Rebound in activity in the second half of 2022: +6%
2022 consolidated revenue almost stable at €65.6 million
Growth expected in 2023 thanks to numerous market gains
Nizerolles, January 27, 2023, after the listing session.
The NSE group, specialist in the design, manufacture and maintenance of high-tech electronic equipment more particularly intended for Defence, Civil Aeronautics, IT, Medical and Railways, publishes its consolidated turnover for fiscal year 2022 (ended December 31, 2022). NSE is listed on Euronext Growth
TM
in Paris.
NSE maintained a solid level of turnover during the 2022 financial year, reaching €65.5 million with a sharp rebound in its activity in the second half. The first part of the financial year was marked by shifts in orders linked to a tense global context both geopolitically and in terms of supply chains. The Group was able to rely on the diversity of the areas and markets addressed, both in France and internationally, to return to growth in the second half at +6%.
NSE intends to continue on the momentum of the second half in 2023, thanks to significant order intake in 2022. NSE has won contracts for its 3 BUs, with in particular the completion of negotiations on multi-year contracts in the Defense and large markets for the BUI. This dynamic thus illustrates the appeal of its know-how and its solutions in terms of electronic and IT products with high added value.
Consolidated 2022 revenue (IFRS standards – unaudited):
Turnover in k€ |
2022 | 2021 | Variation | H2 2022 | S2 2021 | Variation |
Design |
5,380 | 5,313 | +1.3% | 2,732 | 2,579 | +5.9% |
Integration |
24,541 | 25,796 | -4.9% | 12,046 | 12,299 | -2.1% |
Services |
35,646 | 35,509 | +0.4% | 19,039 | 17,071 | +11.5% |
|
Total Consolidated |
65,567 |
66,618 |
-1.6% | 33,818 | 31,949 | +5.8% |
Maintaining a high level of revenue over the full year thanks to a strong rebound in the second half, before a return to growth in 2023
1/ Design BU: return to growth in H2 to reach €5.4m in 2022
The Design activity showed slight growth of +1.3%, for revenue of €5.4 million at December 31, 2022, compared to €5.3 million a year earlier. Throughout the year, the BUC confirmed its attractive positioning in the development and production of high-performance electronic equipment, enabling it to capitalize on its resilient state contracts.
Without partial economic shifts on two projects in the Aero-defense sector around 2023, the BU could have achieved greater growth over the year.
.
2/ Measured contraction of the activity of the Integration BU with an effective diversification in Medical and Defense which compensates for a still tense context in Civil Aeronautics
Revenue for the Integration BU shows a contained decline of -4.9% in 2022, but to stand at €24.5 million. The trend improved significantly in the second half, with the roll-out of enhanced strategic offerings for the Defense sector and the diversification actions undertaken in previous years, particularly in Medical, having partially offset the impact of the crisis affecting the civil aeronautics sector.
In Canada, the NSE Automatech subsidiary recorded revenue of €10.7 million, up +5% driven by the Medical sector, mainly for the US market, for 40% of its revenue and by a recovery in the Aerospace sector in Canada.
As previously announced, the activities of the other international subsidiaries in Brazil, Morocco and HICAL NSE in India, which still represent a small part of the BU’s turnover, will have to wait for normalization of the context before resuming deployment. scope of their activities. In 2022, these subsidiaries nevertheless contributed €0.8 million to the BU’s revenue, compared to €0.6 million in 2021.
3/ Maintenance of a solid level of activity for the Services BU thanks to a clear rebound in H2 2022
The Services BU consolidated its high level of activity in 2022 after several semesters of strong commercial momentum. Revenue thus remained constant at €35.6 million, thanks to a sharp rebound in its activity in the second half of the financial year, while H2 2021 had already been particularly dynamic, leading to exceptional repair orders. NSE has taken advantage of its know-how in this sector, in particular for the deployment of new markets won in 2021 and the ramp-up of Aircraft MRO activities (Maintenance, Repair and Overhaul).
NSE TLS in Canada, an international subsidiary 50% owned and accounted for using the equity method in the consolidation, also experienced strong growth momentum, with in particular an increase of more than 300% in turnover, which reached €6.6 million. (Turnover corresponding to 50% of the NSE share) against €1.6 million in 2021. This subsidiary dedicated to optimizing execution times in logistics in the Transport sector, is gaining momentum after winning key contracts in 2022 .
Prospects for strong growth in 2023 thanks to major contract wins
In line with the business momentum recorded in the second half of 2022, the Group expects to return to overall revenue growth in 2023 thanks in particular to its solid customer base, the associated multi-year contracts, the orders partly shifted to the second half of the financial year, and especially to the revival of the Defense sector.
Indeed, NSE recorded the winning of many structuring contracts at the end of the financial year, demonstrating the appeal of its know-how and its solutions in terms of electronic and computer products with high added value.
In December 2022, the GME
[1]
coordinated by NSE, which brings together Safran Electronics & Defense, SOFEMA and THALES, won the SIMMT MERCURE contract
[2]
, with a maximum value of nearly €300 million excluding tax over a period of 7 years. NSE’s share of this market could be between 20 and 25% of the overall budget for the Services BU.
In addition, NSE has won numerous major contracts over the past four months across all of its BUs:
The Design BU received an order for €1.6 million for the development of a weapon control system mounted on helicopters.
The Integration BU recorded €11.5 million in orders, mainly for military equipment.
The Services BU, in addition to the Mercure contract, recorded an addition of €8.3 million in new orders.
In this context of materializing significant opportunities for NSE, the Services BU should continue to drive the Group’s performance, with the support of the Integration BU. At the same time, the Design BU should experience a rebound in its activity thanks to the momentum initiated in the second half of 2022.
NSE also committed in early 2021 to the implementation of a Corporate Social Responsibility (CSR) approach, which involves all teams and a rating system with concrete actions on the progress of a Social Environment plan. and Governance (ESG).
NSE is currently assessing its carbon footprint. NSE published its first Extra Financial Report on July 22, 2022, which can be viewed on the NSE website:
https://www.nse-groupe.com/Rapport_extra-financier_RSE_-28-juillet_2022.pdf
Next press release:
2022 results, 04/28/2023 after market close.
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The NSE Group specializes in the design, manufacture and maintenance of high-tech electronic equipment.
With an international vocation, the NSE Group operates mainly in the Defense, Civil Aeronautics, IT, Medical and Railway sectors.
The company, founded in 1983 and whose head office is located in Nizerolles (03) in the Auvergne Rhône Alpes Region, has structured its organization around three Business Units:
– The “Design” of innovative technical products;
– “Integration” for the manufacture of integrated equipment on behalf of major operators;
– “Services”, through a global offer of Value-Added Services internationally.
NSE has 8 industrial sites in France and 7 international subsidiaries. NSE employs more than 700 people, 450 in France, 250 internationally. As of December 31, 2022, the Group generated consolidated sales of €65.6 million, of which 32% internationally.
More information on www.nse-groupe.com
________________
For all information: Philippe Brel – [email protected]
NSE is listed on Euronext Growth
TM
in Paris – Mnemonic: ALNSE – ISIN code: FR0004065639
[1]
Joint Venture of Companies – see NSE press release for the Mercure Market
[2]
Integrated structure for maintenance in operational condition of land equipment
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This date would make it possible to organize a conference to present the results to investors before the May weekends.
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Full and original press release in PDF format:
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