Groupe Gorgé's first half 2017 revenue in line with 2017 objectives

Groupe Gorgé (Euronext Paris: GOE) today announces its revenue for the first half of 2017.

Revenue

(In € million)
H1 2016
H1 2017⁽¹⁾
Change
Q2 2016
Q2 2017⁽¹⁾
Change


Smart Safety Systems
53.0
54.4
2.6%
33.5
29.5
(11.7)%


Protection of High Risk Installations
77.1
68.3
(11.4)%
42.0
34.1
(18.8)%


3D Printing
12.4
14.6
18.2%
6.5
7.2
11.6%


Structure & eliminations
(0.6)
(0.6)
n/a
(0.3)
(0.3)
n/a


Consolidated revenue
141.9
136.7
(3.6)%
81.6
70.6
(13.5)%

(1) Unaudited data

In the first half of 2017, Groupe Gorgé's consolidated revenue amounted to €136.7 million, down 3.6% compared with the first half of 2016. The group recorded a good performance in the 3D Printing and Smart Safety Systems divisions offset by a decline in the Protection of High Risk Installations division, affected by a particularly high comparison basis.

In the Smart Safety Systems division, revenue amounted to €54.4 million in the first half of 2017, up 2.6% compared with the first half of 2016. First half of 2016 revenue level was strong, so business in the first half of 2017 performed well, resulting from sound order intake level in 2016.

The Robotics and Integrated Systems business, up 5.0% compared with the first half of 2016, remained dynamic with, in particular, significant orders intake, while the strong growth of 29.6% compared with the first half of 2016 in the Aerospace business benefited from the consolidation of ELTA at the end of November 2016. Sales by the Simulation business, down by 52.3% compared with the first half of 2016, are affected by an unfavourable comparison basis related to the end of the military vehicle driving simulators (MVS) contract at the end of the first half of 2016. A new contract awarded at the end of 2016 will contribute to revenue for the second half of 2017.

In the Protection of High Risk Installations division, revenue amounted to €68.3 million in the first half of 2017, a drop of 11.4% compared to the first half of 2016 which itself was up almost 22%. The Fire Protection activities remained dynamic, particularly with the installation of the first residential sprinkler system in France.

The business slowdown in the field of Protection in Nuclear Environments, which started in 2015, has not yet changed over the period. Nevertheless, the outlook for business in the nuclear sector is now more favourable; the division's backlog increased by close to 40% since 31 December 2016 due to a first order intake of around €20 million for the two EPR^TM reactors currently under construction at the Hinkley Point site in the United Kingdom.

Finally, the 3D Printing division is continuing to grow with revenue amounting to €14.6 million in the first half of 2017, up 18.2% compared with the first half of 2016. The Systems business, stable compared to the first half of 2016, sales of the new ProMaker P1000 machine contributed only €0.5 million as marketing was slowed down in order to perfect its reliability. At the same time, the Products business, up 50,5% in the first half of 2017, made significant progress enabling to achieve a growth markedly greater than the majority of listed players in the sector.

The division continued to expand its offer with the announcement of its new Rapid Additive Forging technology for 3D printing of large metal parts and of its new generation of 3D printers, ProMaker LD series, dedicated to the dental industry. During the first half, PRODWAYS GROUP also continued its strategic initiatives with its successful Initial Public Offering on the Euronext Paris stock exchange.

Outlook

Revenue from the Smart Safety Systems division should reach €120 million in 2017. The division is positioned on several significant calls for tender, particularly for airborne drones, drone systems or assembly systems for the aeronautical industry which have been pending decision for several months and should go through in the second half of 2017

Revenue from the Protection of High Risk Installations division is expected to be in line with 2016.

Thanks to its successful Initial Public Offering, the 3D Printing division now has a more robust balance sheet, offering financial and strategic flexibility to implement its growth plan. In the next few months, the division may announce a first acquisition.

In this context, Groupe Gorgé confirms its objective of consolidated revenue close to €300 million in 2017.

Next press release:

Publication of half-year 2017 results on 11 September 2017

About Groupe Gorgé

Groupe Gorgé is an independent group that specializes in high-tech industries. Today, the Group is active in the fields of security and protection in extreme environments, as well as in the 3D printing sector. It employs around 1,700 people, is located in eight countries and directly exports around 40% of its activity. In its more than twenty-five year history, Groupe Gorgé has always developed and driven the latest technological and industrial innovations.

Smart Safety Systems: Developing complete, innovative technological solutions for complex missions in hostile and confined environments.

Protection of High-Risk Installations: Protecting people and ensuring the active and passive protection of installations for energy markets and industrial and tertiary sectors in France. Ensuring the maintenance of these protection systems.

3D Printing:Enabling major industry players to find new routes to successful innovation and production processes by providing systems, 3D printers and new premium material.

In 2016, the Group reported revenue of €281.2 million. It is backed by 1,800 employees and operations in over ten countries.

More information available on www.groupe-gorge.com

Groupe Gorgé is listed on Euronext Paris and on the US OTC market in the form of ADR.

Euronext Paris:

Compartment B.

ISIN code: FR0000062671

Ticker code: GOE
US OTC market:

CUSIP NUMBER: 399451 103

ISIN NUMBER: US3994511034

Ticker Code: GGRGY / GGRGF

Contact

Groupe Gorgé - Raphaël GORGÉ – Chairman & CEO - Tel.: +33 1 44 77 94 77 - E-mail: [email protected]

Finance News – Natacha MORANDI – Analysts/Investors Relations - Tel.: +33 1 53 67 36 94 - E-mail: [email protected]

Finance News – Jean-Michel MARMILLON – Press Relations - Tel.: +33 1 53 67 36 73 - E-mail: [email protected]

Disclaimer

GROUPE GORGE press releases may contain forward-looking statements regarding GROUPE GORGE's targets. These forward-looking statements reflect GROUPE GORGE's current expectations. Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated herein. The risks and uncertainties that could affect the Group's future ability to achieve its targets include, in addition to those indicated in the press release: the strength of competition; the development of markets in which the Group operates and notably the 3D printing division; currency fluctuations; obtaining the export authorizations that may be required for certain activities; control of costs and expenses; changes in tax legislation, laws,
regulations or their enforcement; our ability to successfully keep pace with technological advances; our ability to attract and retain qualified personnel and key staff; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; manufacturing and supply chain bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.). Some of these risk factors are set forth and detailed in our Document de Référence (Registration Document including the annual financial report filed with the French Autorité des Marchés Financiers), available on our website www.groupe-gorge.com. This list of risks, uncertainties and other factors is not limitative.
Other unanticipated, unknown or unforeseeable factors, such as changes in the economic situation or financial markets, could also have a material adverse effect on our targets.

This press release and the information it contains do not constitute an offer to sell or to subscribe, or a solicitation to purchase or subscribe shares or securities in GROUPE GORGE or in its listed subsidiaries in any country whatsoever.

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Source: Actusnews