Emakina Group: Sales Grow by 18% and Profitability Increases by 36% in 2012

 Emakina Group: Sales Grow by 18% and Profitability Increases by 36% in 2012

  PR Newswire

  BRUSSELS, March 22, 2013

BRUSSELS, March 22, 2013 /PRNewswire/ --

     (The original French version is binding - this English version is a
                           non-binding translation)

Emakina Group  (Alternext Brussels: ALEMK) today communicates its annual
results for 2012.  Consolidated sales increased by 18% in 2012 compared with
2011 ,  while the consolidated EBITDA increased by 36% in absolute terms. The
consolidated net result (excluding amortisation of goodwill) increased by 45%
from 724 , 759 euros in 2011 to 1 , 052 , 780 euros in  2012. In  order to
sustain this strong growth ,  the Board of Directors will suggest to the
General Assembly that no dividend be distributed ,  as was the case last
year.

Sustained increase in sales, both inside and outside Belgium

In 2012, Emakina Group posted sales of 48,783,064 euros compared with
41,337,106 euros in 2011, an increase of 18%. At constant scope, sales
increased by 12%. Sales inside and outside Belgium both increased at a rate of
18%. As a reminder, the 52% acquisition of equity in the Genevan
communications agency LABEL.ch, now Emakina.CH, in July 2012 contributed to
the development of this international growth dynamic. In Belgium, the takeover
in March 2012 of the business of the Wanabe agency in Waterloo made it
possible for Emakina to strengthen its position in its historic market.

In 2012, new national and international clients such as AG Insurance, Bavaria,
Blueband, Bonduelle, Caisse d'Epargne, Karl Lagerfeld, OZ - Onafhankelijk
Ziekenfonds, Orange, Peugeot, Sanofi, Seat and SNCF chose an agency in the
Emakina Group as a partner for the development of their presence in new media.

At the same time, Emakina Group is pursuing its international development by
means of commercial agreements. At the end of 2012, the group signed three
strategic partnerships (with Metia Group, Digital Jungle and SinnerSchrader)
which will strengthen its presence in Asia, the United Kingdom, Germany and
the United States.

EBITDA increases by 36%

EBITDA increased by 36% in absolute terms. As a percentage of total sales, the
EBITDA grew from 6.7% of sales in 2011 to 7.7% of sales in 2012. At constant
scope, the EBITDA went from 6.7% to 8.3% of sales between 2011 and 2012,
thanks to the successful integration efforts of the activities of Emakina.CH
and PKA Wanabe, whose positive effects on profitability are expected from
2013.

Consolidated net result before amortisation of goodwill increases by 45%

The consolidated net result before amortisation of goodwill amounted to
1,052,780 euros in 2012 compared with 724,759 euros in 2011. This increase is
explained by the improvement in the operating result of 487,823 euros combined
with a controlled financial result, a net tax charge which increased by
551,761 euros and the absence of a significant extraordinary result in 2012.

Finally, it is important to remember that the amortisation of goodwill rose by
1,507,875 euros in 2012. This element of Belgian GAAP, which requires
compulsory amortisation of goodwill had a significant bearing on the
consolidated net result for 2012. Excluding this amortization, the
consolidated net result would have amounted to a profit of 1,052,780 euros
instead of a loss of 455,095 euros.

Emakina continues its investment efforts in order to be able to provide a
competitive service:

1.The significant investments made in 2011 and continued in 2012 in the
    "social", "mobile", "performance", "integrated communication" and
    "CRM/direct marketing" domains had beneficial effects. These centres of
    expertise made it possible to expand the services offered and were a lever
    for significant growth.
2.The acquisition of the advertising agency Troy, in March 2011, further
    reinforced Emakina's "full service" strategy for brand management. This
    acquisition allowed Emakina to strengthen its competencies in brand
    strategy and to create multichannel campaigns, particularly for the
    account of the client SEAT.
3.The national and international expansion of the group by means of the
    acquisition of Emakina.CH and Wanabe combined with three commercial
    partnerships signed with Metia, Digital Jungle and SinnerSchrader will
    make a positive contribution to profitability starting from 2013 and will
    make it possible to improve the service offered and to take advantage of
    the international impact as a result of synergies of the available talent.

Several elements explain the growth in operational profitability in 2012:
better management of production costs, an improvement in production
efficiency, optimal planning management, a strengthening of the monitoring of
external purchases through the medium of order forms and a stable average
sales price.

Within a context of significant growth, the stable level of financial debt and
the availability of renewed credit lines adapted to group expansion ensured
that the Group was able to maintain financial stability despite an increased
need for working capital. In particular, this stability made it possible,
essentially via its own funds, to ensure the financing of the acquisition of
the majority interest in the Genevan agency Emakina.CH.

