(AOF) – Orpea announced this Monday the regrouping of its shares through the exchange of 1,000 old shares with a nominal value of one euro cent for one new share to be issued with a nominal value of 10 euros. The operator of retirement homes and clinics specified that this share consolidation operation will begin on the morning of February 20 and end on the evening of March 21. The listing of the new shares is scheduled for March 22.
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Key points
– European number 1 in global dependency care with nearly 90,000 beds and 1,053 establishments in 22 countries, created in 1989;
– Turnover of €4.7 billion, split between France-Benelux for 60%, Central Europe for 26%, Eastern Europe for 9%, the Iberian Peninsula and Latin America ( Brazil, Chile and Uruguay) for 5% then China;
– Value creation model based on international selectivity, the reduction in the holding of real estate assets, the recovery of the financial situation and the improvement of working conditions leading to better consideration of the needs of residents or sick;
– Renewal of governance, Guillaume Pepy chairing the board of directors of 7 members, Laurent Guillot being general manager;
– Very tight balance sheet with a debt leverage of 23 at the end of 2022, requiring a debt restructuring and contributions of new funds through guaranteed debt and capital increase.
Challenges
– Refoundation plan “Orpea is changing! with you and for you” 2025 set up by the new executive committee:
– 2025 financial objectives: 1,173 establishments, €4.7 billion in turnover, i.e.
– average annual growth of 9%, and 20% growth rate
– 1st phases from July to November: remedy, organize, remobilize:
– new governance,
– identification of synergies between professions – EHPAD, home care, clinics,
– identification of core markets: France, Germany, Netherlands, Switzerland, Ireland,
Spain and Austria, with €5.23 billion in turnover expected in 2025,
– November 15: presentation of the plan with detailed objectives;
– “Green building” 2030 environmental roadmap:
– reduction of 16% by 2025 and 30% by 2030 in energy consumption and, for carbon emissions, by 17% then 30%,
– energy audits, production of renewable energy at establishment level.
– Towards a takeover of the capital by the Caisse des Dépôts and group of investors, by
end of December after general meeting of shareholders, up to 50.2%.
Challenges
– Speed of recovery in France which should contribute 75% to the recovery of the margin;
– Difficulty implementing the real estate strategy (holding 20 and 25% of the portfolio, compared to 46% in 2022 with, in the medium term, creation of a dedicated real estate company with a promotion margin of around 10%, the market downturn limiting sales of real estate assets initially planned to €1 billion;
– Implementation of the financial restructuring opened on October 25: 3 capital increases leading to a share value which could be less than €0.02;
– After a turnover up 10.7% and a net loss of €371 million in the first half, 2023 expectations of an operating profit of +€705 million.
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