(Boursier.com) — Precia Molen fell by 1.2% to 33.60 euros, while the 2023 order book stabilized at a level of activity of 4 months… During the year 2023, the group achieved a figure of business of 170.2 million euros. This turnover is up +7.4% compared to 2022 (9.1% excluding scope effect and excluding currency effect). Apart from the American continent, all of the Group’s geographies benefited from this growth. Despite non-recurring costs of around 1.2 ME, the Precia Molen Group achieved a ROC of 16 ME, the main contributors of which are Precia SA, Precia Molen India and Precia Molen Service. In 2023, the Group benefits from the liquidation of the loss-making Australian and Norwegian subsidiaries in 2022 to the tune of €1 million…
The Operating Profit is strongly impacted by the depreciation of the goodwill of Creative IT, the only entity in the Software CGU, for 5.1 ME. The latter was fully depreciated in 2023. Despite certain progress in 2023, five subsidiaries remain points of attention for 2024: Precia Molen UK, Precia Molen Brazil, Precia Molen USA, Precia Molen China and Precia Molen Malaysia.
After taking into account a net financial result of -0.1 ME and a tax charge of 4.8 ME, the 2023 net profit share of the group reached 5.1 ME, it represents 3% of the figure of business (3.6% in 2022; 5.6 ME). Earnings per share are down at 0.95 euros per share compared to 1.04 euros in 2022.
Strengthened balance sheet position
The self-financing capacity is 17 ME (8.1 ME in 2022). The Working Capital Requirement increased again in 2023 by 3.4 ME, mainly following the increase in receivables proportional to turnover. Inventory reduction has begun.
Quoting…
While continuing to invest (3.5ME) and make acquisitions (4.3ME), the Group has improved its cash position while reducing debt. Consequently, net debt (excluding rental debt) remains strongly positive at 19.3 ME (16 ME a year earlier).
Cash (cash and cash equivalents) amounts to 30.7 ME (28.9 ME in 2022). In view of operational performance, the amount per share of the dividend which will be proposed to the general meeting scheduled for June 24 is 0.40 euros per share (0.35 euros last year).
Perspectives displayed
2024 turnover is expected to show moderate growth. Apart from a significant slowdown in order intake in France, the commercial activity of the Group’s entities remains good at the start of 2024.
Given the importance of Precia SA in the composition of the Group’s results, if the economic slowdown in France were confirmed, it would have an overall impact on the Group’s growth in 2024.
The operational excellence actions initiated in 2023 continue to be deployed across the Group, and will have a positive impact on the Group’s operating income. Reducing manufacturing cycles will make it possible to improve service to our customers and reduce our stocks.
The objective of improving the need at the end of the shift remains a priority and actions to achieve this will continue.
“A publication which shows the capacity of management to increase the margin to levels closer to 10%” according to Portzamparc. Enough to aim for a price of 39.70 euros while remaining buying on the value. The stock fell 1.2% this Wednesday to 33.60 euros.