To accompany its expansion and to strengthen its own funds, the Board of
Directors of Emakina Group will suggest to the General Assembly in April 2013
that no dividend be distributed, as was the case last year.

Prospects for 2013

Emakina Group's management foresees continued growth over the whole of the
year 2013, but at a significantly lower pace than has been seen this year.

Auditor's Report

The auditors have confirmed that their audit of the consolidated accounts has
been fully completed and has not revealed any significant corrections to the
accounting information included in this press release.

Belgian GAAP

All consolidated figures were established according to Belgian GAAP (in
particular the figures relating to the compulsory amortisation of goodwill).
These figures represent a summary of financial results that will be published
in detail in the annual report available on 2 April 2013.

Financial Calendar

  *Annual General Assembly: at 16:00 hours on 22 April 2013
  *Annual Report: 2 April 2013
  *Half-Yearly Report: 16 September 2013

                 CONSOLIDATED FIGURES 2012 - EMAKINA GROUP SA


     CONSOLIDATED RESULTS (EUR) *                      31/12/2012  31/12/2011  31/12/2010
    TOTAL REVENUES                                     48,783,064  41,337,106  33,105,221
    Net revenues                                       47,799,533  40,265,704  31,537,104
    Variation of work in progress                         612,880     452,051     930,285
    In-house production                                   204.530     241,097           0
    Other operating income                                166,121     378,254     637,832
    TOTAL OPERATING COSTS (before depreciation
     and amortisation)                                -45,027,552 -38,587,823 -30,485,186
    Purchase of equipment and services
     related to sales                                 -24,411,435 -21,129,943 -15,464,514
    Payroll costs                                     -20,416,416 -17,339,864 -14,874,268
    Other operating costs                                -188,701    -118,016    -146,404
    OPERATING PROFIT (before depreciation
     and amortisation) = EBITDA                         3,755,512   2,749,283   2,620,035
    DEPRECIATION AND AMORTISATION                      -1,361,478    -843,072    -895,667
    Depreciation and amortisation of
     (in)tangible assets                               -1,114,995    -861,492    -847,489
    Write-off on trade receivables                       -258,414     -13,746     -58,775
    Litigation accruals                                    11,931      32,166     -10,597
    OPERATING PROFIT (EBIT)                             2,394,034   1,906,211   1,724,368
    NET FINANCIAL RESULT                                 -349,762    -324,140    -356,725
    Financial income                                       77,064      74,884      30,983
    Financial charges                                    -426,826    -399,024    -387,708
    CURRENT PRE-TAX PROFIT BEFORE
     AMORTISATION ON GOODWILL                           2,044,272   1,582,071   1,367,643
    Amortisation on goodwill**                         -1,507,875  -1,561,061  -1,218,318
    CURRENT PRE-TAX PROFIT                                536,397      21,010     149,325
    NET EXTRAORDINARY RESULT                              -42,971    -368,363    -326,734
    PRE-TAX PROFIT                                        579,368    -347,353    -177,409
    Deferred taxes                                       -217,783    -260,837    -301,144
    Current income tax                                   -822,927    -228,112    -420,096
    SHARE IN RESULTS OF EQUITY-METHOD
     ENTITIES (profit)                                      6,247           0        -282
    NET PROFIT BEFORE AMORTISATION ON GOODWILL          1,052,780     724,759     319,386
    NET PROFIT                                           -455,095    -836,302    -898,932
    A. Share of third parties                             -31,762      32,041      44,856
    B. Group share                                       -423,333    -868,343    -943,788


    SHARE DATA                                         31/12/2012  31/12/2012  31/12/2010
    NUMBER OF SHARES                                    3,833,739   3,833,739   3,796,869
    NUMBER OF SHARES & SHARE OPTIONS                    4,041,959   4,097,089   4,021,779
    CURRENT PRE-TAX PROFIT (in EUR)                        0.1399      0.0055      0.0393
    CURRENT PRE-TAX PROFIT / SHARE &
     SHARE OPTION (in EUR)                                 0.1327      0.0051      0.0371
    GROUP SHARE / SHARE (in EUR)                          -0.1104     -0.2265     -0.2486
    GROUP SHARE / SHARE & SHARE OPTION (in EUR)           -0.1047     -0.2119     -0.2347
    NET PROFIT / SHARE (in EUR)                           -0.1187     -0.2181     -0.2368
    NET PROFIT / SHARE & SHARE OPTION (in EUR)            -0.1126     -0.2119     -0.2235

*  Established according to Belgian GAAP

** According to valuation rules, goodwill is amortised over a period of 8
years independently of any potential considerations

  of overvalues in accordance with Belgian GAAP

The consolidated income statement for 2012 includes 12 months of all group
subsidiaries, except for Emakina.CH, which have been consolidated since July
2012, that is to say 6 months of profit and loss.


