EXEL INDUSTRIES : EXEL INDUSTRIES : Half year results 2012-2013 : Seasonality of results and integration of acquisitions

EXEL INDUSTRIES : EXEL INDUSTRIES : Half year results 2012-2013 : Seasonality
                  of results and integration of acquisitions

PRESS
RELEASE
 Epernay, April 16, 2013

                         Half year results 2012-2013

                                      

                            Seasonality of results
                       and integration of acquisitions

  oRevenue of €301.2 million, +26% compared to previous year, due to
    acquisitions.
    
  oCurrent Operating Income (EBIT):€5.5 million, representing 1.8% of
    revenue. Excluding the effects of the Agrifac and Hozelock acquisitions,
    EBIT is 2.8% of revenue, identical to the previous year.
    
  oNet Financial Debt of €92.8 million after acquisitions.
    
  oSolid financial structure:equity = 36% of balance sheet.

Consolidated data         H1        H1        H1     Change     H1     Change
in € million           2010-2011 2011-2012 2012-2013  in €   2012-2013  in €
                                           constant  million  current  million
Revenue                  174.9     239.2     250.4    11.2     301.2    62.0
Operating cash flow       1.7      13.5      11.4     (2.1)    11.7     (1.8)
EBITDA as % of revenue      1.0%      5.6%      4.6%              3.9%
ROC (EBIT)               (3.4)      7.0       7.0      0.0      5.5     (1.5)
  EBIT as % of revenue    (1.9%)      2.9%      2.8%              1.8%
Financial income         (2.2)      2.6      (1.8)    (4.4)    (6.5)    (9.1)
(expense)
Profit before tax        (6.4)      9.6       2.7     (6.9)    (3.8)   (13.4)
Profit (loss) for the    (4.7)      5.7       2.6     (3.1)    (4.6)   (10.3)
period
Head count (no. of       2,649     2,752     2,804     52      3,371     619
people)

  

  · Analysis of results for the first half year 2012-2013



Income statement:

During the  first  half  year  of 2012-2013,  consolidated  revenue  for  EXEL 
Industries increased by  26%, mainly due  to the acquisitions  of Agrifac  and 
Hozelock. At constant scope, revenue increased by 4.7%: +15% for the Materials
activity and revenue  unchanged for the  Plant activity. International  growth 
was 32%, due to our acquisitions in Europe.

Current operating income (current  EBIT) of €5.5  million, represents 1.8%  of 
revenue, including Agrifac and Hozelock.
At constant scope, EBIT is in line with the previous year at 2.8% of  revenue, 
with a contrasting performance from Plants,  linked to the beet activity,  the 
implementation of a new ERP  and a reduction in  sales in Australia and  North 
Europe,  compensated  by  the  finalization  of  the  automobile  projects  in 
Materials.

The net loss of €4.6 million was impacted by the cost of reorganization of the
beet harvester  range  and  unfavorable exchange  rates  on  Hozelock's  pound 
sterling liabilities due  to the  strengthening of  the euro  compared to  the 
British pound. 

Plant seasonality
Historically low  temperatures in  Europe in  2013 delayed  the start  of  the 
season, in the Farming and Consumer markets.
Our acquisition in the  Consumer market will increase  the seasonality of  our 
Plant activities over the second half year as the peak in Consumer activity is
between March and June.



Consolidated statement of financial position:

The consolidated statement of financial position takes into account the
acquisition of Hozelock and its working capital requirements due to its
important seasonality.

The working capital requirement at end February is identical to the previous
year, at 105 days of revenue.

At constant scope, the net financial debt (NFD) of the Group should have been
€19.6 million. The financing of the activities of Agrifac and Hozelock and
their acquisition increased the NFD of the Group to €92.8 million.

The gearing of the EXEL Industries Group is 46% and its equity represents 36%
of the consolidated statement of financial position.

  · Outlook and Strategy

Mr. Guerric Ballu, Director General of EXEL Industries Group comments:

"We are continuing our growth strategy, and this year will be characterized by
our acquisitions - Agrifac, from July of the previous financial year, Hozelock
in October 2012  and Holmer from  April 2013.  As a result,  our revenue  has 
increased by 26%.

In our  original  markets,  we  are pursuing  our  international  strategy  of 
improved margins and innovation. In Plants, we are improving our supply  chain 
management, with the installation of a new ERP, and are looking to develop our
activities in the USA and Russia. In February 2013, our innovations won awards
at the International Trade Fair  for Agricultural Equipment. In Materials,  in 
order to compensate the reduction in  orders in the automobile sector, we  are 
developing new applications and expanding in the BRIC, as well as offering new
innovations to customers.
At constant scope, our operating income is  the same as last year, given  that 
the first half year  2011/2012 had benefited from  a deferment of revenue  and 
margin from the previous year.

At constant  scope,  EXEL  Industries  group  revenue  has  increased  due  to 
acquisitions. The loss of €4.6 million was principally due to foreign exchange
effects between the euro  and pound sterling, the  reorganization of the  beet 
range and the integration of Agrifac and Hozelock.

In the Consumer  market, the season  was delayed  due to the  poor weather  in 
Europe. Despite  this,  we  are implementing  a  new  synergetic,  operational 
organization at Hozelock, and we will launch a new garden irrigation product -
the Flexi Spray.

With  the  acquisition  of  Holmer,  we  intend  to  make  the  Beet  activity 
profitable, with the most comprehensive range of machinery in the market,  and 
achieve synergies between our current subsidiaries and Holmer.

In a  difficult  economic  situation,  EXEL Industries  has  the  ambition  of 
reinforcing our  world  leadership  in  our  markets,  further  improving  our 
financial  results,  and   accompanying  our   customers  through   continuous 
innovation and a reinforced international presence."

Next date:Revenue for 3^rd quarter 2012-13, on June 25, 2013.

About EXEL Industries:www.exel-industries.com



World specialist  in  precision  spraying techniques  for  agriculture  (world 
leader) and industry (world No.3), EXELIndustries employs around 3,600 people
in 28 countries, over 5 continents.
NYSE-Euronext Paris, Compartiment B, CAC Mid&Small, CAC Small



















  YOUR CONTACTS


Guerric BALLU

Sylvain
ROUSSEAU

Group Director
General
Group Financial Director


Investor relations 

 Sylvain.Rousseau@exel-industries.com

 Tel:
+33 (0) 1 49 40 25 71

EXEL INDUSTRIES : Half year results 2012-2013

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: EXEL INDUSTRIES via Thomson Reuters ONE
HUG#1693537
 
Press spacebar to pause and continue. Press esc to stop.