DJ 2CRSi SA: 2022/23 Estimated consolidated annual results
2CRSi SA
2CRSi SA: 2022/23 Estimated consolidated annual results
29-Jun-2023 / 19:09 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Press release
2022/23 Estimated consolidated annual results
-- Revenue stable at EUR184.4m
-- A context of shortage of components and inflation that temporarily weighs on the Group's profitability
Strasbourg (France), 29 June 2023 - 2CRSi (ISIN: FR0013341781), a designer and manufacturer of high-performance
energy-efficient IT servers, releases its estimated consolidated annual results for financial year 2022/23 ended 28
February.
The estimated consolidated financial statements have been prepared under the authority of the Chairman and Chief
Executive Officer, and the audit procedures of the auditors on the consolidated financial statements are in progress.
It should be noted that following the announcement of the agreement reached in June 2023 on the sale of its stake in
Boston Limited (press release of 16 June 2023), the scope of 2CRSi is expected to change very significantly. The
refocusing on the innovation and production activity, the core business of the 2CRSi Group, is still expected for July
2023.
2021-2022
Simplified income statement 2022/2023
final
In millions of EUR - IFRS estimated
Revenue 184.4 183.6
Consumed purchases (142.3) (143.2)
Margin on revenue 42.1 40.4
Gross margin rate 22.8% 22.0%
Other income 0.8 2.5
External expenses (12.2) (10.9)
Personnel expenses (27.1) (23.6)
Taxes (0.6) (0.5)
Other operating income and expenses (1.4) 0.5
EBITDA 1.7 8.4
EBITDA margin 0.9% 4.6%
Current operating income (expense) (8.9) 1.4
Current operating margin 0.8%
Operating income (expense) (8.9) 1.4
Net financial income (2.6) (3.0)
Income tax (0.8) (0.5)
Consolidated net income (expense) (12.4) (1.1)
Consolidated net income, Group share (11.6) (1.1)
"FY 2022-2023 was a particularly challenging period, with inflationary pressures and persistent component shortages weighing on our business momentum despite growing interest in our global technology solutions. As announced at the time of the publication of our revenue, these contrasting business conditions negatively impact profitability for the year. Nonetheless, we remain fully confident in our development prospects. The sale of Boston Limited will not only help strengthen our financial position but will also allow us to focus on our historic core business, where we continue to make a difference in innovation, performance and consideration of environmental issues, today's priority for all global technology players. We are therefore in a position to take a new step forward in the Group's development" says Alain Wilmouth, Chairman and Chief Executive Officer of 2CRSI.
Stable activity in a demanding environment
As announced in the publication of 2 May 2023, the 2CRSi Group generated revenue of EUR184.4 million compared with EUR183.6 million for the 2021-2022 financial year. This stability reflects the impact of persistent shortages in electronic component supplies, which weighed on the execution of several orders that had initially been scheduled for the end of the financial year.
Despite this particularly demanding environment, sales momentum remained solid, particularly in the defence, cloud and scientific research sectors.
Increase in gross margin
For the year, the gross margin amounted to EUR42.1 million. It accounted for 22.8% of revenue vs. 22% in the previous year, reflecting the good control of purchases despite supply conditions. Other business income stood at EUR0.8 million vs. EUR2.5 million in 2021-2022. This change includes an unfavourable comparison base, with the 2021-2022 financial year incorporating exceptional business income of around EUR1.7 million as part of the legal reorganisation of Blade.
EBITDA should remain positive
In addition to the level of activity affected by delays in order execution, operating profitability was penalised by inflationary pressures, which particularly weighed on the retail business. This activity had to cope with a sharp increase in payroll costs in the UK, Germany and Switzerland.
Against this backdrop, personnel expenses increased 15% to EUR27.1 million (14.7% of total revenue versus 12.8% in 2021-2002). External expenses were also up 12% to EUR12.2 million in 2022-2023 compared with EUR10.9 million in 2021-2022.
Other operating income and expenses also weighed on profitability at -EUR1.4 million versus EUR0.5 million in 2021-2022. This unfavourable change includes a negative foreign exchange effect of EUR0.6 million.
Despite these items, EBITDA remained positive at EUR1.7 million versus EUR8.4 million a year earlier.
Profit from recurring operations was negative at EUR8.9 million, including EUR9.6 million in depreciation, amortisation and provisions, compared with EUR6.5 million the previous year.
Taking into account the financial result, which rose from -3.0 million euros to -2.6 million euros, and tax, the Group share of consolidated net profit was a loss of 11.6 million euros, compared with a loss of 1.1 million euros the previous year.