                 ASSETS (EUR) *               31/12/2012 31/12/2011 31/12/2010

    NON CURRENT ASSETS                         9,518,823  8,873,387  9,287,012
    Formation expenses                           177,960    269,914    385,692
    Intangible assets                          2,001,937    836,213    437,849
    Goodwill                                   5,880,872  6,438,421  7,390,041
    Tangible assets                            1,244,679  1,088,537    849,099
    Financial assets                             213,375    240,302    224,331
    CURRENT ASSETS                            20,878,538 20,442,876 16,311,068
    Stocks and contracts in progress           4,413,093  3,616,979  3,094,317
    Deferred taxes                               136,983    387,874    563,162
    Amounts receivable with one year          14,221,489 13,826,031 11,324,959
    Investments                                  395,890          0      1,348
    Cash at bank and in hand                   1,151,398  2,203,255    998,071
    Deferred charges and accrued income          559,685    408,737    329,211
    TOTAL ASSETS                              30,397,361 29,316,263 25,598,080

               LIABILITIES (EUR) *            31/12/2012 31/12/2011 31/12/2010

    EQUITY                                     9,665,965 10,097,133 11,016,293
    MINORITY INTERESTS                             8,634      7,460     51,258
    PROVISION FOR LIABILITIES AND CHARGES          5,000     16,932    161,097
    DEFERRED TAXES AND LATENT TAXATION
    LIABILITIES                                   77,394    110,502    136,498
    CREDITORS                                 20,640,368 19,084,236 14.232,934
    Amounts payable after one year             1,508,623    443,356    120,720
    Amounts payable within one year           18,510,802 18,412,781 13,971,332
    Current portion of amounts payable after
    one year                                     604,125  1,215,005  1,001,984
    Financial debts                            4,385,622  2,064,400  1,202,057
    Trade debts                                3,555,991  4,723,962  3,687,017
    Advances received on contracts in
    progress                                   3,573,594  4,953,413  3,981,846
    Amounts payable on taxes, remuneration
    and social security                        4,825,306  3,638,534  2,911,977
    Other amounts payable                      1,566,164  1,817,467  1,186,451
    Accrued charges and deferred income          620,943    228,099    140,882
    TOTAL LIABILITIES                         30,397,361 29,316,263 25,598,080

* Established according to Belgian GAAP

In accordance with the new rules of Alternext Brussels, the current annual
press release has become optional. This press release will be followed by the
publication of the 2012 annual report of the Emakina Group, which will include
the full information required. This report will be available on our site,
http://www.emakina.com (section "Investors") from 2 April 2013 in accordance
with the legal requirements in this matter.

About Emakina Group SA

Emakina is a European group of digital agencies supporting their clients in
maximising the opportunities of the new digital era. These agencies are
Emakina (Brussels, Paris, Limoges, Rotterdam and Geneva), Emakina.EU and Your
Agency (Waterloo), Robert & Marien (Brussels), Design is Dead (Antwerp) and
The Reference (Ghent). Emakina Group has a portfolio of services centred on
four core activities: Integrated, Web Building, Interactive, and Applications.
Its clients include many leading businesses, such as Audi, Baume & Mercier,
Belgacom, BNP Paribas Fortis, Brussels Airlines, Caran d'Ache, Deutsche Bank,
GDF Suez, Girard-Perregaux, ING, Keytrade, KPN, Longines, Microsoft, Orange,
Panasonic, Samsung, Schweppes, Seat, Thomas Cook, Volkswagen, and
international institutions, such as the European Commission. In 2012, the
Emakina Group employed a staff of over 450 people and a reported a turnover of
€49.3 m. Emakina is listed on Alternext of Euronext Brussels (mnemo: ALEMK -
ISIN: BE0003843605). For more information visit: http://www.emakina.com

Contact: More information: Denis Steisel, CEO Emakina Group, dst@emakina.com ,
+32-2-400-40-00. Frédéric Desonnay , CFO Emakina Group, fds@emakina.com ,
+32-2-788-78-26 . Luc Malcorps, Director of Media Relations, Emakina Group,
lma@emakina.com , +32-2-788-79-73. Emakina Group S.A., Rue Middelbourg 64A ,
1170 Brussels , Belgium , VAT 0464-812-221 , ISIN BE 0003843605
 
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