Tuesday 27 August 2019
The Board of Directors approves the Consolidated Half-year Financial Report at 30 June 2019
Consolidated Half-year Financial Report at 30 June 2019 shows a further improvement in revenues and profit margins.
Consolidated highlights for the 1st half of 2019 (compared to the 1st half of 2018)*:
Revenue: €490.1 million (+5.1%, compared to €466.3 million at 30 June 2018);
Normalized EBITDA**: €57.1 million (+2.1%, compared to €55.9 million at 30 June 2018);
Normalized EBIT: €38.2 million (+3.0%, compared to €37.1 million at 30 June 2018);
Net Profit ***: €3.8 million (compared to €11.5 million at 30 June 2018).
The Board of Directors of Rekeep S.p.A. examined and approved the Consolidated Half-year Financial Report at 30 June 2019, which shows a further improvement in revenues and profit margins.
“During the first half of 2019 the rise in the volume of business went on gathering pace thanks to the good performance of the facility management segment, especially in the healthcare market. This, together with satisfactory profit margins and the outcome of the favourable effect of the cost saving measures taken in previous periods, enables the Group to continue to take an optimistic view of the future, certain as we are of Rekeep’s potential and its capacity to face the challenges of an increasingly competitive market as a leading player” - commented Giuliano Di Bernardo, Chairman and Chief Executive Officer of Rekeep S.p.A..
At 30 June 2019, Revenue for the Rekeep Group reached €490.1 million, up by 5.1% compared to €466.3 million in the first half of 2018.
EBITDA amounted to €52.4 million, showing an improvement of 5.1% compared to €49.9 million at 30 June 2018. Net of non-recurring and start-up costs, Normalized EBITDA** was equal to €57.1 million, showing an improvement of 2.1% compared to €55.9 million in the first half of 2018.
EBIT was €32.6 million, showing an improvement of 6.6% compared to €30.6 million achieved in the same period of 2018. Normalized EBIT**, net of non-recurring and start-up costs, was €38.2 million, showing an improvement of 3.0% compared to €37.1 million in the same period of 2018.
Net Profit at 30 June 2019 was €3.8 million. It should be noted that the merger of CMF S.p.A. into its subsidiary Rekeep S.p.A. became effective on 1 July 2018. Therefore, the Net Profit for the first half of 2019, is barely comparable to that reported at 30 June 2018, equal to €11.8 million, since the latter did not included CMF S.p.A. in the consolidation perimeter of the Rekeep Group.
Net Financial Indebtedness at 30 June 2019 amounted to €328.3 million, compared to €347.9 million at 31 December 2018. This value in the first half of 2019 included the financial liability for operating leases following the first-time adoption of the new IFRS16 – Leases from 1 January 2019. Net of this accounting adjustment, the Net Financial Indebtedness at 30 June 2019 would have been equal to €280.0 million, compared to €298.8 million at 31 December 2018 and to €289.7 million at 30 June 2018 (setting out the effects of the merger of CMF S.p.A. referred to above in a proforma).
Business highlights
During the first half of 2019, the Rekeep Group won tendered contracts and renewed existing contracts generating new orders of about €270 million, compared to €392 million at 30 June 2018. Considering that during the first half of 2018 a substantial portion of the business acquired came from the actual subscription compliant to the MIES 2 agreement tender awarded in 2017, the Group gained contracts, net of the impact of MIES2, worth €217 million at 30 June 2019 compared to €213 million at 30 June 2018. This confirms the strong evidence of the dynamism of Rekeep’s marketing efforts.
Notes:
(*) All the figures in this release take into account the impacts of the first-time adoption of the new IFRS 16, applicable from 1 January 2019.The adoption of this Standard led Rekeep to adapt its financial indicators:
- EBITDA no longer includes operating lease costs, while EBIT and Net Profit for the period include the depreciation of the right of use asset and interest on lease liabilities
- Net Financial Debt includes the financial liability for operating leases calculated as the present value of future lease payments.
(***) It should be noted that the consolidated results of operations at 30 June 2019 relate to a different consolidation perimeter from those for the period ended 30 June 2018 and that therefore some comparisons might not be significant, especially with regard to Net Profit. It is in fact noted that the merger of CMF S.p.A. into its subsidiary Rekeep S.p.A. became effective on 1 July 2018.
