces the publication of its 2022 half-year results.

The first half of 2022 was marked by the finalization of financial restructuring operations which enabled the Group to rebuild its equity, significantly reduce its net financial debt and generate a largely positive net income over the half-year.

On the operational level, the Group confirmed the good control of its expenses with a balanced EBITDA despite the impact of the economic context on the activity. Order deliveries have in fact been postponed either at the request of its customers in the context of the management of their projects, or because of the extension of the supply times for certain components. The order book thus remained high at June 30, 2022, at more than €6 million.

Turnover amounted to €5.4 million, down €0.5 million compared to the first half of the previous financial year. This change is mainly due to the decline in activity in France, which stands at €0.6 million due to a delivery delay of €0.4 million. The EMEA zone (€2.7 million) and Asia (€1.2 million) are up slightly with orders from several countries and large deployments in Italy and South Africa. Business remained stable in the United States at €1.0 million during the period.

Breakeven EBITDA – Net income boosted by exceptional income

Gross margin stood at 74% of sales, down 2 points compared to the first half of 2021. This change is explained by the product mix and the increase in the cost of purchasing electronic components, which n could not be fully reflected in the selling prices.

External expenses and personnel expenses were well controlled and remained stable compared to the first half of 2021 despite the inflationary context. ENENSYS Technologies also recalls that research and development costs are fully expensed and represent €2.3 million over the half-year.

Given these elements, the Group thus maintains an EBITDA that is almost at break-even despite the delay in half-yearly activity.

After accounting for depreciation and provisions of €0.9 million, current operating income was -€1.0 million.

The operating result

clearly positive at €1.6 million, benefiting from exceptional income of €2.9 million, marking under IFRS the difference between the value of the bond debt extinguished (€4.5 million) and the value of the shares newly issued in share price on the day of issue (€1.6 million).

The financial result is also largely positive at €0.9 million, thanks to a profit of €0.7 million linked to the cancellation of bond interest and €0.2 million in foreign exchange gains.

After recognition of a positive accounting effect on tax of €0.1 million,

net income, group share was profitable at €2.6 million, up €3.0 million.

Available cash preserved – Sharp reduction in net debt

Cash flow generated by activity over this half-year amounted to €0.1 million, benefiting from an improvement in the working capital requirement over the period. They self-finance investments, which remained very low over the half-year.

Available cash remains solid at €3.0m, up slightly compared to December 31, 2021. After the conversion of bond debt into shares, net financial debt as of June 30, 2022 fell sharply to €7.5m € as of June 30, 2022 (vs. €12.2 million as of December 31, 2021). Excluding rental debts (IFRS 16) of €3.2 million, it comes to €4.3 million.

The Group thus has a healthy financial structure to pursue its development.

Outlook

The Group started the second half with a high order book which stood at €6.2 million at June 30, 2022, i.e. a level of €2.7 million (+77%) higher than the June 30, 2021 order book. The Group is committed to converting a major part of this backlog into sales before the end of the financial year, despite a context that may cause delays in the progress of projects with customers.

The commercial dynamic remains well oriented, supported by robust demand, particularly in the broadcast and streaming markets, which require essential investments on the part of clients to remain competitive. The IBC show, which was just held in Amsterdam after a 2-year hiatus, confirmed these trends and the strong interest in the solutions developed by the Group, particularly in terms of the distribution of targeted regional advertising, OTT monitoring or optimization of DTT broadcasting.

ENENSYS Technologies was also recently selected by Globecast, an international subsidiary of Orange, to deploy its StreamProbe monitoring solution, the flagship product of its TestTree range. This solution guarantees a high level of quality of service for DTH, IPTV and OTT streaming type broadcasts. The solution has been deployed by the operator in South Africa and several other countries.

The Group is also continuing to gradually install its flagship OneBeam solution at Canal Plus Afrique. This solution, already deployed in many countries, makes it possible to greatly reduce the costs of satellite broadcasting within the framework of combined Terrestrial and Satellite offers by a single and same service operator.

This commercial dynamic reinforces the Group’s growth ambitions in the medium term and a virtuous trajectory in terms of profitability thanks to good cost control.

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About ENENSYS Technologies Group:

A specialist in digital video broadcasting and advertising insertion, the ENENSYS Technologies Group has been offering highly innovative solutions for more than fifteen years on networks and terminals in the media chain, enabling efficient distribution of content. With approximately €60 million invested in Research and Development over the past 10 years, the Group enjoys a reputation for excellence in solutions for optimizing, securing and monetizing video streams. The solutions are marketed through two brands – ENENSYS and TestTree – and reach more than 1.2 billion viewers worldwide. The Group generated revenue of €12.5 million in 2021, of which nearly 85% internationally.

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