A secure financial structure
At the end of the 2022-2023 financial year, inventories were down to EUR53.5 million compared with EUR56.4 million for the previous financial year. The level of trade receivables was also significantly reduced to EUR18.6 million compared with EUR26.2 million in 2021-2002.
At the end of February 2023, the Group's cash position stood at EUR6.4 million in 2022-2023 compared with EUR4.7 million in the previous financial year, up 35%.
Finally, the Group continued its deleveraging with financial debt excluding lease debt reduced from EUR55.3 million at end-February 2022 to EUR53.5 million at end-February 2023.
This financial situation is expected to be significantly improved in the coming months with the completion of the sale of the distribution business. As announced, the proceeds from this sale will be allocated as a priority to deleveraging and strengthening equity, which stood at EUR27.8 million at the end of February 2023.
Thus, the balance of the Boston Ltd acquisition loan, taken out in November 2019, will be fully repaid, i.e. EUR9 million to BNP Paribas. The closing of the transaction will also lead to the expiry of the call option and the put option of 30% of the shares of the minority shareholders of Boston Ltd, as well as the additional price expected for 2022/23, valued in financial debt for an amount of EUR13 million at the close.
Outlook: confidence confirmed
For the new financial year, despite the caution imposed by the general environment, which is still mixed, 2CRSi intends to accelerate its commercial transformation while maintaining strict discipline in terms of cost control and margin growth. With this in mind, refocusing on the core "designer and manufacturer" business with the planned disposal of the distribution business will be a decisive driver.
At the end of this transaction, a new roadmap associated with financial objectives will be presented taking into account the new scope.
2CRSi also confirmed its intention to propose to the Board of Directors to submit to the Annual General Meeting for approval a special dividend of EUR0.20 per ordinary share in order to share the proceeds of the sale of its distribution activity with all shareholders.
Simplified consolidated balance sheet 28/02/2023 29/02/2022 In millions of EUR - IFRS estimated final Goodwill 8,3 8,7 Intangible fixed assets 15,4 16,3 Tangible assets[1] 16,1 20 Non-current financial receivables 1,5 4,4 Other non-current assets 4,8 3,9 Total non-current assets 46,1 53,3 Inventories 53,3 56,4 Customers 18,6 26,2 Other current assets 17,5 16,8 Current financial receivables 7,5 5,9 Cash and cash equivalents 6,4 4,7 Total current assets 103,2 110 TOTAL ASSETS 149,3 163,4 Capital attributable to equity holders of the parent 28,9 40,5 Non-controlling interests (1) (0,3) Consolidated capital 27,8 40,3 Borrowings and financial liabilities 13,2 26,5 Non-current lease liabilities 9,9 12,3 Other non-current liabilities 3,8 3,1 Total non-current liabilities 26,8 42 Trade payables 22,6 24,8 Current financial liabilities 40,3 29,8 Current lease liabilities 2,5 3 Other current liabilities 29,4 23,5 Total current liabilities 94,7 81,1 TOTAL LIABILITIES 149,3 163,4
- END -
Next event: Annual General Meeting on 31 August 2023.
About 2CRSi
Founded in Strasbourg (France), 2CRSi group develops, produces and sells customised, high-performance and environmentally-friendly servers. In the 2022-2023 financial year, the Group generated revenue of EUR183.8 million. The Group today has around 390 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: FR0013341781) and its shares were transferred to the regulated market Euronext Growth on 25 November 2022.
For more information: www.2crsi.com
2CRSi contacts
2CRSi
Actifin
Philippe Steinmetz Actifin
Michael Scholze
Group Chief Financial Lucie Morlot Financial Communication
Officer lucie.morlot@actifin.fr Financial Press Relations
michael.scholze@actifin.fr
investors@2crsi.com +33 (0)1 80 18 26 33
+33 (0)1 56 88 11 14
+33 (0)3 68 41 10 70
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[1] Includes items associated with right-of-use assets (IFRS 16).
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Regulatory filing PDF file File: 2022/23 Estimated consolidated annual results
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Language: English
Company: 2CRSi SA
32, rue Jacobi-Netter
67200 Strasbourg
France
Phone: +33 3 68 41 10 70
E-mail: investors@2crsi.com
Internet: www.2crsi.com
ISIN: FR0013341781
Euronext Ticker: AL2SI
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1669403
End of Announcement EQS News Service
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1669403 29-Jun-2023 CET/CEST
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June 29, 2023 13:09 ET (17:09 GMT)
