(BFM Bourse) – Financially restructured, the company has delivered its “Pilot 28” plan which should enable it to increase its revenues by 70% by March 2028 and multiply its cash generation by 10 while reducing its ratio debt.
The health crisis has obviously weighed down the aeronautical equipment manufacturer Figeac Aero for many months. Specializing in the production of structural parts in light alloys and hard metals, engine parts, landing gear and sub-assemblies, the Lot company was hit by the sudden drop in production rates of aircraft manufacturers in 2020.
As a result, the company suffered net losses of 57 million euros for the financial year ending in March 2022, 43 million for the next, and 18 million euros for the year ended last March. It also carried out a financial restructuring in 2022, which involved a capital increase allowing the entry of up to 27% of Ace Aéro Partenaires, a fund managed by Tikehau Capital and aimed at supporting French SMEs and mid-sized companies. aeronautics. Bank debts and bonds repayable in cash and new shares (“Ornane”) have also been rescheduled until 2028.
The situation has nevertheless changed, and major aeronautics contractors, with well-filled order books, are now seeking to gradually accelerate production rates which should reach records in the coming years.
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Around 70% growth over five years
The strategic plan delivered by the French group this Wednesday illustrates this very well. Called “PILOT 28”, this plan forecasts a turnover for the company for the financial year ending in March 2028 of around 550 million to 600 million euros, or almost 70% growth compared to around 340 million euros. euros generated in 2022-2023, and a 30% increase compared to the record revenues of the 2019-2020 financial year, of around 447 million euros.
Figeac Aero also intends to generate a current gross operating margin (Ebitda) of more than 16% (compared to 11.8% in 2022-2023 and 15.5% in 2019-2020). Combined with a reduction in investments, this profitability should allow the group to multiply its cash generation tenfold to around 50 million euros, compared to 5.4 million euros in 2022-2023.
As a result, the company should, according to its projections, reduce its debt ratio of net debt to Ebitda between 2 and 2.5 by the end of March 2028, after 3 in March 2026 and 4 in March. 2025.
In the shorter term, the company intends to generate a positive operating profit and net profit for the current financial year as well as the next.
Strengthen your defense
To achieve all of its ambitions, the company intends to ride on all the promising trends in its markets, such as the good shape of civil aeronautics, where the needs to renew airline fleets are resulting in significant aircraft needs. Defense is also well oriented, “particularly due to an unstable geopolitical context, with a clear increase in military budgets in Europe and other regions,” explains the company.
Figeac Aero also plans to accelerate its development in this defense segment via an entity dedicated to this market. The group also intends to increase its market share and its business volume in civil aeronautics, mainly in the United States.
On the Paris Stock Exchange, this new strategic plan is very well received by investors, with Figeac Aero shares increasing by 10% to 5.74 euros around 4:25 p.m. to bring the company’s market capitalization to 235 million euros.
“Totally restructured, financially and industrially, the group is ready for takeoff,” appreciates TP ICAP Midcap, which considers the company’s objectives “realistic.” The research office also considers that the current price only values ”recovery”, that is to say the resumption of activity of the company, too cautiously. TP ICAP Midcap therefore raised its target to 8.5 euros compared to 7 euros previously and reiterated its purchase opinion.
Julien Marion – ©2024 BFM Bourse
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