29-Apr-2021 / 19:12 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Press release
Consolidated revenue for fiscal year 2020/2021: €163.8 million
- Growth of +16.1% compared to 2019/20 pro forma
- Continued customer diversification
- A dynamic second half
Correction of the consolidated accounts for the 2019/2020 financial year
Strasbourg (France), 29 April 2021 - 2CRSi (ticker: 2CRSI, ISIN: FR0013341781), a designer and manufacturer of high-performance, energy-efficient IT servers, publishes its revenue for the fiscal year 2020/21 (March 1, 2020 to February 28, 2021) and makes a correction to the consolidated financial statements for the fiscal year 2019/20.
As a reminder, the fiscal year 2019/20 was marked by the acquisition of the Boston Limited group and had an exceptional duration of 14 months, from January 1, 2019 to February 29, 2020. Therefore, for comparability purposes, revenue for fiscal year 2019/20 is hereafter presented on a pro forma1 12-month basis, from March 1, 2019 to February 29, 2020.
Including the contribution of the historical 2CRSi scope of €54.8m and Boston Limited of €109.0m, 2CRSi's consolidated revenue for the full year 2020/21 reached €163.8m, an increase of +16.1% compared to the 2019/20 pro forma. This performance is in line with the revised revenue target following the change in the situation of customer Blade[3].
Continued diversification of customer portfolio
The Group confirms the trend of expansion and diversification of its customer base:
- The Group's top client accounts for 10% of total revenue in the period, versus 13% in the first half 2020/21,
- The Group's top 10 clients contribute 41% of total revenue in the period, versus 49% in the first half 2020/21.
A growth year, reinforced by a dynamic second half
Thanks to the diversification of the customer portfolio, the second half of the year saw major commercial successes with new customers in the cloud industry, the banking sector, HPC (high performance computing) services or cryptocurrencies, while the Group also continued its activities with historical customers such as OVHcloud.
In addition, the value-added distribution business resulting from the acquisition of Boston Limited also contributed to growth during the year, while a large proportion of its customers were affected by the sanitary context.
"2020 has been a challenge for the entire economy. In this troubled context and thanks to the mobilization of our teams, we have managed to achieve a solid growth in our revenue of over 16%; this is driven by good sales momentum in the second half of the year with the closing of several significant contracts. This is a demonstration of the relevance of our strategy," said Marie de Lauzon, COO of 2CRSi.
Update on Blade's situation
In the context of the receivership of Blade SAS, 2CRSi, still the owner of the materials of the ongoing contracts with Blade, has reached agreements with the last two candidates for the takeover. The decision of the Paris Commercial Court concerning this takeover is expected on Friday April 30, 2021.
Update on the shortage of electronic components
The first months of 2021 remain marked by the global shortage of electronic components. While this shortage affected more specifically power supplies, memory modules and graphics cards, it has spread in 2021 to all products related to data storage (controllers, hard disks, flash) as well as to processors.
In the short term, 2CRSi has sufficient inventory to deliver its customers' orders and to face longer lead times. However, the Group's growth could be affected, should the shortage continue in the medium term.
Finally, as this shortage of components is worldwide and widespread, the associated cost increases have so far been passed on to sale prices.
Correction to the 2019/20 consolidated financial statements
In the process of preparing its annual financial statements as of February 28, 2021, the company noted that operating expenses for the previous year 2019/2020 had been understated by €2.8m, following an incorrect booking of one credit note to be received. This mistake led to an overstatement of EBITDA by €2.8m and of consolidated net income, Group share, by €2.1m in the financial statements for the year ending February 29, 2020.
This error gives rise to a correction of -€2.8m in EBITDA and -€2.1m in consolidated net income for the year ended February 29, 2020. The consolidated balance sheets as of February 29, 2020 and August 31, 2020 are also modified. It has however no impact on the results of the interim consolidated financial statements as of August 31, 2021.
Modified consolidated income statement and balance sheet are annexed to this release.
While Boston Limited was being consolidated for the first time, closing work for fiscal year 2019/2020 was also constrained as a direct consequence of the health crisis and the first national lockdown. 2CRSi has since reinforced its finance department in France and in the United Kingdom and initiated a plan to improve processes and adapt them to the current situation.
v Next event: fiscal year 2020/2021 annual results on May 31, 2021, after trading.
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About 2CRSi
Founded in Strasbourg (France), 2CRSi group develops, produces and sells high-performance customised and environment-friendly servers. In the financial year 2020/2021, the Group achieved turnover of €164m. The Group today has approximately 350 employees and markets its offer of innovative solutions (processing, storage and network) in more than 50 countries. 2CRSi has been listed since June 2018 on the regulated market of Euronext in Paris (ISIN Code: FR0013341781) and is included in the European Rising Tech label. For further information please visit: www.2crsi.com
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